Shipbuilding
Debate between Angus Brendan MacNeil and Mark Prisk
Mr Prisk
All the Royal Navy’s current warships are built in the United Kingdom. Scotland has a strong and skilled defence sector, and it would make strong bids, but if Scotland were not part of the United Kingdom, the sector would clearly be pitching for business in what is a very competitive international market. I am sure that Members on both sides of the House understand that.
Let me say something about the points raised by the hon. Member for Glasgow North West about BAE Systems’ shipyard work. Like the future implications for the yards, those issues are a matter for the company. The Ministry of Defence has made it clear that it expects the BAE Systems maritime naval ships terms of business agreement to provide a strong foundation for it to compete for non-MOD work, both here and abroad, but it is for the company to retain the capacity that it deems necessary to meet the demands made of it, and to transform the sector as it feels appropriate.
What the Government will do is ensure that the United Kingdom provides an economic and business environment within which businesses, shipbuilding or otherwise, can flourish. The defence White Paper, which was published on 1 February, explains how we will promote exports related to defence and security—for example, by ensuring, when we work with industry, that export potential is considered at an earlier stage. All too often in the past Governments have not done that properly, regardless of their political persuasions.
Let me say something about the MARS programme. In the context of the fleet tankers, the hon. Gentleman referred to speculation in reports about remarks attributed to the Under-Secretary of State for Defence, my hon. Friend the Member for Mid Worcestershire (Peter Luff). I can confirm that those remarks were wrongly attributed, and that my hon. Friend did not make them.
I share the hon. Gentleman’s frustration about the fact that no UK contractor bid for the final contract, but the Government cannot force contractors to bid. We are not in that position, nor should we be.
The hon. Gentleman mentioned previous commitments involving warlike vessels, but these are not warlike vessels. The commitment to which he alluded—that complex Royal Navy warships will continue to be built in UK shipyards—remains. I hope that that gives him some comfort.
Mr Prisk
I must tell the hon. Gentleman, with respect, that the debate was initiated by the hon. Member for Glasgow North West. I do not know whether he asked permission to intervene, but it appears that he did not, so I will now turn to the broader strategy.
If we are to achieve sustained improvements for the sector as a whole, we shall need a joint industry and Government strategy, whether it is in defence or on the civilian side. That is why, last year, we created the Marine Industries Leadership Council as a forum for the industry. We have launched the first ever strategy for the growth of the marine industries, which seeks to draw on the strengths of the whole sector. Having been a member of the Government for two years, I was surprised to learn that this was the first ever integrated UK strategy for the growth of the marine industries. Our goal is that by 2020, the UK marine industries will be renowned for the quality and value for money that they provide in their products, services and systems. A specific part of the goal is that we ensure that by 2020 the marine industries and maritime services sector sees the value of its contribution to our economy rise to £25 billion, up from £17 billion. That is a clear and important tangible goal, and I hope it will give some comfort to the excellent work force in the constituency of the hon. Member for Glasgow North West.
Mr Prisk
I understand that point. The point has been made that the complexity of warships can make it quite difficult for other countries’ companies to make successful pitches. There might also, however, be a point to be made about the cheap end of the market—if we can use that expression in this context. We might look back at past procurement practices, for instance—and there has been a similar debate about trains in this context. The UK must ensure that, while working within the law, we enable UK businesses to compete, which is exactly what we are trying to do.
In the strategy for the marine industry, we have set out specific goals, including making sure we maximise export opportunities to places such as Brazil, Russia and India, expanding the domestic offshore renewable energy industry—that has a very good tie-in to the sector —and building on partnerships with the universities, because we should not forget that cutting-edge research and development is just as important as the excellent fabrication and construction work within the yards. We also want to improve co-operation within the marine industries sector.
Mr Prisk
I will make progress, if I may.
The Technology Strategy Board is helping to co-ordinate a future technology road map, and UK Trade and Investment has now, as I understand it, made marine a priority sector in our trade and inward investment programmes, which I find extraordinary. It is putting marine right where it needs to be, shipbuilding included.
Next month, my Department will be hosting an exhibition at Victoria street for the UK marine industries, where we can at last showcase some of the brightest and best products and services in the industry. I extend an invitation to the hon. Member for Glasgow North West and all other Members of the House.
Mr Speaker
Order. I apologise for interrupting the Minister, but may I gently say to the hon. Member for Na h-Eileanan an Iar (Mr MacNeil)—