Strategic Defence and Security Review
Lord Howell of Guildford Excerpts(9 years ago)
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Lord Howell of Guildford (Con)
My Lords, I congratulate my noble friend Lord Attlee on securing this debate. I am also looking forward greatly to the maiden speech of the noble Lord, Lord Hain, who during the whole of my time in Parliament, which is just short of 50 years, seems to have been campaigning for something or other—he is the campaigner par excellence. In between that, he has been Secretary of State for just about everything, but we will hear about that in a moment.
This document is of course a defence review, but it is also an overall view of the nation’s rapidly changing place in the world and how we survive and prosper in the future. I want to concentrate on the Prime Minister’s quote on page 6, about our outstanding Diplomatic Service and our formidable soft power and how we must put the one behind the other. I want to refer also to national security objective 2 on page 11, which again talks about soft power and how clearly it must reinforce and work hand in hand with hard power and more traditional, conventional forms of power deployment and influence. It all sounds fine. It has good remarks in it about the BBC World Service and the British Council in an information age. There is no mention at this point in the report about the Commonwealth, although on page 54 the whole tone suddenly changes and the authors there—they may have been different authors—grasp both the enormous security and trade implications of the Commonwealth network.
More important than that is whether the fine aspirations that the Prime Minister sets out are being followed up. We have a huge aid budget and we can argue about at what speed it should increase and so on, but, whatever its size, it must be backed up by the rest of the diplomatic, security and defence machinery of the nation so that we get a maximum impact from the enormous resources that we are putting into international affairs. Frankly, that is not happening. It may be happening at a junior level but at the senior levels in government we are missing the necessary linkage. The MoD, the FCO and DfID must work more closely together. I agree that the huge resources of DfID, which is doing an excellent job in many areas, need to brought into closer connection with our national interests, national purposes, national security and, indeed, with the Foreign and Commonwealth Office, as is the case in Australia, Canada and many other countries.
More widely, the report is weak on energy. It does not mention anything about the interconnectors which will keep our lights on. It does not mention much about Japanese nuclear power—not Chinese, but Japanese; I declare an interest—which will be the key spearhead in the development of our low-carbon economy. There is not much on Middle East oil and rather high hopes on US shale gas, which, by the time it gets to Europe, will be very expensive. There is little on Asian security and the newly developing common aim between India, Australia, New Zealand and Japan in containing Chinese expansion in Asia. Generally, the authors have not quite grasped that we have moved from an industrial world to an information world; that large-scale military force is less important than it was 50 years ago and that new agile forms are needed; that there are no superpowers anymore; that we live in a network world; and that we must invest in new tools of diplomacy in this network world.
For a clearer insight into what is really happening for this country, I refer noble Lords to a recent document from the London School of Economics Diplomacy Commission, which understands these points. It picks up a number of ideas from your Lordships’ own soft power report, without attribution—but, never mind, I am being kind to it—and frankly, if we want to understand where this country ought to be going, that is a much better read.
The Minister of State, Ministry of Defence (Earl Howe) (Con)
My Lords, we have had a detailed and extremely well-informed debate, benefiting, as ever, from your Lordships’ experience and expertise on defence matters. I congratulate my noble friend Lord Attlee on having introduced it so expertly. I congratulate also most warmly the four maiden speakers, each of whom in their own way has shown how maiden speaking should be done. Time has been tight but we have covered a great deal of ground.
I begin by reminding noble Lords of the context in which our discussions have taken place. We are living in dangerous and difficult times. The threats we face are growing in scale, complexity and diversity. In the past year alone we have seen a newly aggressive Russia using proxies to menace the borders of Ukraine. We have seen the Daesh death cult export the horrors it has perpetrated in the Middle East across the globe, from the beaches of Tunisia to the streets of Paris. We have also seen a great migration spilling across Europe’s borders and into the Mediterranean due to the effects of growing instability in the Middle East and Africa.
Such threats do not just pose a danger to us directly but undermine our entire international rules-based system on which our values of tolerance, the rule of law and freedom depend. Yet in the face of these dangers, we will not retreat to our shores. Instead, we will continue protecting our people, projecting our influence and playing a central role in supporting global security and stability.
