Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Julian Brazier

Tuesday 29th November 2016 Commons Chamber

[Mr Hammond]

We did announce funds for flood resilience in the autumn statement, distributed from money that had already been set aside for that purpose in the spending review. I did not mention Cumbria specifically in the autumn statement, but I will look at the case that the hon. Gentleman has raised, and will write to him.

[Mr Julian Brazier (Canterbury) (Con)]

I welcome my right hon. Friend’s announcements of the various sums, and may I suggest that the sums the Government have put aside for coastal defence are critical for places such as Whitstable, in my constituency, for generating economic as well as social confidence among the people who live there?

[Mr Hammond]

My hon. Friend is absolutely right and of course flood defences are categorised as economic infrastructure precisely because they are a critical enabler of business activity and are critical to protect transport, communications, infrastructure and so on, and we will continue to invest in them.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Julian Brazier

Tuesday 25th October 2016 Commons Chamber

[Mr Hammond]

I can certainly reassure the hon. Gentleman that manufacturing industry is very much in the forefront of our thinking as we approach these negotiations. I am sorry that I have not had a chance to go to West Yorkshire, but I have been engaging with businesses in all sectors of the economy, including many businesses from the north that have attended round-tables in Downing Street over the past few weeks to set out their concerns so that we can take them properly into account.

[Mr Julian Brazier (Canterbury) (Con)]

In welcoming my right hon. Friend’s robust stance on this matter, may I suggest that as there is a large balance of payments deficit with Europe, specifically in the automotive sector, it would be in the EU’s interest to strike a decent deal with us, as he intends to do?

[Mr Hammond]

Our intention is to get the very best deal we can with our neighbours in the European Union to allow access for our companies to trade their goods and services into the EU. However, I would just caution my hon. Friend: to look at the economic arguments alone is to miss an important point. There is a political debate going on here in Europe, and European politicians are very conscious of the impact of Britain’s departure on their political project. I do not think we can be certain that economics alone will dictate the course of this negotiation.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 12th May 2014 Commons Chamber

[Mr Hammond]

First, I am sure that everybody in the House would wish to join the right hon. Gentleman and me in sending our deepest condolences to the relatives of those who died in that tragic accident. It is a poignant reminder, coming so close to the end of the combat campaign, not just of the risks our service people undertake every day in the face of the enemy, but of the intrinsically dangerous nature of what they do, day in, day out.

There is an ongoing review into the circumstances of the accident. At the moment, there is no evidence of any enemy action being involved in the incident. I cannot give the right hon. Gentleman a timetable for the completion of the review because it will take as long as it takes, but as soon as we have information that we can publish, we will do so.

[Mr Julian Brazier (Canterbury) (Con)]

I welcome my right hon. Friend’s assessment of the security situation. Does he agree that one of the highest priorities after the main withdrawal must be ensuring that we can still provide security for the teams from the Department for International Development that are carrying out essential social and economic work?

[Mr Hammond]

Once the UK forces have drawn down from the combat role in Helmand, we will still have a small security team, largely composed of civilian contractors, based in Kabul. We will work closely with the Foreign Office and DFID to ensure that their officials and the civilian contractors whom they employ in the ongoing aid effort, are properly protected.

Nuclear Submarines

Debate between Lord Hammond of Runnymede and Julian Brazier

Thursday 6th March 2014 Commons Chamber

[Mr Hammond]

This is from the man whose defence policy is based on being able to join NATO, an avowedly nuclear alliance. As I have said many times in the House, we do not expect the Scottish people to vote for independence and we are not planning for that contingency. However, as one would expect, the Royal Navy operates an extensive set of contingency plans for dealing with all sorts of contingent events that may occur.

[Mr Julian Brazier (Canterbury) (Con)]

My right hon. Friend will be aware that the whole of the deterrent programme, both maintenance and build, is characterised by monopolies that are pretty much unavoidable. Does he agree that, notwithstanding this actually quite small hiccup, this arrangement, under Governments of all kinds, works well and offers lessons for wider consideration across procurement?

[Mr Hammond]

Our track record speaks for itself. Since 1963, the Royal Navy has operated 80-odd cores, both at sea and at shore-based test reactors. Rolls-Royce has acted as the technical authority and delivery partner, providing the design and manufacture of cores in an arrangement that has been very satisfactory. Nothing that I am announcing should in any way be taken to undermine the success of that relationship, or Rolls-Royce’s status as a world-leading provider of military reactor cores.

Afghanistan

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 10th February 2014 Commons Chamber

[Mr Hammond]

Our RPAS vehicles in our fleet operate only in Afghanistan, so I am able to reassure the hon. Lady on that point.

[Mr Julian Brazier (Canterbury) (Con)]

In welcoming my right hon. Friend’s statement and commending the professionalism and courage of our armed forces, may I nevertheless urge him, when we look back on lessons learned for future conflicts, to continue to ask the hard questions not on the intervention in 2002 after 9/11, but on the decision to move south into Helmand in 2006, both per se and on the question mark over the split between the different Government agencies, which took such a very long time to heal, and the split command structure in Afghanistan at the time?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 3rd February 2014 Commons Chamber

[Mr Hammond]

My right hon. and learned Friend will know that the SDSR 2010 sets out a clear level of ambition. We have defined what we will be able to deploy on a sustained basis, and over time the increase in the size of the reserves will be essential to provide that resilience on a sustained operation. The point that I was making at Munich, which I have made before in the House, is—I think most Members would agree—that the mood of the public after 10 years of engagement in Iraq and Afghanistan is unlikely to be supportive of a sustained deployment at scale in the near future.

