Typhoon Aircraft (Exports)

Brandon Lewis Excerpts

Wednesday 7th March 2012 Westminster Hall

[Mark Menzies (Fylde) (Con)]

I am delighted to have secured this debate on support for export sales of Typhoon aircraft. It also gives me great pleasure to serve under your chairmanship, Mr Dobbin. I am pleased that the Under-Secretary of State for Defence, my hon. Friend the hon. Member for Aldershot (Mr Howarth), is responding. That is appropriate considering all that he has done on recent visits, on behalf of the Government, to India.

It is always a pleasure to speak on behalf of my hard-working constituents in Fylde, many of whom are employed in the aerospace industry. In my constituency, BAE Systems’ Warton site employs 6,272 people, with a further 4,000 employed in neighbouring Samlesbury. Indeed, BAE Systems provides one in four of all local manufacturing jobs in Fylde. Typhoon is the world-class platform on which the long-term success of UK military aerospace is predicated. That is why I called for today’s debate.

Those jobs are vital in our mission to rebalance the British economy, by returning manufacturing to its core. The military aerospace sector represents 70% of all UK defence exports, which are worth £4.5 billion a year to the British economy. Typhoon alone directly supports 10,000 jobs in the UK, and more than double that indirectly. At a time when all parties are rightly worried about youth unemployment, it is important to appreciate BAE Systems’ commitment to training and developing people, with 1,000 apprentices and 500 graduate trainees at any one time. It also sustains a supply chain made up of many small and medium-sized enterprises, including 1,200 suppliers in the north-west alone.

[Brandon Lewis (Great Yarmouth) (Con)]

I congratulate my hon. Friend on securing the debate. Companies such as C-MAC and Norfolk Capacitors in Great Yarmouth are also part of the supply chain to MOD projects and other organisations’ projects. Does he agree that the issue affects SMEs across the country, including in places such as Great Yarmouth?

[Mark Menzies]

Absolutely. BAE Systems is always the company one thinks about in relation to Typhoon, but my hon. Friend has rightly pointed out that component suppliers—large and small—are located in every corner of the country. I know he has spoken up on behalf of his constituents on the matter.

As well as benefiting the economy as a whole, supporting the Typhoon programme has direct advantages to taxpayers by reducing the Ministry of Defence’s unit costs. Savings are generated through increased production runs and a global network of operators, as well as through the pooling of spares and other support-related activities. Exports level out the peaks and troughs of domestic demand and give the MOD more programme flexibility. They also underpin some of our most important strategic relationships.

BAE Systems’ highly skilled work force have extensive expertise and experience over many decades of working in-country with global partners to deliver platforms that best fit their unique operational requirements, such as the Hawk trainer in India and the Tornado in Saudi Arabia. I have no doubt that the same work force are more than capable of continuing to deliver that level of service with Typhoon.

In all defence exports, the importing Government are the customer, and their relationship with the exporting Government is vital. That is why our support is so vital: customer Governments need to know that a Typhoon acquisition will enable interoperability, and facilitate a close and enduring relationship between the air forces of the two countries, with opportunities to train together, share assets and doctrine, and determine ways to enhance capability and reduce the cost of operation. Here the support of the MOD, in particular, is crucial. It is important that we continue to give our partners that confidence.

I believe the Government understand that. That is why, while respecting Germany’s role as consortium leader, the British Government have given such strong backing to the sale of Typhoons to India.