Thursday 27th June 2019

(5 years ago)

Westminster Hall
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Baroness Anderson of Stoke-on-Trent Portrait Ruth Smeeth (Stoke-on-Trent North) (Lab)
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As ever, Mr Stringer, it is a pleasure to serve under your chairmanship. It is an honour to have worked with the hon. Member for Witney (Robert Courts) on this issue for what is now a significant period of time. As an Opposition Back Bencher, there are very few opportunities to make a real difference or change Government policy. One of my most confusing moments as a Member of Parliament was when the former Defence Secretary, the right hon. Member for South Staffordshire (Gavin Williamson), gave me credit for the change in policy—so I will now be taking credit for everything that everybody is doing on the issue.

I alert the House to my registered interests; I have the great honour to be the GMB lead in manufacturing. I must also apologise for the fact that, since business is quite interesting in this place at the moment, I have managed to get into the bizarre position of co-sponsoring debates in this Chamber and the main Chamber at exactly the same time. You have kindly given me permission, Mr Stringer, to go between the two debates as the afternoon progresses, so I will be going from combat air strategy to child food poverty in an easy step from one room to the next.

I welcome those who are watching from the Gallery—not least the Unite reps from Brough, who have travelled quite far to hear about the future of their sector, about what we care about and about what we are doing to fight for them. It is a great thing for us all to meet skilled men and women who deliver day in, day out, contributing in different ways to our national security—it is something I love to do. I have had the pleasure of visiting the team at Brough and other BAE sites to see how it works.

We asked for a defence aerospace industrial strategy at the beginning because it has several different components for Members from all parties, ranging from our national security to our sovereign skills and the wider defence family. We can forget that the reason for our sovereign skills capability in the sector is our own national security. It is about the men and women who come together at times of national crisis to develop the capabilities that our armed service personnel need to protect us. It is never, ever just about the platforms; it must always be about the people who design them, make them and use them to keep British citizens safe. We need to look at our defence industrial strategy in the round, so we should be talking about our defence family, not just our military family or the defence manufacturers.

What have we achieved so far? What have I achieved so far? Some 1,000 people are currently working on Tempest. We must not underestimate the fact that none of them was doing this two years ago. We came to this House and said that a new fast jet takes 30 years from conception to build. This Government did a wonderful thing in appreciating that as soon as we have commissioned and bought one platform, we need to consider the next.

Carol Monaghan Portrait Carol Monaghan (Glasgow North West) (SNP)
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I am loth to interrupt the hon. Lady when she is making such an eloquent speech, but the annunciator seems to think that she is somebody else—it may be confused by her being in two places at once. Perhaps whoever is operating it could amend that.

Baroness Anderson of Stoke-on-Trent Portrait Ruth Smeeth
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I am not sure that my hon. Friend the Member for Leeds West (Rachel Reeves) has ever spoken on defence industrial strategy—well, she has now—but it would be very helpful if I had a clone so that I could be in both Chambers at once today. I thank the hon. Member for Glasgow North West (Carol Monaghan) for highlighting that point.

Tempest has 1,000 people and £2 billion already invested and committed, both from the sector and from the Government. Moving forward, that will lead to potentially 22,000 jobs in the wider supply chain. When we talk about sovereign skills and investing in UK plc, that is exactly what we mean.

As the hon. Member for Witney highlighted, we asked for a strategy, not a platform. We asked how the Government would look at our combat air strategy in the round, and what the defence aerospace plan was for the next 30 years. I am delighted with what we have—but, as ever, Minister, it is not enough. We have seen recently how difficult it is to train new pilots and how long the waiting times are. In no small part, that is because of the delay in replacing the Hawk training platform.

The Hawk has done our country a huge service for many years and is still flown by the Red Arrows—although I think they could do with an upgrade, too. However, the Hawk is probably coming to the end of its natural life, and there are competitors that have positioned themselves, even to provide training for the F-35. We need to talk about what replacement aircraft we will need for the F-35 and what Tempest will finally look like. We need to talk about all this in the round, not just for a single platform.

The very talented men and women at Brough need some guarantees about their future. They need to know—as does the whole wider supply chain, not just BAE Systems—what we are talking about for the sector’s future, so I have specific questions for the Minister about plans for a training platform. What conversations is he having with the wider industry about what we will do to develop a new platform? If we are not going to do that, are we really talking about buying something off the shelf? That will be no good for sovereign skills as we seek to leave the European Union.