[Mr Julian Brazier (Canterbury) (Con)]

Although I welcome the progress at Recruiting Group since General Tickell took over there, will my right hon. Friend confirm that the two areas of reserve recruiting that do not come under its processes—the recruiting for the officer preparatory course and transfers from the Regular Army to reserves—are both running at healthy levels?

[Mr Hammond]

My hon. Friend is right. As he knows, one of the things that I am trying to do is see what lessons we can draw from the relative success in those two areas and apply them to the broader reserves recruitment agenda.

Armed Forces Restructuring

Debate between Lord Hammond of Runnymede and Julian Brazier

Thursday 23rd January 2014 Commons Chamber

[Mr Hammond]

Well, I have heard some rubbish in my time. Although we might disagree, the hon. Gentleman could have tackled me on a range of issues about the impact of the changes that we have made in the structure and funding of our armed forces, but this final tranche of redundancy today—about 1,500 people across the armed forces—is not a big structural change and certainly does not warrant the accusation he has made.

[Mr Julian Brazier (Canterbury) (Con)]

Does my right hon. Friend accept that the unpalatable and difficult decisions that he has had to take on manpower were an absolute requirement to enable us to fund the rebuilding of the fleet, which has always traditionally been, and should remain for a country that is an island dependent on trade, our No. 1 defence priority?

IT Systems (Army Recruitment)

Debate between Lord Hammond of Runnymede and Julian Brazier

Tuesday 14th January 2014 Commons Chamber

[Mr Hammond]

There is some truth in what the right hon. Gentleman says. One measure we have already put in place for reserves recruitment is reverting to an early face-to-face interview over a weekend session, where it is possible to deal with several processes in one hit, rather than stringing them out over a much longer period, which was how the system was originally set up.

It is clear to me that the original concept did not give a big enough role to front-line reservist units in managing the process of attracting recruits and then mentoring them through the pipeline to the point at which they join stage 1 training. We have now put that right, with recruitment budgets and recruiting targets allocated to reserve unit commanding officers, who will be held to account for delivering the recruiting targets. From the reserve units that I have visited and the COs to whom I have talked, I know that they are very glad to have back that role and responsibility.

[Mr Julian Brazier (Canterbury) (Con)]

In welcoming the recent package of changes and the work of the new and energetic major-general at the Army recruiting group, Major General Chris Tickell, may I suggest to my right hon. Friend that one of the key lessons to learn is the importance of developing distinct pathways towards the same ultimate aim? That applies not just to the recruiting group, but to other areas such as the military secretary’s department and the wider personnel function. That is what is done in every other country in the English-speaking world.

--- Later in debate ---

[Mr Hammond]

I think that my hon. Friend is talking about a distinct pathway for reserves, as opposed to regulars.

[Mr Brazier]

indicated assent.

[Mr Hammond]

I pay tribute to my hon. Friend. It is largely as a result of his insistence on that point that I have become focused over the past four or five months on the importance of maintaining that distinct ethos, not just in the recruitment process, but elsewhere in the reserves. I agree with him entirely.

Defence Procurement

Debate between Lord Hammond of Runnymede and Julian Brazier

Tuesday 10th December 2013 Commons Chamber

[Mr Hammond]

We have a defence industrial strategy. The question from the hon. Member for Glasgow North West (John Robertson) about the Clyde yards will remind the House that, just recently, we made a very important step forward in allowing BAE Systems to explain to the world how it is going to manage complex warship building in the future to ensure that we retain a credible and viable complex warship building operation in the UK.

[Mr Julian Brazier (Canterbury) (Con)]

My right hon. Friend has won some important concessions from the Treasury, and not just on terms and conditions of service for these key people, but in other areas, such as partly restoring the ability for annual financial carry-over, which was lost under the previous Government. Does he think he would have been able to win those concessions had he not been floating a more radical alternative?

[Mr Hammond]

My hon. Friend raises a fascinating proposition: was this all some complex ruse to try to squeeze greater concessions out of the Treasury? I can assure him that that was not the intention. We genuinely wanted, and want, to explore the possibilities of using the private sector in a strategic role and, through DE&S plus, in a more traditional supportive role to get the best value-for-money proposition for the taxpayer—nothing more and nothing less.

Defence Reform Bill

Debate between Lord Hammond of Runnymede and Julian Brazier

Wednesday 20th November 2013 Commons Chamber

[Mr Brazier]

I am glad to see the right hon. Gentleman nodding.

More recently in Afghanistan, General John Lorimer—he is our current commander there, but at that stage he was a brigade commander—made the following comment on a Territorial Army company that was put under his command:

“Somme Company was an outstanding body of men: well trained, highly motivated and exceptionally well led.”

Sadly, however, for a number of years the Territorials have lost their voice and position. Crucially, in 2006, their control of recruiting was taken away from them and given to the Regular Army.

[The Secretary of State for Defence (Mr Philip Hammond)]

I am grateful to my hon. Friend for giving way at this early stage in the debate. I hope it might be helpful if I indicate to the House at this stage that we are minded to accept the principle of his new clause 1. Indeed—[Laughter.] The hon. Member for North Durham (Mr Jones) laughs. We have already made arrangements to receive independent reports from the RFCAs on an annual basis; my hon. Friend is suggesting placing that requirement in statute. On reflection, we consider that to be a sensible idea that will strengthen the programme for the growth and reinvigoration of our reserves. I hope that making that clear to my hon. Friend at the beginning will help to set the tone for today’s debate.

[Mr Brazier]

May I express my thanks to my right hon. Friend? I am delighted by that, and I know that the knowledge that the reserve units out there will once again have a powerful independent voice will make a difference. When I talk about some of the current problems, people will understand just how much that voice matters every bit as much as it did in 1914.

