Oral Answers to Questions
Debate between Ben Wallace and Philip Dunne(1 year, 8 months ago)
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Mr Wallace
We always try to use as much UK steel as possible where we can, and when we do not, it is often because we do not manufacture the type of steel that needs to be used in a certain type of product. As for the fleet solid support ships, whether Navantia is part of the consortium or not, the hon. Gentleman should not listen to the union briefing. He will find that across the provision of those ships there will be plenty of British components—in fact, they will be in the majority—and the full integration of the ships will take place in a yard in Northern Ireland.
Philip Dunne (Ludlow) (Con)
Will the Secretary of State update the House on the status of the Ajax procurement programme? I understand that the supply chain is being geared up to produce 589 vehicles.
Mr Wallace
As my right hon. Friend will know, the Ajax was decided on in, I think, March 2010, under a Labour Government. As I have often said, it has been a troubled programme. Since I have taken over this office, we have sought to rectify the issue on almost a weekly basis, and with the determination of both the former Minister for Defence Procurement, my right hon. Friend the Member for Horsham (Jeremy Quin), and the current Minister, my hon. and learned Friend the Member for Cheltenham (Alex Chalk). The vehicle has passed its user validation trials and is now undergoing its basic field trials. It is doing extremely well, and I am given a weekly update.
Although the programme is being delayed—and we are doing our best to rectify that—overall it has not cost a single extra penny, because the contract, which was agreed under the Conservative Government after the selection of the vehicle by the Labour party, involved a fixed price. Yes, the programme is being delayed, but we are fixing it, and it is showing good progress.
Commonwealth War Graves Commission: Historical Inequalities Report
Debate between Ben Wallace and Philip Dunne(3 years, 7 months ago)
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Mr Wallace
I am grateful to the right hon. Lady for her comments. The answer is yes. I ask in return that she, in her role as a commissioner, makes sure that requests match the aspirations and the recommendations in the report. I will be delighted to continue to work with her and the other commissioners on that. I would also like to place on record that the commissioners did an excellent job alongside the independent experts. When we met on this a few weeks ago, the commissioners made very clear to me their determination to carry out the recommendations and to put right the issues identified in the report.
Philip Dunne (Ludlow) (Con) [V]
I am pleased to be able to follow the right hon. Member for Kingston upon Hull North (Dame Diana Johnson), with whom I share membership of the commission. I am proud to be a commissioner and I am grateful to the chairman of the commission for his important statement today. I am also proud of the 1,200 people who work in 150 countries around the world tending the memorials, commemorations and gravestones of the many who served and lost their lives for the protection of this country and our values.
Over 100 years ago, the War Graves Commission was established with the specific remit to commemorate the first world war dead of the then British empire and to do so defined by the principle of equality of treatment in death, whatever their rank, religion or race. This happened in Europe and I am not proud that this did not happen across Africa, the middle east and India. I join my right hon. Friend the Secretary of State for Defence and the hon. Member for Kingston upon Hull North in welcoming the report we commissioned in December 2019, a month following the Channel 4 programme presented by the right hon. Member for Tottenham (Mr Lammy) and featuring the work of Professor Michèle Barrett. The programme acted as a catalyst for this report, based on detailed research through available archives. I can confirm that this issue has been and is being taken extremely seriously within the commission. We are committed to ensuring that we right the historical wrongs of the past. The commission has been working over the last 20 years to ensure that we correct errors or omissions as we find them and that is what we will do on the back of this report.
My right hon. Friend the Secretary of State has confirmed that he will hold the commission to account in delivering the detailed action plan that it has agreed to address the recommendations made by the special committee. However, does he agree that, while we cannot right the wrongs of 100 years ago, the commission can and should recognise that mistakes were made, apologise for them—as he has just done—and commit to doing what we can, where we can, now to renew our commitment to equality in commemoration with all communities of the former British empire touched by both world wars, where this report reveals that that did not take place?
Mr Wallace
My right hon. Friend is right to point out the determination of the existing commission—and over the last 20 years—to correct things as it finds them. This is one of those times where it has exposed things going way back. He is also absolutely right that, when you go around the world, you see that that network of people do an amazing job. It is extraordinary where you find in the world, almost like an oasis, well-kept areas of commemoration. You are often surprised that we were even there in the first place and, even now, they are kept and looked after. Some of the volunteers and some of the paid employees do an extremely good job as well.
