Europe, Human Rights and Keeping People Safe at Home and Abroad

Debate between Lord Hammond of Runnymede and Gerald Howarth

Tuesday 24th May 2016 Commons Chamber

[Mr Hammond]

My hon. Friend tests me on the exact number. I think that a dozen or more new posts have been opened, but I will write to him with the exact figure. The important point is that we have opened new posts in secondary cities in China—when we talk about secondary cities in China, we mean those with populations of between 5 million and 10 million—and India, as well as reopening posts in countries in Latin America from which we had withdrawn.

[Sir Gerald Howarth (Aldershot) (Con)]

The Secretary of State mentioned our commitment to 2% of GDP on defence spending. Will he confirm that had we not transferred £820 million from the pensions budget in another Department, and funds from other Departments, Britain would have fallen below that 2% figure? By that sleight of hand, we have committed to the 2%, but we have not added a single penny to the defence budget, when, as my right hon. Friend said, we face a very dangerous world.

[Mr Hammond]

My hon. Friend and I were Defence Ministers in a past life, and there is no sleight of hand. The 2% NATO target is based on NATO definitions, according to which Britain will spend 2% of its GDP on defence. As I am sure he has already found from talking to people in the defence community, the important thing is not the amount spent today, but the long-term commitment to maintain defence spending at 2% of our GDP so that our defence spending rises in line with our prosperity as a nation. That is the right thing for us to do.

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[Mr Hammond]

I am just going to make a little progress, if my hon. Friend will allow me, as he has had one bite of the cherry already.

While we step up the fight against Daesh and Islamist extremism, the old challenge of state-based aggression has not gone away. To our east, Russia’s disregard for international norms, its illegal annexation of Crimea and its continuing destabilisation of eastern Ukraine are echoes of an era that, frankly, most of us thought had passed with the fall of the Berlin wall. They represent a clear threat to the stability of the post-cold war European security order, and, more widely, to the rules-based international system on which an open, free-trading liberal democracy such as ours depends.

As well as violating the sovereign territory of another country and undermining the rules-based system, Russia’s actions in Ukraine have led to the loss of more than 9,000 lives and the displacement of up to 1 million people from their homes. Responsibility for this human misery lies squarely at the door of the Kremlin. It is a direct result of a deliberate policy that seeks to deny the right of independent former Soviet republics to determine their own economic and political destiny. This Government remain clear that Russia must be held to account for its actions. We will work through the EU to keep up the economic pressure with hard-hitting and carefully calibrated sanctions. Those sanctions must remain in place until such time as Russia delivers on the pledges it made at Minsk. In the meantime, we will continue to provide non-lethal support and training to the Ukrainian armed forces. Building on the British military units already rotating through Poland and the Baltic states, we will announce at the NATO summit in Warsaw in June further measures to reassure our eastern allies in the face of this continuing aggression.

At the same time, we will engage with Russia where it is clearly in our national interests to do so. Russia, along with Iran, is one of the two countries that have real influence on the Syrian regime.

As members of the ISSG, they have the principal responsibility for telling Assad that it is time to go. We will continue to work with Russia on Syria and at the UN and to collaborate with it on counter-terrorism, where British lives are potentially at risk, but it will not be business as usual. All nations must know that we cannot and will not look the other way while the rules-based system is repeatedly violated. We look forward to the time when Russia rejoins the community of nations as a partner in upholding international rules, but our eyes are wide open and we know that it might be a long time coming.

As we said in the 2010 strategic defence and security review and again in 2015, Britain’s national security is indivisible from its economic security. We cannot keep people safe if we do not have a strong economy, and vice versa. As we have continued to deal with the economic legacy we inherited—bringing down the deficit and restoring sustainable growth to our economy—we have also been strengthening our diplomatic muscle in emerging economies in order to grow our trade and support jobs here at home. And those efforts are paying off. The state visit by China’s President Xi last year generated £40 billion of commercial deals, helping to create more than 5,000 permanent jobs in this country and more than 20,000 construction-phase jobs. During Prime Minister Modi’s visit in November, UK and Indian businesses agreed deals worth £9 billion. Inward investment from India in 2014-15 created more than 7,000 jobs and safeguarded more than 1,500 others. Since the UK’s free trade deal with the Republic of Korea in 2011, the value of UK exports to Korea has more than doubled.

While we seek to grow our links with the world’s emerging economies, however, our trade and investment relationship with the EU will always be central to our economic success story. As the House knows, the Government’s clear view is that Britain’s continuing prosperity is best served by our remaining a leading member of a reformed EU. Our membership puts us, the No. 2 economic power in the EU, inside the world’s largest single market, with a seat at the decision-making table. It is a market with 500 million consumers and a quarter of the world’s GDP and a market that buys 44% of Britain’s exports.

