(2 years, 6 months ago)
Commons ChamberI know that the door of my right hon. Friend, the Chair of the Defence Committee, is always open for such discussions. The Treasury has been very clear that we need to replenish our stocks, and that it will support us in ensuring that they are replenished. I can also assure him that we are making certain that we remain well within our tolerances. There are tasks here for which we always need to be ready, and I can assure him that we remain ready for them.
The equipment that we provide must be as effective as possible, so we are training specialist Ukrainian units in its use. Last month, for example, Ukrainian troops learned how to use our armoured fighting vehicles on Salisbury plain, and those vehicles have now started to arrive in Ukraine; the number will build to 120 in total. Our support does not end there. The House will be pleased to hear that the challenge laid down by Putin’s brutal war has been seized by UK industry. I have been delighted by the agility that the UK’s defence sector has shown, working closely with Defence Equipment and Support, in bringing through innovative ideas; in some cases, those ideas literally go from desktop to theatre in a matter of weeks. I am determined to maintain this innovative drive, so that we capture every idea, support the best of them, and then swiftly put the results in the hands of our Ukrainian friends.
Can the Minister set out how support for Ukrainian forces will be updated or augmented to deal with increased and intense artillery bombardment from better supplied Russian forces? They have retreated much closer to their own borders, and their supply lines have greatly opened up. Given that, how can we further support Ukraine in defending itself?
The hon. Gentleman knows that we are doing our utmost to support our Ukrainian friends. There are intense discussions between our Ukrainian friends and the Ministry of Defence at a number of levels, including between myself, my hon. Friend the Minister for the Armed Forces and our opposite numbers in Ukraine. We are ensuring that the equipment that we source to support Ukraine is tailored to its needs and its battle plan in the weeks and months ahead. The hon. Gentleman is right that opportunities may well open up, but I do not for one second underestimate the fierceness of the fight and how intense it is at present in Donbas.
(2 years, 9 months ago)
Commons ChamberI thank the Minister for advance sight of his statement and commend his fleet-of-foot actions in changing the range from Appledore to Glasgow to Appledore to Rosyth. That is an important correction to make.
The fourth from final paragraph in the Minister’s statement cuts to the chase on this issue in the way that the strategy does not when he states that it is a vision to make the UK,
“the country of choice for specialist commercial and naval vessels and systems, components and technologies”.
Among the 80 pages of waffle and padding, the strategy alights briefly on that point, but not in the way it really should. The strategy also highlights the word “international” 31 times. I welcome the realisation that in a global economy with global supply chains the notion that we can procure every single element in the United Kingdom, while a noble ambition that we should sweat as much as we can, is naive.
I welcome the fact that the national strategy sets out a range of opportunities, which excellent yards all around Scotland are ready to lean into and capitalise on. I am a little sceptical about whether the funding announced in the strategy will have a massive impact across all the yards in the United Kingdom, but I hope it will.
Scotland’s skills, as I am sure the Minister will agree, have been highlighted many times in the past decade, not least on the QE2-class ships, which are outstanding in their quality and performance, the Type 26 under construction in Glasgow and the Type 31 under build in Rosyth. He will welcome, as I do, the export success that has been achieved, with 26 going to Canada and Australia, but he will know that those are in-country builds. That is not to downplay the opportunities of intellectual property and engineering that Glasgow will enjoy from them, but does he agree that really what we need is Type 31s sold to countries that will require them to be built in Rosyth?
First, as I am sure the hon. Gentleman will acknowledge, this is a UK-wide endeavour. There are great assets and skills in Scotland, and I am delighted that this week, I think, we have signed a lease to ensure that there is space in Edinburgh for part of the National Shipbuilding Office to be based there. This is a national endeavour, delivering for the whole of the UK. He is right that £4 billion is a lot of money and we want it to go further by winning export orders.
The hon. Gentleman is right that the Type 26 exports to Canada and Australia are a solid bit of progress. It is right to say that they will support thousands of jobs and design is incredibly important, as are many of the subsystems often used by overseas purchasers, even as they do a lot of work on the frigates themselves. We will learn from them as well as their learning from us.