Our strategic defence and security review, published last week, strengthens our defence in three ways. First, it gives us the means to match our ambition. This Government have prioritised defence and security over many other areas of public spending. We have made a commitment to meet the NATO 2% target. We have put in place £2 billion of the joint security fund, which will see the defence budget rising in real terms by 3.1% in this Parliament. On top of that, we are meeting our UN target by spending 0.7% of gross national income on development. Additionally, we are increasing our investment in our security and intelligence agencies, and in counterterrorism. That money allows us to take the full spectrum of measures needed to tackle the causes and consequences of the threats that we face: tackling the poisonous ideology of Islamist extremism; refocusing our aid budget to support fragile and broken states; and preventing conflict across the world.
However, our SDSR is about hard as well as soft and smart power. There will continue to be times when we need to employ armed force to counter aggression. That is why, in the past year, we have been acting around the world, whether policing Baltic skies to deter Russia’s expansionism or using our Brimstone and Hellfire missiles to degrade Daesh in Iraq. Following yesterday’s vote in Parliament, we will be doing more in Syria. We are determined to stand shoulder to shoulder with our allies and strike at the heart of the terrorist lair.
This brings me to my second point. Our SDSR gives us the might to deliver, at home and overseas. Our Armed Forces are now increasing, not reducing. We have an equipment budget that has risen by £12 billion to £178 billion over 10 years, and we are using it to establish a potent new expeditionary force. It will be able to deploy 50,000 people, rather than the 30,000 we previously planned. It will give us two new strike brigades and be equipped with: more F35s, and earlier; more Typhoon squadrons; nine new maritime patrol aircraft; new frigates and the two fully-crewed aircraft carriers; and more ISTAR and more cyber, along with £2 billion more on special forces. At the same time, we are guaranteeing our continuous at-sea nuclear deterrent by replacing our four nuclear submarines. Lastly, we will be keeping our capability on the cutting edge by launching a new defence innovation initiative next year.
Thirdly, our SDSR recognises that we must work with allies and partners to deliver our national security goals and tackle global threats. Of course, we have always worked with partners but, in the past, this happened far more by instinct; tomorrow, it will happen by design. At the heart of this new approach is our commitment to NATO, the cornerstone of our defence. As well as meeting our 2% commitment, we will be leading NATO’s new high-readiness Spearhead force in 2017 and at next year’s Warsaw summit, we will be pushing to ensure that the alliance delivers the military capability and investment agreed in Wales.
Besides NATO, the UK will be leading the joint expeditionary force of seven like-minded nations. On Monday, we signed a memorandum of understanding giving our forces the green light to train and operate together. We are also strengthening the institutions on which our rules-based international order depend, notably by doubling our peacekeeping contribution to the United Nations. But bilateral relationships are as significant as multilateral ones so we will be enhancing our special relationship with the United States; working with France as part of the combined joint expeditionary force, which stands up next year; and expanding our DA network, forging new friendships while bolstering our alliances around the world.
My noble friend Lord Attlee asked me a number of questions. First, he asked where we are with eLoran, an issue also raised by the noble and gallant Lord, Lord Boyce. As part of our work to improve the resilience of our precision navigation and timing systems, we are studying a variety of technologies. However, the need for a readily available and highly precise system with worldwide coverage is likely to mean that our requirement for resilient global navigation satellite systems will endure. I will write to my noble friend and the noble and gallant Lord if I can provide further information on that issue.
My noble friend Lord Attlee also asked me about the Vanguard class of SSBN and whether the intention was to run that on longer than originally intended. As set out in the 2010 SDSR, we have assessed that we can safely manage and maintain the Vanguard boats until successor submarines are introduced into service in the early 2030s. He asked me about extending the role of the Type 45 to include ballistic missile defence. As the White Paper sets out, there will be a programme of exploratory work around the BMD role for the Type 45, but it is too soon to speculate any further at this stage. My noble friend also asked about the new general-purpose frigates. As set out in the White Paper, the exact requirements for any general-purpose frigate will reflect other decisions taken as part of the national shipbuilding strategy to be announced next year.