On the funding, as I said to the right hon. Member for Kingston upon Hull North (Dame Diana Johnson), I will absolutely stand by to make sure that we find the available funding to deliver this. In return, I ask my right hon. Friend the Member for Ludlow (Philip Dunne) to make sure that these things are properly dealt with, looked at and examined and that they are in accordance with the report’s recommendations and further subsequent recommendations.
Integrated Review: Defence Command Paper
Debate between Ben Wallace and Philip Dunne(3 years, 8 months ago)
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Mr Wallace
I understand the hon. Gentleman’s concerns both about reliance on technology and the human in the loop issue. Britain has been one of the leaders in trying to raise those discussions in places like the United Nations, to ensure that there is a standard that is acceptable—a moral standard, making sure that there is a human in the loop at nearly all times. That is important for reassurance.
On AI and data, Britain leads within NATO on cyber. It pushed NATO to examine cyber, but not in being a cyber nation—Estonia is probably one of the greatest cyber nations, although there is a data issue that I am sure the hon. Gentleman’s party would disagree with about relying on data that much. But fundamentally it is incredibly important, and Britain’s work alongside some of its allies in NATO has pushed NATO to look at both hybrid threats and cyber and to start making sure that it reforms and modernises to address that.
I understand the concerns about troops and personnel in Scotland. There are over 28,000 people currently in Scotland who rely directly on defence: that is the civil servants, the regulars, the reserves and in industry. When we send the E-7 Wedgetails up to Lossiemouth there will be an increase of a few hundred people to work in that part of the world, which is to be welcomed. Decisions exactly on where the Rangers will be and how it will develop will come soon. What I will say to the hon. Gentleman is that it is a tribute to Scottish infantry and Scottish heritage that 1 Scots will become the seed of the Rangers. For anyone who knows Scottish military history, the Lovat Scouts and brave souls like that have set the fierce reputation of Scottish soldiers around the world. I hope that that will be recognised as they go forward.
On pay and allowances, I have started a process of reviewing allowances. On the allowances I have already signed off, I chose to protect the lowest paid at the expense of the highest paid. I am not a socialist. I would not be surprised if the hon. Gentleman might be —[Interruption.] Or he might not. However, I felt that the lowest paid should be protected, as well as overseas allowances and individuals with children. Of course, if the hon. Gentleman’s Government in Scotland would like to pledge to give our troops in Scotland the same £500 bonus they have given NHS staff, we would be absolutely delighted. Perhaps the extra tax that the SNP—[Interruption.] I’ll tell you what, Madam Deputy Speaker, maybe the hon. Gentleman has an opportunity here. I will do a deal with him. If he will cover for one year the extra money we pay to mitigate the tax burden that falls on Scottish soldiers, we shall pass that on to them. Would he like to do that now? He has the chance. [Interruption.] I think the Scottish National party are busy spending all that money on lawyers.
Philip Dunne (Ludlow) (Con) [V]
I welcome the clarity of my right hon. Friend’s statement today and I look forward to the publication tomorrow of the defence and security industrial strategy alongside it, which will provide, I hope, a degree of coherence that will be very welcome to all those involved in supporting our armed forces. In light of the necessary decision to proceed with upgrading the warhead for the strategic deterrent, can my right hon. Friend explain to the House the rationale for increasing the number of warheads during the transition from one system to the next? Will the cost in developing the strategic deterrent absorb any of the welcome £6.6 billion R&D programme that has been announced?
Mr Wallace
My right hon. Friend laid the foundations for linking prosperity in a much more deliberate and thoughtful manner into defence and defence procurement. I hope he will see that reflected in the strategy tomorrow. It is of course welcome that the review brings more prosperity—the investment in Boxers to be made in places like Telford; Ajax in Merthyr Tydfil, a Challenger upgrade and the commitment to a next generation of aerospace. As a Lancashire MP, the prosperity that Typhoon has given us all in my part of the world is incredibly important.
On the rationale of the deterrent, it cannot be taken from a one-sided view. We have to look at our adversary, Russia, and see the investments it has made, as well as its plans to both break the intermediate nuclear treaty, which was broken in 2018, and to invest in new weapon systems and missile defence. If we are going to keep it as credible, then we need to make sure that we do that.
