Spectrum Release
Philip Dunne Excerpts(11 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
Following my written ministerial statement on 17 December 2012, Official Report, column 71WS, I can confirm to the House that the Ministry of Defence (MOD) is preparing to release radio spectrum to the communications regulator, Ofcom, who will then conduct the process.
The MOD believes that this option provides the best route to release much needed spectrum to the commercial market. The spectrum will be able to provide additional capacity for fourth-generation mobile networks, help expand wireless access to broadband services and aid future innovations in mobile technology, all of which will make significant contributions to UK economic growth.
As previous stated the MOD’s plans are part of a Government commitment that at least 500 MHz of public spectrum will be released by 2020 for new mobile commercial uses.
Oral Answers to Questions
Philip Dunne Excerpts(11 years, 3 months ago)
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Harriett Baldwin (West Worcestershire) (Con)
1. What assessment he has made of the adequacy of his Department’s heavy-lift helicopter capability.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
Over the next 10 years, the Ministry of Defence will spend over £12 billion to ensure our helicopter capability remains up to date. The Chinook remains our heavy-lift helicopter. We currently have a fleet of 46 aircraft—the second largest fleet in the world—with 14 new aircraft coming into service from 2014, bringing the total to 60. We regularly review the requirement for all of our helicopter capability.
Harriett Baldwin
I thank the Minister for that answer. What steps have been taken to develop a naval capability for the Chinook helicopter?
Mr Dunne
Chinooks, along with other helicopters, already regularly operate from royal naval vessels. Some specific training is needed to qualify crews to enable them to operate from ships, but no specific engineering work is required for Chinooks to embark on or fly from ships, so no marinisation programme is needed. But as Chinooks cannot fit in the hangar on any of our existing vessels, they embark for specific operations or exercises rather than for long deployments.
Keith Vaz (Leicester East) (Lab)
The Government of Yemen have specifically requested support, as far as air power is concerned, in order to defeat al-Qaeda. As the Minister knows, there was an attempt to assassinate the Prime Minister of Yemen over the weekend. What support can be given to Yemen, as far as heavy-lift helicopters are concerned?
Tessa Munt (Wells) (LD)
I want to ask the Secretary of State why there has been no response whatsoever to my letters to him and his Ministers dated January, February, April, June and July 2013, or to my letters to the head of the Military Aviation Authority, dated January, February, April and June, about a number of serious concerns raised by my constituent, Christopher Jackson, relating to the safety of the Sea King helicopter fleet and the conduct of a number of individuals involved in ensuring the safety of the fleet, which I understand is now the subject of a police investigation. I would be grateful if the Secretary of State investigated what has happened, and may I receive responses by return?
Mr Jim Cunningham (Coventry South) (Lab)
7. What progress his Department has made in the assessment phase for reform of Defence Equipment and Support.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
The Department continues to make good progress in the assessment phase for the reform of Defence Equipment and Support. As the hon. Gentleman is aware, we are testing a GoCo—Government owned, contractor operated—model in the market. Separately, we are working up the best public sector option we can, which we are referring to as DE&S-plus. The commercial competition for a GoCo provider is well under way and I am pleased to confirm that two consortia are participating in this work. The invitation to negotiate was issued to each on 24 July and officials have commenced negotiations to develop the GoCo option in more detail.
Mr Cunningham
Under the current plans, the MOD would be liable for claims against the contractor should a GoCo model be chosen, meaning that the taxpayer takes a large amount of risk. Would the MOD consider making the contractor liable for all claims instead?
Mr Dunne
The MOD is in the early stages of negotiations on the contract for a GoCo and, as I have said, is at the same time working up a DE&S-plus option. We will not make a decision until we have received bids from the consortia, which we expect to conclude in the spring of next year, and we will compare that against the DE&S-plus option. Only at that point will it be appropriate to consider the question that the hon. Gentleman asks.
Peter Luff (Mid Worcestershire) (Con)
I appreciate that for sound commercial reasons the Minister will not want to share with the House the details of the value-for-money assessment of DE&S-plus and the GoCo. Is he able to tell the House whether that process has been completed and, if it has, what the broad conclusion is?
Mr Dunne
As I have just said to the hon. Member for Coventry South (Mr Cunningham), until we receive the bids for the GoCo option we will not know either the costs of implementing that option or the benefits the MOD will receive. The final value-for-money case can be completed only once that information is available to us.
Alison Seabeck (Plymouth, Moor View) (Lab)
Proposals for DE&S include greater involvement of the private sector, as we know. We also know that a very large number of private companies already contribute significantly to MOD projects. However, in the light of the very recent public failures and the fact that the GoCo tender process is under way, will the Minister tell the House what discussions there have been across Government and with the Justice Secretary specifically about companies that have been found to overcharge, or worse, and their ability to do business with the Government and MOD in the future?
Mr Dunne
I can confirm to the hon. Lady that a review across Government is being undertaken into the competition currently being managed by the MOD. We expect it to report relatively soon. On the question of the company that she did not mention specifically but referred to as having difficulties with the Ministry of Justice, we are aware of those discussions. The company is a member of one of the consortia and it will be up to the consortium to decide whether it is appropriate, in the light of the outcome of the review, for that company to remain in it or not. It will be up to the consortium to replace it, if it wishes, with another.
Sir Tony Baldry (Banbury) (Con)
Ministers will have to make a decision about whether to consolidate DE&S at Donnington or at Bicester. Unless and until they make that decision, it will not be easy to persuade the private sector to invest in much-needed new logistics equipment and 21st-century warehousing at either location.
Mr Dunne
I am grateful to my hon. Friend for pressing the case for his constituency interest in one of the most significant logistics sites the MOD operates. It is our view that it is not appropriate to prejudge the outcome of the Defence Infrastructure Organisation, the logistic commodities and services transformation exercise, the DE&S-plus exercise or the Defence Support Group exercise, all of which have an involvement in both Donnington and Bicester. Once we are clear which entity we are working with on each exercise, we will be best placed to judge where the locations should be consolidated.
Sir Edward Leigh (Gainsborough) (Con)
8. Whether his Department has undertaken a cost-benefit analysis of a Trident replacement; and if he will make a statement.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
14. What steps he is taking to increase defence exports.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
This Government are working tirelessly to support economic growth, and responsible defence exports make an important contribution to that. From the Prime Minister and Ministers across other Departments to service chiefs and Ministers in the Department—indeed, I was in Korea and Japan during the recess—all are engaged in supporting our allies in looking at acquiring top-quality British military equipment.