There is a world of difference between being inside such a market, with tariff-free access as of right, and being outside it, scrabbling around for a deal; between making the rules of the market to protect our interests and being governed by rules designed for the benefit and advantage of others. Our membership safeguards the pound and the Bank of England, and with the deal that my right hon. Friend the Prime Minister negotiated in February, our membership keeps us out of Schengen, exempts us from ever-closer union and limits EU migrants’ access to our welfare system. It is the best of both worlds.

[Sir Gerald Howarth]

The Foreign Secretary and I are good friends but we disagree on this matter. Will he confirm that under this much-vaunted reform deal that the Prime Minister has negotiated, which does not add up to a row of beans, if the UK were to introduce financial measures that we believed to be in the interests of the City of London but which the eurozone deemed to conflict with theirs, we would be obliged either to change our measures or to go to the European Court of Justice for arbitration—and we know that the Court always finds in favour of the acquis communautaire?

[Mr Hammond]

We do not know by any means that the ECJ always finds in favour of the Community. Indeed, we have done rather well when challenged in the ECJ. For example, when the European Central Bank disgracefully tried to prevent euro-denominated financial instruments from being cleared in the City of London, we went to the ECJ and won the case, with a clear declaration that the ECB’s proposal was illegal. So I simply do not accept the premise of my Friend’s question.

European Affairs

Debate between Lord Hammond of Runnymede and Gerald Howarth

Thursday 25th February 2016 Commons Chamber

[Mr Hammond]

I am going to make a little progress, if my right hon. and hon. Friends will allow me.

The PM’s pledge was to engage with our partners in Europe to agree a series of reforms to get the EU back on track and to change the terms of our membership to protect our interests, and then to put the question to the British people. He has delivered on that pledge.

[Sir Gerald Howarth (Aldershot) (Con)]

Will my right hon. Friend give way?

[Mr Hammond]

I will in just a moment.

So the question is this: should we stick with what we know, bank the gains that the Prime Minister has brought back from Brussels, and continue to fight from the inside for reform, or should we take a leap into the dark? For me, the answer is clear: I am a sceptic who will vote with my head to remain because I know in my heart that that is what is right—what is best—for Britain.

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[Mr Hammond]

In the Rottmann decision, the ECJ itself made clear that it had to take account of a decision of this nature. I say to my hon. Friend and others who repeatedly make points about the legally binding nature of agreements that we are having a substantive debate about the future of Britain, in or out of the European Union. We have a package that has been agreed by all 28 countries and endorsed by their Heads of State and Government. It is not only legally binding, it is a solemn political commitment. I advise colleagues to address themselves to the substantive issues that we are debating, namely Britain’s place in the European Union and what the world would look like from the perspective of a Britain outside the EU.

[Sir Gerald Howarth]

I want to take the Foreign Secretary back to the serious substantive point that he made at the outset of his speech. He and the Prime Minister claim that somehow this deal enhances the security of Europe. By asserting that the EU has a role in the defence matters of Europe, they are going down an extremely dangerous line, playing into the hands of those such as Mr Juncker, supported by Chancellor Merkel, who want an EU army. There is a real risk that NATO will be undermined. The Foreign Secretary and the Prime Minister should address that issue, rather than have a junior spin doctor in No. 10 twisting the arms of former senior military officers to sign a letter to The Daily Telegraph, from which two signatories have already resiled.

[Mr Hammond]

My hon. Friend, who served with me in the Ministry of Defence, will know that no one is as alert as I am to the risks of undermining NATO’s crucial role in underpinning the defence of western Europe. We have always been very clear that any role played by the European Union in our defence must be complementary to, and in no way undermine, the role of NATO. I remind him that, when we took part in the counter-piracy operation to interdict terrorists pirating ships crewed by British citizens off the coast of Somalia, it was led by a British admiral based in Northwood, but it was a European Union mission that carried out the task. We have to look for roles in which the European Union can augment our security and safety. We are seeing that across the piece in organised crime and counter-terrorism. We see it today, and we have seen it in past years.

Daesh: Syria/Iraq

Debate between Lord Hammond of Runnymede and Gerald Howarth

Wednesday 16th December 2015 Commons Chamber

[Mr Hammond]

DFID does do precisely what the hon. Lady has suggested, but of course the lion’s share of DFID work is concentrated on supporting refugees who have left the country. We face issues associated with getting supplies into Syria to support refugees, and one crucial strategic area is the relatively small corridor along the Turkey-Syria border that still remains open to international traffic. Securing that and making sure it remains open is a key objective of coalition forces, for humanitarian reasons.