My other question to the Minister is about Brexit—sorry, I mean Tempest, although I have many questions about Brexit. There are currently four significant players involved in the design process. We have a huge opportunity with Tempest that we have not had before, because it is a blank piece of paper. Our weapons systems can be built into the platform, not added to it; the way the ejector seats operate can be included at the beginning, rather than the end; and the way we refuel can also be included at the development of the new platform. As we saw with the Rafale, not only does adding an in-air refuelling system make the product ugly, but—not that I am partisan—it adds challenges to stealth capability and the ability to be located on radar. We have an opportunity to do this all at the beginning, so we should be talking not just about the four companies, but about how we work with our small and medium-sized enterprises and the extraordinary companies driving change, and how they can access the programme with the four main partners.

With the Select Committee on Defence—our Chair, the right hon. Member for New Forest East (Dr Lewis) is in his place—I had the privilege of visiting the Paris air show last week, as did the Minister. We saw the opportunities available for UK plc, and we also saw where our international allies are looking to fill gaps in areas that we are not ready to participate in. Can the Minister share with us what conversations he is having with our international allies about working collaboratively?

We are leaving the European Union, I hope, at the end of the year, but that does not mean that we are leaving the continent of Europe. Continuing to work with our allies to develop a platform over which we can be in more control than we have been with the F-35 gives us the opportunity to build our security and financial relationships with allies by which we are currently challenged. Will the Minister inform us what we are doing?

It is a great thing to be able to talk about defence, work on a cross-party basis with so many colleagues, and continue to work with the hon. Member for Witney on the issue. We are grateful for what has happened so far—we just want more.

--- Later in debate ---
Carol Monaghan Portrait Carol Monaghan (Glasgow North West) (SNP)
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It is a pleasure to serve under your chairmanship, Mr Stringer. I congratulate the hon. Members for Witney (Robert Courts) and for Stoke-on-Trent North (Ruth Smeeth), who has had to leave us, on introducing the debate and being tireless campaigners on the issue for a number of years. It is appropriate that we are having the debate in Armed Forces Week, in which we are getting many opportunities to talk about the impact of our military.

The hon. Member for Witney highlighted in great detail the importance of the combat air strategy. As he stressed, the benefits of the aerospace sector to our economy cannot be overstated, and he gave us some important figures that are worth repeating. He said that the sector has accounted for 87% of defence exports over the past 10 years and that the UK combat air sector has an annual turnover of more than £6 billion. That supports 18,000 jobs directly, and there is of course a multiplier effect in the local economy and tax revenues. All recent combat air programmes in the UK have delivered significant returns on Government investment.

The hon. Member for Stoke-on-Trent North highlighted the number of people already working on Tempest and the number that we expect to see working on that programme over the next few years. It was great news when, as part of the combat air strategy, the former Defence Secretary, the right hon. Member for South Staffordshire (Gavin Williamson), announced the launch of Tempest last year, along with £2 billion of funding to develop the technologies necessary for the UK to lead the development of a next-generation combat air system. I hope to see a positive outcome for those plans in the comprehensive spending review this year, and subsequently in the first major programme approval gate at the end of 2020.

There are issues surrounding funding. The hon. Member for Berwick-upon-Tweed (Anne-Marie Trevelyan) talked about the feast-or-famine approach to spending, and the right hon. Member for New Forest East (Dr Lewis) talked about how, as soon as we start one programme, we should consider the next. That drumbeat of planning and procurement is so important. We should not be scrabbling about for money when funding our defence. We need to commit to a much longer funding stream, to ensure proper planning of the spending within the Department.

Frankly, we are seeing too much of a siloed approach to spending, not just in Defence but in many Government Departments. I will briefly highlight the fleet solid supply ships, which we are talking about building outwith the UK. Given the economic impact of building in our own shipyards, it is ludicrous to consider countries such as South Korea, with its state funding of bids. It will fund those bids because it understands the tax revenues and economic multipliers. We need a far less siloed approach.

It should also remain a priority that any exports take into account where the equipment will be used. I am looking for some clarity on that, especially in the light of the recent Court of Appeal ruling, which found that the Government

“made no concluded assessments of whether the Saudi-led coalition had committed violations of international humanitarian law in the past, during the Yemen conflict, and made no attempt to do so”.