Stephen Metcalfe
I thank the Minister for that answer. My constituency has a number of defence and aerospace contractors, so will he join me in welcoming the 62% growth achieved last year in defence exports and tell the House what support he has received from other Departments to ensure that that growth continues?
Mr Dunne
Of course I join my hon. Friend in welcoming the 62% increase in defence and security exports in 2012, which is up to £8.8 billion, and in a global market that grew by only 45%, so we are increasing our market share. As I indicated earlier, we have had support from other Government Departments. The Home Office, in relation to security, the Cabinet Office and No. 10, through the Prime Minister, are engaged. I point out to my hon. Friend and to the whole House that next week the defence and security international exhibition, which is expected to be the largest of its type in Europe this year, will take place in the O2 Centre here in London, showcasing to over 30,000 visitors and 100 foreign delegations the best of British on offer.
Thomas Docherty (Dunfermline and West Fife) (Lab)
Notwithstanding the growth of the industry, does the Minister accept that the recent debacle over parts of chemical weapons being sent to Syria shows that this Government still have not learned the lessons from Matrix Churchill and must be much more joined up between the Department for Business, Innovation and Skills and the MOD?
Mr Dunne
I think that the hon. Gentleman misunderstands the nature of the export application that was declined for Syria recently, as described by my right hon. Friend the Secretary of State. We have a very clear policy for export controls that is supervised by BIS. I should have referred earlier to BIS’s excellent work in responsible defence exports through the UK Trade & Investment Defence & Security Organisation.
Pauline Latham (Mid Derbyshire) (Con)
16. What discussions he has had with employers following the publication of the White Paper on reserve forces.
Graham Jones (Hyndburn) (Lab)
T7. When will the Government make a decision on the number of F-35s that will be procured as part of the arrangement with Lockheed Martin, and is the Minister able to guarantee that the work-share allocation for the United Kingdom and BAE Systems will not be reduced in the future?
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
I can confirm that it is our intention, in the remaining months of this year, to place our first order for the first operational squadron of joint strike fighters. As far as the work-share component is concerned, as long as other countries maintain their orders and we maintain ours, we intend to retain the 15%.
Nadhim Zahawi (Stratford-on-Avon) (Con)
T2. In July the Secretary of State announced that the Territorial Army centre in Stratford-on-Avon would close and made assurances, through a Minister, that tenants of the centre, such as the local ambulance association, would not be left homeless. The Minister also made assurances that the facilities would be provided for the local cadets and that recruitment to the historic 867 Signal Troop based there would not be negatively impacted. Two months on, could the Minister update my constituents and me about plans for the New Broad Street centre?
Bob Stewart (Beckenham) (Con)
T6. What chance is there of our reintroducing a maritime patrol aircraft in the near future?
Mr Dunne
As I believe my hon. and gallant Friend knows, the air ISTAR—intelligence, surveillance, target acquisition and reconnaissance—optimisation study is looking at our defence requirements and capabilities in air-based ISTAR, including maritime patrol, to inform decisions as part of the strategic defence and security review in 2015. A range of options is being considered, including unmanned air systems for maritime surveillance. If he is available next week to go to the ExCel centre—rather than the O2 centre which I mentioned earlier—for the Defence and Security Equipment International conference, I am sure that he will see some of those systems on display.
Ian Paisley (North Antrim) (DUP)
Have the Government taken the opportunity to thank the Americans for so thoroughly dumping on their oldest ally, the French, in favour of the long grass of the Congress when it comes to Syria?
Mobile Phones
Philip Dunne Excerpts(11 years, 3 months ago)
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Pamela Nash
To ask the Secretary of State for Defence which company holds the largest contract to provide mobile telephony services to his Department; how much was paid under the contract in the last year for which figures are available; how many individual services are covered by the contract; when the contract was awarded; when the contract will next be renewed; and for how long.
[Official Report, 20 May 2013, Vol. 563, c. 499W.]
Letter of correction from Philip Dunne:
An error has been identified in the written answer given to the hon. Member for Airdrie and Shotts (Pamela Nash) on 20 May 2013.
The full answer given was as follows:
Mr Dunne
[holding answer 16 May 2013]: The majority of mobile telephones supplied to the Ministry of Defence (MOD) are provided by Vodafone through an enabling arrangement through the Defence Fixed Telecommunications Service (DFTS) contract with British Telecom. The MOD paid a total of £5.3 million (including VAT) for mobile services in financial year 2012-13.
A variety of services are covered by the Vodafone contract but at the simplest level they can be divided in to voice accounts and data accounts. At the end of March 2013 there were 34,924 voice accounts and 8,517 data accounts.
The Vodafone element of the DFTS contract was renewed following competitive processes in 2011 and is due to expire in 2015. Renewal of this contract is currently an element of a wider re-procurement activity for Defence Core Network Services.
The correct answer should have been:
Mr Dunne
[holding answer 16 May 2013]: The majority of mobile telephones supplied to the Ministry of Defence (MOD) are provided by Vodafone through an enabling arrangement through the Defence Fixed Telecommunications Service (DFTS) contract with British Telecom. The MOD paid a total of £5.9 million (including VAT) for mobile services in financial year 2012-13.
A variety of services are covered by the Vodafone contract but at the simplest level they can be divided in to voice accounts and data accounts. At the end of March 2013 there were 34,924 voice accounts and 8,517 data accounts.
The Vodafone element of the DFTS contract was renewed following competitive processes in 2011 and is due to expire in 2015. Renewal of this contract is currently an element of a wider re-procurement activity for Defence Core Network Services.
Defence Reform Bill
Philip Dunne Excerpts(11 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
Let me start by adding my sympathies to those expressed to the families of the two reservists who have died so tragically on the Brecon Beacons during this hot weather. I also join the hon. Member for Merthyr Tydfil and Rhymney (Mr Havard) in paying tribute to the volunteer mountain rescue teams who were so helpful in that rescue effort.
I am pleased to be able to follow the hon. Member for Plymouth, Moor View (Alison Seabeck) and to welcome the tone that she and the shadow Secretary of State, the right hon. Member for East Renfrewshire (Mr Murphy), adopted in their speeches. Frankly, that tone has been adopted in virtually every speech. It is interesting that in a debate on a subject that the hon. Lady describes as technical but others might describe as dry, Members on both sides of the House—my predecessor, my hon. Friend the Member for Mid Worcestershire (Peter Luff), who showed an intimate knowledge of the subject, Members who serve on the Defence Committee, those who serve gallantly in the reserve forces, and my hon. Friend the Member for Canterbury (Mr Brazier), who undertook the reserves commission work earlier this year—have demonstrated a great deal of expertise. I am sure that many of them will be looking forward to serving on the Public Bill Committee for a number of weeks in the autumn. The debate has been a good start to the House’s scrutiny of the Bill and I hope that we can look forward to its continuing in the same tone.