[Sir Gerald Howarth (Aldershot) (Con)]

May I warmly applaud the new impetus that has been given to the diplomatic approach and say how delighted I am that the UK is playing such a prominent role, led by my right hon. Friend the Foreign Secretary to boot? The role being played by Saudi Arabia is also to be welcomed. In his statement, he set out the details of the strikes by the RAF that have taken place in Iraq, but he did not mention what has happened in Syria. Given that the application of the dual mode Brimstone was such a key difference between us and other coalition partners, can he set out how many strikes have taken place in Syria with the dual mode Brimstone or give us more detail on other strikes that have taken place?

[Mr Hammond]

As my hon. Friend well knows, those are operational details that I cannot give more detail on. As I said in response to the Opposition spokesman, the UK forces are committed to the combined air operations centre, which tasks aircraft from coalition countries with whatever task is in hand. The analysis of strikes carried out by the coalition is done by CAOC and in due course—in the new year, I believe—it will release those figures.

Britain in the World

Debate between Lord Hammond of Runnymede and Gerald Howarth

Monday 1st June 2015 Commons Chamber

[Mr Hammond]

My sincere hope is that we will be able to negotiate a substantive package of reform of how the European Union works and changes to Britain’s relationship with the European Union that will enable us to recommend a yes vote to the people of this country when they make that decision in due course. If I may, I shall come back to that theme in just a moment.

[Sir Gerald Howarth (Aldershot) (Con)]

The Foreign Secretary mentioned what is going on in the South China sea. As he knows, I have for a number of months expressed concern in this Chamber about the actions of the Chinese Government in building runways and port facilities on uninhabited and disputed atolls. What does the Secretary of State think the UK can do about it? Is he in discussions with the Chinese? Has he made representations about our concerns to them? What discussions is he having with our allies in the five power defence arrangements?

[Mr Hammond]

My right hon. Friend the Defence Secretary is just back today from the Shangri-La dialogue meeting in Singapore, where that has been a major theme. It is a matter of concern when any power, however great, starts to exercise its territorial claims in a way that gives rise to alarm among its neighbours. What we all fear is destabilisation in the South China sea. What we need to see is the many territorial disputes in that area resolved by arbitration and the application of the principles of international law, just as we seek to see those principles applied more widely.

Ukraine

Debate between Lord Hammond of Runnymede and Gerald Howarth

Tuesday 10th February 2015 Commons Chamber

[Mr Hammond]

No. If the existing sanctions are rolled over for a further period, the pressure on Russia will be maintained. It is not the case that we have imposed a bunch of sanctions that are not having any effect, and now we should be asking whether we should impose more. We have imposed a bunch of sanctions. Alongside the declining oil price the absence of access to the capital markets is having a crippling impact on Russia.

While the hon. Lady was listening to Mrs Merkel in the room at Munich, I was talking to the Iranian Foreign Minister, so I did not listen to the speech, but I spoke to the German Foreign Minister afterwards. We are actively discussing the maintenance and extension of the sanctions regime with the Germans. Of course, they want to explore the opportunity that tomorrow’s meeting, if it goes ahead, might offer, but the Germans, and the German Chancery in particular, are robust. They have been admirably robust on the case for maintaining sanctions.

[Sir Gerald Howarth (Aldershot) (Con)]

This is a very serious and growing crisis. As my right hon. Friend knows, I have consistently warned that Russia plans to complete its illegal annexation of Crimea by forming a land link. Are Her Majesty’s Government content for that to happen? If not, at what point do we exercise that demonstration of strength, which the Foreign Secretary mentioned Mr Putin respects, to show we are no longer prepared to see him completely redraw the boundaries of Europe?

[Mr Hammond]

Sometimes we underestimate the influence that we have collectively. If Russia wanted to force a land link to the Crimea, it easily has the military capability in the area to do so and would have done so some time ago. However, it understands clearly that there would be a significantly higher price to pay. In circumstances where it is already suffering very significant impacts from the international response to its behaviour, it has shown no inclination to use the military capability it has in the area to achieve that objective.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Gerald Howarth

Tuesday 2nd December 2014 Commons Chamber

[Mr Hammond]

This is a bit like groundhog day. The Government will recognise a Palestinian state at a time of our choosing. We will choose that time on the basis that it is designed to deliver the maximum possible impetus to the peace process.

[Sir Gerald Howarth (Aldershot) (Con)]

Will Her Majesty’s Government be supporting the resumption of World Bank loans to Argentina? If so, would it not be bizarre for the UK to underwrite loans to Argentina, which is awash with its own cash, and which is in the process of acquiring 24 advanced combat aircraft for its defence portfolio, which could present a risk to the Falkland Islands?

ISIL: Iraq and Syria

Debate between Lord Hammond of Runnymede and Gerald Howarth

Thursday 16th October 2014 Commons Chamber

[Sir Gerald Howarth]

Or others, as my hon. Friend says. It was a matter of extraordinary surprise, after the investment made by British and American troops in training the Iraqis, that they collapsed in the face of the enemy.