--- Later in debate ---

[Mr Philip Hammond]

I thank my hon. Friend for giving way again. I cannot resist following up the intervention of our hon. Friend the Member for Bournemouth East (Mr Ellwood). When I went to Upavon a couple of weeks ago, I found that a number of limbless ex-Afghanistan veterans had been integrated into the call centre and were managing the online process. I noted that they were able to use their own military experience to encourage and support the young recruits whom they were mentoring online.

[Mr Brazier]

My right hon. Friend is absolutely right to make that point. Not only is it good for the veterans to be integrated into the call centre while remaining in a military environment, but, crucially, the fact that the job is being done by people with military experience makes a huge difference. That is a message which, in a different context, I have tried to get across to our police force in Kent from time to time.

I do not want to speak for too long, because a great many other Members wish to contribute to the debate, but I should like to look abroad for a moment. It is no accident that the Haldane reforms came just after similar reforms in America which established the National Guard Bureau, just three years before the power was given to the forerunners of the RFCAs by the House of Commons. I have been privileged to visit National Guard units on operations in Afghanistan, and to see them doing various kinds of work. One airborne cavalry unit was mentoring the police, and an infantry unit from Virginia—whose origins, incidentally, date back to before American independence—was deploying its platoons along the Pakistani border, protecting aid posts there. Those units were able to bring to those jobs something that regular soldiers could not have brought to them.

“Losing Small Wars” is a book by Frank Ledwidge, who served in both Iraq and Afghanistan. It refers to a catalogue of things that went wrong with the British presence in Iraq and, in the early years, in Afghanistan. One of the saddest aspects of the book is that it paints a picture of the Army not as it used to be, when it was quintessentially good at dealing with civilian populations all over the world. The fact that our Army was entirely unable to relate to the population in Iraq—in particular, it failed to recognise the murderous nature of the Iraqi police—was fundamental to our problems there. By contrast, National Guard units, which contain, for instance, police officers, business men and farmers, related very well to their local areas.

--- Later in debate ---

[Mr Hammond]

I also want to deal with the cost of the Reserves. The ratio is 1:5—the cost of training and maintaining a reservist is one fifth of the cost for a Regular Army soldier.

I will not dwell on the Opposition’s position; I think I have made my views known in interventions. However, I want to make a comment about new clause 4, tabled by the hon. Member for North Durham (Mr Jones), which deals with mental health. He has a long and honourable record of raising this issue. While I hope he will not press new clause 4 to a vote, I would be prepared to ask the RFCAs, as part of their obligations under new clause 1, to include reservists’ mental health in the issues that they report on. I hope he will consider that helpful.

Finally, let me turn to new clause 6, which was tabled by the hon. Member for Dunfermline and West Fife (Thomas Docherty). His intentions are absolutely honourable and good: he wants to impose an obligation on employers to grant unpaid leave for training. We have not absolutely ruled out looking at that possibility in the future, but we have made a conscious decision that we want to do this working with employers, not against them. That has meant a couple of tough decisions on unpaid leave availability and discrimination rules. For now, we have decided to try to work with the grain, with employers, but if that does not work and we find there is a problem in the future, we will have an opportunity to return to this issue in the Armed Forces Act in 2016.

We have had a good debate. I urge the House to reject new clause 3 and embrace the concession we have made on new clause 1, so that we have an annual debate on the progress of the project in the House. I hope we can send from the House tonight a clear, cross-party message that we are behind the men and women of our reserve forces, who give so much for the defence of our nation.

[Mr Brazier]

May I say what a pleasure it is to speak for the first time under your chairmanship, Madam Deputy Speaker? I failed to declare my interest at the beginning of this debate: I am proud to have one son in the Regular Army and one in the Territorial Army.

This has been an excellent debate. I would like to mention two speeches in particular: the forensic analysis of my right hon. Friend the Member for North East Hampshire (Mr Arbuthnot) and the piercing vision of my hon. Friend the Member for Penrith and The Border (Rory Stewart). They both gave the House a great deal to think about, as did many others, in excellent speeches.

I thank my right hon. Friend the Secretary of State for accepting the substance of new clause 1. I look forward to it being introduced in another place. I will indeed withdraw my new clause—I made it clear that what I wanted was for it to be properly discussed. He has been very patient with me pressing him on reserve matters, of which property is just one. The decision to adopt the substance of new clause 1, reinforced by many speeches from all parts of the House, sends out a message to the reserves that the House of Commons is behind the reserve forces, just as it is behind the regular forces. We are proud of both. Finally, I must ask colleagues not to vote for new clause 3, tabled by my hon. Friend the Member for Basildon and Billericay (Mr Baron). Much as I respect him, it would send out a disastrous message to the reserve forces at this sensitive time. I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

New Clause 3

Report on Future Reserves 2020

‘(1) Within one month of the passage of this Act, the Secretary of State shall make and lay before Parliament a report on the viability and cost effectiveness of the plans set out in Reserves in the Future Force 2020: Valuable and Valued, Cmd 8655, together with his recommendation on its further implementation.

(2) Further implementation of the plans shall be halted 40 days after the laying of the report unless both Houses shall have resolved to approve the recommendation from the Secretary of State contained in the report.’.—(Mr Baron.)

Provides for a Government report detailing the viability and cost-effectiveness of the plans set out in the White Paper on Reserves (Cmd 8655). Both Houses must approve the report and the Secretary of State’s subsequent recommendation in order for the implementation of the reforms to reserve forces to continue.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

Aircraft Carriers and UK Shipbuilding

Debate between Lord Hammond of Runnymede and Julian Brazier

Wednesday 6th November 2013 Commons Chamber

[Mr Hammond]

They will be more capable than the existing River class, as they will be able to take a larger helicopter and will be 10 metres longer. They will be able to undertake a full range of duties, including not only fishery protection but the interdiction of smuggling, counter-piracy operations and the protection of our overseas territories.