There is no justification for exporting arms to countries that repeatedly and flagrantly violate international humanitarian law.

[Mr Peter Bone in the Chair]

The partnerships and collaborations involved in the combat air strategy will play an essential part in determining the UK’s place on the international stage in the immediate future. It is therefore essential that our defence policy remains in step with our European allies and our closest neighbours. I was pleased that a number of hon. Members made reference to that this afternoon.

The combat air strategy recognises the UK’s

“unique network of capability collaborations”

and pledges to

“work quickly and openly with allies to build on or establish new partnerships to deliver future requirements.”

It is important that the Government make good on those intentions and follow through on the proposals for the combat air acquisition programme as an international collaborative programme with the UK as a prime partner.

Our interests must remain aligned with our European partners—our closest neighbours—even after Brexit. That is not just because of defence interests. It is also because, through building such collaborations and alliances, our research is far richer and far better. Being able to draw upon skills from across Europe means that we end up with a product that is far better than it would be if we were simply working on our own.

The hon. Member for Witney talked about the skills required for the Tempest programme and the importance of involving schools. As a former teacher, I agree 100%. We need to be in schools, and not just at secondary level. We need to be in primary schools. We need to be working with young people to make them aware of the sector and to help them to see the opportunities that the sector offers. In particular, we need to be trying to tap into a resource that we are not using enough: the females. We need to be targeting girls so that the aerospace sector has a far more balanced workforce. That is not important just because we want to see diversity and people getting on. It is important because different types of people bring different types of ideas and will look at things in different ways. We must do that.

The hon. Member for Berwick-upon-Tweed mentioned space. I had not actually considered the space implications, but she is quite right. As our understanding of space and our development of space vehicles increases, we need to consider how that is going to play out. I was very pleased when last year the Government committed £2 million to the development of a space port on the A’ Mhòine peninsula in Sutherland. There are real opportunities, not just in terms of our forays into space but also in terms of building up a skills hub around that.

The hon. Member for Fylde (Mark Menzies) made me think of space when he talked about the mothercraft. It took me back to my “Star Trek” days. We were left in no doubt about his passion for the Hawk by the end of his remarks.

Of course, any strategy will succeed only if it receives the full backing of those expected to carry it out. The strength of our armed forces absolutely relies upon the strength of our personnel. Frankly, as I said yesterday—I think the Minister was there for that debate—we need to do more to improve the welfare and treatment of our personnel, not just in the RAF but across all the armed forces. The Minister will know that the SNP has been pushing for an armed forces representative body that would allow them a proper say in how personnel are treated and their welfare, and would feed into Government policy. It would not allow for strike action—we can have a federation that does not allow that—but would allow us to consult and bring on board the personnel.

Our defence capability and longevity must be strengthened by proper investment and proper ambition. It was great to see the combat air strategy launched, but it should not need the hon. Members for Witney and for Stoke-on-Trent North to be pushing in order to move it forward. It should already be part of the Government’s programmes. There is a strong overlap in defence when we look at our European Union allies and the UK. Whatever happens in the coming months, we must ensure that nothing is done that would put that collaboration in jeopardy.

--- Later in debate ---
Stuart Andrew Portrait The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
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It is a pleasure to serve under your chairmanship, Mr Bone. I offer my thanks and congratulations to my hon. Friend the Member for Witney (Robert Courts) for introducing this debate. I echo his opening comments about the recent crash of the German Eurofighter, and the sad loss of life. Our thoughts go out not only to the German air force and the German people, but to the pilot’s family, at what must be an incredibly difficult time. We will take close notice of the reports that come out of that incident; my hon. Friend was absolutely right to say that we should not speculate at this stage, but we will seek to understand the issues that caused the crash and learn from them for the safety of our pilots.

I am grateful to my hon. Friend for securing the debate, because he has shown a tremendous amount of personal enthusiasm and dedication on this issue. I know that because he writes to me quite regularly and asks to meet, and he rightly challenges us about it. He does that not only from a personal interest, but because he clearly cares passionately about the benefits it will bring for his own constituency, which I know he works incredibly hard to support. I hope I can assure him that the Government share that ambition and the commitment to ensuring that we continue to have a world-leading combat air sector.