It is clear that the objective of the Bill is shared across the House: we need to provide our armed forces with the support they need and to take appropriate measures to ensure that the reserve forces can be used as part of the integrated Future Force structure, with individual reservists appropriately protected in their role and their employers better rewarded for the contribution they make in supporting the reserve forces. Many points of detail have been raised in the debate and I shall try to cover some of them, but I am sure that those which I fail to cover in my summing up will be picked up in Committee.
It is encouraging that we have developed a clear sense of consensus across the House and I want to assist in that process in Committee. I shall ensure that draft regulations under part 2 are available when the Committee undertakes its detailed scrutiny, as the single source provisions are some of the most complex. By the time the Bill is scrutinised in the other place, we will have draft regulations available for part 3.
The measures set out in the Bill represent a real change to how the Ministry of Defence will conduct its business in future. They will allow us fundamentally to reform Defence Equipment and Support and to strengthen the regime governing single-source procurement. That will help to ensure that equipment and capabilities are delivered on time, on budget and to the right specification. The Bill will also enable us to make the best use of and offer the best support to our reserve forces and their employers. The sooner we make these changes, the sooner the benefits to both the armed forces and the taxpayer will become reality.
The Bill covers three main areas, including two aspects of procurement—DE&S and single source—and the reserves. Let me pick up on some of the comments by reviewing the contributions of hon. Members before I conclude my speech.
The shadow Secretary of State made a broadly welcome series of comments about the Bill and asked a couple of specific questions that I think I can address now. One was about the FSB survey and whether small employers were critical of our proposals for the reserves. Of course, the survey of FSB members was undertaken in advance of the publication of the White Paper. Since then, as my hon. Friend the Member for Canterbury and the Chairman of the Select Committee, my right hon. Friend the Member for North East Hampshire (Mr Arbuthnot) mentioned, the FSB has endorsed many of the points we have made, which is clearly helpful.
The right hon. Member for East Renfrewshire also asked whether we would introduce employment protections for staff. The staff in the DE&S who will transfer into a GoCo, if we go down that route, will fall under the TUPE regulations, which would all apply. There would be no special risk to those individuals. I shall come on to some of the other employment points shortly.
The right hon. Gentleman asked whether the Bill would require additional costs for funding of the reserves. We have set aside £1.8 billion for that purpose, which includes the cost of payments to small and medium-sized enterprises, and there will be no net additional costs. Incidentally, we have defined SMEs as businesses employing a maximum of 250 staff with a turnover of £25 million or less. There are a number of possible definitions.
My right hon. Friend the Member for North East Hampshire posed some specific challenges. He suggested that there had been a slippage in the timetable for the commercial contracting. I can confirm that we expect the invitation to negotiate to be dispatched later this month. We are merely waiting for cross-Government final approvals, which we expect to receive this month. There should therefore be no slippage in our programme, and, as my right hon. Friend the Secretary of State said in his opening speech, we expect conclusions to be reached next year.
My right hon. Friend asked which domain would go first. In the White Paper, we predicted a phased approach. The identity of the domain to go first will be disclosed in the ITN, which will be made public. He also asked whether we would make public some of the internal documentation that we have used when considering the various options. We intend to publish the business case for the initial gate review which was undertaken earlier in the year.
My right hon. Friend asked why we needed a statutory procedure for the single-source arrangements. The existing arrangements, which are voluntary, have been in place for 45 years, and do not work. We have concluded that, as Lord Currie recommended, they should be given the force of statute to ensure that the contractors honour the undertakings given under the single-source arrangements. The system will be policed independently by the new single source regulations office, whose staff will be selected by an appointments committee and whose chairman and chief executive will be recommended by the Secretary of State. It will subsequently appoint its own staff, and will be funded jointly by the MOD and the companies themselves. My right hon. Friend asked whether the single-source arrangements would apply to foreign military sales to the United States. They will not, but we expect the vast majority of single-source contracts to be covered by the new regimes.
My right hon. Friend and others asked a number of questions about intellectual property protection. The Bill contains a number of safeguards to cover both the intellectual property owned by the companies and the international property rights that protect state secrets and sovereign data. We are confident that, in the event of a GoCo operation, sensitive information will not be passed up to parent companies through the corporate veil, regardless of whether those companies are owned by the United Kingdom.
The Bill controls the handling of confidential information supplied to the MOD by contractors under previous and existing contracts. Those will be passed to the GoCo so that it can carry out its tasks. Schedule 2 makes detailed provisions relating to unauthorised disclosures and unauthorised use of the information by the GoCo. The contract will also include a comprehensive suite of provisions to protect the MOD’s own confidential information, including new confidential and security-classified information, which is generated as a consequence of procurement activities. The provisions specifically include restrictions on the passing of information to parent companies. Other provisions will prohibit the transmission of sensitive information to foreign nationals, or to individuals who do not have the correct security clearances and the need to know.
The contract will also include requirements for employees to meet nationality restrictions—for example where access to information is restricted to UK eyes only—as they are at present for a number of contracts within DE&S. Only potentially contracting entities will have to satisfy us that they can meet all these requirements and manage these restrictions. It should also be noted that the Official Secrets Act will also apply where appropriate to those staff in the GoCo, who will also be subject to confidentiality clauses in their own contracts as now. Given all these safeguards, I am confident that sensitive information within the GoCo will remain within the GoCo and we will be able to address concerns hon. Members have raised in that regard.
We have also been asked by a number of Members about the impact of foreign shareholders in a GoCo entity. Clearly the national security interests of the country are the primary responsibility of Government and we will make sure they are protected. If we have concerns in that area, that will be a reason not to select a GoCo route. Given the scale of activity it is likely that the winner of a competition for a GoCo will be a consortium. It is highly likely that members of the consortium will include US companies who have made approaches to us thus far, and we will ensure that a future GoCo is suitably constructed in order to protect UK interests. The contracting entity will be UK-domiciled and UK-registered and we have specified that the overwhelming majority of the contracts shall be performed in the UK, where the company will, of course, pay tax, as the Secretary of State has said.
That addresses issues raised by my right hon. Friend the Member for North East Hampshire. Other Members have raised concerns about the risk of transferring activities of the GoCo into the private sector and whether that would impose undue risk on the contractor. The hon. Member for Merthyr Tydfil and Rhymney (Mr Havard) asked about this. A GoCo contractor would act as agent of the MOD so the principal risk would reside primarily with the MOD. The risk that would transfer would be risk of non-delivery, which would form part of the performance fee of the contractor operating the GoCo. That element would be at risk, but the principal risk for fulfilling contracts would reside with the Secretary of State.
