Oral Answers to Questions

Chi Onwurah Excerpts

Monday 11th June 2012 Commons Chamber

[Mr Hammond]

I accept that there will be a certain amount of scepticism. In relation to the equipment plan, there are two parts to the answer. First, the armed forces committee has confirmed that the equipment plan that we set out and funded does deliver the capabilities required for Future Force 2020. Secondly, we have submitted the programme to the National Audit Office for review, and we will publish the result of that review in due course. In respect of the 55% of the annual budget that is not taken up by the equipment plan, the proof of the pudding is in the eating, and Members in all parts of the House will look to see a defence budget that comes in within the spending plan total, as they did in 2011-12.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

11. What progress he has made on promoting innovation through his Department’s procurement processes.

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

Innovation ensures that we are able to access and deliver technology into our systems and equipment to provide continuing operational advantage to our armed forces. That is why our recent White Paper, “National Security Through Technology”, highlighted the importance of investment in science and technology. It also recognised the contribution of commercial investment in developing new technologies. Using open competition in defence acquisition ensures that we are able to deliver the best and most innovative capabilities at an affordable price. In addition, the success of the Centre for Defence Enterprise in bringing through suppliers new to defence, particularly small and medium-sized businesses, which are important sources of innovation, led to our decision to broaden the centre’s remit, including the mentoring of smaller companies.

[Chi Onwurah]

During the recess, BAE Systems announced the closure of the historic Scotswood road site in Newcastle, with the loss of more than 300 jobs. This brings to an end a 165-year history of skilled engineering, the longest continuous site of tank manufacture anywhere in the world, as well as bringing great distress and uncertainty to my constituents. Does the Minister agree that refusing to take into account the wider economic implications of defence procurement undermines not only innovation, but jobs and communities across the country? Will he agree to meet me and a delegation from BAE to see what can be done to save the site?

[Peter Luff]

I have enormous respect for the hon. Lady’s expression of concern for her constituents, and I pay tribute to the work that those people have done over many years to support the armed forces. However, it is not true to say that the policy that she describes is the cause of the problem. The problem is that BAE Systems has not won contracts at this site. Meanwhile, the Warrior sustainment programme, the Scout SV programme, the Foxhound programme and the integration of the urgent operational requirements continue around the United Kingdom, generating thousands of highly skilled and important jobs. I very much regret that BAE Systems has been uncompetitive, but it is not the fault of the Government. The company must answer why it could not compete successfully for contracts.

--- Later in debate ---

[Mr Robathan]

The House will know that Commander West has been appointed as the first woman commander of a major warship, HMS Portland, and that Commander Moore has become the first woman to command 1st Patrol Boat Squadron. Both appointments were made entirely on merit, and they are very well deserved. I think that the whole House would wish to congratulate those two women and all others who come into such positions of authority.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

In response to my earlier question about the closure of BAE Systems on Scotswood road, the Minister seemed to prefer to criticise BAE Systems, and therefore some of my constituents, than to answer my request for a meeting to see whether we could find a way to save these jobs.

[Peter Luff]

It is always a pleasure to meet the hon. Lady. I extended an invitation to her to discuss another subject, but she did not respond. I am always happy to meet her—[Interruption.] On the strictly professional matter of innovation. I intended no criticism of her constituents whatever. They have done a first-rate job. However, the other companies put in lower, better value bids and so won the contracts. That is the problem, and there is no answer to that.