On the R&D budget, I am not aware—I will write to my right hon. Friend with a correction if necessary—that the £6.6 billion is anything to do with the nuclear warhead programme or anything else. For clarity, the United Kingdom does not buy warheads from other countries. Under the nuclear proliferation treaty, warheads have to be developed within that very country itself.
Oral Answers to Questions
Debate between Ben Wallace and Philip Dunne(3 years, 11 months ago)
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Philip Dunne (Ludlow) (Con)
The Secretary of State for Defence (Mr Ben Wallace)
The MOD makes procurement decisions based on security, capability requirement, cost, supply chain and other social value considerations and will continue to do so. The November 2020 changes to the Green Book will ensure that there is an increased focus on setting clear objectives and consideration of location-based impacts. MOD footprint and spend is widely distributed across the UK and future procurement will continue to reflect this.
Philip Dunne [V]
The potential pragmatism of the Treasury towards its Green Book rules on public procurement is welcome, as it was heralded as one of my recommendations in my report on prosperity two and a half years ago. Does my right hon. Friend believe that this will make clear the prosperity metrics, which the Treasury will recognise when it comes to defence procurement, and will the Treasury accept that a pound spent on defence in the UK is worth more than a multiplier of 1 in the levelling-up impact on the UK economy?
Mr Wallace
My right hon. Friend is absolutely right, especially in that last observation, and I congratulate him on his prosperity report. He was clearly thinking ahead of the Treasury at the time, and I am delighted that it has recognised the importance and contribution that those changes will make to levelling up and closing the north-south divide. While the end-of-year rules were not changed, the recent £24.1 billion multi-year settlement with the Treasury will now allow the MOD to invest in next generation military capability across the whole United Kingdom.
Oral Answers to Questions
Debate between Ben Wallace and Philip Dunne(4 years, 4 months ago)
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Philip Dunne (Ludlow) (Con)
The Secretary of State for Defence (Mr Ben Wallace)
The Government are currently conducting work on the UK’s defence and security industrial strategy to identify the steps we should take to ensure a competitive, innovative and world-class industrial base. I will use this opportunity to ensure that, as well as delivering the best capabilities to the UK armed forces, we are driving investment, employment and prosperity across the whole of the United Kingdom.
Philip Dunne [V]
I am very pleased to hear my right hon. Friend’s commitment to the defence industry in that answer. Investment by Defence in innovation often stimulates dual-use commercial opportunities. The Prime Minister is clear that he wants the UK to be a science superpower, so will the defence industrial strategy make the case that a great place to start would be to double Defence investment in innovation?
Mr Wallace
My right hon. Friend is absolutely right to highlight the fact that defence procurement and innovation should be linked and should link into prosperity and alternatives, using that technology to enhance prosperity across the United Kingdom. During the financial year 2018-19, Defence invested £1.65 billion in research and development, which included £580 million spent on cutting-edge science and technology. Without trying to pre-empt the integrated review, it is absolutely clear that at the heart of it will be not only innovation but a recognition that prosperity is what our taxpayers, at local and UK level, should expect for their money.
International Military Sales Ltd
Debate between Ben Wallace and Philip Dunne(10 years, 8 months ago)
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Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
It is a pleasure, Ms Dorries, to serve under your chairmanship at this later than anticipated hour; I am grateful to you for keeping Westminster Hall open. I thank my hon. Friend the Member for Wyre and Preston North (Mr Wallace) for securing this debate. It is important that we have this opportunity to put on the record the Government’s position on the subject that he has raised today.
I know that my hon. Friend, who is chairman of the all-party group on Iran, has taken a keen interest in this matter since he joined the House. It is entirely appropriate that he should have secured this debate . He has raised the issue of a dispute, and it is important to try to get a little clarity on the record as to the nature of that dispute. It relates to a number of contracts—not to a single contract—between the Iranian Ministry of Defence, which I shall refer to as MODSAF, and International Military Services Ltd, known as IMS. I am pleased to have this opportunity to outline the Government’s position regarding the dispute. As my hon. Friend has acknowledged, I am, of course, somewhat limited in what I can say, given pending litigation in the High Court between IMS and MODSAF. The UK Ministry of Defence itself is not a party to those proceedings.