[Mr Hammond]

We need to do two things to make this work. First, we need to retrain the basic manpower of the Iraqi army. It can be done, but it will take some time and, in the meantime, we will have to use air power to hold the line. Secondly, we need significant change in the senior command and control structure, including the replacement of essentially political appointees under the previous regime with competent military people. That will be a challenge, because these people will have their vested interests and their constituencies behind them, but it is the challenge that Prime Minister al-Abadi faces.

Afghanistan

Debate between Lord Hammond of Runnymede and Gerald Howarth

Tuesday 9th September 2014 Commons Chamber

[Mr Hammond]

We keep this situation under continuous review. We have two candidates who disagree about the outcome, but nobody disagrees that one of them has won. They are both absolutely committed to signing the bilateral security agreement and the status of forces agreement at the very beginning of their presidential term. At some point, this agreement must be signed. Practical decisions have to be taken by the UK and other countries in order to get our forces out by 31 December if an agreement is not in place, but our working assumption for now is that it will be put in place within the next few weeks.

[Sir Gerald Howarth (Aldershot) (Con)]

The Foreign Secretary referred to our enduring commitment to the security of Afghanistan. He will know that the former Supreme Allied Commander Europe, Admiral Jim Stavridis, was very keen that the United Kingdom should leave a residual force of 1,000. We will be leaving about half that number. If this commitment is to mean anything, what will be the mix of the residual forces, and is the Foreign Secretary confident that they will be able to do the job?

[Mr Hammond]

I should first say that Admiral Stavridis’s comments, as my hon. Friend very well knows, were made in the context of a much higher total number that he was then bidding for to the Pentagon and other ISAF partners. The force that we leave behind will be focused around the training force in the Afghan national army officer academy, the life support troops working with them, the force protection element around that, and a detachment of engineers to support the small helicopter lift capability that we will need to retain in order to get people safely in and out of the officer academy. We are confident that that self-contained force will be adequate for the purposes we have set out.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Gerald Howarth

Monday 12th May 2014 Commons Chamber

[Mr Hammond]

I have regular discussions with my Polish counterpart and, as I mentioned a few moments ago, my hon. Friend the Minister responsible for international security strategy will travel to Poland on Wednesday for further such discussions.

[Sir Gerald Howarth (Aldershot) (Con)]

20. What discussions has my right hon. Friend had with US Secretary of Defence Hagel to assess the threat posed by Russia to eastern and southern Ukraine? Might those discussions encompass the deployment of a NATO maritime force, as I have advocated for some time, with the specific purpose of deterring the Russians from taking Odessa?

[Mr Hammond]

As the House would expect, we have regular discussions at ministerial and official level with American counterparts. As the House will know, the US is taking some bilateral actions alongside the actions being taken by NATO. The UK is focused at the moment on contributing to the NATO reassurance agenda, and it is not proposed that that will include the sending of warships into the Black sea.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Gerald Howarth

Monday 17th March 2014 Commons Chamber

[Mr Hammond]

May I suggest to the hon. Lady that, as many of her colleagues have clearly understood, if Members wish to pursue a written statement further, they always have the option of asking an urgent question?

[Sir Gerald Howarth (Aldershot) (Con)]

Given that Russia has effectively annexed Crimea, in contravention of the Budapest agreement signed by Britain, the United States and Ukraine in 1994, and that it continues to threaten eastern Ukraine, what consideration has my right hon. Friend the Secretary of State, or indeed NATO, given to mounting maritime exercises in the Black sea so that a message may be sent to Mr Putin’s Russia that any attack on Odessa would be a step too far?

[Mr Hammond]

We are clear that a graduated response to these unjustified actions by Russia is necessary, but it should be a diplomatic response in terms of economic and trade sanctions. Meetings are ongoing today across the European Union to try to agree the best way to deliver that response.

Afghanistan

Debate between Lord Hammond of Runnymede and Gerald Howarth

Monday 10th February 2014 Commons Chamber

[Mr Hammond]

Yes. The right hon. Gentleman is right to say that that area on the border is difficult to access. The border is very porous: action on one side tends to drive people across to safe havens on the other side, and the reverse happens when action starts on the other side of the border. It needs collaboration. There has been modest progress at tactical operational level on Afghanistan/Pakistan co-operation along the border, and we have seen a considerable de-escalation of tension along the border since the events of November 2012, which led to a serious stand-off and the closure of the reverse lines of supply through Pakistan. This will be a long haul, but I believe that the relatively new Government in Pakistan are committed to working with regional partners to secure stability in Afghanistan, and that they have realised that stability in Afghanistan is in Pakistan’s long-term interest.

