United Kingdom: Global Position

Viscount Trenchard Excerpts

Thursday 13th March 2025 Lords Chamber

[Viscount Trenchard (Con)]

My Lords, I congratulate my noble friend Lord Howell on securing this debate, and the noble Lord, Lord Pitkeathley, on his interesting maiden speech. My noble friend Lady May set out a powerful vision for our global position in her Lancaster House speech in January 2017—already eight years ago. She reminded us that our history and culture are profoundly internationalist. She suggested that our previous place in the European Union had come at the expense of our global ties and of a bolder embrace of free trade with the wider world.

Her view very much chimed with my own, which was much influenced by the years I spent in Japan in the 1980s and 1990s, representing the investment bank Kleinwort Benson. The relationship between the UK and Japan had already largely recovered from the Second World War, and many Japanese harboured affection for Britain and the similar elements within our national identities. The influence that we could bring to bear, and the respect in which we were held in Japan, did not in any way derive either from our membership of the EU or from the special relationship that we had maintained since the phrase was coined by Winston Churchill in 1946. Things have changed since then more than any of us had ever dreamed possible. The new Administration in Washington has destroyed our certainties and made us and our other allies around the world sit up and rethink everything.

It is not just because I am one-quarter American that I venture to suggest that it is too early to say that the special relationship is over for good, but it is very clear that the UK and our allies will have to do much more of the heavy lifting in Europe, and that we will all have to spend much more on defence. It was reassuring to hear the Secretary of State for Defence say that he is determined to continue to work with the US to deepen our defence ties. We should also give credit to the Prime Minister for the leadership he has demonstrated in working with other allies such as Australia in assembling a coalition of the willing to protect a ceasefire in Ukraine.

It is clearly necessary to increase our defence spending significantly, and I welcome the Prime Minister’s mentioning a 3% figure, although I was impressed by a recent speech by the noble and gallant Lord, Lord Stirrup, in which he pointed out that a recent study suggested that NATO countries need to spend 3.7% of their collective GDP now in order to maintain defence capabilities at a level necessary to meet the challenges we face. It is important to continue to work with our European and transatlantic allies through NATO, because this is the most likely way to maintain US commitment to the alliance and because Canada and the US are both even nearer than we are to another area of growing instability, the Arctic and High North.

I do not believe that the global aspirations adopted by the last Government after Brexit were unrealistic. The tilt to the Indo-Pacific was greatly welcomed by our friends in the region. It was well matched by our accession to the CPTPP, in which Japan played a larger role than is appreciated by many. The CPTPP can become an engine of growth, and it is exciting that, following Britain’s accession, other countries such as Indonesia and South Korea have applied or stated their intentions to join. In carrying out the planned reset of our EU relationships, it is important not to yield to the siren voices asking for dynamic alignment with EU rules, because that would put the kibosh on our effective participation in CPTPP. Now that the UK has joined, eight out of 12 CPTPP member states are Commonwealth countries. My noble friend Lord Howell is a strong supporter of the Commonwealth, and I, too, believe that we should work with its members and through its organisation to support more stability, more free trade and more prosperity around the world. Working also with our other friends and allies, we should not underestimate how much we can achieve.

I, too, congratulate the Minister on her promotion and look forward to her winding-up speech.

Global Combat Air Programme International Government Organisation (Immunities and Privileges) Order 2024

Viscount Trenchard Excerpts

Monday 29th July 2024 Lords Chamber

However, subject to that, I hope that the House will approve the order and we can see the GIGO established in this country as soon as possible.

[Viscount Trenchard (Con)]

My Lords, I too congratulate the noble Baroness, Lady Chapman of Darlington, on her appointment, and I thank her for introducing this statutory instrument. I must declare my interest as a consultant to Japan Bank for International Cooperation and as an adviser to Mitsubishi Heavy Industries Ltd.

The noble Baroness the Leader of the House was right to ask your Lordships to dispense with Standing Order 73 to allow the statutory instrument to be approved, notwithstanding that the Joint Committee has not been able to consider it and has not laid a report before your Lordships, as it is normally obliged to do.

As the Minister explained, the SI before us supports the implementation of an international treaty, namely the convention between the Governments of Italy, Japan and the UK, signed in December 2023, establishing the GIGO—I think our Italian friends pronounce it “JIGO”, but I will follow the example of the noble Baroness. She said that the treaty had been signed before the election but could not be implemented because of the Dissolution. I am not quite clear why this was not done before the Dissolution, but I am happy that the Government recognise the importance of taking action to avoid delays to the timelines that we have agreed with our Japanese and Italian partners.