My hon. Friend the Member for Canterbury raised a number of points in relation to reserves provisions. Many of these matters are not properly part of the Bill. I am sure he will seek to press some of these points in Committee, however, and I will be happy to discuss them with him if and when we get there. On his point about whether there should be officers dedicated to reserves and whether they should hold senior posts, the intention is for the reserves to be more closely integrated within the regular forces, as he identified. We are looking at a whole-force concept and command structure. I will be happy to talk to him further about those points in Committee.
The hon. Member for Hartlepool (Mr Wright) raised some questions about the potential challenges of a nine-year contract for a GoCo and about whether that might be too short. We envisage that there will be pricing points within that period. We wish to maintain a competitive tension during the course of that contract, and at the end of the contract a successful bidder would be in prime position to renew their contract but we would retender it.
The hon. Gentleman and several other Members raised a number of points regarding MOD policy, such as how we will ensure that exports remain encouraged. That will be a matter for MOD policy-setters. The GoCo entity will implement policy introduced by the MOD. We are in the process of introducing exportability as part of our contracting arrangements for existing contracts, and we envisage that would continue.
I have already paid tribute to my hon. Friend the Member for Mid Worcestershire as one of the authors of the measures in this Bill. He gave a very good example in relation to exports of the reciprocity that we are seeing from countries such as South Korea. I will be in Korea next week visiting some of the companies that he knows from the work that he did, and seeking to identify further examples of reciprocity affecting British job prospects. My hon. Friend also asked about the speed of our work. I think that I have already addressed that point in response to my right hon. Friend the Member for North East Hampshire.
The hon. Member for Dunfermline and East Fife (Thomas Docherty) touched on—
Mr Dunne
West Fife—my apologies. The hon. Gentleman touched on the need to maintain research and development and asked how that would work in the GoCo structure. He mentioned the figure of 1.2%. It is a policy commitment of the MOD to spend that percentage of our budget on science and technology. Our research and development budget is somewhat larger than that, however. In fact, we are spending approximately £1 billion on research and development within our programmes in addition to the science and technology budget. It will be an important part of the policy setting, should a GoCo be the successful outcome, that we should to continue to direct the science and technology spend and the research and development spend, as we would for any normal procurement.
I need to bring my remarks to a conclusion. I want to thank all the Members who have contributed to the debate for the quality of their contributions and the penetrating issues that they have raised. I am looking forward to working with them in Committee. There is clearly widespread support for the need to reform the way in which we procure defence equipment, and a real commitment to ensuring that we get these reforms right.
The Defence Reform Bill provides the legislation that we need to make far-reaching changes to the way in which we procure our defence capabilities. The changes will not only improve the support we give to our armed forces but make specific improvements for reservists and for their employers, who are an integral partner in enabling the reserve forces to function. The measures will also ensure that the taxpayer gets value for money. We must not miss this opportunity to make essential changes to the way in which we manage and deliver defence. I therefore commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.
defence reform Bill (programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Defence Reform Bill:
Committal
(1) The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 24 October 2013.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Consideration and Third Reading
(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.
Other Proceedings
(7) Any other proceedings on the Bill (including any proceedings on consideration of Lords Amendments or on any further messages from the Lords) may be programmed.—(Mr Dunne.)
Question agreed to.
Defence reform Bill (Money)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Defence Reform Bill, it is expedient to authorise the payment out of money provided by Parliament of:
(1) any expenditure of the Secretary of State required by the Act to be paid out of money provided by Parliament;
(2) any expenditure incurred under or by virtue of the Act by the Secretary of State; and
(3) any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Anne Milton.)
Question agreed to.
UK Submarine Supply Chain
Philip Dunne Excerpts(11 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
It is a great pleasure to serve under your chairmanship today, Mr Rosindell.
I congratulate the hon. Member for Barrow and Furness (John Woodcock) on securing this important debate. He is a doughty champion of the skills and activities that take place around the submarine programme in his constituency, and I am delighted to have this opportunity to respond to this debate and to put on record the Government’s appreciation of all the work that he has done in his constituency to support that programme.
The recent return of HMS Trenchant from a record-breaking 11-month patrol reminds us of the unwavering dedication of our submariners. For 267 days, she was east of Suez, where our submarines have had a presence since 2001 and where she took part in NATO’s counter-terrorism and counter-narcotics operations. Therefore I would like to start my contribution to this debate by thanking all of those who serve in our submarines and their families, who support their loved ones while they are away, often for months on end. Their commitment is sustained because they know the importance of the role they undertake in protecting our nation. Whether they serve on a fleet submarine contributing to current operations—as HMS Triumph did, by launching cruise missile strikes during the NATO-led operation in Libya—or they deliver our continuous at-sea deterrent by patrolling the oceans every minute of every day—in April, of course, the Prime Minister welcomed HMS Victorious back from the 100th patrol of the current deterrent fleet, which was a notable milestone—our submarines have served this country steadfastly for more than 100 years. But their role is only made possible thanks to thousands of people around the UK, who build, support and maintain the submarines. Although Barrow, as the centre of excellence for submarine production, has the most visible part to play in this programme, we do not rely on that Cumbrian town alone.
Alison Seabeck (Plymouth, Moor View) (Lab)
Although it might be out of order, I would like to put on record the work done by the deep maintenance people in Babcock in Plymouth.
Mr Dunne
I am naturally grateful to the hon. Lady for reminding me. She pre-empts my own remarks. I am happy for her to endorse that, because it is not just Cumbria that contributes to this enormous effort.
From specialist diver support courtesy of Divex in Aberdeen, to marine valves courtesy of Hale Hamilton in Uxbridge, not so far away, few corners of the UK do not benefit either directly or indirectly from the £9.8 billion total cost of the Astute programme—not least the maintenance on the south coast that the hon. Lady mentioned.
The current submarine build programme alone sustains more than 10,000 jobs across the UK, as we have heard. There are some 5,000 high quality and skilled jobs at nine BAE Systems sites across the UK and thousands more are supported through 400 suppliers across the country. Thanks to our commitment to build seven Astute class submarines, as set out in the strategic defence and security review, these people are set to be busy for years to come.
These are the biggest and most advanced attack submarines ever ordered for the Royal Navy and the first two have bidden farewell to Barrow to join their cousins at their base port, Clyde naval base. But the pace does not slacken. I have seen for myself the hive of activity that is the Devonshire dock hall, as the third boat, Artful, is set to follow closely behind. Construction of boats four, five and six is also underway.