My noble friend also asked about the two armoured infantry brigades and whether that means we will be down to two armoured regiments. The design of the armoured infantry brigades, so that they meet the Army’s revised structure as announced in the SDSR, is being considered as part of new work being undertaken by Army HQ, so is work in progress. He questioned whether the two infantry battalions which are to be reconfigured for defence engagement would have sufficient capability—I think he said they would not have the capability of even a light-role battalion. That is not correct. As current world events demonstrate, the ability to build the CT capacity and fighting power of regional partners will be a vital aspect of the UK’s future national security. The exact size and shape of these battalions will become clear as the concept develops, but these are exactly the kind of stimulating, challenging and relevant roles required to retain our most skilled and ambitious soldiers. As regards the 10,000 military personnel available to assist the civil authorities, my noble friend was correct in saying that this would be via well-established procedures for providing military assistance to civil authorities, with the military working in support of the police.
My noble friend Lord Fairfax, who I am delighted to see back on our Benches, made several very well-put points. I can tell him that the UK will lead a very high readiness joint task force from next year. The planning assumptions in the SDSR increased our ambition for the Army, and our plan is to deploy a war-fighting division as required. There is a strong emphasis in the document, as he will have observed, on innovation, and a substantial innovation initiative will be announced in the coming weeks.
If my noble friend Lord Lyell will forgive me, I will write to him about how the force of 50,000 will be made up, but it is important to emphasise that the Army is able to deploy a division now with sufficient notice, which could consist of an armoured infantry brigade, 3 Commando Brigade and 16 Air Assault Brigade, as well as forces from other nations. Joint Force 2025 is about improving capabilities to enable us to deploy a division from a wider range of Army formations more quickly.
I can tell the noble Lord, Lord Bilimoria, that there are no plans to reduce the numbers of Gurkhas in the British Army. The noble Lord, Lord Hannay, asked me about the provision of UN peacekeepers. The number of service personnel serving at present as UN peacekeepers is 291, of whom 276 are currently in Cyprus. Up to 370 additional personnel could be assigned to peacekeeping duties in South Sudan and Somalia, but I will write to him on the question of the baseline. However, as for equipment, I hope it will be a reassurance when I say that any UK forces deployed on UN duties will be trained and equipped, as normal, to the extremely high standards that we have always had in this country. The noble Earl, Lord Stair, questioned whether the figure of 82,000 includes the reserves. No, it does not. The reserves will be on top of the 82,000, with a total of 35,000. Manning levels have been increased—not by a great deal, but the corner has been turned.
A number of noble Lords devoted their remarks to matters relating to soft power. I will not elaborate hugely on what the SDSR contains on that subject, although I am the first to acknowledge the integral importance of UK development assistance to long-term security and prosperity. Our commitment to spend 50% of overseas aid on the states most important to national security will undoubtedly focus on south Asia, the Middle East and Africa.
The noble Lord, Lord Touhig, asked me about Special Forces numbers. It has been the practice of successive Governments not to comment on the size of the Special Forces, but I re-emphasise to the noble Lord that we are investing £2 billion in new equipment for Special Forces, which I hope will be an encouraging sign of the emphasis that we place on the role that they play for this country.
The noble Lord, Lord Chidgey, asked me about access to the World Service FM broadcasts. If I may, I will write to him on that topic, as I will to the noble Baroness, Lady Jolly, on both the World Service and the British Council.
The noble Baroness, Lady Smith, focused her remarks on morale and whether the Armed Forces are now large enough to cope with the tasks that are required of them. I simply say that, by deliberately planning for the Armed Forces to do more and improving their productivity, which is undoubtedly what we are doing, we will better reflect the current demands on the force, and we will configure better to meet the demands of multiple, smaller and more geographically dispersed operations. We have also built in the agility to reconfigure the force to respond to a higher priority challenge, should it arise. However, we are the first to recognise the risk of overstretch and of damage to morale, so her points were very well made and are well taken.
The noble Lord, Lord West, spoke about the 2% figure for NATO. The 1.7% figure that he cited is an external estimate of the defence spend for 2020-21, not now. I would say that comparing defence spending now with 2010 is not appropriate, because before 2014 we spent considerable amounts on operations such as that in Afghanistan. We now spend less, but with no impact on our capability.
The noble Lord, Lord Anderson, asked about funding for the military involvement in the Ebola outbreak in Sierra Leone. The net additional cost of Operation Gritrock in Sierra Leone was in fact met by DfID.
