Defence: Procurement

Lord Lee of Trafford Excerpts

Tuesday 25th January 2011 Lords Chamber

Asked By

[Lord Lee of Trafford]

To ask Her Majesty’s Government what steps they are taking to improve the performance of defence procurement.

[The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Astor of Hever)]

My Lords, we are continuing to implement the initiatives that were detailed in the strategy for acquisition reform that was published last year, and we have already put in place new measures such as increasing controls over the equipment plan and improving key acquisition skills. We continue to examine how we can further improve the effectiveness and efficiency of the acquisition system as part of the wider defence reform agenda.

[Lord Lee of Trafford]

My Lords, while we speak, contractors are poised to start scrapping the Nimrod fleet, a £4 billion investment that is equivalent to £60 for every man, woman and child in the country. The Permanent Secretary at the Treasury has now gone on record, stating that the MoD was out of control. While we obviously hope that the noble Lord, Lord Levene, and Bernard Gray in their work can manage to improve procurement at the MoD, do we politicians not have a responsibility, and is it not time that the major political parties came together and tried to agree a unified approach to defence spend to give the MoD a degree of certainty about funding and to enable proper long-term planning, thus avoiding the fiascos of the Harriers, the carriers and the Nimrods?

[Lord Astor of Hever]

My Lords, my noble friend makes an interesting point. Defence is hugely important. The more cross-party consensus that we can achieve, the better for our Armed Forces, their families and the defence industry. My door is always open to any Member of the House who has any concerns or observations.

Defence Medical Rehabilitation Centre

Lord Lee of Trafford Excerpts

Tuesday 18th January 2011 Lords Chamber

[Lord Astor of Hever]

I agree with the noble Lord about the concept. Of course I can give him the commitment that he seeks.

The study he mentions is nearly completed and we anticipate being in a position to make a statement some time before the summer Recess. This was set up to build on the success of Headley Court. Any new facility would have a military rehabilitation centre at its core. There was wide consultation across the Government, including the NHS, the charitable sector and military rehabilitation experts, and MoD trade unions were fully consulted. In the mean time we shall continue to invest in Headley Court to ensure its provision of world-class care. We would only envisage leaving if there was an ensured level of future care at the new centre that surpassed Headley Court’s current and planned capabilities.

[Lord Lee of Trafford]

I join these Benches in the earlier tribute. Is any accommodation or financial support available for the relatives of our service personnel who are being rehabilitated at Headley Court?

[Lord Astor of Hever]

My Lords, the Government are committed to ensuring that family visits are a vital element of the care provided to inpatients at Headley Court. Norton House, a SSAFA-run property about three miles away, is specifically for families of inpatients at Headley. It contains six double bedrooms. Headley Court also has two fully equipped three-bedroom properties located on the married quarters estate. If all of these are full, we access the local Holiday Inn, which is funded through preferential rates by SSAFA. Travel while in the vicinity is provided by military transport or a taxi service paid by SSAFA. I understand that, at all the aforementioned places, it is free for the families.

Strategic Defence and Security Review

Lord Lee of Trafford Excerpts

Friday 12th November 2010 Lords Chamber

[Lord Lee of Trafford]

My Lords, first, I declare shareholdings in a number of companies benefiting from defence spend. Yesterday, we observed two minutes’ silence in memory of those who fell in two world wars. Today, we have an opportunity to pay tribute to those who have fallen more recently—I join in the tribute to Senior Aircraftman Scott Hughes—particularly in Afghanistan, and to our gallant forces who are currently in action there. We owe them and their families so much.

One would have hoped that the world had learnt from earlier conflicts of the futility of war, yet we all continue to spend huge sums on defence when so many suffer from famine, poverty and multiple deprivations. We have to live in the world as it is and thus maintain our very necessary defence capabilities. The SDSR, which we debate today, has been heavily criticised for being too rushed and too Treasury-dominated; I concur with that. In May’s Queen’s Speech debate, I wryly referred to a Financial Times headline:

“Treasury to have say in defence review”—

surely the understatement of the year. However, I am not convinced that more time would have produced markedly different conclusions. Most of us, I suspect, support the broad thrust of the review and its recognition of the tiers of threat that we face: a greater acknowledgement of terrorist and cyberwarfare threats and less likelihood of major state-on-state warfare. Yet we always have to be prepared for the unexpected.

