Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jonathan Ashworth

Monday 19th December 2011 Commons Chamber

[Jonathan Ashworth (Leicester South) (Lab)]

9. What recent discussions he has had on armed forces pay; and if he will make a statement.

[The Secretary of State for Defence (Mr Philip Hammond)]

I provided oral evidence to the Armed Forces Pay Review Body on 13 December. The discussion covered various aspects of the current remuneration package for members of the armed forces, as well as the broader economic context.

[Jonathan Ashworth]

I thank the Secretary of State for his answer. He will, of course, be aware that the pay freeze and changes to pensions are causing some concern, perhaps even anger in some quarters, not least among non-commissioned officers. Does he have any concerns in that regard, and does he have any contingencies in place should the changes to pensions and the pay freeze lead to an exodus of experienced personnel?

[Mr Hammond]

The Government recognise the unique and important role played by the armed forces, which is why we doubled the operational allowance to £5,280 tax free, why the incremental pay system will continue during and after the pay freeze, and why we have exempted the armed forces from the average 3% increase in pension contributions that public sector workers will pay. I recognise the concern that the hon. Gentleman expresses, and I have discussed it with the Armed Forces Pay Review Body. The proposals that the Chancellor announced in the autumn statement for continued pay restraint after the freeze include flexibility for the Ministry of Defence to address specific problem areas if we find we are losing, or failing to recruit, specialist staff.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jonathan Ashworth

Thursday 15th September 2011 Commons Chamber

[Mr Hammond]

The hon. Gentleman is absolutely right and I have said time and again that a major infrastructure project such as HS2 is not an alternative to routine investment in the rest of the rail network and that to get the maximum out of HS2 we will also need to improve the connectivity from the nodes on the HS2 railway to the surrounding areas.

[Jonathan Ashworth (Leicester South) (Lab)]

13. What recent assessment his Department has made of the effectiveness of its procurement policy for rail rolling stock.

[The Secretary of State for Transport (Mr Philip Hammond)]

As stated at the Select Committee on Transport on 7 September, for all future Government-led procurements—not just those for rolling stock—the Prime Minister has asked the growth review to examine the degree to which the Government can set out the requirements and the evaluation criteria with a sharper focus on the UK’s strategic interest, including a review of public procurement practice and outcomes in other EU member states and a review of current private sector best practice. The results of those reviews will inform future Government-led procurements.

[Jonathan Ashworth]

I am sorry that the Secretary of State feels that he is talking to a brick wall when Members raise legitimate concerns about the impact on jobs of the Bombardier decision. I am concerned about the impact on Leicester, where many firms are part of the supply chain. What reassurance can he give those firms now that the majority of our trains will be built abroad?

[Mr Hammond]

The hon. Gentleman is quite wrong to say that the majority of our trains will be built abroad. One contract has been awarded to Siemens, and those trains will be built in Germany. Other contracts are in the pipeline, and Bombardier remains a very strong bidder. It has demonstrated over the last 15 years its ability to win a majority of UK train orders. From 2014 we will have a second UK-based train builder, Hitachi, in the plant that it is establishing in Newton Aycliffe, with the creation of 600 new jobs.