Oral Answers to Questions

Debate between Diana Johnson and Peter Luff

Monday 20th February 2012 Commons Chamber

[Peter Luff]

First, I congratulate my hon. Friend on the part he plays in the Skipton and Ripon Enterprise Group. I know that he takes a close interest in SMEs in general and I am grateful for his interest in defence SMEs. We are taking a wide range of steps to achieve precisely what he asks for, and the SME forum is but one example of that. He is particularly interested in the use of pre-qualification questionnaires. Their use is being minimised for procurements of under £100,000, and we are working to simplify or even eliminate them. We are already adopting the new core questionnaire, which is standardised across government. Many steps have been taken to encourage SMEs to engage earlier and more effectively with the Department, but if he has any ideas I would welcome them.

[Diana Johnson (Kingston upon Hull North) (Lab)]

A written statement on the White Paper that was recently published indicates that the Government will no longer prioritise UK suppliers when buying defence equipment. For the sake of small companies, and for BAE Systems workers at Brough, 850 of whom face redundancy, ought we not to have a debate on the Floor of the House about that change in Government policy?

[Peter Luff]

I have to say to the hon. Lady that such matters of debate are largely for the Backbench Business Committee to determine. No one would relish more than me an opportunity to explain the defence White Paper and the gross misrepresentation that she has just given. I would welcome such a debate, and I hope that it happens.

Oral Answers to Questions

Debate between Diana Johnson and Peter Luff

Monday 19th December 2011 Commons Chamber

[Peter Luff]

All my conversations with BIS are intelligent.

[Diana Johnson (Kingston upon Hull North) (Lab)]

14. What assessment he has made of the advice from the Armed Forces Pay Review Body; and if he will make a statement.

BAE Systems

Debate between Diana Johnson and Peter Luff

Thursday 24th November 2011 Commons Chamber

[Peter Luff]

The whole future of the unmanned combat sector is important for the Government and lies at the heart of the strategic future of aerospace and defence aerospace. We will be considering the matter extremely carefully later in close dialogue with the companies involved. The hon. Gentleman makes an important point. It is vital that the programme succeeds. The matter is complex as it plays into the UK-French bilateral relationship, but we are determined to take it forward in the best interests of UK industry and, crucially, the defence industry.

[Diana Johnson (Kingston upon Hull North) (Lab)]

I listened with interest to that last point about how important the sector could be to the future of the defence industry. As an MP representing a constituency in Hull, may I ask the Minister whether he has had any direct conversations with BAE Systems about how that type of work could help to deal with the issues identified at Brough regarding future work?

[Peter Luff]

The short answer to that question is yes. I have obviously discussed the future of the sector with the company, but I have not done so in specific detail about Brough—in general terms, yes, but not specifically about Brough. If the hon. Lady wishes to make a suggestion to me, I will happily take it forward.

The Government need an efficient defence industry, and I make no apology for saying that. Another line in the letter to hon. Members seems to suggest that we are in some sense to blame for wanting BAE Systems to be more efficient. We want it to be more efficient for the sake of taxpayers and also for the sake of export opportunities. I make no apology for demanding that efficiency of our suppliers.

Although using open competition on the global market is the MOD’s preferred option and its default position for purchasing defence capabilities—I listened carefully to what my right hon. Friend the Member for Haltemprice and Howden said in that respect—in certain situations, the MOD has had to enter into single-source procurement for some of the capabilities we must have in the UK. In these situations, we use the yellow book—it is called that because it is yellow—or “Government Profit Formula and Associated Arrangements” to give its full title. The yellow book covers the pricing arrangements to be used in single-source, non-competitive procurement. That can include reasonable rationalisation and redundancy costs, provided they are associated with a reduction in work related to single-source procurement.

The yellow book arrangements have remained largely unchanged for more than 40 years, which is why in January this year I commissioned Lord Currie of Marylebone to undertake a root-and-branch independent review of it. The MOD is currently undertaking a consultation, which runs until the new year, on Lord Currie’s proposals. No decisions will be made on his proposals until the consultation has been completed.

Oral Answers to Questions

Debate between Diana Johnson and Peter Luff

Monday 14th November 2011 Commons Chamber

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

The Ministry of Defence’s first responsibility when procuring equipment is to provide the armed forces with the capabilities that they require when they need them, in an affordable and sustainable way. The forthcoming White Paper will set out our approach to acquiring technology, equipment and support for our armed forces, and will explain how we will take action to protect our operational advantages and freedom of action where that is essential for national security.

[Diana Johnson]

I think that all Members will recognise the vital strategic importance of having defence production lines in the United Kingdom, as well as the importance of rebalancing the economy through modern manufacturing jobs, private sector jobs and jobs in the regions. What is the Minister doing to protect the skilled jobs and apprenticeships that are likely to go at BAE Systems in Brough? Those workers will find out on Boxing day whether their jobs are going to disappear. What is the Minister doing about it?

[Peter Luff]

I have to disappoint the hon. Lady, because decisions about where redundancies fall must be made by defence companies and not by Ministers. I understand her concern about what has happened at Brough, and she will understand what BAE Systems said, in public, about the underlying reasons for the changes. [Interruption.] I can answer the sedentary question from those on the Opposition Front Bench by saying that the White Paper, which will set out our approach in more detail and will help hon. Lady to understand the issues more fully, will be published next month.

Oral Answers to Questions

Debate between Diana Johnson and Peter Luff

Monday 5th July 2010 Commons Chamber

[Peter Luff]

I would be delighted to meet the hon. Gentleman in his constituency and look forward to doing so on a mutually agreeable date. However, he will understand that with a strategic defence and security review going on, it is impossible to give the type of commitment that he seeks. I wish I could, but I cannot.

[Diana R. Johnson (Kingston upon Hull North) (Lab)]

7. What recent discussions he has had on alternatives to the Trident nuclear deterrent.