Most of our Japanese friends who are involved with the project had wanted it to be a bilateral project between Japan and the United Kingdom and initially resisted our proposal that it should be a trilateral project including Italy. They thought that a bilateral project with only two partners would be less at risk of delays than a trilateral or multilateral project, whoever the partners are. The need of the Japan Air Self-Defense Force for the GCAP to be delivered on time is even more pressing than our own, because its F2 aircraft must be replaced by 2035, whereas the RAF Typhoons may be capable of extending their working lives to some extent. I welcome the fact that the Government have taken account of the need to provide assurance to the Government of Japan that they are determined to avoid a delay such as is now feared. Can the Minister tell the House when the announcement on the location of the GIGO will be made? We know that it will be in the UK, but the announcement as to where it will be located has already been delayed well beyond what was expected.

Speaking at Farnborough, the Prime Minister said that GCAP was important and was making “significant progress”, but he stopped short of saying that Britain’s participation in it would continue. The Secretary of State for Business has been more explicit in his support and has been quoted as saying that the Government were “very strongly committed” to the programme. The noble Lord, Lord Coaker, has also tried to be as reassuring as possible without saying that the noble Lord, Lord Robertson, would have his hands tied on this point. I do not expect the Minister to be able to give any stronger reassurance today, but I welcome the Government’s decision to bring forward this statutory instrument for approval.

As the Minister explained, the statutory instrument gives effect to the treaty and confers legal capacity on the GIGO. It also grants the normal diplomatic privileges and immunities which are extended to diplomats. I am sure that Japan and Italy will provide similar immunities and privileges to British employees dispatched to work for the GIGO in those countries. Can the Minister tell the House when she expects the GIGO to appoint the chairman and members of the steering committee? What process will be used to select directors of the GCAP agency and by when does she expect they will be appointed?

I was happy to hear the Minister use the term Indo-Pacific in her introduction, because I have not heard that term used often by noble Lords on her Benches until now. Can she confirm that I would be wrong to suggest that the Government are just a little sceptical about the tilt to the Indo-Pacific? I hope she will say that I am wrong. I welcome the Government’s proposal to give this instrument a fair wind and support the Motion to approve it.

[Lord Liddle (Lab)]

I had not intended to intervene, but I have been very interested to listen to other noble Lords talk about this issue. It is a pity, on something of such profound importance, on which, as many Members have said, billions of pounds are at stake, that we have not had any opportunity for our committees to come forward to this House and tell us the level of commitment that is being made. Is it a commitment that we are bound by until the completion of the project, or are there ways in which the concept can be changed?

I agree with the noble Lord, Lord Howell, that this is an immensely important step forward in industrial partnership between Japan and the United Kingdom. That is very important. We all know what huge benefit we gained from the revival of our car industry from the 1980s onwards as a result of Japanese commitment to the UK. This is an opportunity for another wave of that partnership.

However, I was on the European Affairs Committee of this House for a long time, and I am conscious that our chairman, the noble Lord, Lord Ricketts, was always warning us about the dangers of British overcommitment on defence questions—an overcommitment that we would be unable to fulfil. My noble friend Lord Donoughue will remember this: one of the key things that the Wilson Governments got right in the 1960s was the decision, in 1968, to withdraw east of Suez, because it put our defence policy on an affordable and deliverable basis when Britain was no longer in a position to do that.

There are issues here. The most important defence priority of the moment is not an aircraft in 15 years’ time, it is getting troops, which we do not have, on the ground in the Baltic states on the borders with Russia to deter any potential Russian aggression as a result of the Ukraine war. That is the biggest priority and the biggest need in the defence budget. We have to be wary about these very long-term, hugely expensive commitments.

Is it possible for other nations to join this partnership? That might help reduce some of the enormous costs of this programme. I know that the French and Germans have their own ideas about having a programme, but a lot of people think that it is ludicrous for Europe to try to develop two of these advanced aeroplanes on the Tempest model, and that Europe might decide that it wants to come in. There has been speculation in the press that Germany, as a result of budgetary pressures, is worried about its commitment to this future fighter with France. Would it be possible for the Germans to come in? There has been talk about Saudi Arabia joining. How would this work? Is the legal framework flexible enough to allow these welcome developments?

I emphasise that I am not against this order, but there are big long-term questions. I am slightly surprised that we are doing it—perhaps for good reasons, for all I know—before we have the results of the review of Britain’s defence commitments from the noble Lord, Lord Robertson. I look forward to that because I cannot think of anyone better to lead it.