My fundamental concern is that reducing defence spend to 2 per cent of GDP on top of the inherited multibillion pound black hole will leave us still in a state of severe overstretch. Can we really fulfil all our maritime responsibilities, from anti-piracy to carrier protection, with just 19 frigates and destroyers? Of course, the current review has unquestionably been skewed by the irresponsible decision to order the two new carriers before a current defence review and when the MoD was effectively bust. Speaking in the recent Rosyth Adjournment debate in the other place, Gordon Brown said of the carriers:

“These are military decisions, made on military advice for military reasons”.—[Official Report, Commons, 1/11/10; col. 742.]

History, and the National Audit Office, may come up with rather different conclusions.

This leads me to probably the most bizarre decision—to ditch our Harrier fleet and all its crew expertise, built up over so many years, to save £100 million a year on a total defence budget of about £37 billion. I do not accept that the choice was either Harrier or Tornado; surely we could have reduced the Tornado fleet further and retained a reserve Harrier force or squadron to preserve carrier strike capability. I very much agree with the recent admirals’ letters to the Times, although I acknowledge that in today’s letter the current chiefs make the point, quite rightly, that the Falkland Islands are much more robustly defended. The loss of Nimrod—the First Sea Lord said earlier this week that it made him “very uncomfortable”—is deeply worrying. How do we intend to replace this capability?

I do not wish to be overnegative; there is much to commend in the SDSR and in recent decisions. We on these Benches are predominantly Trident-sceptic; thus we welcome the deferring of Trident main gate until 2016. We also strongly support the defence treaties with France. Greater Anglo-French co-operation is something I and many others have long campaigned for. In May’s Queen’s Speech debate, I was accused by the noble Lord, Lord Gilbert, whom I affectionately refer to as C17, of being quixotic on the subject. I am glad that there has been a coming together on defence, but real collaboration on procurement will not come, I suggest, until there is much greater corporate consolidation between our respective defence contractors.

I welcome the extra support for our special forces and the focus on UAVs. Few appreciate the scale of the latter’s development. There are now five US airforce bases and 6,000 airmen involved in controlling flights in the Afghan-Pakistani theatre from 5,000 miles away. I strongly support the review of our Reserve Forces; we need fresh imaginative thinking here. Surely the way forward is to move to deployable formed units, more along the lines of America’s National Guard and away from fill-in deployment.

I am somewhat concerned at the Vice-Chief of the Defence Staff chairing the review. I do not doubt his ability to contribute, but I would have preferred more of an outside independent chairman than an internal establishment figure who is likely to have more traditional attitudes. Have the review’s terms of reference now been agreed?

The subject of MoD procurement probably warrants a debate in itself. Clearly, radical changes are needed. I congratulate the noble Lord, Lord Hutton, whose maiden speech we are looking forward to hearing shortly, on establishing the Bernard Gray review. We all wish our colleague, the noble Lord, Lord Levene, well with his defence reform unit, which is focused on restructuring the MoD and making it “fit for purpose”.

Defence spend sustains approximately 300,000 jobs in the United Kingdom, but this is something of a two-edged sword. Too often, jobs and politics influence procurement decisions. I remember as a Defence Procurement Minister 25 years ago being told that all our then naval requirements could probably be built at Barrow alone—we did not need all those other yards. But closing plants, facilities and bases is notoriously difficult, particularly in human terms. Could we not establish a defence variant of the old enterprise zone concept, with taxation and rates incentives, to encourage new industry to develop and thus make employment in particular areas less dependent on MoD spend?

I draw my remarks to a close by asking my noble friend two questions. Can it really take four years to install carrier, catapult and arrestor gear, as indicated on page 23 of the review document? Secondly, page 31 talks of “substantial savings on food”. What does that mean? Are we going to starve our service personnel, or give them food of a lower quality? Surely we currently buy at keenly competitive bulk prices as best we can.

Defence: Treaties with France

Lord Lee of Trafford Excerpts

Tuesday 2nd November 2010 Lords Chamber

[Lord Lee of Trafford]

My Lords, I join these Benches in the earlier tribute. My noble friend will know that on many occasions I have argued for greater co-operation between Britain and France. Thus, I am very encouraged by the defence treaties signed today. According to media reports, the chief executives of BAE Systems and Dassault have written to their respective Governments, making the point that greater collaboration in the production of future combat aircraft and UAVs is absolutely vital. Does my noble friend not agree that, to make collaboration easier, there has to be greater consolidation between defence industries and, particularly, between British and French defence companies?