On Type 31 and export, there has been great news: first the work with Indonesia and secondly the down selection last Friday by the Polish navy of Type 31 or Arrowhead. That is an extremely important step forward and I am very proud to have been part of it. I spoke to my Polish opposite number on that and other topics this morning. It would be great if we could also sell Type 31 to countries that do not have the capacity to build themselves, and do that work in Rosyth or elsewhere. That is a grand ambition. However, I am delighted that our design, our subsystems and our skills are being recognised in the export orders we are already winning.
(2 years, 9 months ago)
Commons ChamberI wish to thank the right hon. Member for Warley (John Spellar) for securing this debate. It is an important debate, focusing as it does on the state’s ability to defend the people of these islands, albeit under the current constitutional arrangements. Sovereignty is the precious prize that elevates countries from the ignominy of sub-state status. We see the value of that with the brave actions of Ukrainians, fighting with everything at their disposal to protect their sovereignty, their independence and the freedom of their people, and all power to them in that battle.
Value in defence terms can be for some an abstract concept, especially in times of prolonged peace at home, but in so far as that has generally been the case for the past 75 years, we should wake from that complacency now, as democracy fights for its very survival in the cities of Ukraine. We see in that conflict the criticality of having the right equipment at the right time in the right place. That necessarily turns the spotlight on the institutionally incompetent defence procurement dynamic with which the UK is encumbered. Even the Treasury does not trust the Ministry of Defence to manage its finances effectively, and categorises it in the third quartile of Government Departments for financial management and capability. I can only assume, therefore, that there is nobody in the fourth quartile.
Any one of the MOD’s headline failures would represent a multi-billion pound betrayal of the taxpayer, but the Ministry of Defence has a veritable conveyor belt of these debacles, from Nimrod to Chinook, through Warrior to Ajax. There will be a lot more said about Ajax tomorrow, but it really takes the biscuit in terms of absolute dysfunctional defence procurement. Creative accounting with rose-tinted projections, which plan for undetermined savings to accrue to the MOD’s balance sheet at some unspecified point in the future, is the culture that manifests claims that we will see the plan come in £4.3 billion under budget—no detail, no plan.
The National Audit Office report on the equipment plan states that the MOD has been
“over-optimistic in their assumptions…of targeted savings”
and has identified a number of costs savings that have no plan as to how they will be achieved—£4.2 billion of extra spending that the MOD has not included. The MOD’s own Cost Assurance and Analysis Service produced an independent assessment of the cost of projects making up 58% of the plan’s costs this year and concluded that they are likely to cost £7.6 billion more than projected.
It is expected that the Dreadnought programme—the largest one in the plan—which is already delayed by six years, will cost an additional £2.6 billion. Early business cases for the new medium-lift helicopter and Future Commando Force show that those programmes are currently underfunded. In the case of the new medium-lift helicopter, Industry primes are currently waiting for the MOD to behave like a procurement organisation that has a clue about what it wants, or even when it wants it—but that is in vain. Despite the taxpayers’ large budget increase to the Ministry of Defence, the equipment plan will go over budget in the next few years of the plan. Ministers are fooling nobody when they discuss how they will make savings somewhere, somehow, over the next 10 years.
On personnel, currently the Army’s target strength will be cut from 82,000 to 73,000 by March 2025, and other top-level budgets must make savings by 2030 equivalent to reducing their count by 6,350, while the cost of the MOD’s civilian workforce needs to be lowered by 10% by March 2025. That finger-in-the-air cost cutting is consistent with neither basic resource management principles, nor the new threat environment faced by the west. The Department’s financial plans once again assume further unspecified workforce cuts of £2.5 billion by 2030, but it has not yet announced how it intends to achieve that, and that almost certainly does not take into account inflationary pressures on either pay or costs of remaining staff.
