Defence Reform Bill

Bob Stewart Excerpts

Tuesday 16th July 2013 Commons Chamber

[Mr Hammond]

I do not know whether the hon. Lady was in the House for my statement on the reserves. If she thinks that closing Army Reserve bases is about saving money, she has the wrong end of the stick. It is about delivering the commitments that we have made to the Army Reserve about training, equipment and proper organisation. It is about reflecting the changes in the regular Army and our commitment that reserve units will be paired with regular Army units.

I cannot answer the hon. Lady’s specific question at the Dispatch Box, but I will write to her. The vast majority of sites from which we are withdrawing Territorial Army or Army Reserve activity will remain because they house cadet units that will continue, so that is likely to be the case. This is not about saving money; it is about organising the reserve forces in a way that allows them to make their vital contribution to Future Force 2020.

The White Paper details a comprehensive package of changes that will allow us to create the integrated regular reserve force of the future. A small number of the planned changes require primary legislation. The first of those is the renaming of the Territorial Army. The TA was founded in 1908 and has served this country superbly in peace and in war. However, today’s TA soldiers have a function that is far wider and more important than the original home defence role envisaged by Haldane. As we reshape the Army—regulars and reserves—for the 21st century, it is right that we change the name of the TA to the “Army Reserve” better to reflect its future role. The Bill also provides for the consequential renaming of the Army’s ex-regular reserve force as the “Regular Reserve”.

Reflecting the integral role that reservists will play in almost all future military operations, the Bill extends the powers to mobilise reservists across all three services. Under the Reserve Forces Act 1996, reservists can be mobilised only under specific circumstances. The Bill will enable reservists to be mobilised for the full range of tasks that the armed forces may be asked to undertake.

[Bob Stewart (Beckenham) (Con)]

This is just a small point, but I recall that the Territorial Army was deployed to the 1st British Corps of the British Army of the Rhine, so it has not dealt just with home defence.

[Mr Hammond]

My hon. Friend is absolutely right. The role of the Territorial Army has evolved and it will evolve further. My point was that when Haldane introduced it in 1908 by consolidating the county militias, he had in mind a home or territorial defence role, which the name reflects. I am happy to agree with my hon. Friend that the role that the TA has played over the years has been substantially greater than the role envisaged for it originally.

Hon. Members on both sides of the House have raised concerns over the possibility of employment discrimination against reservists. The Bill provides improved employment protection by allowing a right of access to the employment tribunal without a qualifying employment period for an unfair dismissal claim where the dismissal relates to the employee’s reserve service. Separately, there is already a criminal offence of dismissal because of call-out for reserve service.

However, we recognise that there is a perception among many reservists that they are disadvantaged in the workplace by their reserve service. We believe that the changes that we have set out in the White Paper will greatly improve relations between reservists and their employers, but we take the issue of discrimination against reservists very seriously. We have established a webpage through which reservists can report incidents of perceived discrimination and we will investigate them. If we find that there is a case for further action, we will take it. We will consider whether further measures may be taken in the next quinquennial Armed Forces Bill, which is due to be introduced in this House in 2015.

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[Mr Brazier]

If the sensitive areas were for UK eyes only, that is a protection normally for intellectual property rights. The problem for the defence industry is what is commercially in confidence—increasingly being called “soft IPR”—which is in no way covered by the provision my hon. Friend mentions, as he knows. The problem is that knowing how a particular contractor has structured a particular contract, which the management company must know—otherwise, there is no point in having it—means that that kind of information must be known to it, and it is extremely valuable material. He was quite right to say in his previous intervention that the danger already exists. However, the only way to produce an enforceable mechanism that deals with it cannot cover foreign employees who go back to America, or indeed anywhere else, although I think that we would be unlikely to take employees from another country.

My main point concerns reserve forces. I strongly support part 3 of the Bill and the Government’s measures on reserves, and I was delighted to hear the shadow Defence Secretary give a broad welcome from the Opposition Benches to those measures. I will not go into the provisions in the Bill except to say that one or two—special support for SMEs, for example—are especially welcome, as is greater protection for employees who are reservists. Instead, I suggest that the Bill could provide a vehicle for reforms in the governance of reserves. Such reforms were highlighted in the report by the independent commission to review the United Kingdom’s reserve forces, on which I was privileged to serve, as we are a long way out of line with arrangements in other English-speaking countries.

