Queen’s Speech

Earl Howe Excerpts

Monday 23rd May 2016 Lords Chamber

[The Minister of State, Ministry of Defence (Earl Howe) (Con)]

My Lords, we have had a fascinating, wide-ranging and well-informed debate, as one might expect of this Chamber. I will shortly pick up on as many points as I can made by noble Lords on all sides, but first I think it would be helpful to return to what I consider to be the three central tenets underlying the programme set out in the gracious Speech from a defence, development and foreign affairs perspective.

First, the Government’s commitment to protecting our people remains absolute. Today we face challenges growing in concurrence, diversity and multiplicity. We are responding with stronger defence. The noble Lord, Lord Touhig, spoke of cuts. Not only have we confirmed that we will meet the NATO guideline to spend 2% of GDP on defence, but we are presiding over a budget that will grow by 0.5% in real terms every year for the remainder of this Parliament. This very significant statement of intent allows us to increase our equipment spend and invest in full-spectrum capabilities, from digital armoured vehicles and F35 stealth fighters to carrier strike. As aggressive nations flaunt their nuclear arsenals, we are securing the future of Britain’s nuclear capability—our ultimate deterrent. Above all, our additional resource allows us to continue to stand up to aggression.

I say to the noble Lord that the SDSR made it clear that we will be able to deploy an expeditionary force across all three services of around 50,000—up from the 30,000 we announced in 2010. The Army could provide that force with up to 40,000 personnel. This is an increase, not a reduction. We are not just focusing on preparing for major conflicts; we are currently conducting lots of smaller operations at the same time, so Joint Force 2025 is being designed to enable us to do that better.

Our investment in defence is particularly evident in the way we are upping our efforts against Daesh, not just in Iraq, but, following last year’s decisive parliamentary vote, in Syria. Our efforts, alongside our coalition partners, are now pushing the terrorists back. They are losing territory, money and manpower. As the noble Lord, Lord Williams of Baglan, reminded us, we cannot defeat Daesh by military means alone, so we are countering its insidious ideology, such as through the coalition communications cell we have created, to undermine Daesh’s failing propositions that it is winning militarily and building a viable state, and that it represents the only true form of Islam.

The second principle underscoring the gracious Speech is our determination to do everything in our power to safeguard the rules-based international order. That is why our Typhoons are back in the Baltic for the third time to police the skies against Russian aggression. Since beginning their mission in April, they have already been scrambled on numerous occasions and remain on standby all day, every day. In response to mass migration we have ships in the Aegean and Mediterranean, disrupting and preventing illegal people trafficking. We are also doubling the number of UK troops on UN peacekeeping missions. Simultaneously, we will continue to use our influence to defend human rights. Opening this debate, my noble friend spoke movingly about the importance of preventing sexual violence in conflict. This is just one area where we are working hard to defend the values of tolerance that are the cornerstone of our nation.

The third principle behind the gracious Speech is that defence and development are two sides of the same coin. We must deal with the causes as well as the consequence of the issues we face today, whether extremism, mass migration, or deadly disease. That is why we have restructured our aid budget to focus on these great global challenges. Spending money up front on development and building up the capacity of struggling states prevents crisis turning to chaos. More than that, it boosts prosperity which in turn allows us to establish new alliances and trading partners. We are proud that Britain is the only major country in the world meeting the NATO target and the only G7 country spending at least 0.7% on development. It is a commitment we will continue to honour.

The valedictory speech from my noble friend Lady Perry was a reminder, if any were needed, of how much we lose with her retirement from this House. Her humanity, expertise and good sense will be much missed. I also pay tribute to the noble Baroness, Lady Jowell, for a maiden speech of characteristic warmth and wisdom. We welcome her heartily to our debates.

However, it was perhaps no surprise that the predominant theme of this debate has been the United Kingdom’s membership of the European Union and in particular the implications for our national defence and security. The security of Europe relies on not only the strength and unity of NATO’s collective defence but the prosperity underpinned by the EU’s single market. For several decades, the two institutions through their different means have provided the architecture to enable nations to work together in keeping the peace in Europe. We cannot address the threats to our national security alone. They are transnational and even global. We are the largest European defence contributor in NATO and in the EU. Through our active membership of both, we are able to play a leading role in shaping Europe’s security, which requires the broad range of tools that both institutions provide. This is critical for our own national security but also for that of our closest allies and partners around the world. As was emphasised powerfully by the noble Lord, Lord Kerr, if we leave the EU we lose our ability to ensure that the EU’s tools are used in co-operation with NATO, and that the EU does not try to duplicate NATO’s proven military capabilities but focuses on the critical diplomatic, social and economic levers that enable European nations to address the complex threats to our security.