I will make a number of key points in responding to this debate. First, I wish to make it clear that the Government would like the matter to be resolved as soon as practicably possible, which I think was the main challenge laid down by my hon. Friend. We share his determination in that respect, not least because, as he said, the dispute can be traced back to 1979 and the demise of the Shah’s regime in Iran. At that time, IMS, a company wholly owned by the MOD, had approximately 60 contracts to supply MODSAF with defence equipment and services. The change in regime in Iran saw the cancellation and termination of those contracts, resulting in a number of legal disputes.
The vast majority of the disputed contracts were settled on 22 October 1990, but four contracts were not. The two largest of those four contracts involved, as my hon. Friend said, the sale of more than 1,000 main battle tanks and armoured recovery vehicles. These contracts were referred to the International Chamber of Commerce for arbitration. The ICC ruled on 2 May 2001—more than 10 years later—in favour of MODSAF. By agreement between the parties, MODSAF agreed not to pursue payment of the awards until the outcome of a planned challenge to the awards by IMS. That was under the proviso that IMS paid, by way of security, a sum sufficient to meet the awards into the High Court. That payment was made in December 2002.
IMS subsequently challenged the ICC awards through the Dutch legal system, as the seat of the ICC arbitration, culminating in a final ruling on 24 April 2009 by the Dutch Supreme Court. The challenge by IMS was partially successful, in that the Dutch Supreme Court partially set the ICC awards aside.
The Government and IMS accept the ruling of the Dutch Supreme Court. However, there are legal issues that remain unresolved as to the precise amounts payable to MODSAF and crucially, as my hon. Friend said, as to how the sanctions regime that had been subsequently imposed impacts on the awards and the circumstances under which MODSAF is entitled to receive payment. These issues are subject to litigation, with a High Court hearing scheduled for June.
In addition, as I have already mentioned, there are other contracts under dispute. In relation to one of these, an infrastructure contract, the ICC tribunal ruled in favour of IMS on 28 January 2005. Prior to the Dutch Supreme Court ruling in 2009, international sanctions were imposed against the Iranian Government, in the context of their potential nuclear aspirations. In 2008, MODSAF itself was designated under the relevant sanctions regulations. Notwithstanding the recent sanctions relief included in the joint plan of action agreed with Iran, the bulk of the sanctions remain in place until a comprehensive settlement is reached on the nuclear programme. It would be inappropriate for the Government to comment any further on these issues, given the pending litigation.
However, the Government would like to see a final and appropriate resolution of these long-running disputes, and we hope that the recent progress in reaching an understanding on a variety of issues with the Iranian Government will facilitate that objective.
Mr Wallace
I am not referring specifically to this case. In general, given previous rulings, does the Minister not recognise that it is perfectly acceptable for a court to deal with the discharge of an obligation separately from how that obligation is then paid to an entity? They are not the same things.
Mr Dunne
My hon. Friend pre-empts the conclusions to my remarks, but I can confirm that we anticipate a resolution being possible, ideally without recourse to the High Court action in June. We would be happy to see the parties engage to reach a settlement on the outstanding issues before it gets to court. We think that can be done irrespective of the sanctions regime. Once a settlement has been reached to agree a final amount, the payment of that amount becomes a matter for the prevailing sanctions regime in place at that time. I agree that those are separate issues, but the ultimate payment cannot be made while the sanctions regime is in place.
I want to mention a couple of other factors that the House needs to be aware of. All the negotiations that have taken place on this matter have been conducted by employees of IMS on a confidential basis, in turn routinely channelled through legal representatives. Also, given the title of this debate, I should like to clarify the relationship between the Ministry of Defence and IMS. IMS is a wholly owned subsidiary of the Ministry of Defence; all but one of its 20 million shares are held by the Secretary of State for Defence and the other single share is held by the Treasury Solicitor. It is governed by the Companies Act, with accounts filed in Companies House. The company formally ceased trading in 2010 and now exists purely to resolve the disputes that I have already touched on.
Oral Answers to Questions
Debate between Ben Wallace and Philip Dunne(11 years, 12 months ago)
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Mr Ben Wallace (Wyre and Preston North) (Con)
The previous Government entered into the joint strike fighter agreement without securing the source access code to allow British manufacturers to make British products for our planes without having to go via the American prime contractor. Will the Minister update the House on what progress has been made in acquiring the very important source data?