It is easy to focus only on BAES in Barrow, but we should not forget that the power plant at the heart of every nuclear submarine—in the past, now and in the future—has come from the Rolls-Royce facility at Raynesway in Derby. Rolls-Royce has been central to our nuclear-powered submarine fleet for more than 60 years, as the only company in the UK with design and production capability in nuclear submarine reactor systems. We recently announced an investment of more than £1 billion, to ensure we retain this unique national strategic capability for many years to come. This investment will regenerate the facility and sustain reactor core production at the site, securing some 300 of the most highly skilled manufacturing jobs in the process.
Likewise, the fleet could not continue to operate without the support provided at Devonport dockyard, as the hon. Lady highlighted. The refuelling, refits and overhauls that are essential to keeping our submarines at sea are all carried out here, as the centre of excellence for submarine maintenance.
It is not only England that plays its part in the submarine programme. Quite apart from the vital work done in support of our operational submarines by the 6,700 personnel supporting operations on the Clyde, firms across Scotland are winning contracts in the supply chain for build and maintenance of the fleet. For example, as hon. Members from Scotland present in the Chamber are no doubt aware, the sensor support optimisation contract I signed recently with Thales UK in May has secured 50 high tech jobs in Glasgow, along with a further 250 in Crawley, Manchester and Somerset.
Thomas Docherty
The Minister knows that I am a huge supporter of the submarine programme. He has mentioned Scotland and is also aware of the seven now decommissioned submarines, lashed against the wall at Rosyth. If he has time, will he say a little bit about the plans for the end of their lives, and if not will he meet me, perhaps in the autumn, to discuss how that programme is progressing?
Mr Dunne
I am afraid that I do not have time to cover that point, but I am more than happy to meet the hon. Gentleman in the autumn to talk about the disposal programme. We made an announcement recently. The hon. Gentleman knows that this multi-year challenge is being carefully monitored and managed by the Ministry of Defence.
The sensor support programme contract that we signed with Thales will provide support to the eyes and ears of the fleet, which includes periscopes, sonar and electronic warfare systems for both the current and future submarine classes, as well as vessels in our surface fleet.
Although the ongoing build programme and the support to the current fleet are the most visible signs of our continued investment, defence is all about planning for the future and we must look ahead to building the next classes of submarine, the subject to which the hon. Member for Barrow and Furness devoted most of his speech. I will attempt to deal with some of the questions that he posed, but will not cover all of them, as he may not be surprised to learn.
We have learned much about the importance of sustaining this supply chain from the 10-year gap in submarine production in the UK after HMS Vengeance was launched in the 1990s, which the hon. Gentleman mentioned in respect of delays to the Astute class. Having to re-establish a submarine design, build, testing and commissioning capability that had lain dormant for a decade had a serious impact on the delivery of the Astute class and economic ramifications in Barrow. This has been well documented, but it is important that we do not lose sight of these hard lessons. For this reason, the Astute programme is crucial to sustaining the skills and the work force we need to meet our clear commitment to retain and renew a credible, continuous and effective minimum nuclear deterrent.
Dr Julian Lewis
I thank the Minister for giving way. I know that his time is so limited. It is worth putting on the record that the Prime Minister has said that, as long as he remains leader of the Conservative party, we will have a continuous at-sea deterrent. But it would help—and it would be nice—if those of us who have requested a meeting with the Secretary of State to discuss how we can prevent being blackmailed in future by the Liberal Democrats in the event of a hung Parliament, as we were in the past, could be given a particular date to look forward to.
Mr Dunne
I am grateful to my hon. Friend for reinforcing the commitment of the Conservative party, from the highest levels, to continuous at-sea deterrence. I was not aware that he had requested a meeting with the Secretary of State. I am happy to take that up, and if the Secretary of State is unavailable I am happy to meet him as a fall-back, in the first instance.
The Astute programme is crucial to sustaining the skills and the work force that we need. Through that programme, we are undertaking the planning required to prepare for the successor submarines that will replace the Vanguard class from the late 2020s. Hon. Members will be aware that we are taking the steps necessary to be ready to start building the first submarine as we lead up to a main gate decision in 2016.
The hon. Member for Barrow and Furness asked whether this decision could be advanced, saying that this might help both cement the decision and, potentially, reduce the cost. Another lesson that we have learned from shipbuilding programmes is that unless the design is mature enough at the time that the investment decision is made—in other words, if a decision is rushed—additional frictional cost could be built in, through changes to the design programme after the contract has been priced, which can delay the programme and add significantly to the cost thereafter. We do not want to repeat the mistakes made at the time of the Astute contract being laid, by making a premature decision on the successor design.
John Woodcock
That is a good point. Could we have main gate and then do the pricing at some point later?
Mr Dunne
As the hon. Gentleman will learn as he gets more used to the defence procurement rules and regulations that apply in the Ministry of Defence, the main gate investment decision is taken at such time as the design is available, to enable the contractor to price against it. It is on the basis of a price proposal—not necessarily a firm price, but normally it will be, under this Government—against a specific design. That is the main investment decision point and we do not believe, at this time, that it will be possible to advance it.
I will press on, if I may, rather than addressing too many of the hon. Gentleman’s other specific questions. He asked about our commitment to continuous at-sea deterrence. I think that I have addressed that from the Conservative point of view. He asked about the alternatives review and the position of the Liberal Democrats. I have to refer him to the Liberal Democrats, to await the publication of whatever they or the Deputy Prime Minister choose to publish in relation to that.
We are clear that stability and security for the UK are absolute priorities in the Ministry of Defence, albeit they must be managed within a financially restrained approach, in these difficult economic circumstances. We have led the way in the submarine domain, in seeking to extract efficiencies through the submarine enterprise performance programme, which will help to ensure we have an affordable programme that continues to stimulate growth and secure jobs and, most importantly, continues to deliver some of the world’s most advanced, powerful and formidable machines to the Royal Navy.
Question put and agreed to.
Scientific Advisory Council
Philip Dunne Excerpts(11 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
In accordance with Cabinet Office guidance on public bodies, I have launched a review of the Defence Scientific Advisory Council. This review will examine the Council’s form and function as well as its corporate governance procedures. The review is due to be completed later this year and I shall inform the House of its outcome.
Oral Answers to Questions
Philip Dunne Excerpts(11 years, 6 months ago)
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Gavin Williamson (South Staffordshire) (Con)
11. What assessment he has made of progress in development of the B-variant of the joint strike fighter aircraft; and how many countries have expressed an interest in its procurement.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
Development of the short take-off and vertical landing variant of the joint strike fighter aircraft is progressing well. I saw for myself our third aircraft, of which we have now taken receipt, when I visited Lockheed Martin’s facility in Forth Worth in April, and my right hon. Friend the Secretary of State also witnessed an F-35B demonstrating its hover capability at Pax River last month.