[Lord Astor of Hever]

My Lords, I am well aware of my noble friend’s views on greater co-operation with the French, which I share. When we were in opposition, I went to France with the Secretary of State. We had a fruitful day’s discussion with French leaders, military and civilian, at the highest level. As far as the unmanned air systems are concerned, these have become central to both our armed forces. We have agreed to work together on the next generation of medium-altitude long-endurance unmanned air surveillance systems. Co-operation will enable the potential sharing of development, support and training costs and ensure that our forces can work together. We will launch a jointly funded competitive assessment phase in 2011 with a view to new equipment delivery between 2015 and 2020. In the longer term, we will jointly assess requirements and options for the next generation of unmanned combat air systems from 2030 onwards, building on work already started under the direction of the UK/France high-level working group. Over the next two years, we will develop a joint technological and industrial road map, which could lead to a decision in 2012 to launch a joint technology and operational demonstration programme from 2013 to 2018.

Armed Forces: Harrier Fleet

Lord Lee of Trafford Excerpts

Wednesday 27th October 2010 Lords Chamber

Asked By

[Lord Lee of Trafford]

To ask Her Majesty’s Government what is their estimate of the savings resulting from the withdrawal from service of the Harrier fleet.

[The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Astor of Hever)]

My Lords, I am sure that the whole House will wish to join me in offering sincere condolences to the family and friends of Corporal David Barnsdale, 33 Engineer Regiment (EOD), who was killed on operations in Afghanistan.

Turning to my noble friend’s Question, we expect to make savings in the region of £900 million between now and 2018, the Harrier’s previous out-of-service date. This figure is subject to commercial considerations and we expect it to be refined during implementation of the SDSR. The decision to retire the Joint Force Harrier has been very difficult and has not been taken lightly. I express my gratitude to the service men and women, past and present, associated with the Harrier force. This decision is in no way a reflection on the valuable contribution that they have made to the defence and security of our nation.

[Lord Lee of Trafford]

My Lords, first, I join these Benches in the earlier tribute. To ditch the Harrier fleet and all the crew expertise that has been built up over the years for a saving of a mere £100 million a year and to denude our carriers of their aircraft and strike capability is surely madness and makes us look absurd in the eyes of the rest of the world. Perhaps we should consider getting rid of our flight decks and replacing them with sun decks. More seriously, would it not be possible to maintain a smaller fleet of Harriers for contingencies?

[Lord Astor of Hever]

My Lords, in a perfect world, no defence Minister would have wanted to retire the Harriers, but this decision was driven by the economic legacy left by the previous Government. Military advice has been that the Tornado is the more capable aircraft. The greater size of the Tornado force allows continuous fast jet support for forces in Afghanistan, which is highly valued by ISAF, and an ability to meet other contingencies. With regard to keeping a smaller fleet of Harriers, the withdrawal of an aircraft type delivers greater savings than partial reductions.

Employment: Defence Expenditure

Lord Lee of Trafford Excerpts

Tuesday 12th October 2010 Lords Chamber

Tabled By

[Lord Lee of Trafford]

To ask Her Majesty’s Government how many jobs in the United Kingdom are sustained by defence expenditure.

[Lord Lee of Trafford]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare a number of shareholdings in companies benefiting from defence spend.

[The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Astor of Hever)]

My Lords, first, I am sure that the whole House will wish to join me in offering sincere condolences to the families and friends of: Trooper James Leverett, the Royal Dragoon Guards; Private Thomas Sephton, 1st Battalion the Mercian Regiment; Bombardier Samuel Robinson, 5th Regiment Royal Artillery; Marine David Hart, 40 Commando Royal Marines; Major James Bowman, 1st Battalion the Royal Gurkha Rifles; Lieutenant Neal Turkington, 1st Battalion the Royal Gurkha Rifles; Corporal Arjun Purja Pun, 1st Battalion the Royal Gurkha Rifles; Marine Matthew Harrison, 40 Commando Royal Marines; Marine Jonathan Crookes, 40 Commando Royal Marines; Sergeant David Monkhouse, the Royal Dragoon Guards; Senior Aircraftman Kinikki Griffiths, 1 Squadron RAF Regiment; Staff Sergeant Brett Linley, 11 Explosive Ordnance Disposal Regiment, Royal Logistics Corps; Corporal Matthew Stenton, the Royal Dragoon Guards; Lance Corporal Stephen Monkhouse, 1st Battalion Scots Guards; Sapper Mark Smith, 36 Engineer Regiment; Lance Sergeant Dale McCallum, 1st Battalion Scots Guards; Marine Adam Brown, 40 Commando Royal Marines; Lieutenant John Sanderson, 1st Battalion the Mercian Regiment; Rifleman Remand Kulung, 1st Battalion the Mercian Regiment; Sapper Darren Foster, 21 Engineer Regiment; Sapper Ishwor Gurung, 69 Gurkha Field Squadron, 21 Engineer Regiment; Lance Corporal Jordan Bancroft, 1st Battalion the Duke of Lancaster’s Regiment; Lance Corporal Joseph Pool, 1st Battalion the Royal Regiment of Scotland; Captain Andrew Griffiths, 2nd Battalion the Duke of Lancaster’s Regiment; Kingsman Darren Deady, 2nd Battalion the Duke of Lancaster’s Regiment; Sergeant Andrew Jones, Royal Engineers; Trooper Andrew Howarth, Queen’s Royal Lancers; Corporal Matthew Thomas, Royal Electrical and Mechanical Engineers; Rifleman Suraj Gurung, 1st Battalion the Royal Gurkha Rifles; and Sergeant Peter Rayner, 2nd Battalion the Duke of Lancaster’s Regiment.