The noble and gallant Lord, Lord Boyce, perhaps understandably, spoke, as he sometimes does, about the size of the Royal Navy fleet. We will indeed maintain a destroyer and frigate fleet of at least 19 ships. We will look to increase that number by the 2030s. The fleet will be supported by a very capable and renewed tanker fleet, and a fleet of up to six patrol vessels will support our destroyers and frigates in delivering routine tasks and enhancing our contribution to maritime security and fisheries protection. Altogether, this means that not only will our fleet grow for the first time since World War II, but its high-end technological capabilities will allow it to provide a better contribution and to retain a first-class Navy up to 2040 and beyond.
The noble Lord, Lord Touhig, asked about the flexible general purpose class of frigate, which I mentioned earlier. Our plan to commence in 2016 a concept phase assessment for an additional light frigate, which may result in a different type of frigate that satisfies the requirements of the Royal Navy, will proceed shortly. We believe that if the design and concept is worked through, it will be attractive to the export market. A combination of the modern Type 45 and the new anti-submarine warfare variant, the Type 26, should be sufficient in the mean time to provide protection to the deterrent and maritime task group. It is envisaged that the general purpose frigate will be able to conduct a wide range of other maritime security-related roles around the world, and thus take some pressure off our high-end warships.
The noble Lord, Lord West, asked about HMS “Ocean” and bemoaned the fact that it is going to be decommissioned in 2018. This is not in fact a bringing forward of the decommissioning date; it will continue in service as planned well into this Parliament, but, as part of the SDSR process, the decision was taken not to extend the 20-year lifespan that she originally had. We need, indeed, her personnel to man the new carriers.
My noble friend Lord James spoke powerfully about the need for a capability for home defence. I can tell him that that is foremost in our thoughts; my right honourable friend the Prime Minister recently announced that up to 10,000 trained Armed Forces personnel would be available to assist in any major incident within the UK. The SDSR also includes our work to provide closer military border force co-operation and better maritime surveillance. It is important to understand in this context that we have a cross-government approach to meeting our maritime surveillance task; the Royal Navy and UK Border Force provide different capabilities, which are suitable in different situations.
The right reverend Prelate the Bishop of Portsmouth focused some of his remarks on the plan to reduce the civilian workforce. It is too soon to say how those will play out. Further efficiencies will need to be found beyond our existing change programmes; we will undertake a series of studies that will identify opportunities for more innovative and flexible ways in which to work, including through better technology and moving work to different locations. The reduction in MoD civil servants will include many personnel in change programmes that are already under way, including the final draw down of British forces in Germany.
I will, of course, write on those issues that I have not had time to cover—
Lord Howell of Guildford
The report has a great deal to say about the Commonwealth network from both a trade and a security point of view. My noble friend has not mentioned that, and it may be difficult to do so now in the last few seconds. Will he ensure that when we debate the Commonwealth on 17 December he, or a fellow Minister, will be properly and well briefed in that aspect, because it is central to the future of this country?
Earl Howe
I share my noble friend’s emphasis on the importance of the Commonwealth. I shall ensure that his words are registered in the right quarters as regards our debate on 17 December.
Our message here is clear—the danger may be increasing but so, too, is our determination to counter the threats that we face. Our SDSR ensures that we have the means and might to match our ambition; it guarantees that, whatever challenges lie ahead, the UK will remain at the forefront of international efforts to preserve our security and stability for many years to come.
Europe: Renegotiation
Lord Howell of Guildford Excerpts(9 years, 1 month ago)
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The Minister of State, Ministry of Defence (Earl Howe) (Con)
My Lords, we have plenty of time. Let us go to the noble Lord, Lord Clinton-Davis, and then to my noble friend.
The Earl of Courtown
I am sorry that the noble Lord feels that this is an outrageous debate. As I said earlier, the Prime Minister is focusing on renegotiation. I understand how the noble Lord, with all his experience, probably wants to get more involved in the actual negotiation. However, the fact is that the negotiation in Europe is going on. We shall see if anything can be reported at the next Council meeting.