[Sir Gerald Howarth (Aldershot) (Con)]

We can all be extremely proud of the achievements not only of Her Majesty’s armed forces but of the provisional reconstruction team that my right hon. Friend mentioned in his statement. Does he agree that the future for Afghanistan after we leave still presents immense challenges? At the risk of being rather boring about this, may I press my right hon. Friend that, subject to an agreement on the status of forces after the end of this year, we should retain a sizeable interest in the country? If it all goes pear-shaped, very soon there will be 447 grieving families who say, “What did our sons die for in vain?” We have soldiers, sailors and airmen present, and it is better that they should be doing that than kicking their heels in Aldershot.

[Mr Hammond]

I can assure my hon. Friend that those people did not die in vain. They have delivered stability in Afghanistan that it could only have dreamed of a decade ago; they have made substantial progress in delivering the infrastructure of a functioning state; and they have protected us from terrorist attacks that could otherwise have originated from that territory. All I can say to my hon. Friend is that the footprint post-2014 will be, as I have set out, based around the Afghan national officer academy, but even that will be at risk if we do not get the bilateral security agreement signed and a NATO status of forces agreement in place.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Gerald Howarth

Monday 3rd February 2014 Commons Chamber

[Mr Hammond]

The hon. Gentleman is right on all counts. NATO’s strategic nuclear concept of course provides protection for the whole of the United Kingdom. Our very close relationship with our NATO allies—in this case, specifically with Norway—ensures that we have good visibility and good intelligence about Russian vessels and, indeed, Russian aircraft approaching the UK’s area of interest.

[Sir Gerald Howarth (Aldershot) (Con)]

I am sure that all Members are immensely grateful for the part played by social media in providing the United Kingdom with intelligence in advance of the Kuznetsov’s arrival in the UK’s area of interest. To put a serious point to my right hon. Friend, surely this incident underlines the need for this Government and this country to have a successor to the Nimrod maritime patrol aircraft, and shows that until we get such a successor aircraft, we will be at risk.

[Mr Hammond]

I do not disagree with my hon. Friend’s assertion that we need to look at how we provide maritime surveillance cover. That will be part of the strategic defence and security review in 2015. However, I am afraid that he cannot argue that this incident demonstrates that need. In fact, this incident shows that we are perfectly capable of maintaining an intelligence picture through imagery, signals intelligence and reports from our NATO allies of movements of Russian ships without having access to maritime patrol aircraft.

Armed Forces Restructuring

Debate between Lord Hammond of Runnymede and Gerald Howarth

Thursday 23rd January 2014 Commons Chamber

[Mr Hammond]

I can tell the hon. Gentleman that personnel deployed on overseas operations will not be affected by the redundancy announcement I have made today.

[Sir Gerald Howarth (Aldershot) (Con)]

While many will remain baffled at this Government’s priorities in increasing overseas aid by £2.5 billion this year and continuing to inflict these long-planned cuts on the Army, will my right hon. Friend nevertheless accept that had it not been for the fact that the Ministry of Defence was starved of its share of the increase in public expenditure under the last Government, the base from which we would have had to restructure the MOD under this Government would have been a jolly sight better than it has been?

[Mr Hammond]

My hon. Friend has a good point. The hon. Member for Gedling (Vernon Coaker) lectures me from the Opposition Front Bench, but it is noticeable that during that long period after 2001 when there appeared to be no limit to the scale of public spending and no limit to the level of taxation and borrowing and spending that the then Government were prepared to engage in, the armed forces did not share in that cornucopia and the consequences are here for all of us to see today.

Defence Procurement

Debate between Lord Hammond of Runnymede and Gerald Howarth

Tuesday 10th December 2013 Commons Chamber

[Mr Hammond]

I am grateful to the right hon. Gentleman for his question, because he knows something about this. I recognise his concern, but it is my judgment that the kind of people we are looking to attract into DE&S—people with high-level commercial skills—will not be afraid of the possibility of a future evolution into a GoCo.

We can do a great deal to deliver significant change within the public sector—we can bring in people with the right skills, we can upskill staff, we can install new systems, processes and controls, all of which we will now commit to doing, and we can apply external resource to programme management—but we will still essentially be talking about a system where private sector skills sets are employed to advise but civil servants make decisions. Those private sector participants will be paid flat fees; they will not be “at risk” in the structure. That does not fundamentally change the culture. It is an open question whether we can get far enough through that construct or whether, once we have made DE&S as lean and fit as it can be within the public sector, we will need to test again what additional value for the taxpayer could be generated by making the culture shift that having a risk-taking private sector strategic manager take over day-to-day running of the operation would deliver.