[Mr Julian Brazier (Canterbury) (Con)]

I, too, pay tribute to my hon. Friend the Member for Portsmouth North (Penny Mordaunt) for her doughty struggle to get a good city deal for her constituents and for the vision for the OPVs that to my knowledge she has been outlining for at least two years. Will the Secretary of State confirm that the OPVs will to some extent provide a force multiplier for our frigate fleet? Some of the roles carried out by frigates do not require full frigate capability, so the OPVs could be a way of partially expanding that capability.

[Mr Hammond]

At the risk of causing her to blush, I am happy once again to praise my hon. Friend the Member for Portsmouth North. I should say to my hon. Friend the Member for Canterbury (Mr Brazier) that no decision has yet been taken about whether the old River class vessels will be retired after the new OPVs are brought into service. That decision will have to be made in SDSR 2015 based on the ongoing budget challenges of maintaining additional vessels at sea. That will be a decision for the Royal Navy.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 4th November 2013 Commons Chamber

[Mr Hammond]

I do not know where the hon. Gentleman gets his information from, but as I said earlier we are five weeks into a five-year recruiting campaign, and I do not see anything about his track record that would lead me to give any particular credence to his prediction about how successful that campaign will be.

[Mr Julian Brazier (Canterbury) (Con)]

In supporting my right hon. Friend’s robust stance, may I urge him to look into the truly staggering level of delays and mistakes in the Army enlistment process? Will he urge the Army recruiting group to prove it is serious by at least getting Army recruiting offices open on evenings or at weekends?

[Mr Hammond]

I am grateful to my hon. Friend for that question and freely acknowledge that there have been teething problems with the IT support systems for the recruiting campaigns for the Regular Army and Army Reserve. I was in the Army recruiting centre myself last week with the Chief of the General Staff. This matter has the highest level of attention, both ministerial and military, and a number of initiatives will be implemented over the next few days and weeks that I expect to deliver a significant improvement in the areas that my hon. Friend highlights.

Defence Reform Bill

Debate between Lord Hammond of Runnymede and Julian Brazier

Tuesday 16th July 2013 Commons Chamber

[Mr Hammond]

The Secretary of State will remain accountable to Parliament, but we expect that the GoCo will have an accounting officer, probably its chief executive officer, who will therefore be liable to be called before the Public Accounts Committee.

Part 1 of the Bill sets out the provisions and safeguards necessary to underpin the operation of a GoCo. The most important element of almost any organisation is its people, and the smooth transfer of the DE&S work force to the GoCo operating company will be vital to its future success. The Bill confirms that the initial transfer of civil servants would be covered by the TUPE regulations. By virtue of being a contractor-operated entity, the GoCo would have considerable freedoms, particularly relating to its ability to recruit and reward its staff at market rates—freedoms that are not usually available to public sector bodies. The Bill confirms that in its activities on behalf of the Secretary of State it will enjoy certain statutory immunities and exemptions that are currently enjoyed by the Crown—for example, in relation to the Health and Safety at Work etc. Act 1974 and the Nuclear Installations Act 1965.

In addition to those freedoms, we also need to put in place a number of safeguards to protect Government and taxpayer interests. Therefore, the Bill provides the Secretary of State with the power to create a scheme to transfer the business to another contractor or, in extremis, back to the MOD, should that prove necessary. The Bill also provides for the Ministry of Defence police to have clear jurisdiction to investigate any offences that may relate to defence work carried out by contractors. It also makes provision to allow the Secretary of State to disclose information that he has received in confidence to a contractor, and to authorise the use of intellectual property. Clause 7 and schedule 2 put in place appropriate safeguards to prevent the unauthorised use or disclosure of confidential information by either the GoCo or its employees.

I am determined to drive a step change in the way in which the MOD carries out its defence procurement business, and to do so rapidly. The gradual erosion of skills and capability in the organisation over recent years cannot be allowed to continue if we are to ensure the MOD’s ability to deliver equipment to the front line. The measures in part 1 of the Bill will allow us to make the transition to a GoCo at the conclusion of the commercial competition, subject, of course, to the bids representing value for money for the taxpayer.

Part 2 relates to single-source procurement. Open competition remains the best way of ensuring value for taxpayers’ money. However, sometimes there is only a single provider of a capability we require, such as nuclear propulsion units. Sometimes the need to maintain critical national industrial capabilities or sovereign control of the intellectual property in equipment programmes requires us to place contracts with UK companies without a competitive process. European Union public procurement regulations specifically allow this for military equipment.

This so-called single-source procurement typically accounts for about 45%—about £6 billion a year—of the total that the MOD spends on Defence Equipment and Support, and it is likely to remain at that level for at least the next decade or so. Clearly, in the absence of the disciplines of the marketplace there needs to be a set of rules governing single-source procurement in order to ensure proper protection for the taxpayers’ interest.

The MOD currently uses a framework for single-source procurement that has remained largely unchanged for the past 45 years—the so-called yellow book. Under this system, which is voluntary, the profit that contractors can earn is fixed, but there are few if any incentives for them to reduce costs. Clearly, this does not serve the best interests of the taxpayer and neither does it help industry to maintain a competitive focus that will allow it to succeed in export markets. It is therefore in the interests of both the MOD customer and its industrial suppliers to create a framework with incentives for efficient and competitive behaviour.

