National Shipbuilding Strategy

Debate between Wayne David and Chris Stephens

Wednesday 8th February 2017 Westminster Hall

[Wayne David (Caerphilly) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Evans. I congratulate the hon. Member for Dunfermline and West Fife (Douglas Chapman) on securing this debate; it is on a very important subject and, as has been said, it has given us a first opportunity to discuss Sir John Parker’s important report.

I welcome the contributions of Scottish National party colleagues, the hon. Member for Strangford (Jim Shannon) and my hon. Friend the Member for North Durham (Mr Jones), who showed his expertise in this area. However, it is a great shame—a crying shame—that there are no Conservative Members of Parliament present, apart from the Minister and, rather belatedly, somebody else who I think has come in for another debate. It is a great shame that we have not had a full Chamber and that we have not all been able to debate collectively what is a fundamentally important issue for this country.

I will focus my comments on the situation regarding the strategy from the Ministry of Defence. My starting point, of course, is what the Government themselves declared in 2015 in their strategic defence and security review. They said that they were committed to maintaining a fleet of 19 frigates and destroyers, and that they intended to complement that force with a new class of lighter and flexible general purpose frigates. At that time, they correctly made the link between the need to develop our national security and the promotion of our domestic prosperity. The Government proudly announced then that a new national shipbuilding strategy

“will lay the foundations for a modern and efficient sector capable of meeting the country’s future defence and security needs.”

In the Budget of 2016, the Government proudly announced that they had appointed the eminent Sir John Parker to lead and write a national shipbuilding strategy, and it was promised that a report would be prepared and presented to this House in 2016.

However, there has been genuine confusion and I hope that the Minister will take this opportunity to clarify the situation. On 29 November 2016, we had a report from Sir John Parker, but it was not, as we had been promised, the Government’s national shipbuilding strategy. Many people thought that it was—some Ministers thought that it was—but it was not. Instead, we had an “independent report” on the UK’s national shipbuilding strategy from Sir John Parker.

My questions are quite simple. How did that metamorphosis take place; why did it take place; why is there confusion; what contact was there between the different Departments; and who is taking the lead on this issue? Those are very important questions about something as fundamental as the strategy for our future warships, which is not an issue that can be lightly dismissed. I echo what other Members have said: we would all like answers from the Minister about what on earth has happened and what on earth is going on.

Of course, Sir John’s report is very radical and extremely scathing about how things work, or rather do not work, within the Ministry of Defence regarding Royal Navy programmes. The report has a very interesting, informative and worrying chart about the length of time it takes for projects to develop to fruition. For example, Sir John points out that it was in 1967 that the conceptual start of the Type 21 frigates began and they were delivered nine years later. As for the Type 23 frigates, the conceptual start date was in 1978, but it took 17 years for that project to come to fruition. Goodness knows how long it will take for the Type 26 frigates.

Sir John asks why there have been such long delays. Why has this process taken such a long period of time? In some ways, the demands upon the frigates have changed. The world has changed and defence requirements have changed, but there is still that laborious project time before us. Why has that happened?

[Chris Stephens]

Does the hon. Gentleman agree that these delays not only impact on the Royal Navy but on the local economy in Scotland? He may be aware of the GMB report on Scottish shipbuilding and the value of shipbuilding to the Scottish economy.

[Wayne David]

Indeed, I fully support those points. The situation is very worrying for all concerned, not least the people who are employed in the shipbuilding industry and the local communities from which they are drawn.

Sir John gives a number of reasons why the long delays have occurred. He makes 11 points. I will not go through all of them, but will just pick out some of the reasons he suggests. He says that there has been

“A lack of assured Capital budget per RN ship series, subject to annual arbitrary change, with accumulative negative impact on time and cost with accompanying increased risk of obsolescence”.

That is very worrying. He also says that there have been

“Poor linkages across the ‘Total Enterprise’ including industrial capability and capacity”.

He goes on to say:

“Senior decision-makers have, previously, been engaged too late in the process and not always with high quality information and costing data”.

He adds:

“The MOD has lost expertise in both design and project contract management”.

He says that there has been

“Inadequate evaluation of risk contingency in each project”.

Those are some of the damning reasons why Sir John says there have been delays. I suggest that they are an indictment of the MOD, which really must sort things out once and for all regarding its procurement and governance strategy for warships.

Once the strategy has been written by the Government, when will it be published? I will not ask for the exact day or week, but will it be published in March, April, May, or whenever? We would like some sort of indication. Once it is published, we would like to know what sort of consultation there will be and how long it will last. I ask that because we want to have a full debate on every dot and comma of that important policy document.