Leaving the EU risks weakening NATO. As the noble Lord, Lord Soley, rightly said, the UK is an important part of the international system. Our allies and partners often look to us for leadership. As many noble Lords emphasised—the noble Lords, Lord Robertson, Lord Campbell, Lord Kerr, Lord Ashdown, Lord Hannay, Lord Liddle and many others—leaving a major component of the international system would reduce the UK’s international standing, including with our key ally, the United States. At a time of international tension, we should work more closely with the international system and not seek to leave a key element of it. The noble Lord, Lord Judd, was right to say that we played a decisive role in shaping the EU’s common security and defence policy, and in ensuring that it is focused on areas of concern for us—for example, on counter-piracy and the Balkans. Our continued membership will maintain and potentially enhance that influence. On the point made by the noble Lord, Lord Wallace, while NATO is the cornerstone of the UK’s defence, the EU plays an important complementary role in addressing and managing international crises.

I hope I will be forgiven for not commenting on every contribution on the subject of the EU, whether for or against our membership, but I briefly turn to the information published by the Government. In response to my noble friend Lord Forsyth, and pace my noble friend Lord Lawson, the Treasury’s comprehensive analysis, published today, has at its core a desire to present as true and fair a view of the future as possible. It focuses on the immediate economic impact of a vote to leave, and the two years that follow. The Treasury followed a comprehensive and best-practice approach to estimate the immediate impact of a vote to leave the EU on the UK economy. In doing so, it did not just pick figures out of the air; it used the available evidence and best-practice techniques, constructing an uncertainty indicator and estimating the impact of uncertainty on the economy. It combined these using a widely used model that assesses the total impact of all the effects on Britain’s economy of a vote to leave. The model is that used by the National Institute of Economic and Social Research, which is used by more than 40 organisations including the IMF, the OECD, the Bank of England and the European Central Bank.

[Lord Forsyth of Drumlean]

I am most grateful to my noble friend. I think it is the vector autoregression model that is used. If everyone uses the same model and the same assumptions, it is hardly surprising that we get the same conclusions. He said that the document was objective. How was it, then, that on the radio this morning, when asked why the document did not look at the potential upside, the Secretary of State, Sajid Javid, replied that that was something best left to the campaign group arguing that we should leave?

--- Later in debate ---

[Earl Howe]

My Lords, I invite my noble friend to look at the government papers available on GOV.UK, which do not simply address the case for remaining. For example, they talk about alternatives to membership, possible models for the United Kingdom outside the European Union, the rights and obligations of European Union membership et cetera. The Government’s policy is to stay in the European Union. Therefore, I do not think that my noble friend should be surprised if the arguments for doing so are those on which the Government focus.

I conclude this part of my speech by briefly addressing the concerns of the noble Lord, Lord Luce, about Gibraltar. We recognise the vital importance of the EU referendum to Gibraltar and call on all those eligible to vote to have their say in this historic decision. The Governments of the UK and Gibraltar believe that the UK and Gibraltar should remain in a reformed EU. The UK has made a commitment to defend and support Gibraltar’s interests, including upholding British sovereignty. We were doing so prior to the referendum and we will continue to do so after it. I turn to—

[Lord Lamont of Lerwick]

Will my noble friend answer my question about the IMF making another pronouncement on the UK economy three days before polling day, and how this fits in with the period of purdah? Why has he not addressed that question?

[Earl Howe]

My Lords, if I may, because I am unsighted on the question, I will write to my noble friend on it. I do not have advice which would enable me to answer him now.

I turn to humanitarian issues, particularly the World Humanitarian Summit referred to by the noble Lords, Lord Collins and Lord Purvis of Tweed, my noble friend Lord Lansley and others, including the noble Lord, Lord McConnell. The Government welcome the UN Secretary-General’s leadership in convening the World Humanitarian Summit, taking place this week. My right honourable friend the Development Secretary is heading the delegation and advancing priorities for a new approach to protracted crisis, a renewed commitment to the protection of civilians in conflict, a reformed humanitarian system, including smarter financing, and a stronger focus on protecting and empowering women and girls. The well-founded passion of my noble friend Lady Perry for education was echoed in a question from the noble Lord, Lord Collins, about the Education Cannot Wait Fund. Today, 37 million children living through conflicts or crisis are out of school. This very day, the UK announced that we will commit £30 million to the Education Cannot Wait Fund for education in emergencies. A generation of young people is missing out on education and being cheated out of their future. Their education cannot wait and neither should our support. We want the international community to step up efforts to reach every child with the schooling they need to make their futures brighter.