We want to build on the United Kingdom’s excellent reputation, and on its excellence and innovation. That reputation has been underpinned by more than a century of significant investment by both the Government and the industry, but by 2018 it was clear that some important decisions were needed if the UK was to retain its position as a world leader in combat air, while retaining sovereign choice in how we deliver the future capabilities that the Royal Air Force will need.

At the heart of the Government’s response is the combat air strategy, which, as many hon. and right hon. Members have already said, was officially launched at the Farnborough International Air Show last year. It sets out an ambitious vision for the sector, with plans for driving a comprehensive approach across Government and our industrial base, together with international partnering in the future.

The strategy provides a clear roadmap for the future, aligning national programmes and investment decisions to sustain a sector that is profoundly important to the UK’s economy—as my hon. Friend rightly pointed out, it accounts for around 85% of our defence exports over the past decade and directly supports 180,000 British jobs. At the heart of the strategy is the launch of the next-generation combat air acquisition programme, which will define and deliver the capabilities required when the Typhoon fighter leaves service.

The strategy also reaffirms the Government’s commitment to the future combat air system technology initiative, under which £1.9 billion was invested in demonstrator projects using the latest technology. More generally, the strategy highlights the clear need for profound transformational change in the way the Government and the industry jointly approach the combat air enterprise.

I will move on to some of the points that hon. and right hon. Members raised during the debate. I note what my hon. Friend said in his speech about the Franco-German project; I absolutely accept that there is no room for complacency, and I can personally reassure him that I am not complacent about it. I always wish our friends and allies the very best of success, and we will see how the move from fourth generation to sixth generation goes. We will always continue to work with allies on a host of different projects.

My hon. Friend was right to make the point, which I accept, that we should look at a better model for understanding the contribution that the defence industry makes to the United Kingdom. He described how the UK economy benefits from our investment in defence, and he mentioned some big figures. I gently encourage all Members to continue to have conversations, as I am sure they do already, with my colleagues in the Treasury about the difficulties that we sometimes find in the Treasury Green Book. I will leave that there for now.

I will come on to skills a little later, because I want to address some interesting points made by my hon. Friend. I took no offence whatever when he said that the importance of our future combat air strategy cannot be promoted only at my level. It absolutely has to be a national endeavour, and it has to be at the highest level of Government. I can assure him that my right hon. Friend the Prime Minister has raised the issue at meetings with her counterparts from other countries, and it is incumbent on the new Prime Minister to do exactly the same. The Chair of the Select Committee, my right hon. Friend the Member for New Forest East (Dr Lewis), rightly said that it presents us with an opportunity to really push the issue and see this as a national endeavour, with senior cross-Government figures pushing the project forward and encouraging more international partners.

My hon. Friend the Member for Witney talked about paragraph 38 in the strategy. I reassure him that the national value framework not only describes options, but assesses which ones reach the right balance between prosperity, capability, affordability and, of course, international influence. I assure him that I will continue to put forward the message that this is an opportunity for us to keep UK skills and industry at the heart of the initiative.

My hon. Friend talked about STEM issues. Several right hon. and hon. Members have said that we need to attract younger people into the subjects that they will need to take part in projects such as this. As I go round industry, I get a sense that industry has woken up to that. A lot of industries are now determinedly engaging with primary schools and running competitions to get it into the minds of young people that this is an exciting opportunity for their future. When I was at BAE Systems in Lancashire it was interesting to see the training centre right next door. It benefits not only BAE Systems, but other industries across the north-west, and I hope we will see more of that sort of thing.

Carol Monaghan Portrait Carol Monaghan
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For many years, we have had engagement events in which industry goes to schools, does some sort of bells-and-whistles project activity and goes again, but the impact has not been great. The kids love taking part, but there has not really been any knock-on effect. The outcomes are far better when relationships are built up over time. It is important for engagement to be not just about going in and back out, but about getting to know the young people over an extended period of time.

Stuart Andrew Portrait Stuart Andrew
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I take that point completely, but I think the hon. Lady has a pessimistic view of what is happening. In the industries that I have visited I have seen a lot of new apprentices, and it has been encouraging to see female apprentices taking up the opportunities. I accept that we have a long way to go, but I get a sense that there is more of a commitment to work with schools through the years to encourage young people to take up such posts. When I visit factories, the most enjoyable part is meeting the apprentices, because they are full of enthusiasm and they recognise that they are taking part in a national endeavour to secure our nation’s future.