The STOVL variant, the mainstay of the US Marine Corps, has conducted nearly 3,000 flight hours to date, including vertical landings and short take-offs from the USS Wasp. The US, Italy and the UK are the three nations currently committed to procuring the STOVL variant. The UK is working with all joint strike fighter European partner nations to determine the most cost-effective support solution across Europe.
Mr Dunne
As my hon. Friend knows, the aircraft will be based at RAF Marham in Norfolk. The precise mix of aircraft embarked will depend on the mission, but the carrier will routinely have 12 fast jets embarked for operations whenever she sails outside of home waters, while retaining the capacity to deploy up to the 36 previously planned, providing combat and intelligence capability much greater than legacy systems. The aircraft carrier will also be able to carry a wide range of helicopters, including up to 12 Chinook or Merlin transports and eight Apache attack helicopters.
Gavin Williamson
Moog aviation based in my constituency will be a major supplier of components to the new short take-off and vertical landing engine fitted on the joint strike fighter. Will my hon. Friend assure the House that he will do all he can to promote the export opportunities for the JSF, which will act as an enormous boost to many aerospace component manufacturers in the west midlands?
Mr Dunne
The UK is the only tier 1 partner in the joint strike fighter partner programme, which is the largest defence programme in the world. UK industry will provide approximately 15% by value of each JSF to be built, which will secure aerospace industry jobs in this country for decades. Five hundred British companies are already involved in the programme through fair and open competition. Indeed, the UK’s decision to revert to the STOVL variant has increased orders for Rolls-Royce lift system engines for STOVL aircraft, from which the company in my hon. Friend’s constituency will benefit. The British defence industry is exceptionally well placed to benefit from any future export opportunities for this fifth-generation aircraft.
Thomas Docherty (Dunfermline and West Fife) (Lab)
Will the Secretary of State and his team listen to those of us, on both sides of the House, who believe that if we can persuade more of our European partners to switch to the B variant, it will provide a perfect example of how European nations can stand together?
Mr Dunne
As the hon. Gentleman will know from his work on the Defence Committee, the orders for the aircraft will depend on the capability requirements of the customer nations. Italy is the European nation that is already procuring the same variant as we are; other nations that have declared an interest thus far have different capability requirements.
Nick Smith (Blaenau Gwent) (Lab)
How many joint strike fighter aircraft do the Government plan to have operable by 2020?
Mark Menzies (Fylde) (Con)
12. What reports he has received on future developments in the capability of the Typhoon aircraft.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
As my hon. Friend knows—he is a keen student of the Typhoon programme—there is great scope to enhance the capabilities of that already powerful aircraft, in particular when compared with mature platforms, which have less scope to enhance their capabilities. Tranche 3 aircraft are being delivered from the Warton plant near his constituency with improved multi-role, and ISTAR capabilities.
Mark Menzies
Does the Minister believe that the upgrades to Typhoon, which is built in my constituency, will not only provide the RAF with a world-class front-line aircraft, but ensure that Typhoons will be competitive in the highly competitive export market?
Mr Dunne
I believe the constituency boundary with Ribble Valley passes through the site, so I may have to stand corrected on which bit of the site they are made. The development upgrades and improved ISTAR to which my hon. Friend refers will provide the RAF, and the other six air forces that have already committed to the aircraft, with battle-winning performance, as was demonstrated in the Libya campaign. We are actively engaged with existing and potential partners and customers on the scope for collaborating on the development of further capability. We are also supporting industry in a number of export campaigns, and are hopeful that other allies and partner nations will join the family of users of this outstanding aircraft.
Damian Collins (Folkestone and Hythe) (Con)
13. What assessment he has made of the value of the European Defence Agency.
Neil Carmichael (Stroud) (Con)
T2. With the importance of engineering and technology in mind, what measures is the Secretary of State or the Minister taking to engage with defence industries in Gloucestershire?
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
As my hon. Friend knows, the Ministry of Defence places great emphasis on trying to improve access for small and medium-sized enterprises into the procurement chain. As far as Gloucester is concerned, my hon. Friend may not know that next week, at the invitation of my hon. Friend the Member for Gloucester (Richard Graham), I will attend a meeting of defence contractors for the whole of Gloucestershire.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
T6. Given that so many experts, leading generals and admirals think that we no longer have defence forces that are capable of defending this country, will the Secretary of State look at his Department’s spending over the last five years of £34 million on G4S, which did such a good job on the Olympics?
Pauline Latham (Mid Derbyshire) (Con)
T3. What advice can my right hon. Friend give to small and medium-sized businesses such as Armadillo Merino in my Mid Derbyshire constituency, which wants to apply to the approved MOD procurement list? It has socks that stop trench foot and undergarments that will stop people burning, keeping their lives safer for longer.
Mr Dunne
The Ministry of Defence takes the clothing of our personnel exceptionally seriously. We have a dedicated defence clothing team in DE&S, which last year placed £80 million-worth of contracts. We have some 30 companies engaged in clothing contracts, 90% of which are UK based. My hon. Friend has written to me about the sock and undergarment manufacturer in her constituency, and I look forward to responding to her in writing very shortly.
Chris Bryant (Rhondda) (Lab)
Given that Russia’s latest statement of its military doctrine states that the greatest threat to Russian security is the existence of NATO, and given that Russia has significant naval and military investment in Syria, is it not the height of irresponsibility for the Government constantly to ramp up talk of putting more arms into Syria?
Jim McGovern (Dundee West) (Lab)
May I return to the subject of protective clothing for our armed forces personnel? The Minister may recall that I wrote to him recently asking him to look sympathetically at Remploy in my constituency, which has successfully manufactured such clothing for many years. Why have we offered the contract to a firm in north Africa, thus pushing the Dundee factory nearer to closure? Is it right to save money at the cost of British jobs?
Simon Hughes (Bermondsey and Old Southwark) (LD)
Figures produced two years ago showed that four out of 100 homeless people in London had spent some time in the armed services. The Government have taken welcome initiatives in regulation, legislation and policy, but can the Minister update us on what further progress is being made, given that there are likely to be more redundancies in the armed services, and given that Armed Forces day will be celebrated at the end of the month?
Henry Smith (Crawley) (Con)
T10. I greatly welcome the recent contract signed by the Under-Secretary of State for Defence, my hon. Friend the Member for Ludlow (Mr Dunne) on behalf of the MOD for the sensor support optimisation project with my constituency company of Thales UK. Can he say a little more about how this sonar technology will help the resilience of our fleet?