[Sir Gerald Howarth (Aldershot) (Con)]

I congratulate my right hon. Friend on having grasped this particularly difficult nettle. Does he agree that in addressing the skills issue so ably highlighted by Bernard Gray, these proposals raise the prospect of having an intelligent customer in the Ministry of Defence and therefore of avoiding some of the ghastly procurement mess-ups created by Labour? Would he be good enough to indicate how he sees ministerial accountability being applied to the new agency? Will it report direct to Parliament, as he mentioned, or will it report to Ministers, who would then report to the House?

[Mr Hammond]

There were two questions there. First, my hon. Friend is absolutely right to point out that for a customer-supplier interface to work, we need skills on both sides. This is not just about upskilling DE&S; simultaneously, we are also carrying out a project within the MOD that will continue to upskill the customer side to ensure that we can be an intelligent customer. On accountability, of course Ministers will be accountable to Parliament for DE&S’s activity, but as I have announced, the chief executive will be an accounting officer with a direct line of accountability, via the Public Accounts Committee, to Parliament.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Gerald Howarth

Monday 2nd September 2013 Commons Chamber

[Mr Hammond]

The hon. Gentleman makes a case with a great deal of passion, but without much detailed understanding of what he is talking about. Export licences were granted for some industrial chemicals that could have been used in a process that might be involved in the production of poisonous gases. Those export licences were revoked—no such chemicals were exported. However, I should explain that the problem that we all face is that a significant number of industrial chemicals have perfectly legitimate industrial uses—in this case, I believe, in metal-finishing activities—and we have to maintain the right balance between ensuring that we are not providing materials that could be misused and allowing normal trade to be conducted.

[Sir Gerald Howarth (Aldershot) (Con)]

Much has been made in the media about the potential impact of last week’s vote on the relationship between the United Kingdom and the United States. Does my right hon. Friend not agree that whatever disagreements there might be on the particular issue of Syria, the strength of the relationship between the United Kingdom and the United States is absolutely essential, and it rests, much more importantly, on intelligence and a shared belief in a nuclear deterrent?

[Mr Hammond]

My hon. Friend is absolutely right. Our relationship with the United States is central to our defence and security, and I am confident that, whatever happened last week, the depth, strength and history of that relationship mean that it is a resilient one. The Prime Minister has spoken to the President since last Thursday, and I am confident that as a result of that conversation the relationship between the United States and the United Kingdom will continue, and will remain strong and resilient.

Defence Reform Bill

Debate between Lord Hammond of Runnymede and Gerald Howarth

Tuesday 16th July 2013 Commons Chamber

[Mr Hammond]

The proposition is that a GoCo would be a UK-registered and domiciled company paying its taxes in the UK, but we expect that its shareholders will include international partner firms. The GoCo that runs the Atomic Weapons Establishment includes three non-UK companies in its shareholder register, and I see no reason to expect that the result of this competition would be different. We would expect British and non-British companies to be involved in the ownership, but the GoCo itself will be a British company.

[Sir Gerald Howarth (Aldershot) (Con)]

The Secretary of State will be aware that there are concerns among those in industry that their intellectual property may not be protected. Given that there is a very high degree of competition between the United States and the United Kingdom, the admission of a US company into the inner workings of the British Ministry of Defence across a wide range of areas would not be the same as the co-operation on the Atomic Weapons Establishment at Aldermaston, where the United States and the United Kingdom are completely in agreement.

[Mr Hammond]

I am grateful to my hon. Friend, who will have thought very carefully about these matters. Of course, this goes to the heart of the deliberations that we have been having. We are confident that we can put in place a model that will protect intellectual property—an issue to which I shall return.

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[Mr Hammond]

I assure my hon. Friend that the arrangements for our relationship with the GoCo, which will be largely contractual but partly regulatory, will also protect confidential information and make appropriate arrangements for the use of intellectual property held by the Secretary of State. I am dealing with the specific regime that will apply to part 2 contracts with single-source suppliers.

The new single-source regime will incentivise efficiency in operating costs and the minimisation of overheads. It will align the interests of the MOD and its suppliers, and support the competitiveness of the UK defence industry in both domestic and foreign markets.

Finally, I turn to the third part of the Bill, which relates to our reserve forces.

[Sir Gerald Howarth]

I am grateful to the Secretary of State because he has given way many times. Before he turns to the reserves, may I ask him about defence research? As he will know, my hon. Friend the Member for Mid Worcestershire (Peter Luff) and I feel strongly that we are not spending enough on defence research in this country. How does he see the protection of that important base being secured? Will it be handed over to the GoCo? What will be the regime to govern research?

[Mr Hammond]

My hon. Friend knows well, because he was a Minister at the time, that we made a commitment that a fixed minimum percentage of the defence budget will be spent on research and development. That is a matter of policy and such matters will remain for the MOD to determine. If a GoCo is appointed, it will execute policy, not make policy. I am happy to give him that reassurance.

