Caroline Lucas
Main Page: Caroline Lucas (Green Party - Brighton, Pavilion)Department Debates - View all Caroline Lucas's debates with the Ministry of Defence
(12 years, 6 months ago)
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Mr Hammond
I happily agree with my hon. Friend in those terms. This is not just about the 300 jobs at Rolls-Royce but about many highly skilled jobs throughout the supply chain across the United Kingdom, including among suppliers in Scotland.
Caroline Lucas (Brighton, Pavilion) (Green)
Will the Secretary of State give us a figure for how much it will cost to negotiate our way out of these contracts if the Commons votes against replacing Trident? Will he explain why the taxpayer is paying for the upgrading of the Rolls-Royce plant given that it is a private company that saw its profits soar by 21% last year? Surely that shows that this is not a commercial project.
Mr Hammond
Let me answer the second part of the hon. Lady’s question. The reason is that where we are sustaining single-sourced sovereign capabilities—in this case, the ability to build submarine reactor cores, a product that Rolls-Royce cannot sell to anyone else but can supply only to the UK Government—we have to enter into agreements with it to meet the cost of the capital facilities needed to maintain that capability, and that is what we are doing.
Mr Hammond
These are commercial negotiations and commercial contracts. I understand the hon. Lady’s point, which the hon. Member for Newport West (Paul Flynn) also made. In negotiating contracts, we will always seek to give the Government, as the contracting party, the maximum flexibility, but flexibility in a contract comes at a cost, and we have to ensure that we get the best value for money for the taxpayer.