In 2011 the Government commissioned Lord Currie of Marylebone to undertake an independent review of the yellow book. He recommended a new framework based on transparency, with much stronger supplier efficiency incentives and underpinned by more robust governance arrangements. Based on his recommendations and following extensive consultations with our major single-source suppliers, we have developed a framework that will be introduced through regulations provided for in part 2 of the Bill. At its core is the principle that industry gets a fair profit in exchange for providing the MOD with transparency on costs and the protections we need to ensure value for money. It will align the MOD and industry by allowing additional profit to be earned through delivery of defined efficiencies, sharing the benefits between industry and the taxpayer. A statutory basis for the regime will ensure widespread coverage across our single-source supply base and allow application of the regime throughout the single-source supply chain.

To police the new framework we will create a small, arm’s length body, to be known as the single source regulations office, with approximately 30 staff. Its role will be to keep the statutory framework under review and to monitor adherence to it. It will replace an existing non-departmental public body that has little power other than to oversee a voluntary framework that can be amended only by consensus. The existing regime has failed to evolve to reflect changing circumstances, largely because either party can block any change that it regards as contrary to its own interests.

The single source regulations office will ensure that we do not have to wait another 45 years to update the regime. It will be a source of expert advice to the Secretary of State and it will also act as expert adjudicator in disputes between the MOD and our single-source suppliers. Crucially, it will advise the Secretary of State on the setting of key profit rates for single-source contracts.

Critical to ensuring that the MOD is able to negotiate prices that are fair and reasonable to both suppliers and taxpayers is the generation of better quality and more standardised cost data. Therefore, regulations enabled by this Bill will introduce a requirement for standard reports throughout the life of single-source contracts worth more than £5 million, allowing the MOD to build up a database against which future pricing assumptions can be judged and on the basis of which more robust, long-term cost forecasts can be made.

On contracts above £50 million, suppliers will also have to provide quarterly contract reports to support effective contract management, report any relevant events and deliver information about their overhead costs, allowing us better to align the industrial capacity the MOD is paying for with our long-term capability requirements. Clause 25 also creates a power for the MOD to gain access to suppliers’ records.

In order to ensure that suppliers fulfil their reporting and transparency obligations, the Bill includes a compliance regime. Failure to provide the required information on a timely basis will result in a penalty being applied under a civil penalty regime. Penalties will vary with the value of the contract and the single source regulations office will act as the appeal body for the compliance regime.

We recognise that we are requiring our suppliers to provide unprecedented levels of sensitive commercial information that would be of great value to their competitors or to market analysts. We need this information to ensure we get value for money on what is a significant proportion of defence spending, but obtaining proprietary information by statute imposes on Government a duty to secure its proper protection. In order to ensure that the increased level of transparency and reporting we require is not subject to abuse, the Bill creates a new criminal offence of unauthorised disclosure of sensitive information obtained under the new single source framework, such as forecast financial performance and investment or rationalisation plans.

Given that confidential and commercially sensitive information is already exempt from freedom of information requests, we do not think it will be necessary to bar release under the Freedom of Information Act in order to protect the information. However, I am clear about our obligation to our suppliers in respect of their sensitive information and the Bill creates an order-making power to allow the Secretary of State to invoke a full statutory bar on disclosure under FOI if the routine exemptions prove inadequate to protect the exceptional level of information that we are requiring to be disclosed to us.

[Mr Julian Brazier (Canterbury) (Con)]

The framework being described by my right hon. Friend is largely welcome, but it seems odd that it is being applied to only part 2 and the 45% spent on single-source procurement. Many of us support in principle the idea of the GoCo, but introducing more commercial entities to the organisation that buys the other 55% of the kit could expose more commercial-in-confidence material to outside bodies than would be the case under a single-source supplier.

[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.

Reserve Forces

Debate between Lord Hammond of Runnymede and Julian Brazier

Wednesday 3rd July 2013 Commons Chamber

[Mr Hammond]

The approach to dealing with the estate and the rationalisation of structure has not been territorial but was based on the structure of the Army. Some new major units are relocating to Scotland. To answer the hon. Gentleman’s specific questions, there are 52 reserve sites in Scotland. Seven will be vacated and a new site will reopen, which means a net loss of six. According to my calculation, that is a 12% reduction in site footprint. I accept that the hon. Gentleman does not have ready access to the information, so he cannot know this, but some of the sites in Scotland are so incredibly poorly recruited that I think that even he would struggle to argue for their retention. There are sites with an establishment of 30 or 40 and a recruited strength of six, seven, eight or 10. We clearly cannot deliver a proper offer to Scottish reservists unless we consolidate on to sites that will deliver a critical mass at the sub-unit level for training.

[Mr Julian Brazier (Canterbury) (Con)]

I congratulate my right hon. Friend and the Minister of State, my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois), on an immensely good package. In the last statement, we heard that the Government were going to get back to using formed sub-units, which is what reserve officers want. This time, we have heard that we have gripped the critical mass issue at sub-unit level, that we are resourcing equipment properly and that we will have opportunities for employers at all levels and money for SMEs. This is a package for the future of the reserves and the future of our armed forces, of which we should all be proud.

[Mr Hammond]

I am grateful to my hon. Friend and repeat the congratulations expressed by my right hon. Friend the Member for North East Hampshire (Mr Arbuthnot) on his work in this area as a member of the independent commission, a tireless advocate of the reserves and a giver of good advice over a long period on a complex issue. I am grateful to him for his endorsement, as he is one of the significant number of people in this place who understand the reserves and what the debate is all about.

