Defence Industry and Shipbuilding

Lord Walney Excerpts

Wednesday 11th July 2018 Commons Chamber

[John Woodcock (Barrow and Furness) (Ind)]

I will try to cut short my soaring rhetoric, Mr Speaker, and give you four succinct minutes.

I agreed with much of what the Minister said about the nature of the threat we face and the need for the UK to prepare for them, not just now and for the years ahead but for the decades ahead, and about the scale of the potential threat from Russia, as it rearms and seeks to spend £30 billion extra per year on defence. We do not know where China will be in 10 or 20 years, either, except that it will almost certainly deliver on its vision to become a super military power by 2050.

I agreed with all of that, but then, towards his conclusion, the Minister clearly stated that there was opposition between building these ships in the UK and economic efficiency, and he suggested that there was opposition between building them in the UK and maximising the Navy’s capabilities. That is just wrong. We need only look at the experience of Barrow shipyard and the submarine programme in the 1990s, which my right hon. Friend the Member for Warley (John Spellar) referred to so accurately.

Back in 1990 the Vanguard class of submarines came to an end, and the then Conservative Government did not introduce the Astute class programme so that there could be a seamless run-through. The result of that was not only mass unemployment, with more than 10,000 people made redundant, but all the social and economic costs which still scar the community now. It made the whole business of shipbuilding in the United Kingdom far less efficient, and it made us far less capable. Because of the delay and because of the skills that were lost to Australia and elsewhere, the first Astute-class submarine was £1 billion over budget. The overrun now affects the Dreadnought class to the extent that it is touch and go whether the new vessels will be in place to maintain the continuous at-sea deterrence which, next year, will have existed for 50 whole years.

It is clearly in both the nation’s economic interests and the interests of its capability that we maintain shipbuilding, so that if we have to greatly increase our naval capability because of the uncertainty posed by future expansive states, we have the necessary capability. The Minister suggested that it was in some way wrong to give contracts in order to retain work in shipyards, but that is exactly what is needed to maintain Britain’s capability to respond to uncertain threats in the future.

[Jamie Stone]

Will the hon. Gentleman give way?

[John Woodcock]

I will not, because of the need for us to wrap up.

That reason alone—apart from all the jobs that will be involved—is sufficient to place contracts in the UK, and that is what the Government ought to do.