Defence Expenditure (NATO Target) Bill

Cheryl Gillan Excerpts

Friday 23rd October 2015 Commons Chamber

[Sir Gerald Howarth]

I am grateful to my hon. Friend for two reasons—first, he reinforces my argument, and, secondly, he puts on the record an institution of phenomenal value to this country, Roke Manor Research, formerly owned by a German company and now very much in British hands. As I am sure the Minister knows, Roke Manor is doing outstanding work. It is an example of the leading-edge technology that is available to defence in this country and that it is so important we maintain.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I congratulate my hon. Friend on introducing this Bill for discussion in the House today. Does he agree that the situation is even more alarming when we look at the size of Chinese defence spending, which was recently announced to be $144.2 billion—a 10% year-on-year increase, approximately?

[Sir Gerald Howarth]

I am most grateful to my right hon. Friend for independently adding to the case on what we face around the world. Russia is engaged in about the same ramping up of its defence spending and, accordingly, its capability. I am very grateful to her for making that point.

Significantly, the message for those engaged in drawing up defence planning assumptions is that in the space of barely three years the assumptions on which we worked in 2010 were blown apart. None of the events I listed earlier was remotely foreseen. For those of us brought up in the shadow of the iron curtain, over which two massive superpowers pivoted in an uneasy equilibrium—I was brought up in Germany—today’s outlook seems decidedly more complex and more dangerous. It is against that backdrop of a seriously turbulent world that we need to judge the priority we accord to defence of the realm.

There is no doubt that Europe’s security and peace for the past 70 years has been largely delivered by the North Atlantic Treaty Organisation—NATO. The north Atlantic treaty was signed on 4 April 1949 as a means of establishing enduring stability and peace in Europe. Under article 5, the new allies agreed

“that an armed attack against one or more of them…shall be considered an attack against them all”

and that were such an attack to take place, each ally would take

“such action as it deems necessary, including the use of armed force”

in response. Understandably, much has been made of article 5 as the foundation stone of north Atlantic peace, and the onus it places on all alliance members, but it is also worth considering article 3, which states that

“the Parties, separately and jointly, by means of continuous and effective self-help and mutual aid, will maintain and develop their individual and collective capacity to resist armed attack.”

Arguably, this set the precedent for the 2% target long before it was first mooted in 2006, and it has subsequently become the target for alliance members.

--- Later in debate ---

[Bob Stewart (Beckenham) (Con)]

Thank you, Mr Deputy Speaker. I am rather shocked, but delighted, to be called so early.

Twenty-five years ago, the 14 European NATO members spent $314 billion annually on defence; this year, European NATO members spent $227 billion on defence. Those figures, taken from the global think-tank Carnegie Europe, show that there has been a 28% reduction in real defence spending by European NATO members since 1990. Yet since 1990, European membership of NATO has almost doubled, from 14 members to 26 partners, so in truth the reduction in collective defence finances in Europe has been much starker.

Since 2008, the UK has reduced its defence spending by over 9%. We are not alone: Germany has reduced her defence spending over the same period by over 4% and Italy by a whopping 21%. That reduction has made the contribution made to NATO by the United States even more cock-eyed than it was before. From 1995 to 1999, European NATO allies spent about 2% of GNP on defence, but now that average is down to 1.5%. That was at a time when US defence spending had increased from about 3.1% to 3.4% today. In 1995, US defence spending made up 59% of the NATO budget, and today it is expected to be over 70%. Since the formation of NATO in 1949, the United States has always dominated NATO spending, and European members of the alliance have never really paid their fair share of its costs.

Although the United States spends 3.4% of its GNP on defence, we Europeans prefer to use our money for softer priorities. Europeans effectively put far more of their resources into social rather than military security. There are 0.9 billion people living in all NATO countries and just over 300 million of them are US citizens. Yet each American pays $1,900 a year for his or her defence, while no other NATO member, including ourselves, comes anywhere near that. Let me give the House some examples from the figures I have got—mainly from the Stockholm International Peace Research Institute—of how much some of the newer members of the north Atlantic alliance are contributing to their collective defence as new NATO members. I will do so based on what each person in their population might be expected to contribute. Each Albanian contributes $42 a year. A Bulgarian gives $116 a year. Croats provide $204 and Czechs pay $189. Estonians supply more—$392. Hungarians also devote $392 and Latvians $150. Romanians pay $118, Slovakians $180 and Slovenians $233 for their defence. Joining NATO was clearly a cheap way to buy military security for many European countries, many of which are deeply worried about Russian intentions close to their borders, although they hardly show that by way of their defence budgets.

[Mrs Gillan]

Will my hon. and gallant Friend give way?

[Bob Stewart]

With delight.

[Mrs Gillan]

It is worth noting that, despite the smaller amounts paid by the newer members of NATO that my hon. and gallant Friend has laid out for us, in the wake of Russian aggression, the biggest increases are coming from the Latvians, Lithuanians, Poles and even the Estonians, because their minds are now concentrated on the immediate threat on their borders.

[Bob Stewart]

I understand and accept that, and in a way that is good. Some good things are coming out of it.

As my right hon. Friend has just demonstrated, many countries are clearly deeply worried about Russian intentions close to their borders. No wonder NATO membership is so attractive now. It is a great deal. For those countries, the NATO guarantee is cheap security and insurance. Far too many of the new members of NATO have simply got to pay more. Only Estonia, France, Greece, Poland, Turkey and the UK will come near the NATO minimum target of 2% in 2015. Some NATO members will spend far less than that. According to the IMF, some—such as Albania, Belgium, Canada, the Czech Republic, Hungary, Iceland, Lithuania, Luxembourg, Slovenia, Slovakia and Spain—spent 1% or less of their GNP on defence last year.