Our reserves make an essential contribution to delivering the nation’s security at home and overseas. They are a valuable and highly valued part of our armed forces who work alongside their regular counterparts to deliver our military capability. Earlier this month, I published a White Paper that signalled a step change in the offer that we make to individual reservists and their employers. It set out a range of measures to revitalise the reserve forces and reverse the decline of the recent past, including paid annual leave and pension entitlements in respect of training days, access to key defence health services, greater predictability of reservists’ liability for call-out and a £500 per month per reservist award to small and medium-sized enterprises when their reservist employees are mobilised. There will also be substantially improved equipment and training opportunities.

Reserve Forces

Debate between Lord Hammond of Runnymede and Gerald Howarth

Wednesday 3rd July 2013 Commons Chamber

[Mr Hammond]

Even in conurbation where there are numbers of TA bases, in some cases it has been necessary to consolidate them to reach critical mass and to provide the training offer that we have committed to deliver to reservists. I should explain to the House that the TA, as structured by the previous Government’s review in 2007, had an established strength of 36,500. It never resourced that and never recruited up to that strength. We are doing two things today. We are setting out a structure and basing laydown that will work for Future Force 2020 with a force of 30,000, but we are also dealing with the overhang of a hugely over-ambitious and underfunded proposition that the previous Government put in place in 2007.

[Sir Gerald Howarth (Aldershot) (Con)]

Although it is regrettable that the Secretary of State was not furnished with the correct information to enable the House to judge these matters, is it not the case that generally speaking with statements the devil is in the detail? The House will need to examine all the detail set out not only in the statement but in the White Paper. Although my right hon. Friend the Member for North East Hampshire (Mr Arbuthnot) is absolutely right that this is the only show in town, the Secretary of State should be under no illusions about the fact that this is a substantial challenge we face in cutting our regular Army to 82,000. Will the Secretary of State assure me that he will continue to keep the House regularly informed about the success of the recruitment so that the conditions that he has just set out, which applied after the last review conducted by the previous Government, do not apply to this one?

[Mr Hammond]

I am grateful to my hon. Friend and he is absolutely right. The complexity of such an issue requires a written statement, which is why I have made one today. The changes to the structure of the Army run into the hundreds—re-rollings, relocations and amalgamations—to create an effective force, and I pay tribute to the Army staff, who have done an enormous amount of work in producing this structure. I urge right hon. and hon. Members to look carefully at the detailed documents that have been provided today, because they explain the detailed position more clearly than an oral statement ever can. My hon. Friend challenges me to publish regular updates. I have already said that I have previously committed to publishing recruitment figures and trained strength figures—on a quarterly basis, I think—and I repeat that commitment.

Better Defence Acquisition

Debate between Lord Hammond of Runnymede and Gerald Howarth

Monday 10th June 2013 Commons Chamber

[Mr Hammond]

I can of course give the hon. Gentleman that assurance. We are trying to do two things: to ensure that the £160 billion defence equipment and support programme is delivered effectively to our armed forces and that it is delivered efficiently and in a value-for-money way to the taxpayer. In the end, this allows us better, more reliably and more sustainably to support our armed forces while ensuring that this is done in an appropriate way during a period of public financial austerity.

[Sir Gerald Howarth (Aldershot) (Con)]

I was a fan of Mr Bernard Gray’s report in 2009 when I was shadow defence procurement Minister, but I was a bit nervous about his proposals for a GoCo, so I welcome my right hon. Friend’s caution; he has taken the right attitude. Will he set out the mechanism by which he hopes to be able to maintain the crucial industrial capabilities that this nation needs, because that is an extremely important part of his statement? Will he also set out how the new proposals might avoid the mistakes of the £800 million cost overrun on the disastrous Nimrod programme?

[Mr Hammond]

I am grateful to my hon. Friend. He knows me and he knows that I am a cautious person. This is a big and complicated project, and we are approaching it carefully. We are weighing up the options and taking the appropriate length of time to make the decisions, and I am confident that they will deliver the result that we require. He asks about our national sovereign capabilities. We have set out our approach to the defence industry in the White Paper “National Security Through Technology”. We have also set out today, in this White Paper, the proposed changes to single-source pricing regulation and how we expect to drive greater efficiency into the single-source part of the defence industry that delivers about half our requirements. Only by making those in that sector focus on reducing costs, which they currently have very little incentive to do, will we make them not only efficient providers to us but efficient and competitive players in the international defence export market. That is in the interests of the industry, the UK’s armed forces and UK plc.