Armed forces housing is in a shocking state, as other right hon. and hon. Members have stated. Of the armed forces members inhabiting single accommodation blocks, just under half are satisfied with their accommodation and 36% live in poorer-grade accommodation. Despite that, the MOD has failed to invest in adequate housing, and the NAO described its planned investments as not sufficient even to prevent further deterioration in the estate, much less to improve conditions for personnel. If the MOD truly wishes to make the Army smaller but more efficient, it needs to invest in making it a more attractive destination for potential recruits, and shabby accommodation is not a particularly good place to start.
Scotland currently has 2,000 fewer soldiers stationed there than we could expect given our population share, which is doubtless a function of the recruitment issues facing the Army. The range of causal factors is not limited to accommodation, but includes remuneration. Scotland’s progressive tax system mitigates that to some extent, with rank and file often paying less tax in Scotland, while those who live off estate in Scotland pay less council tax on average, and of course they all benefit from free prescriptions.
The financial chaos leading to flip-flopping on base closures and disposals, selling off land at RM Condor in my Angus constituency and then back-pedalling on that, is not helpful either. What is the future for Redford barracks, Fort George and HMS Caledonia, and how long will the MOD stick with today’s vague disposal plans? This culture leaves communities reeling from uncertainty and saving plans that are volatile and not credible.
Scotland has 32% of the UK’s landmass and 63% of its maritime area, yet only 7% of the defence personnel, and no surface warships are stationed in Scotland. That means that when Russia comes knocking on Scotland’s door, the Royal Navy is busy at the other end of this island and takes fully a day to engage.
I have been containing myself during the hon. Gentleman’s speech, because I know there are other contributions to get through before I have my own go, but I cannot let him say what he has just said about the Royal Navy. It is there to protect the whole of the United Kingdom and our interests overseas. We have a huge commitment to the High North going on as I speak. We will also have the whole of our submarine fleet based in Scotland in the future, including our continuous at-sea nuclear deterrent, which is so vital to our interests right now.
There is a lot of chest-beating about the nuclear deterrent, but much less discussion about the cost of it. We have heard from hon. and gallant Members how much they would like to see numbers in the Army go up, but they do not talk so much about the cost of the Defence Nuclear Organisation, which is 50% higher than that of the next department, the Army. They are not so focused on that cost. Incidentally, I note the Minister in his intervention did not point out which surface warships there are in Scotland, because there are none.
(2 years, 10 months ago)
Commons ChamberWe are fighting over the privilege of answering my hon. Friend’s question. As my the Minister for Defence People and Veterans, my hon. Friend the Member for Aldershot (Leo Docherty) said earlier, there are 21,000 apprentices in the armed forces at any one time. Also, we are committed to lifelong learning: for five years after people leave the services, they can apply for and get support to retrain. It is a great opportunity for our service personnel, who have terrific skills.
Does the Secretary of State agree that the same esteem, respect and co-operation that the UK enjoys with Australia will be a feature of UK-Scottish relations on matters related to defence and security after independence? Crucially, though, as an independent state Scotland will, unlike today, have a seat at the table and a role in the decision-making process.
(2 years, 11 months ago)
Commons ChamberMy hon. Friend is an assiduous advocate for the Island and he was right to raise this issue with me before Christmas. I looked into it and have written to him and another hon. Gentleman on the subject. The requirement is for an existing vessel that can enter service very quickly to help the Royal Navy perform, at pace, trials on autonomy and the use of modular persistent operational deployment systems. I am satisfied that the tender for this vessel is fair and open. It has attracted a significant degree of interest from a wide range of suppliers, and they will have to compete along the lines outlined.
The Government are invariably keen to talk up their role in the manufacturing success story of Scottish warship building, and the Minister knows exactly the extraordinary private investment that has been made by BAE on the Clyde and by Babcock at Rosyth, and about the state of the art manufacturing process, equipment and, crucially, apprenticeships. Will he now commit to rewarding that investment by unequivocally ensuring that the fleet solid support ships are built in whole, not in part, in Scottish and, if necessary, other UK yards, and categorically commit to using UK steel?
(3 years ago)
Commons ChamberI thank the Minister for advance sight of his statement. This is a sorry tale, but more importantly, it is a strategically very important equipment failure that leaves a very serious capability gap. I, for one, am clear that the Minister’s statement does not satisfactorily address the issues.
