Oral Answers to Questions

Chris Evans Excerpts

Monday 13th March 2023 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the shadow Minister, Chris Evans.

[Chris Evans (Islwyn) (Lab/Co-op)]

May I join the other voices welcoming you back to your position, Madam Deputy Speaker? I think I speak on behalf of everyone when I say that the House has missed your ability to turn people to stone with just a few words when they fall foul of the rules in this place.

Much of the innovation in the defence industry comes from the small and medium-sized enterprise sector. However, many SMEs tell me that there are real barriers to entry and to gaining access to Government contracts, and that when they do gain that access, they find that some primes are slow to pay, especially when projects are delayed. This leaves them demotivated and demoralised and with a poor experience of working with the Ministry of Defence. How will the Secretary of State ensure that SMEs have better access and are encouraged to be involved in a thriving British defence industry?

[Mr Wallace]

I recognise some of those characteristics of SMEs. For decades they have said that there is a challenge in engaging with wider Government procurement, whether it is in defence or anything else. I also recognise, as the guardian of the taxpayer, that one of the challenges is that risk is involved. If we commission an SME to build something large, the amount of risk it takes in relation to infrastructure is a challenge; we cannot get halfway through a project and then have the SME fail.

However, I think that changes to the battlefield will open the aperture much wider for SMEs to engage with Defence. What we have seen in Ukraine through Operation Kindred is that the winners are the SMEs. The ability for us to cut through the regulations that normally govern procurement, because we are procuring for someone else in a warzone, has enabled us to effectively go straight to the marketplace and straight to SMEs, and some of the big winners have been SMEs in innovation and space. We will know the results and whether they work when they get to Ukraine.

I think this is an exciting time. I recognise the narrative that the hon. Gentleman mentions, which has been around since I worked in the aerospace sector, but of course we should and must do more. When we have a big exciting project, such as the next generation of fighter aircraft—the global combat air programme—or the carrier alliance, it is important that something sits over the top of it to ensure that SMEs are forced in if the primes get in the way.