Our report looked at three areas of governance, one of which was for transition. The other two areas were senior appointments, and the role of the reserve forces and cadets associations and, when considering those two matters, it is important to ask what is happening abroad. I have focused on English-speaking countries because there is little point in looking at countries that have recently given up conscription. The most obvious example of a country that gave up conscription a long time ago—France—has gone down a route that Britain will never follow in having an armed gendarmerie trained effectively as an army reserve, including a big reserve component of its own. Therefore, the US, Canada and Australia seemed to the commission, and seem to me today, to be the best comparators.

In truth, those countries—I say this with no pride at all as somebody who has extensively visited their armed forces—have consistently had, year after year, much lower personnel turnover than our reserve forces, and they often get better turnouts for periodic training. The National Guard units that I visited in Afghanistan had a staggering 98% turnout for that operation, and the officer recruiting level of all those other countries is much higher than in the UK. Reserve forces in those countries have a larger place in society than our Army Reserve, and I fully endorse and totally support everything the Government are doing to expand that role in society. Above all, reserves in other countries have much more experience than us of deploying formed capability rather than simply being used as a part-time personnel service, as has been forced on the reserves over the past few years.

[Bob Stewart]

I totally understand and accept the majority of what my hon. Friend is saying, but to compare us with the National Guard is somewhat misleading. National Guard units are often mobilised and deployed for long periods of time, whereas our system will bring someone in for six months’ operations, presumably with three months of training before and three months afterwards. That is not as long as National Guard units serve, which obviously makes them almost regular, at least in spirit.

[Mr Brazier]

My hon. Friend has been misinformed about that. An impressive airborne cavalry unit that I visited in Kabul was one of a small number of units that had had the misfortune a few years ago of being part of the only experiment by the Americans in recent memory of trying to call people out for more than 12 months. The US has the same limit as us in the UK and has agreed never to repeat that experiment because of the painful experience. Such units operate on the same 12-month cycle as we do.

I do not say this to run down our reserve forces in any way, but when those forces were used as formed bodies, they served extremely well despite the handicaps they faced. One thinks of a company of reservists from the London Regiment, who in their time in Afghanistan were reputed to have killed 45 members of the Taliban. They got an incredible endorsement, which I quoted in the House, from their Brigade Commander, Brigadier—now General—Lorimer. I also think of my own former unit, which deployed a squadron that got three military crosses. However, I want to make the point that, in terms of yardsticks, we are behind the curve. I welcome all the Government’s efforts to move us up the curve, but we have to recognise that governance is an important part of this.

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[Penny Mordaunt (Portsmouth North) (Con)]

I draw the House’s attention to my interest as a member of the reserve forces. I should like to start by paying tribute, as others have done, to the two reservists who died on the Brecon Beacons. My thoughts are with them and their families, and with their colleague who is still ill in hospital. I would also like to associate myself with the comments of the hon. Member for Merthyr Tydfil and Rhymney (Mr Havard) about the volunteers who assisted the reservists on that day. I am glad that he was able to put our thanks to them on record.

There clearly needs to be an inquiry into the incident, but I want to take this opportunity to put on record my sadness at the line being taken by some people, whom we might call “reservist sceptics”, that the death of those two young men is evidence that we cannot rely on reservists. We have lost those two young men, but in the past we have lost people from the regulars, too. We need to wait for an inquiry to find out what went wrong in this case, and there should be no attempt in the meantime to draw conclusions or wild and false deductions from this tragic event. I hope that all Members will support those sentiments.

[Bob Stewart]

I thank my hon. and gallant Friend for letting me speak. As a company commander, I very nearly lost two regular soldiers on a 12-mile march in Akamas early one morning. They suffered heat exhaustion followed by heatstroke, but their lives were saved because we were near water—the Mediterranean. We chucked them in until the rescue helicopters came. Anyone who suggests that the two young men died on the Brecon Beacons because reservists are in some way substandard is way out of line. I suspect that all hon. Members would agree that such an assessment is fallacious and wrong.