The noble Lord, Lord McConnell, referred to the sustainable development goals, as did the noble Lord, Lord Purvis, who suggested the creation of a sustainable development goals champion in the Cabinet Office to ensure effective delivery. The sustainable development goals are a major evolution in the way we think about international development. We have agreed a set of top-level strategic objectives for the Department for International Development to ensure delivery against the goals. DfID will lead a co-ordinated and coherent cross-government approach. The department has a number of review processes ongoing both internally and across government which will inform this strategy. The UK’s decision on the upcoming replenishment of the Global Fund is dependent on the outcomes of reviews which are to be published later this year. We fully support the Global Fund’s funding and allocation model as it currently stands.

The noble Lord, Lord Stone of Blackheath, referred to the use of soft power with the help of the British Council, particularly in education, and referred to building universities with British standards. The noble Lord, Lord Loomba, also spoke on this theme. The British Council makes a major contribution to UK soft power by creating international opportunities and providing access to the UK for the next generation of global leaders, building long-term influence in those countries.

We want an increase in global partnership and networks with higher education institutions in the UK and around the world. To that end, the British Council will do four things in particular. It will promote a dialogue and sharing of practice; it will provide consultancy and services to support development, reform and innovation in higher education; it will promote UK sector expertise and create market opportunities and connections for UK stakeholders and institutions; and it will support international scholarships and alumni networks to build long-term influence in those countries.

The right reverend Prelate the Bishop of Carlisle asked about the use of overseas development aid by departments other than DfID. He will not be surprised to hear that DfID will continue to be a primary channel of official UK development assistance spending, but in order to respond to the changing world more aid will be administered by other government departments, drawing on their complementary skills. As set out in the UK aid strategy, we will continue to make aid more transparent, committing all UK government departments to be ranked good or very good in the international Aid Transparency Index within the next five years.

The noble Earl, Lord Sandwich, asked what we were doing to tackle corruption, which is costing developing countries billions of dollars. The UK aid strategy sets out that the Government will do more to tackle the organised crime and corruption that hit the world’s poorest people hardest. Last week, the anti-corruption summit agreed a global declaration that corruption should be exposed, the corrupt pursued and punished, those who suffered fully supported and corruption driven out. DfID funds two police teams to investigate corruption cases affecting developing countries. A £12 million investment between 2006 and 2015 resulted in £170 million of assets stolen from developing countries and laundered in the UK being restrained, recovered or returned. In 2015, my right honourable friend the Development Secretary announced £21 million of new funding for this work over the next five years.

The noble Baroness, Lady Flather, spoke powerfully about violence against women and girls. Ending all forms of such violence is a top priority for the Government. My noble friend Lady Verma has been appointed the ministerial champion for tackling violence against women and girls. Last week, the Independent Commission for Aid Impact gave DfID a green rating for its work in this area, underlining Britain’s leading role in the global efforts to put a stop to violence against women and girls. By 2020, DfID’s support will have enabled 24 million more of the world’s poorest girls to use voluntary family planning information services and supplies.

My noble friend Lady Berridge referred, again very powerfully, to sexual exploitation. We support the UN Secretary-General’s zero-tolerance approach to sexual exploitation and abuse by peacekeepers and civilians working in conflict zones. We have provided £1 million of funding to support training, vetting and implementation of UN reforms. The United Nations needs to act swiftly on the recommendations in Madame Deschamps’ report on this issue.

The noble Baroness, Lady Flather, referred to the CDC. I can tell her, if she does not know already, that a new investment of £735 million over the next three years represents the first capital injection which the Government have made into the CDC for 20 years. Our new investment will allow the CDC to support many more businesses throughout Africa and south Asia, building on its already considerable successes.