Mr Dunne
I greatly enjoyed visiting my hon. Friend’s constituency at the end of last month to sign that contract. It is a £600 million contract, which will ensure that the very sophisticated sonar and avionics systems—I mean periscopes—in our fleets are supported for the next 10 years, and it should save the Exchequer some £140 million over that period.
Thomas Docherty (Dunfermline and West Fife) (Lab)
In the last Session of Parliament I introduced a private Member’s Bill which would have made attacks on members of the armed services a hate crime. In the light of tragic recent events, will the Minister meet me urgently to discuss how that issue can now be taken forward?
Oral Answers to Questions
Philip Dunne Excerpts(11 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
This Ministry of Defence is fully committed to the Government’s growth agenda by supporting responsible defence exports. From the Prime Minister down, ministerial colleagues and senior officials are actively supporting the British defence industry in international markets. For example, already this year my right hon. Friend the Secretary of State for Defence has promoted defence exports during his visits to Australia and Indonesia. I have visited India, United Arab Emirates, Qatar and Malaysia in support of exports and to lead delegations at defence exhibitions, and the Under-Secretary of State for Defence, my hon. Friend the Member for South West Wiltshire (Dr Murrison), who has responsibility for international security strategy, has just returned from supporting defence exports in Libya and Brazil.
Chris Skidmore
The production of the wings for the new Airbus A400M at Filton is progressing so well that Airbus has announced that it is increasing the number of skilled aircraft fitters. Once the first aircraft is delivered to the French air force this summer, and to the RAF next year, I believe that the A400M will be the jewel in the crown of the British aerospace industry. Will the Minister outline what action the Government are taking to support exports of this aircraft to markets overseas?
Mr Dunne
The A400M Atlas will provide both tactical and strategic airlift capability from its first delivery to the RAF next year. We agree that this world-class capability has the potential to become the tactical lift aircraft of choice for air forces around the world once the hugely successful C-130 Hercules, which has had this role for many years, is withdrawn from service. The UK is fully behind the efforts of Airbus Military to export the Atlas military transport aircraft, which will support skilled jobs in the aerospace hub around Bristol and across the UK.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
The Defence ministerial team will have had a number of representations on the challenges faced by small and medium-sized enterprises in being able to compete adequately. What support will the ministerial team be extending to SMEs in the defence sector so that they can compete and export internationally?
Mr Dunne
As I have said at the Dispatch Box previously, we have a strong commitment to support SME penetration of our own procurement chain and to help them export overseas. Early next month, in support of the UK Trade & Investment Defence & Security Organisation, I am attending a symposium at which there will be more than 350 SMEs, precisely to help them with their defence exports.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
20. I thank my hon. Friend for his earlier answer. Will he explain to those who do not necessarily understand the merit of defence exports the incredible benefit they deliver, not only for our armed forces but for the wider British economy?
Mr Dunne
Our armed forces benefit directly from responsible defence exports. Not only do they help build bilateral relationships and defence co-operation with our key allies, but they raise capability, enhance the interoperability of allies and partner nations, and contribute to regional security around the globe. As far as the contribution to the UK economy is concerned, defence exports have a vital role to play in sustaining UK jobs, generating UK tax revenues and helping to ensure the long-term viability and cutting edge of our defence industrial base.
Alison Seabeck (Plymouth, Moor View) (Lab)
I would like to associate the Opposition with the Minister’s condolences to the family and friends of Lance Corporal Webb for their loss.
The Minister will be aware that the Brazilian navy is looking to acquire at least one, possibly two, new aircraft carriers, so there will be significant potential for export opportunities. French companies are already on the case, supported by the French Government, looking to procure the design work. Given that we are building two of the world’s most advanced aircraft carriers, as a result of which we will have the skills and a dip in ship-building orders between the end of the carrier build and the start of the Type 26—which, incidentally, we are looking to sell to the Brazilians—what discussions has his Department, including the Under-Secretary of State for Defence, the hon. Member for South West Wiltshire (Dr Murrison), during his recent visit, had with the Brazilians specifically to promote British interests in the design and build of those carriers?
Mr Dunne
As the hon. Lady knows, Brazil and the UK entered into a maritime co-operation agreement as a result of the Prime Minister’s visit in recent months. As I said earlier, the Under-Secretary of State, my hon. Friend the Member for South West Wiltshire, visited Brazil only last week, when he discussed maritime co-operation, particularly in the offshore patrol vessel area. It is clear that the Brazilians wish to construct the aircraft carriers in their own shipyards, which means that there is no prospect of a direct export order for an entire ship; but as regards many of the systems, components and weapons systems, we will be seeking to provide opportunities for companies in this country supplying our aircraft carriers, which are currently under construction in Rosyth, to bid into the Brazilian and other nations’ programmes.
Andrew Selous (South West Bedfordshire) (Con)
3. What recent discussions he has had with employers to encourage their support for the expansion of reserve forces.
Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)
4. If he will provide an update on progress on the arms trade treaty.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
As the hon. Lady will now know, on Tuesday 2 April the arms trade treaty was adopted by an overwhelming majority vote, with 154 states voting in favour at the United Nations General Assembly. Once implemented, this robust and effective legally binding treaty will establish a common baseline for the regulation of arms transfers.
Sandra Osborne
I very much welcome the work that the Government have done on the treaty, and I am sure that the Minister will want to acknowledge the central role played by the previous Labour Government in promoting it. Will he confirm that the agreed terms of the treaty will be implemented in full in the UK at the earliest opportunity and also say when we can expect legislation on this matter?
Mr Dunne
I am grateful to the hon. Lady for her congratulations, which we should pass on to colleagues in the Foreign Office who led on this issue. We welcome the treaty wholeheartedly. The arms export licensing regime operating under this Government and the previous Government is one of the most rigorous in the world and ensures that we will comply with the treaty’s obligations. It is good for British defence contractors, as it establishes a level playing field at a higher standard. We will have no difficulty implementing the treaty. It does not become effective until 50 states have signed it, and we will work hard to encourage that to happen as soon as possible.
Mr Russell Brown (Dumfries and Galloway) (Lab)
The outcome of the talks has been broadly welcomed, as the Minister recognises. Labour has always argued that “conventional arms” should include ammunition, munitions, parts and components. Can the Minister confirm that the Government’s interpretation of “conventional arms”, as it will apply to the UK arms trade in implementing the treaty, will also cover those elements?