Operation Herrick

Debate between Lord Hammond of Runnymede and Gerald Howarth

Tuesday 14th May 2013 Commons Chamber

[Mr Hammond]

It is not intended that an additional R and R period will be incorporated. As with current practice, there will be a single 14-day period of R and R during a tour.

[Sir Gerald Howarth (Aldershot) (Con)]

May I congratulate my right hon. Friend on a sensible move to ensure that the transition is orderly? Does ISAF have any intention of retaining a continuing capability beyond the extra three months of 2015? Will the UK be prepared, beyond the support to the officer training academy, to contribute troops to ensure that the transition period to full ANSF control is achieved?

[Mr Hammond]

I am sure my hon. Friend is aware that a NATO chiefs of defence staff meeting at which that question will be discussed is taking place today in Brussels. No concrete proposal has yet been accepted, and the UK has made no commitments beyond the Afghan national army officer academy. However, we will consider what ISAF and our NATO allies propose to do in future. We will look at the requirements that any NATO plan involves, make a decision on what, if any, participation the UK should have post-2014, and notify the House as soon as any such decision is made.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Gerald Howarth

Monday 25th February 2013 Commons Chamber

[Mr Hammond]

I agree with my right hon. Friend. The plans that we have set out do indeed show that we will continue to comply with that 2% threshold.

[Sir Gerald Howarth (Aldershot) (Con)]

Will the Secretary of State enlighten the House on what discussions he has had with the Treasury in the light of the Prime Minister’s most welcome announcement last week that some of the aid budget might very usefully be diverted to peacekeeping operations? The Department for International Development is to have another £2.65 billion extra this year, but how on earth is it going to spend it when the Ministry of Defence is so short of cash?

[Mr Hammond]

I shall leave it to my right hon. Friend the International Development Secretary to explain how DFID proposes to spend its budget. There is already a high level of co-operation between the Ministry of Defence, the Foreign Office and DFID. It makes absolute sense to look at how we spend the budgets available across those three Departments in order to achieve their objectives and secure the UK’s vital national interests.

Deployment to Mali

Debate between Lord Hammond of Runnymede and Gerald Howarth

Tuesday 29th January 2013 Commons Chamber

[Mr Hammond]

The hon. Gentleman is right; some offers of assistance have already been provided—I have just had a discussion this morning with the Belgian Defence Minister—but it would be better, if he does not mind, to await the completion of the discussion today. I can assure him, as I have already assured Mr Speaker, that one of my colleagues from the Foreign and Commonwealth Office will come to update the House as soon as we have the readout from that discussion and the one in Addis Ababa.

[Sir Gerald Howarth (Aldershot) (Con)]

My hon. Friend the Member for Basildon and Billericay (Mr Baron) was entirely right to urge on my right hon. Friend extreme caution in this matter. However, does my right hon. Friend not agree that the EU training mission to Somalia is a useful precedent here? That is one of the areas in EU defence that has actually been rather successful, unlike most of the rest of it, and that is therefore a proper course to follow. Will he give us an indication of what the Nigerians intend to do? That is a Christian and Muslim country; it should be able to help out in Mali; and it has well trained troops as well.

[Mr Hammond]

I am happy to agree with my hon. Friend that the EU training mission in Somalia has been a success. Indeed, I see some similarity between the situation in Somalia and that in Mali. What is required in Mali is military training, economic development support and rule of law and civil governance reform, to help that country to achieve stable and sustainable government in the future. That is something that I believe the EU is well positioned to lead on and to deliver, and we look forward to supporting it in that effort.

Afghanistan

Debate between Lord Hammond of Runnymede and Gerald Howarth

Wednesday 19th December 2012 Commons Chamber

[Mr Hammond]

That is a good question. Our arrangements with the Treasury are that equipment that has been purchased as urgent operational requirements from the special reserve may be repatriated into core without any charge to the defence budget, but the cost of physically recuperating that equipment will be met from the core defence budget. In respect of armoured vehicles that have been purchased as UORs, therefore, the Army will have to decide whether it is cost-effective to bring that equipment back and overhaul and re-equip it for future service, or whether it is more appropriate to abandon it and devote the money saved to purchase new equipment.

[Sir Gerald Howarth (Aldershot) (Con)]

My right hon. Friend and the Prime Minister both rightly referred to the importance of maintaining a post-2014 commitment in Afghanistan. One of the ways that we might most appropriately manifest that is by maintaining Camp Bastion, which has been specially built for its purpose. Indeed, a huge amount of money has been invested in it. That would not only send a signal to the Afghan population and Government; it would also provide a useful strategic asset in what is an important and turbulent area of the world.

[Mr Hammond]

The United States is currently considering where to retain strategic bases in Afghanistan beyond 2014, and my understanding is that it is highly likely—although not yet absolutely certain—that it will choose to continue to occupy Camp Bastion.