The health, safety and environmental protection review gets to the heart of the failures. It provides helpful definition and sources for the catastrophic failures—numerous as they are—in the management control issues, which have come to define the literally incredible £5.5 billion defence procurement fiasco. I am sure that others will detail the chronic operational consequences of those failures for the ability of UK forces to fight and defend, so I will concentrate on technical details.
I said in this Chamber some months ago that the problem was
“not…MTU V8 diesels or the Renk transmissions”—[Official Report, 9 September 2021; Vol. 700, c. 494],
which were tried and tested assets in other platforms. So it has come to pass.
The review highlights the failure of the
“Track, suspension and running gear, in particular the tension and sprocket design/track interface”,
which are unique to Ajax. The engine, good as it is, is a proven engine poorly mounted in a badly designed vehicle. We also learned today that, as the review sets out, there were
“Quality issues associated with…inconsistent routing of cabling, lack of…weld quality…insecure components”.
That does not sound to me like a £6 million vehicle. The shoddy design and appalling quality management represent engineering management from a truly different era.
There is no shortage of concerns about the programme, but one of them is about the tone of the report: “This was all very difficult, and we’ve taken a look back to see where things went wrong.” Two elements are missing from that rather lightweight mea culpa routine: who is carrying the can, and what is the future of the programme? Can the Minister identify who will take responsibility for this almost limitless failure?
Currently, GD UK management are clearly letting down the workers at Merthyr and Oakdale. What discussions has the Minister had with GD US about their future? When will he make a final decision on the future of the programme?
I am impressed with the hon. Gentleman’s attention to detail, but technical issues are not really within the scope of the health and safety report. Mr King would not claim to be the person who can put the House’s mind at rest on technical issues, but there is a huge amount of ongoing work on the matter. The Millbrook trials have concluded, as I say, and we are waiting for the conclusions to arrive before Christmas, and they will be analysed. That will get to the heart of the issues with root cause analysis of noise and vibration, which I know the hon. Gentleman will look forward to with eager anticipation. I will update the House on what the answers turn out to be; I would rather not prejudge that technical analysis.
The hon. Gentleman refers to General Dynamics. One of the positives in the programme since the issues came to light is that we have had a complete transformation in the relationship with General Dynamics, which has been taken up at a very senior level: I speak to the global chief executive, and she has been in direct communication with the head of DE&S. That has helped to drive real performance through General Dynamics, all the way through the system. We are seeing a complete transformation in how it views the programme, in its determination to succeed and in its willingness to embrace the problems, which are clear. It has its own theories about them and is developing design mitigations and design resolutions. We have yet to see whether or not they can absolutely succeed; clearly we will wish to test that independently.
(3 years, 3 months ago)
Commons ChamberFirst, let me make it absolutely clear that the agreement with the United States and Australia is a requirement—an Australian requirement—for their strategic purposes. It is a decision that they wanted to make in order to enhance their strategic capability and their strategic defence. We have very strong contacts and a relationship with Australia and the United States, quite transparently. It will be a pleasure to work with them, and to help to deliver this important strategic capacity for Australia.
As for France, again, we work very closely with the French. My right hon. Friend is well aware of that, and of the Lancaster House treaties. There are ongoing discussions about incredibly important joint defence initiatives that we run together. I was in contact with my opposite number over the weekend, and I am looking forward to our working very closely with the French in the years ahead, as we have always done in the past.
Given that Babcock’s Arrowhead 140 frigate has been selected by Indonesia in an outstanding endorsement of Scottish engineering, will the Minister ensure that the Government expend all available effort to assist in future foreign orders, both for licensed build in-country and for foreign Governments to have their ships built in Scotland?
I entirely agree with the hon. Gentleman. As I said in my substantive answer, I have been working in Poland, Ukraine, Greece, and many other parts of the world where Babcock has aspirations. The United Kingdom has a great belief in the Scottish yards—far more belief than the Scottish Government appear to have, given some of their recent contracts.