[Penny Mordaunt]

I am grateful for my hon. and gallant Friend’s intervention, as his experience in this matter will back up my point.

In my experience, reservists are extremely dedicated individuals who have to reach the same standards as the regulars. The joint training between the two, instigated in the past few years and which it has been my privilege to experience, has been very powerful indeed. To achieve the recruitment and training we need for our future reserve forces, we need to focus on the detail and the dry administration: we need to ensure that people are getting their medicals swiftly; and their identity cards, joint personnel administration accounts and insurance cover need to be processed quickly if we are to retain interest from new recruits and deliver the throughput we need to regenerate that capability.

I am extremely pleased at the attention given and the offer made on strengthening the package not only to reservists, but to their employers. That is an excellent piece of work. I also hope that we will be able to focus on problems that lie in particular professions, where reservists are having real difficulty in meeting their training and deployment commitments. Anecdotally, teachers always seem to top that list, but one would think that that profession would be well geared up to cope with reservists, given the supply teaching system. I hope the Minister will be able to give that some attention.

There has been much focus on the issue of reserve forces as the major challenge facing the MOD, but I would argue that it is tiny in comparison with the challenges on Defence Equipment and Support. What we have had has not been fit for purpose; earlier in this Parliament, I highlighted the case of a frigate that was deployed to Libya with no defensive weapons on board. Historically, we seem to have been incapable of getting what we needed, where we needed it and in a state in which we could use it. It will be some time before these reforms come into effect. They are very much needed and I very much welcome them, but they will not take effect immediately. I hope that the Minister can provide reassurance that the status quo will not remain in the interim. We cannot wait for this Bill to take effect for further progress to be made; we need further improvements now. I very much recognise the considerable progress that has already been made, but it must continue and pick up pace.

Immense changes lie ahead for our armed forces and in how we procure for them. We must seek to protect our sovereign capabilities and the unique research, development and supply chain networks so evident in constituencies such as mine. We need to have a clear vision of what industrially is in our national interest. We need to consider: what technology should we be investing in with our research and development funds? What do we build enough of over a given cycle? What is genuinely innovative? What kit could we be using in trade deals, for example? To which countries should we be exporting? Clearly there are countries to which we do not want to sell particular kit, but it might be to our advantage, for diplomatic and defence reasons, to sell them naval assets to protect their oil platforms, for example. Outside the MOD we need a more sophisticated view on exports.

Much scepticism has been expressed in the Chamber this afternoon about an off-the-shelf approach, but people could be very reassured by reading the White Paper produced by my hon. Friend the Member for Mid Worcestershire (Peter Luff), who is no longer in his place. [Hon. Members: “He is over there.”] I am glad that he is here for the pat on the back that I am giving him. That excellent White Paper captured the necessary subtleties when considering whether to retain particular sovereign capabilities and focusing on our national interests. We need to learn from the example of the MARS tanker contract, which he cited, because although a proposal might seem on paper to be the best decision for the budget and the procurement process, we must be aware of its knock-on effects on the supply chain. A number of companies would have found it difficult to get a foot in the door to supply kit for that project, including large companies with an export rate close to 50% of what they produce. We must learn from such experiences and guard against throwing the baby out with the bathwater.

For understandable reasons, the previous strategic defence and security review was not strategic enough. We therefore must ensure not only that the next one is strategic, but that a strategic approach permeates our defence procurement, because only then will we get the best value from our budget.

If the Minister will forgive me, I shall conclude by returning to a campaign about which he has heard me speak many times. As he sorts out the tangled mess of contracts that he has inherited, I hope that he will consider the case that building two ocean patrol vessels for the Royal Navy would be the best use of the budget. Obviously, I would want them to be built in Portsmouth, which would give the city a couple more years to put in place an excellent plan for the future of the dockyard. It would provide the overstretched Royal Navy with a couple more hulls, as well as freeing up the existing and future frigate fleet from undertaking tasks for which, frankly, frigates are not needed. I have bored the Prime Minister, the Chancellor and Ministers from the Ministry of Defence to the Department for Environment, Food and Rural Affairs about this, and I thank them all for giving up their time to listen to me.

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[Mr Tobias Ellwood (Bournemouth East) (Con)]

It is a pleasure to be the tail-end Charlie in this important Second Reading debate. I begin, as others have done, by declaring an interest as a member of the reserve forces and the military stabilisation and support group.