--- Later in debate ---
Carol Monaghan Portrait Carol Monaghan
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I thank the Minister for allowing me to intervene once again. What he is talking about is indeed happening and we are starting to see things change. However, when I visit industries they often introduce me to the female engineer. If we are talking about “the female engineer”, we have problems. A female engineer should be so commonplace that there is no reason to introduce visiting dignitaries or MPs to such people.

Stuart Andrew Portrait Stuart Andrew
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I completely take that point, but, as I say, I have seen a greater number of females in the industry. There are not enough, and I accept that there is more to be done, but I do get a sense that things are going in the right direction. However, we should never be complacent, and the hon. Lady makes a valid point. It is something I continue to press with industry.

The hon. Member for Stoke-on-Trent North (Ruth Smeeth) is not here, but I was quite amused by the fact that she was mistaken for the hon. Member for Leeds West (Rachel Reeves). When I was first elected to this House, I was constantly mistaken for my hon. Friend the Member for Pendle (Andrew Stephenson). In fact, he sent me a text message once to say, “Thank you for doing such a brilliant speech for me on HS2 yesterday”, because he got the credit for it. So I know that such mistakes can happen.

The hon. Member for Stoke-on-Trent North pointed out that we have representatives from Brough here today, who have been brilliant advocates of the work that they do in the factories there. I am acutely aware of the issues that they face and the uncertainty for the people who work there. I hope that I have demonstrated my commitment to try to get the exports to Kuwait. I have been there on a couple of occasions and have met them here. I constantly meet BAE Systems to talk about the programme and will continue to do so because the matter is of great concern to them.

The hon. Member for Stoke-on-Trent North also pointed out that the issue is not only about platforms and that we should also talk about the skills, designers and engineers that we need and can really help us. She talked about the four national players currently in the Tempest and what the SME involvement is. Again, I am absolutely passionate that the SME involvement needs to be extensive. I was pleased to open a conference where about 150 SMEs came along to learn about the opportunities and what we are looking for. Since then, the conversations with at least 100 of the SMEs have continued.

Just this week, I chaired a meeting with the four national players and MOD representatives; I pushed the point that we need to make sure that we get the very best out of those SMEs. From what I can see, that is where a lot of the exciting technology and development is happening, and they can sometimes be more responsive in delivering the technology that we need for the platform. I assure her that I will continue to make that point in any meeting that I have.

My hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan) talked about the national shipbuilding strategy and how we learn lessons from that. There has been some controversy about it and I have had some challenging debates and sessions in front of the Select Committee, but I also had a good meeting with the representatives of the all-party parliamentary group for shipbuilding and ship repair. There is a lot in its report that we can examine and transfer into the strategy.

My right hon. Friend the Member for New Forest East rightly talked about the leadership election and the opportunities it presents. I welcome the debate on defence spending. Even before I was in this position, I believed that defence spending needed to increase and be appropriate to the risk that we face. At the end of the day, the first duty of any Government of this country is to protect the nation and our people. I will certainly encourage both candidates to increase the funding. I want to see that.

I was concerned to hear my right hon. Friend mention that some say that we should lower our expenditure and expectations; he will be glad to know that I have not heard that in the Department. If I did, I suppose I would coin the phrase, “No, no, no.”

My hon. Friend the Member for Fylde (Mark Menzies) secured a debate not long ago on a similar topic and I know how important it is to his constituents—that was one of the first visits I did in this position. He rightly talked about the Treasury models and I look forward to him lobbying Treasury Ministers. He also said, as did other hon. Members, that the strategy is not just about a new platform in Tempest, but about keeping Typhoon current and upgrading and modernising it throughout its life, so there is an easy transition into Tempest, or whatever that may be. That is at the heart of the strategy to ensure that we are maximising those opportunities.

The hon. Member for Glasgow North West (Carol Monaghan) was absolutely right that the comprehensive spending review will be significant. The Department is already preparing for that to make the point that we need the funding that we have been talking about. She also talked about European partners and concern about what leaving the European Union might mean. I gently point out that a lot of our collaboration with our European neighbours happens bilaterally or through NATO. I see no reason why our leaving the European Union would bring an end to that collaboration. We will continue to do it through NATO and bilaterally, and we will look to partner nations across the globe to ensure that we continue to maximise it.

The hon. Member for Leeds North East (Fabian Hamilton) is indeed my constituent and I am happy to represent him in this House—I am sure he is not so happy about that.