Better Defence Acquisition

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 10th June 2013 Commons Chamber

[Mr Hammond]

The latter part of the hon. Gentleman’s question is clearly one that I cannot answer on a unilateral basis, but I suspect that, in the way that generally happens, there is a potential win-win situation here—a win for the taxpayer in terms of lower public expenditure and a win for the armed forces in terms of greater capabilities being able to be purchased. I think I included these figures in my statement, but the independent estimates are that somewhere between £1.3 billion and £2.2 billion of frictional costs generated by inefficiencies in the procurement system are incurred every year. It would be a very rash man who suggested that we can squeeze out every last pound of those, but I would expect us to be able to achieve net gains after taking account of the cost of the arrangements—the GoCo fee and the cost of the governance function on the MOD side—in the hundreds of millions of pounds.

[Mr Julian Brazier (Canterbury) (Con)]

I welcome my right hon. Friend’s thoughtful statement. Will he confirm not only that Aldermaston is a GoCo, but that in fact most of the American nuclear programme has historically been run by university-led GoCos? I urge him to look carefully at the issue of military project managers and at the experience from abroad. In land systems, in particular, we can end up with a project manager and an expensive military adviser, rather than one uniformed officer driving it forward. It is worth looking at the Swedish experience, for example, which is of a very effective and tight ship with mostly military project managers.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 15th April 2013 Commons Chamber

[Mr Julian Brazier (Canterbury) (Con)]

I welcome my right hon. Friend’s robust earlier reply, but does he agree that the links to which he and my hon. Friend the Member for Kettering (Mr Hollobone) referred—not only with Iran but, to a lesser extent, with other potentially extreme regimes—emphasise once more that, in a world with huge uncertainty, our nuclear deterrent is critical?

[Mr Hammond]

I agree with my hon. Friend, and I would go further and say this: the life expectancy of the replacement ballistic missile submarines will be about 35 to 40 years, and it would be a very brave man who would claim now that he could see, 40 years ahead from the 2020s, that there will be no need for that capability.

Army Basing Plan

Debate between Lord Hammond of Runnymede and Julian Brazier

Tuesday 5th March 2013 Commons Chamber

[Mr Hammond]

None whatsoever is the simple answer. The withdrawal of our forces from Germany represents the logical conclusion of the ending of the cold war some 20-odd years ago. Keeping a large standing force in Germany is expensive and no longer serves its original strategic purposes. As our Army becomes smaller, the diseconomies of scale of having two separate centres for armoured vehicle training, for example, and consequently two separate centres for armoured vehicle maintenance, become unsupportable. This is a logical final move following the conclusion of the cold war era.

[Mr Julian Brazier (Canterbury) (Con)]

The closing of Howe barracks is clearly a blow to the local community, as the 5th Battalion the Royal Regiment of Scotland made a huge contribution to the community, and indeed a number of its members have given life and limb. Nevertheless, the logic of my right hon. Friend’s announcement is clear. In looking to part 2 of his statement, which will be made before the summer recess, may I urge him to consider two things? First, it is very important that the TA is based where it has historically recruited and where it can recruit and that that is not distorted by pairing arrangements with regular units, important though they may be. Secondly, it is critical that we keep our training areas going, particularly the smaller ones, because otherwise we will find that the new model will become unviable.

[Mr Hammond]

First, today’s announcement says nothing about the training estate. If announcements about the training estate need to be made, my right hon. Friend the Minister for the Armed Forces will make them. I recognise the tension my hon. Friend outlines between the need to have reserve accommodation in the areas where we recruit and the need to enable joint training for regulars and reserves, which is at the heart of our new model for the reserve forces. I can assure him that resolving that tension is at the core of the work going on and will inform the reserve basing review, which I will announce to the House before the summer recess.

Deployment to Mali

Debate between Lord Hammond of Runnymede and Julian Brazier

Tuesday 29th January 2013 Commons Chamber

[Mr Hammond]

To answer the last question first, the ongoing use of Sentinel is not currently funded beyond 2015. It remains one of the candidate programmes for the—[Interruption.] The hon. Member for North Durham (Mr Jones) cackles from the Opposition Front Bench, but he was a Defence Minister in the previous Government who left us with a £38 billion gap between the equipment they had ordered and the budgets available to pay for it. We are having to prioritise and identify the programmes that are most important to maintaining Britain’s national security. Sentinel is a candidate programme for funding after 2015, and we will continue to look at its run-on costs and whether we can justify the investment in them.

[Mr Julian Brazier (Canterbury) (Con)]

I welcome the rounded and proportionate response that my right hon. Friend has outlined. Has the National Security Council asked the Department for International Development, the Foreign Office, the Department for Business, Innovation and Skills and other relevant Departments to talk to their French counterparts about how we can flesh out this mission as a whole so that it is not purely a military one?

[Mr Hammond]

Yes, I can assure my hon. Friend that DFID and Foreign Office officials and Ministers are in touch with their French counterparts and that there has been a great deal of traffic backwards and forwards between London and Paris over the past 10 days.

Afghanistan

Debate between Lord Hammond of Runnymede and Julian Brazier

Wednesday 19th December 2012 Commons Chamber

[Mr Hammond]

Our current estimate of the opening number in 2014 is 5,200. We do not think there will be an increased risk to them. There are balancing factors to consider. On the one hand, we will be mentoring and advising at a higher level of command; that will imply a lower footprint, fewer bases and fewer patrols going outside the wire. On the other hand, we will be drawing down, and drawing down and evacuating equipment is by its nature a complex and risk-based business. But I think overall we would not expect the total amount of risk to increase during the draw-down, taking those two factors together.