I recognise that the Minister will not say very much about what might or might not be in that report. Nevertheless, I have a number of questions for her. First, will the Government sort out, once and for all, their procurement and governance systems for warship construction in this country? There really ought to be a masterplan that should be reviewed at each SDSR, and as part of that approach there should be a partnership with both the industry and the trade unions. As Sir John has suggested, a shipyard trade union representative ought to be appointed to attend regular meetings, to enhance the transparency and efficiency of the processes that are under way.

Secondly, will the Government commit to working with their industry partners and trade unions to enhance the training and educational capabilities and facilities, so that there is the correct mix of skills and competence, particularly with regard to the new digital systems that are coming on stream?

Thirdly, will the Government commit to having a small but highly specialised virtual innovation centre to force through, among other things, advances in design, new materials and productivity improvements? As Sir John has argued, such an innovation centre is necessary if we are to oversee the new “global competitiveness plans”, which I believe the Government want to see being created.

Finally, will the Government commit to placing a greater emphasis on the exporting of British-built ships, as well as British project management, design, equipment and sub-systems? Will they not only engage in general rhetoric, but commit to specifics, as part of a great national effort to ensure not just that British-built ships are used for British defence, but that the expertise in this country is sold for the benefit of navies throughout the world?

I look forward to hearing the Minister’s response to my questions.

Type 26 Frigates: Clyde

Debate between Wayne David and Chris Stephens

Tuesday 18th October 2016 Westminster Hall

[Wayne David (Caerphilly) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. It has been said that confusion and muddle have been the hallmark of the Government’s approach towards naval shipbuilding in recent years. Nowhere is that lack of clarity more in evidence than when it comes to the construction of frigates.

The Navy has 13 Type 23 frigates. As we have heard, there was a strong suggestion in the 2010 strategic defence and security review that 13 Type 26 frigates should be constructed in place of those 13 Type 23 frigates. We were told that manufacturing of those new frigates would begin in 2015-16, but the 2015 SDSR cut the number from 13 to eight. At that time, the Government gave a weak commitment to building at least five new general purpose frigates, possibly more. They have yet to agree a manufacturing date with BAE Systems for the Type 26 frigates, and the demonstration phase on those frigates was extended in March 2016 by a further year. At the same time, BAE Systems has been building three offshore patrol vessels, and the Government plan to have two more of those. That general factual background leads to a number of key questions that have been touched on in the debate, and that I want to underline.

First, with regard to timescale, if the Government do not give the go-ahead and the date for the cutting of steel is not before summer next year, the production trades will have almost finished manufacturing work on those offshore patrol vessel programmes, and will have no work to carry on with. In other words, there will be a hiatus. The trade skills that are required for the construction of the offshore patrol vessels will be lost and will not be able to be deployed other than at significant cost, with more delays and more training. It is important that the Government come clean; they must have some idea of the start date, and I hope that the Minister will tell us when that will be.

The second question is again on the issue of skills and the dovetailing that will be necessary between the Type 26 programme and the programme for the general purpose frigates. The trade unions have pointed out that as the Type 26 programme design phase is decreasing, the ship designers will need another programme to work on, so we need specifics from the Government on the general purpose frigate programme as well. What is the Government’s intention in that regard?

Thirdly, we have already seen delay—hopefully there will not be more—but what does that mean for the existing Type 23 frigates? The Government have said that there is to be no extension of their lifespan. Is that still the case? I have been told that the Type 23 frigates have already exceeded their original design life. If they are kept in service, there are implications for the Navy, in terms of fulfilling the requirements that those frigates meet.

The final question is on cost, and clarity would be desirable here. As we have heard, there have been suggestions that because of the Government’s continuing austerity programme and the hardening of cuts, it is becoming increasingly expensive for them to make real their previous commitments. Admiral Sir Philip Jones, the First Sea Lord and head of the Navy, suggested that when he told MPs on the Select Committee that one problem is the cost of designing quiet ships; the technology is far more expensive than was originally envisaged. That may or may not be the case, but what is very important, on that and on the other issues raised this afternoon, is that we have clarity and certainty from the Government.

[Chris Stephens]

Does the hon. Gentleman agree that delays have an economic impact, and not just on Govan, Scotstoun or Scotland? There is a wider economic impact. If there is a delay, that will mean a more expensive programme in the long run.