The noble Lord, Lord Collins, asked about the UK’s priorities for the LGBTI conference in Uruguay. The UK Government support the key objectives of the conference: to provide an important opportunity for sharing information, best practice and lessons learned with partners; and to discuss how to better co-ordinate international efforts to support the promotion and protection of the rights of lesbian, gay, bisexual and transgender people worldwide. The change to the proposed date has meant that the UK delegation is not yet finalised. We will keep the level of our attendance under review. We are committed to the issues, which UK officials across government are familiar with and active upon.

The speech of the noble Lord, Lord Hylton, brought us back to a topic of continual concern: the Middle East peace process. We are deeply frustrated at the lack of progress in the process. A just and lasting resolution that delivers peace for both Israelis and Palestinians is long overdue. We believe that a negotiated two-state solution is the only way to end the Israeli-Palestinian conflict. There is no better alternative that can deliver peace and a Palestinian state in reality and on the ground. We do not underestimate the challenges but firmly believe that peace is possible if both parties show leadership. Unfortunately, this month has seen the most serious escalation in Gaza since the 2014 conflict, but the UK welcomes all efforts to drive forward progress between the parties, including the Arab and Israeli peace initiatives.

As I say, peace will come only through negotiations between the parties, but international action involving regional players, the EU and the quartet can play a role in supporting that process. FCO officials have met representatives of the Two States One Homeland initiative. The sort of creative thinking that this initiative contributes is welcome. I hope that that provides the gist of an answer to the noble Lord, Lord Hylton, who asked the Government to put their full diplomatic resources behind the resolution of the process. I assure him that the Middle East peace process continues to be one of the Government’s principal foreign policy priorities and we devote considerable resources, in both diplomatic effort and financial support, to drive forward progress.

The noble Lord, Lord West, devoted some of his speech to the strength of the Royal Navy. The noble Lord is of course correct that the Royal Navy had a larger overall fleet at the time of the Battle of Jutland 100 years ago but let us be clear: our advanced Royal Navy, set out in the SDSR 2015, has a transformed role and capabilities compared to the navy of the First World War. Our two new Queen Elizabeth-class aircraft carriers will transform the Royal Navy’s ability to project our influence overseas, forming the core of our maritime task group, with one available at all times; and with the introduction of our Type 26 vessels, we will have one of the most capable anti-submarine fleets in the world. The Type 26 will be complemented by our new class of lighter, flexible general purpose frigates. The Royal Navy will continue to deliver our nuclear deterrent, provide world-class amphibious forces and project our maritime power around the globe. I will write to the noble Lord on his remaining points about the Type 26 frigate, if I may, in view of the time constraint.

Our submarine programme was referred to by the noble Lords, Lord West and Lord Touhig, and the noble Baroness, Lady Jolly. There will be an opportunity in due course for a debate and vote on our commitment to a successor to the continuous at-sea deterrent. As set out in the SDSR, we have moved away from a traditional single main-gate approach, which is not appropriate for a programme of this scale and complexity, to a staged investment programme.

[Lord West of Spithead]

I shall be very quick. Is it possible to have a debate in this House on the deterrent before the decision is made in the other place, maybe during the same week?

[Earl Howe]

I should be delighted to pass that suggestion on to the usual channels.

I recognise that the noble Baroness, Lady Miller, does not support the principle of the deterrent, but on the cost, which she asked about, the only way to ensure continuous patrols is to have a fleet of four deterrent submarines. We were clear on that in our manifesto. We intend to honour that commitment. We estimate that four new submarines would cost £31 billion, spread over 35 years, on top of which we are setting a contingency of £10 billion. We have been clear about the cost estimates published for the successor submarine. We are replacing the submarines and that cost equates to 20 pence in every £100 of annual government spending. The in-service costs remain unchanged: around 6% of the annual defence budget. I will make one more point to the noble Baroness, Lady Miller: the nuclear deterrent will not be rendered obsolete by new technology, including cyberthreats. We dedicate considerable resource to assessing the threats from emerging capabilities and will apply any necessary mitigation through the lifetime of the nuclear deterrent to combat those threats.

The noble Baroness, Lady Jolly, asked about the non-proliferation treaty. The UK is at the forefront of disarmament efforts. Our nuclear deterrence is at the minimum credible level and we hold barely 1% of the global nuclear weapons stockpile. We regularly call for universal adoption of the NPT in the United Nations and other international meetings and in bilateral meetings with non-NPT nuclear-armed states. However, the noble Lord, Lord O’Neill, was right that we have a political and moral responsibility to protect our people and allies. Our deterrent is a sign to NATO and we cannot outsource that commitment. The deterrent is there to deter the most extreme threats to our national security.