I am sorry for spending so much of my speech on statistics, but I hope that I have made the point about the huge importance of NATO’s minimum target of 2%. Achieving it and keeping above it shows commitment, and is also a symbolic gesture of genuine support for the alliance.

--- Later in debate ---

[Andrew Rosindell (Romford) (Con)]

Thank you for calling me to speak in this excellent debate, Mr Deputy Speaker. I commend my hon. Friend the Member for Aldershot (Sir Gerald Howarth) for the powerful case he made for ensuring that we have an adequate defence budget for our country. The Bill is vital. I also commend my hon. Friend for his lifelong dedication to supporting Her Majesty’s armed forces and to the defence of Queen and country; there is no greater champion of the defence of the realm than my hon. Friend.

I hope that hon. Members will agree with me that, as my hon. and gallant Friend the Member for Beckenham (Bob Stewart) has just said, the first priority of Her Majesty’s Government, regardless of their political persuasion, is the defence of the realm and the protection of British people from threat, both internal and external. Protecting Britons from harm, defending our democratic way of life and upholding our freedom must surely be our first duty in this place. That is why our membership of NATO has been so vital and must be protected.

To maintain a 2% minimum spending target is a wise allocation of public funds and a necessary investment in the defence of our nation. We can ring-fence other budgets, but surely the defence of the realm should be uppermost in our priorities. Securing our freedom is worth every £1 we spend. In my view, defence should certainly take precedence over our commitments on international aid.

The Bill will enable the Government of the day to carry out their solemn duties to this country in the confidence that those who wish to subvert our way of life will not succeed. Some would argue that, in the post-cold war era, such investment in our national defence is no longer necessary, but if the actions of Vladimir Putin in Ukraine and Syria have taught us anything it is that we can no longer take for granted the notion that the cold war is well and truly behind us. Our nation faces powerful enemies—nations, and terrorist organisations and cells—just as we did in the 1980s. They pose significant threats to our national interests and security. Even if we accept the highly dubious argument that we live in a post-cold war world, we must conclude only that the new era makes continuing to invest adequately in our armed forces more imperative than ever.

[Mrs Gillan]

Does my hon. Friend agree that NATO has had to adapt, and that we are looking for NATO responses to be more mobile and agile? It also needs to respond on shorter timelines, particularly in countering irregular operations and other new forms of threat, some of which were well laid out in the TalkTalk cyber-attack earlier this week.

[Andrew Rosindell]

My right hon. Friend makes an excellent point. The truth is that we live in a very different world from the one of the 1980s. We have to adapt to modern-day threats, including people who use technology against the interests of our country and our NATO allies. Therefore, we cannot take it for granted that defence spending should be on a downward slide. We must think about the importance of dealing with today’s threats. My right hon. Friend makes that point eloquently.

The enemies we face today no longer occupy clear territory or fight conventionally, as my right hon. Friend stated. Today’s threats come from groups such as al-Qaeda and ISIL. They have no clear borders and fight unconventional wars. In many respects, they pose a greater challenge to our armed forces and national defence.

As my right hon. Friend the Member for New Forest East (Dr Lewis)—my good friend—has made clear, defence spending as a proportion of GDP has declined. NATO figures suggest that, for 2015-16, the Government will spend 2.1% of GDP on defence. However, that figure includes previously excluded expenditure such as war pensions and other items, as many hon. Members have said. My hon. Friend the Member for Aldershot referred to the Royal United Service Institute, which says that, without those added expenditures, defence spending will be 1.97% of GDP. I am sorry to say to the Minister that, under the old measurement, the Government will this year fail to meet their 2% spending commitment. Perhaps he will clarify that. It is imperative that my hon. Friend’s Bill becomes the law of this country so that the Government, of whichever political party, will be duty bound to honour the commitment and make the necessary investment to the defence of our United Kingdom.

Continuous decades of cuts to our defence budget have caused despair among many leading members of our defence staff. In 2012, General Sir Michael Jackson warned that, if Argentina were to launch another invasion of the British overseas territory of the Falklands Islands, retaking them would be “impossible”—I know that you, Mr Deputy Speaker, are very passionate about the defence of the Falkland Islands. In stating that, General Sir Michael Jackson pointed out that he feared that we could not adequately defend British citizens in our overseas territories. At that time, defence spending was, at 2.2%, higher than it is today.

The need for a much stronger Royal Navy presence in the British sovereign waters around Gibraltar is now paramount. More resources are needed to counter the illegal and aggressive incursions by Spanish vessels, which are shamefully supported and excused by the Spanish Government. Those extra resources should be combined with a more robust approach to the defence of Gibraltar from the Government, which is long overdue.

It seems perverse to me that, at a time when we ask our armed forces to undertake ever more demanding work in far-flung regions of the world, we have been so short-sighted in reducing the resources they desperately need. As hon. Members know, in the last Parliament, a Bill was passed that requires the Government to spend 0.7% of GDP on overseas aid. Failing to pass a similar Bill—it applies the same principle—that legally commits the Government to spend 2% of GDP on defence would send a very negative message to the servicemen and women who put their lives on the line for our wellbeing every single day of their lives.