While listening to this very interesting and informative debate, I had flashbacks to my time serving as a regular officer and some of the procurement problems our troops had with equipment, including the ever-promised better radio. The Bowman radio is now in use, but back in my day it was just a vision. We had the old Clansman set and must have been one of the few armies across the world still using open voice procedure that was not even encrypted. The SA80 was issued to us, only to be recalled because of problems with the catches. It was then mended and given back to us at double the cost of the original contract.

I am grateful for the opportunity to speak in this debate and to place on record my gratitude to the Government Front Benchers for the work they have done not just in this area but right across defence. They deserve to be commended, particularly on procurement, as does my hon. Friend the Member for Mid Worcestershire (Peter Luff), who worked very hard when he had that portfolio.

The Bill is a reflection of how seriously this Government take defence matters and is another significant milestone in Ministry of Defence reforms since 2010. We have seen improved operational decision making, thanks to the National Security Council, and the creation of the Defence Board, the primary MOD decision-making body, which under the previous Government did not include the Secretary of State. We have seen the introduction of real-time control of major equipment programmes in order to stop spiralling costs and delays, and the major projects review board is taking note of and monitoring the top 20 programmes. A focus on British exports has led to an increase in the world market share, boosting support for our small and medium-sized enterprises, and the completion of the long overdue basing review ensures that Her Majesty’s forces are now represented right across the Union. We have also developed an exit strategy from Afghanistan after inheriting a war that had no clear mission, and we have enshrined in law, through the military covenant, the nation’s lifelong duty of care to those who serve in the armed forces. Finally, as has been said time and again, the Secretary of State and his team have, after inheriting a defence budget in deficit, managed to balance the MOD’s books.

Those reforms continue with this Second Reading debate, which has focused on two main areas: the way in which equipment is procured, and the balancing of our regular and reserve forces. It is important to understand the landscape this Government inherited. I am afraid that a glance at Labour’s efforts on procurement makes worrying reading. The majority of the equipment projects ran over budget, as explained in detail by the National Audit Office major projects report of 2010. The hon. Member for Dunfermline and West Fife (Thomas Docherty) and others are right to say that many legacy issues go further back in time, but during my time in the British Army—and certainly during my time in Parliament —we always asked why the issue of procurement was not being grasped in the way it has been today.

[Bob Stewart]

I thank my hon. and gallant Friend for allowing me to intervene. I was a staff officer in the Ministry of Defence in 1984, when the world was black and white. I well remember Michael Heseltine introducing a system called “lean look and sharp sword”, which we were told would sort out procurement for ever. I totally agree with the hon. Member for Dunfermline and West Fife (Thomas Docherty), who implied that we have not got the answer to a maiden’s prayer. Whatever we get, we will still have—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. We need short interventions, not major speeches at this stage. I am sure that the question is coming.

[Bob Stewart]

There is no question; it is a statement. We have not got the solution and we will still have a problem.

[Mr Ellwood]

I am very grateful for that statement. My hon. Friend makes an important point. A concern that dates back even to those times is that many of those who have been in charge of procurement have not stayed in their posts for long. Indeed, the people in uniform who filled those posts would spend six to 18 months on a project and, once they were conversant with it, would be rotated out and back to a front-line posting or elsewhere, and all that knowledge would be lost. The mistakes were made because the knowledge was not passed on correctly.

I want to look at some of the big issues that have been mentioned in this debate. The Queen Elizabeth class carriers project, which started in 1998, was deliberately delayed by the last Government at a cost of more than £1 billion. The cost of the Nimrod spiralled out of control. Nine aircraft cost as much as three space shuttles. That was outrageous spending. When we came into government, we decided to stop that process, because not one of the aircraft was able to get an airworthiness certificate and get into the sky.

The Typhoon has also been mentioned many times: an example of procuring for the last war rather than looking ahead. It is a cold war fighter plane that is unable to hit anything on the ground. Not only does it have no ground attack capability—[Interruption.] If the hon. Member for Plymouth, Moor View (Alison Seabeck) wants to intervene I will happily give way; if not, I ask her please to listen to what I am saying.