Aircraft Carriers and UK Shipbuilding

Debate between Lord Hammond of Runnymede and Ian Davidson

Wednesday 6th November 2013 Commons Chamber

[Mr Hammond]

Let me respond first to the question about the aircraft carriers. Today BAE Systems announced its plan for rationalising the industry, as it must do under the TOBA in order to sustain warship building capability in the future. The challenge for us is to bridge the gap between the completion of the carrier and the start of the Type 26 programme. By moving three carrier blocks to the Clyde, along with the manufacture of the OPVs, we shall be able to sustain warship building on the Clyde and to maintain its viability into the future.

I should be happy to discuss the city deal negotiations with the hon. Gentleman, who, I know, is well acquainted with the affairs of Portsmouth city council. I understand that the MOD is prepared to make land available as part of an overall scheme which would create investment and employment opportunities in the city.

[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

As the Member of Parliament who represents Govan Shipbuilders, I welcome the order that has been placed there for the OPVs. It is a great tribute to the skills, commitment and hard work of the work force, both management and staff. As one of my colleagues observed earlier, Govan shipbuilder is no INEOS.

May I also point out that, given that this is an order from the Royal Navy, it would not have been available to a separate Scotland? Regrettably, the Minister seems not to have placed a firm order for the Type 26 frigates to be built on the Clyde. Will he confirm that that will not happen until we know the result of the referendum? Will he also confirm that work is being transferred from Portsmouth and England to Scotland in order to bridge the gap between the end of the aircraft carrier building programme and the beginning of the Type 26 programme?

[Mr Hammond]

As I have just said to the hon. Member for Portsmouth South (Mr Hancock), the company intends to transfer three blocks to the Clyde so that the flow of work will be continuous until we are ready to cut steel on the OPVs at the end of 2014.

We will not repeat the mistake that the last Government made with the aircraft carriers of placing an order for a ship that has not yet been designed. That would be like signing a blank cheque to BAE Systems. Much as I admire and appreciate that company’s contribution to both our economy and our defence, I have no interest in signing blank cheques to it.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Ian Davidson

Monday 11th June 2012 Commons Chamber

[Mr Hammond]

The Department certainly recognises the rapidly evolving threat from cyberspace, and we keep it under constant review. The national cyber-security programme has provided the Department with £90 million, and the Department has allocated some additional funding to increase investment in cyber-security this year, enhancing our existing capabilities. It will also be increasingly appropriate to consider cyber-security issues as an integral part of wider projects that depend on networked command and control capabilities.

[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

The sums the Secretary of State mentions are, indeed, substantial and will guarantee thousands, if not tens of thousands, of jobs. How many of those jobs does he envisage will be in Scotland in the event that Scotland decides to be separate?

[Mr Hammond]

Clearly, at this stage it is not possible to identify how many jobs will be created in different parts of the United Kingdom by the equipment programme we currently envisage. However, we enjoy an exemption from European Union procurement rules in respect of defence capabilities when we are procuring them in a way that protects our national defence capability, and if Scotland were not a part of the UK, it would be competing for defence contracts in the open market along with other providers in Europe and beyond.