AUKUS

Baroness Smith of Basildon Excerpts

Thursday 16th September 2021 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the Minister for repeating the Statement today. I am sure I am not alone in welcoming the fact that the Statement was actually repeated, rather than our just jumping into questions on it. In thanking her for being here—I know she has made considerable efforts to do so—perhaps I may say that it is disappointing that the noble Baroness the Leader was not able to be present for the prime ministerial Statement. In fairness to her, she said that she could be here for the end of today’s business, but I think it is much better that we have it earlier on, and I am grateful to the Minister that we can do so.

I have said many times at this Dispatch Box that the first duty of any Government is the security and safety of its citizens at home and abroad. International co-operation and strategy is essential to achieving that. Given that many on these Benches, and indeed across your Lordships’ House, have long called for closer co-operation with our democratic allies, we all hope that this presents an opportunity to put that principle into practice. By sharing information, intelligence and resources, we should have the capacity to enhance security.

In their integrated review, the Government identified the region as being at the

“centre of intensifying geopolitical competition with multiple potential flashpoints”.

Assuming that that is the driver for this partnership, it would be helpful to hear from the Minister more detail about what this agreement means in practice and how it fits with—and what is—the Government’s broader strategy. There are also implications for at least two other countries outside this partnership: the French, following what is now their previous submarine procurement arrangements with the Australian Government; and for our relationship with China, as illustrated not least by the comments of its Foreign Ministry this morning.

The Government have now termed China as a systemic competitor and have recognised its military assertiveness, but they also want the UK to maintain a strong commercial relationship with the country. As we need to work together on key global issues, such as climate change, and with COP 26 just six weeks away, this could not be more important. It is clear to everyone that, without a diplomatic strategy and enhanced diplomatic skills, those goals will come into conflict.

I do not know whether the Minister has yet had the opportunity to read the Lords’ International Relations and Defence Committee report from last week, but it gave us a clear warning that:

“Current levels of China expertise within Government and the civil service are insufficient when compared to the ambitious agenda and the tilt to the Indo-Pacific”.


What are the Government doing to change that? I am sure that the Government have also considered how they can ensure that the AUKUS partnership increases, rather than decreases, our ability to influence China. If there is any detail, or at least reassurance, the Minister can provide on that, it would be helpful.

There are still questions about exactly what our role will be in this partnership. According to the White House, the US sees the partnership as an opportunity to

“leverage expertise from the United States and the United Kingdom, building on the two countries’ submarine programs to bring an Australian capability into service at the earliest achievable date.”

The Minister alluded to this in the Statement, but is there anything more she can say about what UK expertise will be used in this programme? For those of us who are glued to Sunday night television, watching “Vigil”—for those who are not aware, it is about a murder on a nuclear-powered submarine—we just hope that life does not imitate fiction. As an immediate priority, the focus will be on delivering nuclear-powered submarines to Australia. With the expectation to develop other defence systems, including cyber, AI and quantum computing, will this time be used to identify other areas where the UK can contribute?

The Prime Minister’s commitment that this pact will create hundreds of highly skilled jobs across the UK is welcome, but it would be helpful to understand exactly what those jobs will be. We need to know what jobs will be created and where they will be based, because we need to know what skills will be required. Whatever defence contracts result from the announcement, we need to make sure the UK gets its fair share of well-paid, highly skilled jobs within the defence sector. We need to be preparing now to ensure we take advantage of any opportunities available.

To get maximum benefit, we also need to secure our defence supply chains. The Minister will be aware that, recently, there have been a number of attempted takeovers of British defence companies by US organisations. The potential takeover of Ultra Electronics, which provides the control systems for Trident submarines, was referred by the Government to the CMA just last month. Can she explain how she thinks this new partnership will impact on such deals?

Finally, I just want to make the point that, with new international security partnerships, we should never forget or in any way diminish our long-standing relationship with our allies. NATO remains our most important strategic alliance. It has delivered peace and stability in Europe for more than 70 years. That stability in our immediate neighbourhood must always take precedence.

Can the Minister confirm whether any resources will be redirected from western Europe to the Pacific as a result of this new agreement? Can she also say something about what strategy the Government have to protect our bilateral relationships with allies who have raised concerns about the partnership? The Five Eyes sharing arrangements remain critical to our security, and I hope today she is able to confirm that we will act to ensure that AUKUS will not lead to a two-tier alliance or weaken our arrangements for intelligence-sharing capacity.

I hope the whole House will welcome this announcement and new partnership, but the agreement alone will not be enough to achieve the stated mission. The onus is now on the Government to ensure that the security pact allows us to better respond to emerging threats and better protect the existing alliances, but also ensure that we make the most of the economic opportunities for our defence industry.

[Baroness Smith of Newnham (LD)]

My Lords, my welcome to the AUKUS announcement is possibly slightly more muted than that of the other noble Baroness, Lady Smith. Clearly, co-operation with the United States and Australia is important and, as the Statement said, clearly this is supposed to be part of global Britain and the tilt to the Indo-Pacific. However, could the Minister explain to the House how security concerns in the Indo-Pacific are more relevant and important to the United Kingdom than security concerns in our own region? We need to pay particular attention to the question of our relationship with our European partners, in particular with France. Could the Minister tell the House what conversations the Prime Minister might have had with President Macron, or what conversations the Foreign Secretary—if there was one in post at the right time—might have had with the French Foreign Minister ahead of this announcement?

Clearly, the response from the other side of the channel has been one of deep frustration. While on a business level it might be entirely appropriate for us to work with the Australians to deliver the nuclear-powered submarines that they apparently want, if that means that we are damaging our long-standing and vital relationship with France, that is somewhat unfortunate. We might have left the European Union and changed some of our relationships with our European partners, but that does not change our own fundamental security concerns and questions. As the noble Baroness, Lady Smith of Basildon, said, our other traditional alliances are important. Did the Government take them into consideration when making this announcement?

Beyond that, clearly it is important to look at our defence industry. I realise that the noble Baroness, Lady Bennett, might raise her hands or look up in horror but I attended DSEI this week, where I had the opportunity to talk to some British businesses which are indeed absolutely passionate about being able to export. They are small and medium-sized enterprises for whom the opportunity to work with allies, whether from Europe, the USA and Australia, is important. I therefore pay tribute to those companies. In the original Statement the Prime Minister mentioned them; have the Government thought through how supply chain issues and working with SMEs might be supported by the initiative announced last night? Clearly, there are some areas where there are opportunities.

I have a final point of concern. The American approach to leaving Afghanistan left the United Kingdom unable to look after some of the people we might have wanted to repatriate. It seemed rather redolent of Suez, when we could not rely on the United States or the Commonwealth and we were closest to France. How has the world changed so that AUKUS is now the right answer to British security concerns?