The right reverend Prelate the Bishop of Carlisle and the noble Baroness, Lady Jolly, made some powerful points about mental health care for defence personnel. We take the mental health of our personnel very seriously and provide a wide range of effective treatments for those who need them. In the UK, we have a network of military departments for community mental health, located conveniently for major centres of military population. Leaving personnel who have had mental health issues during service are able to access the DCMHs for up to six months after discharge to help them during the transition period.

The noble Baroness, Lady Cox, spoke powerfully and with first-hand knowledge about South Sudan. We remain deeply concerned by the dire humanitarian situation in South Sudan. More than 2.4 million South Sudanese are displaced and almost 3 million people are at risk of life-threatening hunger. All parties must allow unrestricted humanitarian access. We are fully committed to supporting the people of South Sudan and have been a major donor to that country. Cross-border aid is a policy option that we keep under review. We support UN efforts to gain humanitarian access to rebel-held areas and welcome the Government of Sudan’s announcement that they will allow humanitarian aid from within Sudan to reach parts of South Kordofan controlled by the Sudan People’s Liberation Movement-North. We call on all sides to allow immediate and sustained humanitarian access.

As regards Burma, I am sure the noble Baroness will know that the UK has provided £18 million for humanitarian assistance since 2012 for more than 126,000 displaced and conflict-afflicted people, including water and sanitation, as well as work on malnutrition and gender-based violence. We will continue to be active in support of the peace process, both politically and through our development work.

My noble friend Lord Sheikh devoted his speech to Libya. We welcome the Government of National Accord’s move to Tripoli and will be working closely with them as the sole legitimate Government of Libya. We are supporting urgent action by the GNA to reach out to actors in the east of Libya, to assert their authority over Libyan ministries and key financial institutions, and to establish a unified military command structure under a GNA banner. He will know that on 16 May, the US Secretary of State and Italian Foreign Minister hosted a ministerial meeting on Libya in Vienna attended by more than 29 countries. In a communique, they reaffirmed support for Libyan unity and the GNA.

My noble friend Lady Hooper spoke with her typical authority about Latin America, in particular Colombia. I will write to her about that country, and about Ecuador and Brazil. Time prevents me, I am afraid, from addressing the other issues raised by noble Lords, including my noble friend Lord Selsdon and the noble Lord, Lord Collins, who asked me about Saudi Arabia and human rights abuses in Yemen.

I wish to conclude by addressing the amendment tabled by the noble Lord, Lord Owen. I will say at the outset that we are happy to accept this amendment because we want to reassure people that this issue is already adequately dealt with. The Government’s position remains that protection of the NHS is non-negotiable, but in our view there is no threat to the NHS from TTIP. Last week, in response to the legal analysis commissioned by Unite on the impact of TTIP on the NHS, the EU said on behalf of Commissioner Malmström that

“TTIP poses no risk whatsoever to public services in the EU, including the NHS”,

and that nothing in TTIP would affect how the NHS in the UK operates at the moment.

This position was strongly endorsed by the US trade representative Michael Froman. The current draft of the TTIP text includes a wide range of protections for the NHS, including: a general exemption for “a service supplied in the exercise of governmental authority”; a series of exemptions which ensure that government procurement of health services is excluded from the scope of TTIP; an EU-wide reservation allowing member states to take any measures that they see fit in respect of “all health services which receive public funding or State support in any form”; and another EU reservation allowing member states to have public monopolies over activities considered at a national or local level as public utilities—all this with additional UK-specific reservations on specific services such as ambulances and non-hospital residential care. The one thing you will not find anywhere in the draft is a requirement to outsource health services.

At the same time, we are keen to do anything we can to put people’s minds at rest and reassure them that the protection of the NHS is non-negotiable. With that in mind, we are happy to accept the principle of ensuring appropriate protections and exemptions for the NHS in TTIP and, on that basis, we are happy to accept the noble Lord’s amendment, if he chooses to press it. Given the range of provisions already proposed, we do not think it necessary to bring forward domestic legislation, but we are happy to keep that under review as negotiations continue.

The gracious Speech sets out the Government’s stall for the year ahead. We are living at a time fraught with danger and uncertainty, but Britain will not be retreating into her shell. Instead, we are stepping up. We are looking outward, we are being bolder in defence of our interests and we are being tireless in pursuit of a safer, more prosperous world.