EU Defence: Permanent Structured Co-operation

Debate between Lord Lancaster of Kimbolton and Darren Jones

Thursday 26th April 2018 General Committees

[Mark Lancaster]

I am sure I will be able to go into the detail of those regulations in my wind-up speech after the debate. On the military imperative, obviously we are members of NATO, but when it comes to land force reinforcement capability, that infrastructure across Europe is incredibly important. During the cold war, it was a highly honed system. I remember as a Royal Engineer every bridge in Germany having a clear military weight limit on it. It is about trying to re-establish that communication network to ensure that, if we have to reinforce militarily across Europe, that system is in place. The regulatory framework is slightly above my pay grade, but I hope to be able to give clarity on it shortly.

[Darren Jones (Bristol North West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bone. The Minister will be pleased to know that I have only two short questions, specifically about the role of getting access for British industry to the European defence industrial development programme. I welcome the Minister’s response to us on the European Scrutiny Committee, when it was made clear that the European Commission’s view was that only those companies with either a majority of EU citizens or an EU domination would be able to get access and that we do seek access to procurement of defence equipment. Could the Minister help the Committee to understand the Government’s position on two points on the industrial strategy negotiations with Europe?

First, after the issue with GKN Melrose—many of my constituents work at GKN Melrose, for example, making wing components for the A400M military aircraft—has that given our friends in Europe confidence in our commitment to long-term procurement of defence capabilities in the UK in order to get access to the EDIDP after Brexit, or does he feel that that has weakened our position?

Secondly, on the customs union and specifically the components produced before aircraft or helicopters are made, many of my constituents make wing components, landing gears, engines and missiles in north Bristol. All the companies rely on the ability to move components into and out of Europe because we do not build, for example, F-35 fighter jets or Chinook helicopters entirely here in the UK. Does he feel that the Government’s position on not retaining membership of the customs union strengthens or weakens our position in our negotiations to maintain access and therefore get procurement contracts under the EDIDP?

[Mark Lancaster]

I am grateful to the hon. Gentleman, and in many ways he highlights some of the challenges that need to be addressed through negotiation. That is precisely why we are going through the negotiation period, but I go back to my starting point, which is that I believe there is a genuine will and acceptance that it is in everybody’s collective interest to continue the relationship we have had broadly in collaboration with our European partners. That is the very nature of how we worked before.

Where I do find some encouragement from both the EDA and the EDF is that there is an acceptance in the whole basis of those institutions that only by working collaboratively—I have already said twice that we are the biggest contributor to R&D in Europe—can we get the best when it comes to aligning our interests on European security. I remain confident that the issues that the hon. Gentleman raises will be resolved as we move forward.

[Mark Lancaster]

Potentially, yes.

[Darren Jones]

A small supplemental; I do not want the Committee to think I was dishonest in my statement about having two questions.

Further to the Minister’s answer to my question, he surely recognises that many of the businesses that produce components are having to make decisions today about how to deal with the customs union issue. They have to consider, for example, asking supply chain businesses to stockpile components in order for their just-in-time manufacturing to occur, and they have to consider the movement of people into or out of the European Union and perhaps moving manufacturing locations. Does he also recognise, therefore, their exasperation at his answer and the answer of his Government that everything is subject to negotiation and will all be fine? Perhaps he can enlighten the Committee as to when we might get some clarity on the detail so that we do not lose jobs and investment before it is too late.

[Mark Lancaster]

Negotiations on many of these issues will literally start towards the end of the year—the hon. Gentleman recognises that—because of the framework that was imposed by the EU. Equally, that is why I welcome the implementation period running all the way up until the end of 2020 when we continue to be a member of the European defence fund and the EDA. That has effectively bought time so that the negotiations can be settled and give a degree of certainty.