[Mr Julian Brazier (Canterbury) (Con)]

On our recent Defence Committee visit to Afghanistan it was impossible not to be deeply impressed with the progress made, and my right hon. Friend’s statement is extremely welcome. May I put it to him that pivotal to our successful operation in Malaya and also, arguably, Northern Ireland was the offer of a genuine amnesty to those who laid down their arms, and that the current amnesty on offer, which does not even extend to drug-dealing activities, is not really the right route to get the softer element of the Taliban to negotiate?

[Mr Hammond]

I am happy to agree with my hon. Friend that reintegration of people who have been opposed to the regime and, indeed, active supporters of the insurgency is an essential part of a stable future for Afghanistan. A substantial reintegration programme is under way, as he knows. Thousands of low-level Taliban fighters who have abandoned the insurgency have been reintegrated into Afghan society and that process will need to continue if we are to deliver stability in the future.

Future Reserves 2020

Debate between Lord Hammond of Runnymede and Julian Brazier

Thursday 8th November 2012 Commons Chamber

[Mr Julian Brazier (Canterbury) (Con)]

Mr Speaker, may I thank you for the contribution that you are making by giving a party for employers in a fortnight’s time?

I congratulate my right hon. Friend the Secretary of State on his really excellent and thoroughly thought through statement. I should like to underpin what he said by making a further point. The shadow Secretary of State made what was otherwise a rather well thought through response, and it was a pity that the point came up about formed units. The plain fact is that, since 2009, the reserve forces have been used as a part-time personnel unit organisation, and that does not appeal to high-quality leaders. We must have formed units and sub-units in the picture.

[Mr Hammond]

I know that my hon. Friend commands great respect on this issue across the House and I am sure that the right hon. Member for East Renfrewshire will have noted what he has said, reinforcing the point that I have already made. I genuinely hope that we can build consensus on that issue.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 22nd October 2012 Commons Chamber

[Mr Hammond]

I am not quite sure what the hon. Gentleman means by saying that I did not take account of shareholding issues. The Government made it clear that we understood the reasons why the companies were attracted to a possible merger and that we were willing to listen to the arguments for it, subject to setting out clear red lines about the UK’s national interest with regard to national security, our technology base and protecting jobs. It subsequently became clear that the UK’s red lines could not be satisfied while simultaneously satisfying those of the French and German Governments. It also became clear—I think that this is the point of the hon. Gentleman’s question—that not all the shareholders on either side of the transaction were satisfied that it made sense.

[Mr Julian Brazier (Canterbury) (Con)]

I strongly support my right hon. Friend’s red lines, but I put it to him that the palpable failure of BAE’s business model—which, basically, focused only on defence—and the shortcomings in its current management should not be allowed to drive us into an unsatisfactory situation, and that, such is the value of the assets that it controls, we may in the long run have to take a less than entirely hands-off approach to the company.

[Mr Hammond]

As my hon. Friend would expect, the Ministry of Defence has a close working relationship with BAE Systems as our largest supplier. The company has a substantial order book, a profitable business and strong cash flow, and it will continue to operate as an independent British business. Clearly, it will face challenges as its principal customers shrink their budgets, and it will need to adapt its business model for the future.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 16th July 2012 Commons Chamber

[Mr Hammond]

We have looked at all the options, including what we call “DE and S-plus”: keeping an on-vote solution with enhanced capabilities. At the moment, it is clear that the work being done is pointing in the direction of a Government-owned contractor-operated entity, but I will publish further details tomorrow, and further details still as they become available later in the summer and in the autumn.

[Mr Julian Brazier (Canterbury) (Con)]

While welcoming my right hon. Friend’s willingness to be bold in this area, may I suggest to him that one of the key factors to take into account in deciding just how bold to be—the GoCo is the boldest option—will be how many years Mr Gray is willing to stay in the job? I speak as one of his great admirers.

[Mr Hammond]

We are extremely grateful for the contribution that Bernard Gray is making as Chief of Defence Matériel. He is looking at bold and radical solutions that will allow us to deliver the equipment programme within the budget envelope we have set, and thus ensure that the whole of our programme for the armed forces is sustainable, in marked contrast to what the previous Government managed to deliver.

Army 2020

Debate between Lord Hammond of Runnymede and Julian Brazier

Thursday 5th July 2012 Commons Chamber

[Mr Hammond]

Well, how many would the hon. Lady like to deploy? How many wars does she want to fight at a time?

[Mr Julian Brazier (Canterbury) (Con)]

In welcoming the statement, may I seek assurance from my right hon. Friend that the members of the 5th Battalion the Royal Regiment of Scotland, in my constituency, who are hearing what will inevitably be painful news, will still have exciting prospects within the remaining four battalions and one company of the regiment?

I particularly welcome what my right hon. Friend said about the reserve forces and urge him to recognise that what he said about integration is critical. If we want to rebuild the officer base of the reserve forces, at the core of that will be roles for formed bodies of men—units and sub-units—not simply the milking-off of augmentees, as has been happening for the past three years in Afghanistan.

[Mr Hammond]

First, the positive news for people in the 5th Battalion the Royal Regiment of Scotland, which is based in my hon. Friend’s constituency, is that the regiment is under-recruited, so the merging of that battalion into the remainder of the regiment should be done without the need for a loss of personnel.

My hon. Friend is absolutely right about the integration of reserves. There will be a role for all three forms of use of reserves. Individual augmentees will continue to play an important part, delivering specialist skills in support of the reaction forces on an early deployment. However, formed sub-units, and in some cases formed units, will also be a vital part of how the adaptable force operates. That is one of the major changes being announced today.

Nuclear-powered Submarines

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 18th June 2012 Commons Chamber

[Mr Hammond]

The hon. Lady has a touching confidence in the figures released by another Government. We will release as much information as we can, bearing in mind two things: the overriding need for security and the overriding need to maintain sufficient commercial space to get the best possible deal for the taxpayer when we negotiate these contracts.

