Defence Implementation Road Map

Bob Stewart Excerpts

Tuesday 10th November 2015 General Committees

[Mr Brazier]

I think that the hon. Gentleman is over-egging his point. The EU offers some valuable opportunities for us to deal with other countries, and I mentioned the anti-piracy patrol as an example. The EDA has produced a number of joint projects on issues such as certification, airworthiness, helicopter training and so on, which have freed up money. There is also a small element of dual-use research, which is of real value. However, to suggest somehow or other that the EU is the cornerstone of our defence, when it is manifestly obvious that it is NATO, seems very strange.

[Bob Stewart (Beckenham) (Con)]

I was under the impression that in the Gulf war, the Belgians did not supply us with 9 mm ammunition for submachine guns, not artillery shells—but whatever it was, they certainly did not provide one of those things. May I ask my friend the Minister whether this EDA strategy is going to end up with a possible attack on sovereign capability among SMEs, for instance?

[Mr Brazier]

I am most grateful to my hon. and gallant Friend—he is a good friend—for his question, to which the answer is no, it is not. All that is happening here is an attempt to get better value out of a defence industry that is completely out of scale with the amount of defence purchasing going on. We are helping by guaranteeing 2% and encouraging other people to meet NATO’s 2% target, and we have one or two countries such as Sweden that are not in NATO that are relatively large defence spenders for their size, but the fact is that British industry is offered more opportunities if people are willing to have a more open market in this field.

We are the one country that is really speaking up for SMEs—I say that having done it a couple of times in the European Council. I hesitate to go back to an earlier life and some of the things that I used to write about them before I was even elected to this place, but the fact is that SMEs have a huge role to play in defence. They often have very innovative ideas and different ways of doing things that can offer a great deal for our armed forces. It is no secret that sometimes—sadly—they are seen by prime contractors as a threat to their supply chain, which inevitably, they have a temptation to place cosily with their own subsidiaries. SMEs are extremely important. We as a Government are supporting them, and we are the country that is pushing them hardest in Europe.

[Bob Stewart]

I have a follow-up question. I do not quite get it. Hon. Friends have already raised the matter of the EDA versus us. Surely it is the Ministry of Defence that decides. We have been spending ages and ages looking at the way procurement is done in this country to our advantage. I am slightly concerned that suddenly we will have some EDA strategy that directs us in a different way that runs counter to the way the Minister and his fellow Ministers want to deal with it. That is a worry that I have had and continue to have.

[Mr Brazier]

May I just set my hon. and gallant Friend’s mind at rest? There are a number of risks from the Commission, as I have set out, and we are looking forward to seeing the new document that comes out of the Commission after Christmas, but the EDA is not a threat. It is a low-budget organisation, which, in the words of its last director, is basically a speed-dating agency. It enables European countries that are interested in a particular area to sit together, discuss things and find ways of saving money. I mentioned helicopter training as an example. It is not a threat in the way that he describes. There are some threats potentially coming out of the Commission, although I do not think they are as bad as they were a year or two ago, and I outlined some of them in my speech, but I assure my hon. and gallant Friend that that is not one of them.

--- Later in debate ---

[Mr Brazier]

I do not think I can add a great deal to what I have already said. We support the internal market. This is not an industrial policy; it is about pushing back trade barriers. The Government support that and see it as an extremely positive thing for us and our fellow countries in Europe. We are quite clear that we have this exemption for defence, and we have deployed it a number of times. It covers roughly 10% of our defence procurement effort, and we have never once been challenged on it. Competitors are normally the ones who would make a challenge, and no one has ever tried to challenge Her Majesty’s Government’s exercising of their rights on that.

[Bob Stewart]

I am looking at the document, which states:

“The Council reiterates its call to retain and further develop military capabilities for sustaining and enhancing CSDP. They underpin the EU’s ability to act as a security provider”—

the EU’s ability to act as a security provider—

“in the context of a wider comprehensive approach”

and

“the need for a strong and less fragmented European defence industry to sustain and enhance Europe’s military capabilities and”—

this is key—

“the EU’s…autonomous action”,

presumably in this respect. I question whether this is yet another move towards an EU defence capacity.

[Mr Brazier]

I am grateful to my hon. and gallant Friend, but I can only repeat what I said earlier. The EU provides collective defence capability in a small number of niche areas where NATO has chosen not to. I have mentioned several times, because it is of particular national interest to us as a country that still has a significant merchant fleet, the joint EU action off the horn of Africa, which has been a triumph—piracy there has virtually stopped. It is run from Northwood by the British, although, I am sorry to say, we have not had much in the way of naval vessels in it in the past year or two. The French-led operation in Mali is another such example. I thought that the willingness of EU countries to get together occasionally and tackle issues that NATO, for one reason or another, chooses not to was relatively uncontroversial.

The first half of my hon. and gallant Friend’s quote on Europe’s defence capability is true. The industries are in the individual countries and the policy remains a member state matter. We have made it absolutely clear—I do not think I could have made it clearer—that we have resisted successfully every attempt by the Commission to try to dictate to us in this area.