Lord Howell of Guildford
My Lords, does my noble friend agree that the distinct tone of widening the focus of this issue on to the reform of the European Union as a whole, to bring it up to date, as outlined originally three years ago in the Bloomberg speech, and developed considerably since then, is very welcome indeed? The media trick is going to be to polarise and build this up as a Punch and Judy show, with deals achieved or not. That is natural, and I suspect there will be one or two political manoeuvres of the same kind. The more we can show that we are concerned with bringing the EU model into the 21st century, the better. That is bound to require treaty change in due course, for the simple reason that the treaties, right up to Lisbon, are obsolete and out of date. They were designed in the pre-digital era and do not fit what is actually happening in Europe. The more we can do that, the better the transition—there is going to be a great transition—will be for ourselves and the whole of Europe.
The Earl of Courtown
I could not agree more with my noble friend. With regard to dragging the EU model into the 21st century, he is quite right. Many of these treaties are obsolete and, as he said, they were pre-digital. Life has gone on.
Syria and Iraq: Airspace
Lord Howell of Guildford Excerpts(9 years, 1 month ago)
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Earl Howe
My Lords, in considering that question we need to remember that Assad is a man who has barrel-bombed his own civilians and caused untold suffering among the Syrian population. He cannot form part of any eventual permanent solution to the conflict, and for that reason we cannot countenance taking any action which might serve to strengthen the current Syrian regime.
Lord Howell of Guildford (Con)
My Lords, following the comments of the noble Lord, Lord West, which I broadly support, can my noble friend say what steps we or the coalition are taking to reinforce the efforts of Jordan to establish two buffer zones north of Jordan in areas presently held by ISIL and establish a safe haven area or two? Is this not a very important first step towards meeting the challenge of the source of the problem: namely, the poisonous ISIL movement itself, from which all our problems stem?
Earl Howe
My Lords, this idea has obvious immediate appeal. But when one drills down into the practicalities one soon realises that there are serious obstacles to creating so-called safe havens or buffer zones in any part of Syria. Those zones would need to be policed and reinforced. If they were not, we would see a repeat of what we had in Bosnia with the Srebrenica massacre, and the sheer effort of putting men on the ground to ensure that those safe areas really were safe would be enormous.
Counter-ISIL Coalition Strategy
Lord Howell of Guildford Excerpts(9 years, 4 months ago)
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Earl Howe
My Lords, I did see the comments of the noble and gallant Lord, Lord Richards. I simply point out that, as for the proposition that the United Kingdom, or, for that matter, any of the coalition allies, should put boots on the ground in Iraq, or, indeed, Syria, that course of action would not be conducive to a satisfactory end game or resolution. We are in Iraq at the invitation of the Iraqi Government. They have said in terms that they do not wish to see western ground troops in their country for the very good reason that the more we, as western nations, are seen to occupy Iraq, the more likely it is that local people and, indeed, individuals in this country will be radicalised, so that cannot be a way forward there. Let us be in no doubt, though, that the air strikes have achieved very significant results. I am sure all noble Lords agree that no air campaign could hope to win the war. However, the contribution that the air campaign has made is beyond question. It has stalled ISIL in its tracks, has enabled ground forces in Iraq to recapture large slices of territory previously occupied by ISIL, and has been effective in keeping ISIL at bay. It is not the whole story. That is why, along with our allies, we are engaged in training Iraqi forces and their officers. This is very welcome to the Iraqi Government. It is necessary, I believe, and this activity will continue.
I hope that the noble Baroness will allow me to avoid her first question about what might happen if a British pilot were captured, as contingency plans are in place for the retrieval of pilots by the coalition if need be. However, I do not wish to go into the detail of what those plans are.
Lord Howell of Guildford (Con)
I very much welcome the way in which my noble friend presented this very clear Statement on coalition strategy to the House. It casts new light on an issue about which there has been doubt in the past, and we all understand more clearly what is being done. It is of course complete nonsense to say that Parliament voted against attacking ISIS two years ago. ISIS did not even exist then and the vote two years ago was about a completely different issue. I cannot understand why that sort of “silly season” approach has been used by the Opposition.