I turn to my noble friend's Question. The last available information, published in UK Defence Statistics 2009, estimated that 300,000 full-time jobs in the UK were supported by Ministry of Defence expenditure and defence exports: 155,000 directly and 145,000 indirectly. In addition, the MoD employed 177,840 service and 85,850 civilian personnel as at 1 July 2010.

[Lord Lee of Trafford]

My Lords, first I join these Benches in the earlier tribute, and also send the condolences of the whole House to the relatives and friends of Linda Norgrove.

I thank my noble friend for his Answer. David Cameron described the defence budget as,

“the biggest mess I've inherited as Prime Minister”.

The highly irresponsible decision of the previous Government to order the two aircraft carriers, recently and sarcastically described in the media as “HMS Unaffordable” and “HMS Impecunious”, when the MoD was effectively bust and before a defence review, has clearly skewed the current SDR, making it now even more financially rather than strategically focused. Will my noble friend tell the House whether defence contractors have been helpful in modifying or waiving their penalty clauses, given our overall national financial situation; and will he confirm the promise that we will get a defence industrial strategy by the first quarter of 2011?

[Lord Astor of Hever]

My Lords, the MoD's key suppliers have been working with the department on a commercial basis, looking at ways to improve innovation and cost reduction across the board in support of the SDSR. With regard to the second part of my noble friend’s supplementary question, I confirm that we are developing a new defence industrial and technology policy that is intended to replace the previous defence industrial strategy. We will launch this process on 2 November this year in an event co-hosted by ADS, the industry’s representative body, and there will be a Green Paper by the end of the year. After a formal consultation period in the new year, we will publish a White Paper next spring that will set out our industrial and technology policy for the next five years or until the next SDSR.

Afghanistan

Lord Lee of Trafford Excerpts

Wednesday 7th July 2010 Lords Chamber

[Lord Astor of Hever]

My Lords, the noble Lord makes an important point. As the Secretary of State said in his speech in the other place, he is inviting the editors of all the national newspapers and other media to his office to give them a briefing in the hope that they will take a more positive line on the responsibilities we have out there. I look forward to seeing the noble Lord at some of the briefings that I am looking forward to having. I remember the happy times we had together in Afghanistan last year.

[Lord Lee of Trafford]

My Lords, in relation to building up Afghan capability, in a Written Answer, my noble friend indicated to me that something like 129 UK personnel were involved in training an embryonic Afghan air force. Is any of that training being done in the UK? Secondly, we know of the tragic loss of life among our service personnel in Sangin. Can he indicate how many have been severely wounded in that province?

EU: European Defence Agency

Lord Lee of Trafford Excerpts

Wednesday 30th June 2010 Lords Chamber

[Lord Astor of Hever]

My Lords, I am grateful to the noble Lord for his kind words. Our manifesto pledged that we will re-evaluate our position with the EDA and we are not spoiling for a fight with the European Union. Once the work of re-evaluation takes place, we will provide an Explanatory Memorandum setting out more fully the Government’s policy on the EDA. Although NATO remains our most important strategic relationship, this does not mean a reduction in co-operation with our European partners, but we are clear that the EDA must prioritise its use of resources to focus on the key capability challenges now and in the future.

[Lord Lee of Trafford]

My Lords, I join those on these Benches in the tribute. Whatever the merits of the EDA, does not my noble friend agree that the major prize in European defence co-operation would be serious co-operation between us and the French? In this regard, can I ask him whether there were serious discussions about this with President Sarkozy when he came over here? If so, what were the conclusions?

[Lord Astor of Hever]

My Lords, the recent meetings between the Prime Minister and President Sarkozy re-emphasised the considerable amount of bilateral defence activity between the United Kingdom and France. Their discussions also highlighted the shared ambition to increase the level of defence co-operation. France’s reintegration into the NATO command structure can only deepen this relationship.