[Wayne David]

Broadly speaking, that is correct. There will certainly be excessive costs if the Type 23 frigates are required to stay in service beyond their natural design life. Also, with most programmes, and certainly with defence procurement programmes, the longer the programmes, the more the delay and the greater the costs. There is also an impact on the workforce, with greater uncertainty and greater job insecurity. On all these issues, what is required is, at the very least, clarity from the Government. I thank the hon. Member for West Dunbartonshire (Martin Docherty-Hughes) very much for bringing forward this issue today.

Scotland Bill

Debate between Wayne David and Chris Stephens

Monday 6th July 2015 Commons Chamber

[Chris Stephens]

I declare my membership of Unison and my trade union activity over the past 20 years. It was disappointing to hear the hon. Member for Caerphilly (Wayne David) shout across to SNP Members that we do not care for workers and working people—I hope he will reflect on that because a number of SNP Members have been involved in trade union activity in the past.

[Wayne David]

If the hon. Gentleman was concerned about workers throughout the United Kingdom, he would certainly accept Labour’s amendment to consider all the pros and cons of a case for the fragmentation of the national minimum wage.

[Chris Stephens]

I care about workers across the world, and I will be quoting from the Scottish Trades Union Congress and stating how it views the situation.

In speaking to new clause 47, I will not only outline why we believe it to be necessary, but produce supporting evidence from independent organisations in Scotland that have stated the clear benefits they see from devolving employment law. We believe that having such powers at Holyrood is essential to driving forward fairer pay and better working conditions in Scotland. Our priority is empowering Scotland to tackle inequality, for which we have a clear mandate from the voters. If the route out of poverty is work, it follows that we must argue for real powers to deliver it.

A coherent and integrated Scottish employment policy would address inequality and poverty by helping to get people into work, sustain employment and tackle low pay. That is why we seek the devolving of the national minimum wage to Scotland as a priority, as that would enable the Scottish Parliament to do more to address low pay and in-work poverty.

Our 2015 general election manifesto set out plans to raise the minimum wage to £8.70 by 2020, which is equivalent to the average national minimum wage growth between 1999 and 2007, and would go some way to reversing the below-inflation increases that took place between 2007 and 2014. Putting that power firmly in Scotland’s hands would allow us to legislate for further increases to match the living wage over time. Devolution would also allow the Scottish Government to integrate national minimum wage policy into the devolved income tax and welfare systems to ensure a targeted and joined-up approach to addressing in-work poverty.

Why do we need employment law to be devolved? The recent report by Citizens Advice Scotland, “Fair Enough?”, sets out in detail the problems with the current employment law system. Last year, the service dealt with 46,540 cases of unfair treatment in the workplace, and fully expects that number to rise. Those cases include dismissal for unfair reasons such as sickness, attempting to take holiday or even pregnancy. Some workers were even informed of their dismissal by text message. That backs up my own experiences before arriving in this place, where—even in local government—employers engaged in behaviour that they thought they could legally get away with rather than adhere to best practice.

There is widespread anger in Scotland at the attacks on employment rights, equalities and trade union rights from the coalition, and now from the majority Tory Government. Their approach is leading to an economy in which work is less well paid, less secure and less permanent. Local economies suffer in a low-wage, low-reward economy. A better way is required. For example, devolution of this issue would enable us to end the unfair and exploitative zero-hours contracts that create unacceptable levels of uncertainty and financial insecurity for low-paid workers.

Our policy approach to employment law and workplace issues is evidence-based. In February 2014, the Scottish Government commissioned the “Working Together” independent review of progressive workplace policies and practices in the public and private sectors in Scotland. The review group was convinced that the economic and social challenges and opportunities facing Scotland were more likely to be addressed successfully in an environment where trade unions played their full part.

Following the review, the Fair Work Convention was established to develop a fair employment and workplace framework based on national and international research and leading-edge practice for Scotland, and to deliver a practical blueprint for implementation by 2016. It will provide independent advice to the Scottish Government on all matters relating to fair work, and it could play a bigger role in future years. For instance, the Fair Work Convention could work with ACAS, trade unions and other stakeholders, such as Citizens Advice Scotland, to promote awareness of basic rights at work and how to assert them for employees and employers alike. The convention could also take on a role overseeing enforcement of employment law under Scots law. In other words, we have thought through how this would work in practice.

There is a strong economic argument that devolving employment law would bring opportunities for innovation that would enhance productivity, workplace development, labour market security and resilience. We observe a lack of coherence in the Government’s proposals because they would devolve the administration of tribunals, but not the substantive laws they administer, including employment law. Far from settling the issue, that keeps the pot boiling: a lack of clarity and purpose in legislation means that the only guarantee is that it will be revisited at some point. This is an opportunity to do it right the first time.