My noble friend is also completely right to point out that ISIS makes a thing of ignoring international boundaries and national frontiers. It operates across countries and denies the existence of nations. As I think the Statement implied, it is absolutely clear that, in destroying ISIS, and this barbaric, evil movement, which is a challenge to all civilised nations, we have to operate on the same basis and in more than one country. That is absolutely clear. I am very glad to hear that for the future that is clearly the way the Government are thinking. I believe it is also important to recognise that this is not just a US-led western approach. The entire organised, civilised world is threatened and we need the maximum co-ordination but not from merely the regional powers; it needs to be eastern, Asian, western and southern powers as well—all are involved in bringing together this coalition, and strengthening it should be our prime task from now. Does he agree with that?
Earl Howe
My Lords, I do agree and I am grateful to my noble friend for his comments. He is quite right: ISIL does not respect international boundaries. My Secretary of State has said publicly that he thinks it is logically incoherent that the United Kingdom is unable to engage in offensive operations over the border into Syria, whereas it is able to do so in Iraq. Nevertheless, we have been absolutely clear that we will return to Parliament for a separate decision if we propose to take military action against ISIL in Syria. Having said that, as the Prime Minister has made clear, if there were a critical British national interest at stake, or a need to act to prevent a humanitarian catastrophe, we would act immediately in those circumstances and explain to Parliament afterwards.
Defence: Budget
Lord Howell of Guildford Excerpts(9 years, 6 months ago)
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Lord Howell of Guildford (Con)
My Lords, I have two points to make. First, your Lordships have rightly come to recognise that in the modern age it is the powers of persuasion and influence—so-called soft power—that can play a major or even decisive part in projecting our influence, safeguarding our interests and ensuring our national security and safety. It is also being recognised by noble Lords that the UK has enormous soft power assets although, frankly, we are not using them nearly as well as we might be.
We are today a staggeringly successful world influence in many areas, and we remain more determined than ever to play our part internationally. Moaning American generals are quite wrong when they say that Britain is in retreat. That is nonsense: we are not. Frankly, though, it is extremely damaging nonsense and the mythos is catching hold. Where the generals have a point, and what our recent soft power report made crystal clear, is that without the back-up of efficient hard military power our soft power is useless. The two work together. We call it “smart power”. Weak military power, or hard power with holes in it, simply undermines our authority and appeal, however persuasively we try to make our case.
My second point is that I am afraid I not at all fond of targets. This may be spitting in the wind when NATO is so keen on the 2% figure, but spending targets always distort. It is outcomes on which we should focus. Some of us opposed the 0.7% of GNI to be spent on aid; we argued that this might lead to millions being rushed into poorly planned international programmes just to meet the targets, and so exactly it is proving. As the official aid watchdog confirms, spending targets distort results—a point ignored by zealots who do not apparently care or understand how modern development works. Similarly, the much-vaunted 2% defence spending target may or may not produce solid national defence. A figure of 2% of GNP could well conceal huge procurement inefficiencies and has certainly done so in the past, while less than 2%, if well-designed and spent, may deliver a superior capability all round.
It is the results in terms of our efficient armed might that matter. What we just cannot afford, and what weakens us all across the board, are the kinds of gaps and hollowing out in our hard-power defence shield described so well and eloquently by my noble friend Lord Sterling.
Queen’s Speech
Lord Howell of Guildford Excerpts(9 years, 6 months ago)
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Lord Howell of Guildford (Con)
My Lords, I would like to add a brief—and inadequate—tribute to those made yesterday in this House to my old colleague and friend Lord Howe of Aberavon, who has decided to retire from the House. It is inadequate because of shortage of time but is none the less heartfelt. Lord Howe served this country, government and party in all the highest offices—or in most of them anyway. More than that, he was the prime promoter of Conservative social reform in showing how market-driven forces could be harnessed to strong social advance. I for one, and I think many of us, shall miss him here and wish him well. The country owes that man a lot. Indeed, he was one of the reasons why I joined the Conservative Party in the first place.
I also add my congratulations to those expressed to the other Howe, the noble Earl, Lord Howe, who is sitting here. He has done a marvellous job over many years in social policy areas. It is excellent that he is now at defence and our Deputy Leader. I also greatly look forward to the maiden speech of the noble Baroness, Lady Helic.
