Oral Answers to Questions

Debate between Chris Evans and Ben Wallace

Monday 15th May 2023 Commons Chamber

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

I welcome the new Minister, the hon. Member for South Suffolk (James Cartlidge), to his place; I got on with all his predecessors and I look forward to our exchanges in future. As has been said, the AUKUS agreement is a game changer not only for our forces but for British industry. The Government have promised a jobs bonanza for generations to come in places such as Derby, Barrow-in-Furness and Devonport in the constituency of my fellow shadow Minister, my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard). Will the promise be underwritten by contractual guarantees to ensure that future generations are trained in the skills that we need for this vital programme?

[Mr Wallace]

It is already underwritten by contractual guarantees. In Barrow-in-Furness, BAE is recruiting for 11,000 to 17,000 jobs. Derby is investing for the next generation of reactor, and that is starting. The key point about AUKUS is that it not only gets a commitment from the Treasury and the Government for the British replacement of the Astute class but locks in the potential of the Australian supply chain and working together collaboratively on skills in both countries. That process is already under way, with £2 billion recently unlocked to start building the infrastructure needed in both Derby and BAE in Barrow, and that will continue. This is further down the path than the beginning, but the real work starts now.

Oral Answers to Questions

Debate between Chris Evans and Ben Wallace

Monday 13th March 2023 Commons Chamber

[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.

Oral Answers to Questions

Debate between Chris Evans and Ben Wallace

Monday 30th January 2023 Commons Chamber

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

In an answer to my written parliamentary question on 26 January 2023, the Minister for Defence Procurement, the hon. and learned Member for Cheltenham (Alex Chalk) said that the Type 32 frigates are

“a key part of the future fleet”.

In the National Audit Office report on the equipment plan, it reported that

“Navy Command withdrew its plans for Type 32 frigates…because of concerns about unaffordability.”

How can Type 32 frigates be a key part of the future fleet if there are question marks around their affordability?

[Mr Wallace]

That is because the Type 32 frigate will not come in until after 2030 or 2031, because it will come after the Type 31s, which are being constructed in Rosyth as we speak. What the Type 32s are going to be, how they will be designed and who will build them is obviously a matter for between now and towards the centre of the decade. Even if the hon. Gentleman gets into government, no Treasury will give a budget for seven years forward, so it is important to make sure that we do not sign on the dotted line before we have the budget in line. It is absolutely the intention of the Royal Navy to have more frigates and destroyers, including the Type 32.

Oral Answers to Questions

Debate between Chris Evans and Ben Wallace

Monday 7th November 2022 Commons Chamber

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

I welcome the Minister for Defence Procurement, the hon. and learned Member for Cheltenham (Alex Chalk) to his place. I know his constituency very well, having finished a distant third there in 2005. I have only warm memories of it. I pay tribute to him; we have worked together in the past on issues such as Down syndrome, which have affected us both. I look forward to continuing to work with him.

The fleet solid support contract presents a huge opportunity to the British shipbuilding industry, as well as providing a shot in the arm for British steel if the Government commit to building British by default. However, the GMB union has raised concerns that only significant parts of the build and assembly work will be carried out in this country rather than all the work. Will the Secretary of State address what “significant” means in the practical sense? If a foreign manufacturer wins the contract, how will our sovereign defence manufacturing capabilities be protected?

[Mr Wallace]

If the hon. Gentleman can point to a single complex military contract, whether in air, land or sea, that has not used international or partner supplier chains, I will be amazed. Typhoon, made in Lancashire, uses partners from Italy, Spain and Germany to create one of the most successful fighter programmes in the world. Our aircraft carrier, though entirely assembled in Rosyth in Fife, will have involved the use of foreign components.

Complex military machines that keep us at the cutting edge of the world involve international collaboration. That is the difference between us and Russia, which has the Stalin taxi factory attitude and ends up with rubbish equipment. We end up with the best because I have the duty of giving the best to the men and women of the Royal Navy. I will find a contract that delivers the best and supports the civil base and British manufacturing, but I will not cut corners for party political ideology from the Opposition.

Oral Answers to Questions

Debate between Chris Evans and Ben Wallace

Monday 13th June 2022 Commons Chamber

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

I am glad that the Secretary of State mentioned that the MOD did not pay General Dynamics throughout 2021; by December 2021, it had paid £1.1 billion less than scheduled. However, the position is not sustainable in the local economy or in the Welsh economy as it is causing real anxiety among the workers, the wider economy and the local supply chain. When will the Government give an answer on what they will do about Ajax? I agree with my right hon. Friend the Member for Warley (John Spellar), who mentioned the report by the PAC. Anybody who has had anything to do with Ajax will say that, after 12 years, enough is enough and a decision must be taken.

[Mr Wallace]

I understand the hon. Member’s frustration and that of the workforce in Wales, who had hoped and wanted to produce a vehicle that was fit for purpose and would add to the British Army’s important capability. We have to proceed based on science and evidence. Like General Dynamics, we are bound to a contract, and I do not want to say anything that would jeopardise those positions. We have done independent trials and, when those results are forthcoming, we can have a further discussion. I recently met the head of General Dynamics and made my position on the next steps very clear. As I have said from the beginning, we will not accept into service a vehicle that is not fit for purpose.

Oral Answers to Questions

Debate between Chris Evans and Ben Wallace

Monday 15th November 2021 Commons Chamber

[Mr Wallace]

I have read the report and, while it makes some very important points, I am sad to say that it is actually no different from the series of reports that I have read over decades. It is not any worse than some of the ones from 2008 and 2009. There are repeat problems, which is why, in seeking defence reforms, I have been determined to make sure that we get on top of these issues. [Interruption.] I distinctly remember the report that was delivered in 2010, which showed that, in one year under the Labour Administration, they spent £3 billion without even knowing where it was coming from. My right hon. Friend is right that there are lessons to be learned. We will get on it. I would be delighted to meet him to discuss what we think we can do. Many of the programmes referred to not only pre-date me and this ministerial team, but predate my right hon. Friend and his ministerial team and we need to make sure that we get on top of that issue. There are solutions to this, but we must also enforce tight timetables and then we will deliver.

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

It is welcome news for the British aerospace industry that the Government have published a draft plan to buy between 36 and 44 aircraft under their long-awaited New Medium Helicopter acquisition programme. Like other Members on both sides of the House, we, too, could not let this pass without mentioning the National Audit Office report. The Government have been in power for 11 years. They have overseen a Ministry of Defence that has created a black hole of £17 billion. The Defence Secretary has stood here and said that the helicopter will be ready by 2025. Why, given the evidence that the MOD has difficulty in fulfilling its contracts, is he confident that this will happen? How long will it be before the Ministry of Defence takes these NAO reports seriously, and will it take positive action to bring some positivity around procurement contracts?

[Mr Wallace]

The reason why I am confident about the 2025 timetable is that the expected bidders in the new medium-lift helicopter programme are expected to bid mature products that have been in production not only in the United Kingdom, but in Europe and around the world. The only negotiation would therefore be around European content and European build and all the other factors that are very important to hon. Members. I am pretty confident about 2025, but it does of course depend on what extras the services want to have added on. On the issue of 10 and 20-year programmes, it is, as hon. Members who have served in the Ministry will know, that if we change the plans half way through, we incur costs or delays. That has been part of the problem for many, many decades, but it does not change the fact that defence procurement programmes are decades long, which has a greater impact than if we were just going out there and buying a car.