[Mr Julian Brazier (Canterbury) (Con)]

Does my right hon. Friend agree that we faced a larger conventional military threat in the second half of the 20th century than in the first half, and that the single factor that ensured that tens of millions of people did not die defending our freedoms in the second half of the century was that we had the nuclear deterrent?

[Mr Hammond]

That is certainly my interpretation of our modern history.

Defence Budget and Transformation

Debate between Lord Hammond of Runnymede and Julian Brazier

Monday 14th May 2012 Commons Chamber

[Mr Hammond]

First, my right hon. Friend the Member for North Somerset (Dr Fox) said that he had broadly balanced the defence budget and he was correct. What we have done over the past few months is go that last mile, to be able to say that it is fully balanced over the PR12 period. As for information, I have made it clear that once the National Audit Office has completed its review, we will publish its report and a summary-level equipment plan, with the same level of detail in it as has routinely been published about the defence budget. That may not be the level of detail that the hon. Gentleman would like, but it just is not possible, for security reasons and for commercial reasons, to publish a 10-year programme in minute detail without making the situation that the MOD faces impossible.

[Mr Julian Brazier (Canterbury) (Con)]

I congratulate my right hon. Friend and his team on a remarkable effort, which will make a considerable difference to our armed forces over the next decade. While he has the Chief Secretary to the Treasury sitting next to him, may I urge on him two points of detail that used to exist the last time Conservatives were in office? The first is a carry-over facility within the procurement function, so that we do not have the year-end scrabble. The other is an exemption from the burdensome European procurement regulations, which the French still enjoy.

[Mr Hammond]

Some defence procurement is not subject to the European procurement directive. As for the carry-over, year-end flexibility on procurement, I have had very constructive discussions with my right hon. Friend the Chief Secretary and with the finance director in the MOD, and we are satisfied with the arrangements we have in place.

Afghanistan (Troop Levels)

Debate between Lord Hammond of Runnymede and Julian Brazier

Thursday 26th April 2012 Commons Chamber

[Mr Hammond]

We are very clear that United Kingdom forces will not be in a combat role after 2014. We have to bring this engagement to a close. It was a measured decision to fix December 2014 as the end of combat operations. We are highly confident about the level of development of the ANSF.

I say to the hon. Gentleman that there is no example in history of an insurgency being effectively and sustainably defeated by foreign troops. It has to be local forces that sustainably defeat an insurgency. That is the path on which we are embarked in Afghanistan.

[Mr Julian Brazier (Canterbury) (Con)]

I welcome the statement, which stands in marked contrast to the gloom and doom we heard a year or two ago from some elements in the House. I put it to the Secretary of State that for the military success in which our troops have played such an important part to be seen through, a national political settlement is crucial. To that end, the idea that has been floated of bringing the elections forward a year so that the new Government are in place in good time would be a constructive step.

[Mr Hammond]

The timing of the Afghan presidential election is a matter for the Afghans, in accordance with the Afghan constitution. Our concern is to ensure that the constitution is upheld, that a democratic process is followed and that there is an orderly transfer of power from President Karzai at the end of his term.

Hostage Rescue Operation (Nigeria)

Debate between Lord Hammond of Runnymede and Julian Brazier

Tuesday 13th March 2012 Commons Chamber

[Mr Hammond]

I think it fair to say that throughout the long months of captivity there were very good and full discussions and exchanges of views with the Italians, and that they understood very clearly our direction of travel and the way in which we sought to advance our understanding of the situation and then bring it to a close. The circumstances that arose on Wednesday evening and Thursday morning represented an accelerated closing of a time window which simply made it impossible to consult as fully as one might ideally have liked. I am assured that information was continually being transmitted between intelligence agencies, as is the norm between allied agencies, but that there was not enough time for the discussions at Government-to-Government level that we might have had if a further day, or even 12 hours, had been available to us.

[Mr Julian Brazier (Canterbury) (Con)]

As my right hon. Friend and others have said, this was an extremely difficult operation, and one in which the odds were increasingly stacked against us. Does my right hon. Friend agree that while we commend the courage and professionalism of our special forces, it is extremely important that any examination of the details of what took place does not in any way compromise the necessary secrecy of the methods that they employ?

[Mr Hammond]

My hon. Friend is absolutely right. The operational security of our special forces remains paramount at all times, which is why we never comment on their operations and, indeed, never confirm or deny their involvement in any particular operation.

Afghanistan

Debate between Lord Hammond of Runnymede and Julian Brazier

Tuesday 18th October 2011 Commons Chamber

[Mr Hammond]

I have been saying for many years, long before I came anywhere near having a responsibility at the Dispatch Box for this issue, that it is not moral to ask troops to go into mortal danger without the best equipment that we can provide them for personal protection, and that remains my view.

[Mr Julian Brazier (Canterbury) (Con)]

May I congratulate my right hon. Friend both on his appointment and on the remarkable speed with which he is mastering the brief? He mentioned the importance of developing the local police force. One of the key factors for success in Helmand province and elsewhere in southern Afghanistan will be recruiting southern Pashtuns into the Afghan national army, so that it is no longer seen as an army of northern foreigners.

[Mr Hammond]

My hon. Friend is absolutely right. At the moment the ethnic balance in the ANA does not reflect the ethnic mix of the population, as it is heavily Tajik dominated. In the longer run, it will be necessary to achieve a better representation of the ethnic mix of Afghanistan in the forces, but that process will take time and inevitably will be a consequence of the reconciliation and reintegration process that will take place over the coming years.