On Europe, I wish the best of luck to my right honourable friend the Prime Minister in his renegotiations and his search for allies in European reform. He is quite right that the issues are not just bilateral British concerns—this is not just a question of British demands and special requirements. As Günter Verheugen, the former Commissioner, remarked the other day:
“What [Cameron] is saying is what a strong majority of Europeans feel”.
I would have liked to have seen this search for allies begin even earlier than now. In particular, we should have been much friendlier much earlier to Poland instead of siding against her on a whole range of issues, including energy issues, and backing the EU Commission’s now outdated, costly and ineffective energy package—which is long overdue for a complete overhaul, as is our own dismal, inept and indeed dangerous energy and climate policy here in the United Kingdom. That is a less happy legacy from the coalition. It needs total makeover, and let us hope that the promise in the Queen’s Speech of,
“Measures … to increase energy security”,
mean just that. I will believe it when I see it.
My other concern is whether EU negotiations are a strong enough vehicle to achieve the needed EU reform. The reality, which people are reluctant to face, is that the EU model comes from the 20th century, where it had great effect, but we are now in a totally different, 21st-century digital age.
A second track to our European reform policy is needed. Hand in hand with negotiations on specific concessions should go a much deeper drive to reinterpret the principles on which the European project is, or now ought to be, based. The 20th century demanded solidarity and centralisation in Europe—that was understandable—but the 21st century demands flexibility and decentralisation. This is the more profound lead on EU reform which I would like to see the best policy minds here in Britain giving and for which many of our friends across Europe are waiting. I hope that the so-called high priests said to be in charge of our EU policy see this and have enough experience of the whole history of European integration to be really creative. It is not a question of shopping lists, red-line demands and all the talk of wresting concessions. That is not nearly enough. I hope our negotiators will not be swayed by highly misleading advice that nothing too fundamental must be raised in these matters for fear of offending our European neighbours.
In the end, there will have to be treaty changes, however much the old political class across Europe may fear that. Of course, treaty changes cannot be delivered by 2017—no one is suggesting that—but what can be delivered is a clear indication that the old overcentralised, overregulated EU is set in new directions at last, appropriate to the age we now live in and suitable for the totally transformed trade patterns that now exist, which are completely different from anything 20 years ago.
I hope, anyway, that none of this will distract policymakers from the much bigger task of repositioning Britain in a completely transformed world order. The bald fact is that our future living standards and our security will depend as much on the great new powers and exploding consumer markets of Asia, Africa and Latin America as on Europe. That is where most of the growth over the next 30 years will be. In getting alongside these new powers and new markets we will need every conceivable instrument we can find and every advantage we can seize against our competitors. This is where the Commonwealth network, with its own colossal reach, rich markets and capital sources is—or ought to be—immensely valuable to us. I fear that the people who drafted my own party’s manifesto did not quite understand that emerging markets and the Commonwealth network are all woven together and all part of the same thing. If we want what the gracious Speech refers to as,
“an enhanced partnership with India”,
for example, this is where it should begin.
The Commonwealth network is the gateway to China and Japan, the second and third largest economies in the world. China’s opening up of the whole of east Asia to development, with its new silk road linking Chinese, central Asian and eventually western markets, is all part of the same picture. One decision that gave me great pleasure was the British decision to go right in as a founding supporter of China’s new Asian Infrastructure Investment Bank. That was an excellent move which recognises the real future, where our interest lies.
In a highly dangerous world, with the arc of instability that my noble friend Lord Howe referred to, we should certainly settle promptly and constructively with our EU neighbours and clinch that settlement with a referendum approval, which I believe we will get. We should certainly work closely with our American allies around the world—although as partners and not as slavish subordinates. But above all, we should be confident enough to develop our own agenda to work with the emerging powers of Asia and the new Africa. That is where our real future beckons. It is where we have unique advantages of language, experience, shared values and cultural links—real soft power and smart-power levers. It is where our overriding priorities should lie.
Defence Budget
Lord Howell of Guildford Excerpts(9 years, 9 months ago)
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Baroness Stowell of Beeston
Order. If we are taking it in turns, it is the turn of those on the Labour Benches, but there are two Labour Peers seeking to get in.
Lord Astor of Hever
My Lords, the coalition agreement stated that we will honour our commitment to spend 0.7% of GNI on overseas aid from 2013 and enshrine that in law. Those funds are being used for very worthwhile causes. For instance, DfID has contributed £35 million to our efforts to tackle Ebola in west Africa.