John Pugh (Southport) (LD)
5. What plans he has for the commercial or community use of RAF facilities; and if he will make a statement.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
It is Ministry of Defence policy to encourage commercial, social or community use of RAF facilities, consistent with operational, security and safety considerations. We are encouraging civil aviation use of certain military airfields, such as RAF Northolt, within agreed operating hours. We regularly hold air shows at military airfields and encourage community use of sporting or other leisure facilities on RAF bases wherever possible.
John Pugh
I thank the Minister for that response. In my constituency, RAF Woodvale is in danger of forfeiting good will and much needed revenue by stopping the popular Woodvale rally because of asbestos risks. What can he do to make my constituents happier and the Ministry of Defence a little better off?
Mr Dunne
I am aware that the hon. Gentleman was concerned last year when the Woodvale rally could not take place as a result of the discovery of fragments of asbestos following burrowing activities by, I believe, rabbits and moles in the grassy areas of the airfield. They have been fenced off and we are undertaking a land quality assessment exercise this year to see whether the asbestos can be safely contained, for public health and the health of the servicemen and women who work there.
Jenny Chapman (Darlington) (Lab)
How much are the Government planning to save through the rationalisation of the defence estate by the end of this Parliament?
Mr Dunne
The Government’s estate has been the subject of one announcement so far on Army basing, and there will be a subsequent announcement on reserve basing. As part of that exercise, the Government are intending to make savings that are baked into the efficiency targets agreed with Her Majesty’s Treasury, and I would be happy to write to the hon. Lady with more details in due course.
Gareth Johnson (Dartford) (Con)
6. What the timetable is for implementation of the defence engagement strategy.
Henry Smith (Crawley) (Con)
T6. I very much welcome the increase in UK defence exports, which employ hundreds of thousands of people around the country, many of whom are in my constituency. Will my hon. Friend update the House on progress on exports of the Typhoon fighter?
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
The Government have been at the forefront of export campaigns for Eurofighter Typhoon. Following success in securing export orders in Oman last December, we have been actively working with industry, the UK Trade & Investment Defence & Security Organisation and the Eurofighter partner nations to support potential Typhoon sales to a number of countries in the middle east, Europe and Asia—including Malaysia, where I led a delegation of 25 companies in the week before Easter. Typhoon exports help to sustain highly skilled jobs and engineering capability in the air sector, including that of the facility in my hon. Friend’s constituency which produces vital, full-mission simulators for Typhoon pilot training.
Mr Ian Davidson (Glasgow South West) (Lab/Co-op)
Ministers will be aware that subcontracted work on the aircraft carrier on the Clyde is drawing towards a close. What steps are being taken to ensure that work is found for those shipyards before steel starts to get cut on the Type 26?
Mr Dunne
As the hon. Gentleman knows, because we have discussed this directly in recent months, the Aircraft Carrier Alliance is continuing work on the programme for the construction of the existing Queen Elizabeth-class aircraft carrier and its successor, Prince of Wales. Discussions with the company on how to mitigate the work gap prior to the order being given for the Type 26 frigate are continuing.
Anne Marie Morris (Newton Abbot) (Con)
T7. I am sure that the Minister agrees that the new centre for the Devon Army cadet force in Newton Abbot is a demonstration of this Government’s continued support in maintaining strong local links with the armed forces. Will he consider a visit to my constituency to see for himself the valuable contribution that the corps provides to young people in our community?
Review Board for Government Contracts
Philip Dunne Excerpts(11 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
My predecessor, the hon. Member for Mid Worcestershire (Peter Luff), announced updated Government profit formula (GPF) allowances to the House on 25 April 2012, Official Report, column 38WS, in line with recommendations made by the independent Review Board for Government Contracts. These rates are used by the Ministry of Defence (MOD) when pricing new single source contracts and amendments. The MOD has continued to consult industry on recommendations made in October 2011 by Lord Currie of Marylebone following his independent review of single source pricing and, pending the outcome, the review board has been asked to maintain the existing arrangements.
The work on new single source pricing regulations (SSPRs) and the replacement of the review board with a more empowered public body, the Single Source Regulations Office (SSRO) is proceeding well and we currently plan that these will be fully implemented in 2014-15. In the meantime the MOD will be seeking to negotiate new SSPR terms into selected high-value single source contracts during 2013-14.
One aspect of the existing regime that Lord Currie recommended should be retained is the methodology behind the Government profit formula as far as the calculation of the baseline profit rate and capital servicing allowances are concerned. Accordingly, the review board has recently completed its 2013 general review and has recommended revised GPF allowances. The Government have accepted the board’s recommendations and the updated allowances have been agreed with industry, to be implemented on new single source work from 1 April 2013. A copy of the review board’s 2013 general review report is being placed in the Library of the House, along with a copy of its 2012 annual report detailing the running costs of the review board.
Submarine Dismantling Project
Philip Dunne Excerpts(11 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
I am announcing today that, following public consultation, the submarine dismantling project (SDP) has passed a main gate decision point.
The Ministry of Defence (MOD) has previously proposed that the intermediate level waste (ILW) storage site selection process should start by narrowing the range of options to a particular type of site, that is, by deciding whether Nuclear Decommissioning Authority (NDA) or MOD and industry sites should be considered further, and discounting the other types. However, based on the findings of the public consultation, alongside recent legal advice, it has been decided that the process of selecting a specific site for the interim storage of ILW should consider all UK nuclear licensed and authorised sites that might be suitable. This will therefore include MOD sites, industry sites and NDA sites on an equal basis. The MOD will carry out further public consultation as part of this process. No radioactive waste will be removed from the submarines until a disposal or storage solution has been agreed.
We have decided to demonstrate the initial dismantling process for nuclear-powered submarines that have left service with the Royal Navy by removing all radioactive waste from a single nuclear-powered submarine at Rosyth. The reactor pressure vessel from this submarine will be removed and stored whole. Subject to the successful conclusion of this demonstration, we then intend to carry out dismantling of the remaining submarines at both Rosyth and Devonport.
These decisions have taken account of the findings of the public consultation that was announced by the then Minister for Defence Equipment, Support and Technology, 27 October 2011, Official Report, column 16WS and ran from 28 October 2011 until 17 February 2012.
More than 1,200 people attended consultation events and the MOD received over 400 written responses, all of which were recorded and considered by the SDP team. We are grateful to everyone who took part in this consultation, and the wide range of comments provided valuable input to the MOD’s options analysis, which has changed and matured significantly as a result.
We have today published the MOD “Response to Consultation”, which summarises the comments that were received and explains how they have been taken into account. This is available from the SDP consultation page on the www.gov.uk website:
https://www.gov.uk/government/consultations/consultation-on-the-submarine-dismantling-project
A copy will also be placed in the Library of the House.