(3 years, 3 months ago)
Commons ChamberI reassure my hon. Friend that this is a firm price contract. It is a good contract. We have gone over it, as he can imagine, and there is a requirement for GD to produce the vehicles to the specification in return for the funds expended. He would not expect me to go through the details of that contract, which are commercially sensitive. He is a member of the Defence Committee, and I hope that there may be a way in which, in a different forum, we may be able to shed some more light, but he will understand that commercial sensitivities are such that to go through the details of the contract in this House at this time would not be appropriate.
This fiasco surrounds a complex military fighting vehicle, but we need to be clear that the technologically advanced fighting assets are not what is at issue here. What is clearly at issue, with the intractable vibration problems, is the basic vehicle. Moreover, it is almost certainly not due to the German MTU V8 diesels or the German Renk transmissions. We are therefore narrowing it down—I am even narrowing it down for the Department—so why are we, the taxpayers, on the hook for the testing at Millbrook and why has the Defence Science and Technology Laboratory not been called in finally to analyse what has gone wrong with the vehicle? If it has, what did it find?
I reassure the hon. Member that DSTL has been engaged, but Millbrook has an international reputation. As I said in the statement, one of the recommendations likely to come through from the health and safety report is that we should be more open and forward-leaning in getting independent analysis and safety verification. If a regulated entity is taking advice from independents about the nature of a product it is buying, it is better to get that advice direct and to pay for it. He who pays the piper calls the tune. I would rather be paying for that independent analysis myself and get it on behalf of the taxpayer, knowing that we have full sight and full visibility on those reports, than going through any third party. That is the rationale.
(3 years, 6 months ago)
Commons ChamberThere is always room to do better—I totally acknowledge that, and I thank the Chairman of the Select Committee for his comments. It may not be 3%, but a £24 billion increase is certainly good news for defence and something that was necessary. I can assure him that we are focusing on spending that well and in the interests of our armed forces.
The Ajax is going to be a real game changer on the battlefield. It is larger—it is some 40 tonnes—and Scimitar was a different capability, but my right hon. Friend would be the first to say that things have moved on. There is the range of sensors and the four dimensions that Ajax can produce, allowing it to stand off from the enemy. It is a significant sea change. It has that extra lethality compared with what went before and the extra protection that our troops deserve. This is a vehicle that has an incredibly useful role to play on the battlefield and as part of our operational advantage. The emphasis on our suppliers is to get it right.
There is in the UK no shortage of MOD procurement debacles to draw on, such as the £4 billion Nimrod MRA4 scrapped before service or the Mk 3 Chinooks—half a billion pounds of aircraft that could not fly low or in bad weather—but this multibillion-pound Ajax failure sets a new low. The UK Government have presided over a procurement project that would see soldiers arriving late for operations in vehicles only capable of a pedestrian 20 mph, with a human endurance range of no further than 30 miles, and then unable to fight duty due to sensory impairment and pain caused by these £3.5 billion boneshakers. Can the Minister confirm that the sight system manufactured by Thales in Scotland is working perfectly and is unconnected with this broader failure? Where was the intelligent client at the heart of this project, and where was the learning from previous procurement fiascos? Is the Minister accepting personal responsibility for this debacle, and if so, how does he plan to atone?
I thank the hon. Gentleman for his wide range of questions. I think he ought to be slightly careful in damning all defence procurement. He mentions Nimrod, but I am sure he is very proud to see Poseidon arrive in Lossie, and indeed the E-7 in due course. I hope he is proud of the work being done on the Type 26 and Type 31 on Rosyth and the Clyde, and the huge amount of work that is going through Scottish industry at the moment, including Boxer. Again, Thales is employed on that, and I am sure will do a good job. I have had no complaints, he will be pleased to hear, about the sighting systems that are made, as he rightly says, by Thales—in Glasgow, I believe, but certainly in Scotland. We are going through the demonstration phase, and as an intelligent client, the MOD is required to check everything we are receiving. I reiterate that we will not take something into service and accept IOC until we are ready to do so, and we are holding our suppliers to account.