Lord Howell of Guildford
My Lords, does the Minister agree that although the noble Lord, Lord West, and others are quite right in wanting our Armed Forces to be fully and properly equipped, nevertheless, in modern conditions, large areas of defending the national security and safety of our citizens and the British nation lie outside the classical definition of defence expenditure? Does he not agree that they should be taken more into account, because they are part of the defence of this nation in future—a matter which I am not sure that the American general who spoke the other day fully comprehended?
Lord Astor of Hever
My noble friend mentioned hybrid warfare in a question last week, and there is also the very serious issue of cyber warfare, so I entirely agree with him.
Armed Forces: Baltic Defence
Lord Howell of Guildford Excerpts(9 years, 9 months ago)
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Lord Astor of Hever
My Lords, sufficient defence spending is particularly required in light of recent events. We need to be able to deal with multiple challenges and undertake a range of operations across the military spectrum, as well as maintain our standing commitments. This Government have consistently committed to spending 2% of GDP on defence and 20% on equipment, and, along with the US, we have been one of only two allies that currently meet the NATO guidelines.
Lord Howell of Guildford (Con)
In their present mood, the Russians are likely to be using a whole variety of hybrid and cyber forms of warfare, as they have in the recent past in the Baltic area. Are we fully prepared to meet that?
Lord Astor of Hever
My Lords, NATO is working to tackle the challenge of hybrid attacks. There is little new in the tactics and techniques of hybrid warfare, such as subversion and the use of proxy forces, but the scale of sophistication of Russian activities, combined with the use of new instruments such as cyber, presents a new challenge and we are doing our best to get on top of it.
Energy Bill
Lord Howell of Guildford Excerpts(11 years, 5 months ago)
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Lord O'Neill of Clackmannan
I would not perhaps go quite so far as my noble friend on these matters but it is important that we get from the Minister an indication of the regime under which a privatised gas storage and pipeline system would operate. Given that this will be a natural monopoly, as has been clearly explained, it ought to be under the regulatory scrutiny of Ofgem. If it is to be a natural monopoly, it should be regulated. At the moment, who owns it and for what purposes we leave other people to worry about. However, those of us who attended the talk last week by Peter Atherton might find it difficult to identify a potential purchaser of this system because it seems that it is a kind of secondary purchase, given the dire nature of a number of the obvious potential purchasers. They have far greater strains on their balance sheets than acquiring an asset like this, no matter how profitable it might be.
We may be worrying needlessly that this power will be granted as the Government may not do anything about it. However, were they to do so, it is important that an asset of this nature should not fall into monopoly hands of an unregulated character. Therefore, I certainly want to be given a clear indication from the Minister this afternoon that if this asset is to be privatised it will come under the scrutiny and regulation of Ofgem. I am not certain that such a move would raise sufficient money. It may be just another burden that DECC has to carry at present, and it feels that it would be simpler to transfer it. However, that is not the issue in question here: it is whether the people who buy the asset have unlimited powers to do whatever they wish with it or whether it should be subject to some kind of regulation. It need not necessarily be draconian but, rather, light-touch regulation—the kind which, in some respects, the regulator applies to National Grid and the wires and the pipes it owns and operates.
Lord Howell of Guildford
I am looking forward to the Minister’s reply. I am sure that he will have that sort of balance in mind. I reassure the noble Viscount, Lord Hanworth, that at the time of the fall of the Soviet Union I was approached by a Russian general who asked whether I or anyone I knew would like to purchase a fully integrated Russian military pipeline system throughout the Russian Federation, which he thought would become available and would be sold by the Soviet army. Therefore, the noble Viscount can be reassured that these ideas are not original and that similar ideas have been suggested in the past.
As the noble Viscount would expect, I wish to comment on his points about denationalisation, which is subtly different from privatisation, which was aimed at widening the ownership of the assets and taking them away from the giant nationalised corporations which were killing innovation and screwing the customer. That was the plan. To say that it is discredited seems odd when this plan has been adopted round the world including in China, Russia, the United States and every major economy throughout Europe. A more balanced approach than the one he adopted would help his case.