Defence Expenditure (NATO Target) Bill

Debate between Edward Leigh and Kevin Foster

Friday 23rd October 2015 Commons Chamber

[Sir Edward Leigh]

I am grateful to the Minister. We have learned lessons from previous procurement programmes, and we are building in time overruns, which is a sensible thing to do so that the MOD is not embarrassed. We all pay tribute to my hon. Friend, who is doing sterling work in this area. Nobody doubts his commitment to what he is trying to achieve. I was not making any criticism of the work that he is doing or that the Government are doing. I am merely saying that in the long term, just as we have stresses and strains in the international development budget, we might get similar stresses and strains in the MOD budget, which is infinitely more complex. Perhaps we could bear that in mind.

Let me paint the picture, as my hon. Friend the Member for Beckenham (Bob Stewart) has done, of what is happening in Europe as a whole. We all know that for too long we have ridden on the coat tails of America. Since the 1990s and the end of the cold war, I am afraid that we have witnessed a radical downturn in the US military commitment on the European continent. That means that in order to make up the capability shortfall, European states must step up, but they are not stepping up; and that they must invest more, but they are not. By the way, it is extraordinary what is happening to the German defence budget. It is unbelievable how small its land army now is, for a great continental power. What is happening in the German military programme is very worrying. How extraordinary that a Conservative Member of Parliament should be saying that, given our history, but it is worrying.

NATO member states’ failure to meet the 2% minimum target exposes Europe to risks both known and unknown. Jan Techau of the Carnegie International Endowment for Peace has warned:

“Since the end of the Cold War in 1990, overall defense spending among NATO members has been cut so significantly and so persistently that serious concerns have arisen about the alliance’s military readiness and its ability to keep credible its security guarantee to its member states.”

Yet, as we have heard, only a handful of countries are meeting the target. I asked my right hon. Friend the Member for New Forest East, who is an expert in these matters, who dreamed up the 2% target, and he thought it might have been George Robertson. Perhaps we can investigate that and the Minister will deal with it later. The target has proved very useful. It might be unscientific, but at least it is doing a good service in holding our feet to the fire, and those of other countries, and showing up exactly what is happening.

NATO’s experts estimate that four European countries have met the target: Greece, with 2.4%; Poland, with 2.2%; the United Kingdom—some have argued about this—with 2.1%; and Estonia, with a level 2%. We might be surprised that Greece, in the midst of economic turmoil, has the highest defence spending as a percentage of GDP, but the recent refugee crisis should help to remind us that it has a massive maritime patrol area as its responsibility. We have talked a lot about defence, but we have not mentioned migrants. There is a real role for NATO, and for our armed forces, including the Royal Navy, in dealing with migrants.

[Kevin Foster]

My hon. Friend is making an excellent speech. He touches on the role of NATO and defence forces in relation to the migrant crisis. Does he agree that one of the important things about having the minimum floor in defence spending is having that capability, because of the flexibility it provides? As the First Sea Lord has said, the Royal Navy can go anywhere, without permission, on the global commons and provide options and capability for this nation.

[Sir Edward Leigh]

I am grateful for that intervention. At RAF Scampton I was told that the RAF is stretched to the limit, and so is the Royal Navy. There is a lot of focus on reductions in the Army, and my hon. Friend the Member for Beckenham would like us to focus on that, but the real stresses are in the RAF and the Royal Navy.

Greece has been reticent in cutting personnel and finds it worthwhile, strangely enough, to maintain twice as many tanks as we do. Poland, meanwhile, is a front-line state that feels very keenly Russia’s increased assertiveness. It is replacing a great deal of outdated Warsaw pact equipment, and Estonia is doing likewise.

The United States is top of the NATO list, of course, with 3.6% of GDP committed to defence in 2015. Recent history attests that the US is in a period of hyperactive commitments all over the globe. It is no surprise, then, that despite the withdrawal from Europe, US defence spending as a percentage of GDP and in real terms is still high, especially in relation to other NATO states. There is no denying that the US is still the keystone of NATO, but there is a danger—we should not forget the lessons of history—of overestimating its willingness and capability to respond in common to a defence threat in Europe if it is engaged in large-scale operations elsewhere in the world.

President Obama’s pivot—that is their word, so I use it advisedly—towards Asia is indicative of an American trend away from valuing the European continent as a place where defence attention is required and where attention should be focused. Events may force that evaluation to change rapidly, but NATO member states in Europe will need to have the capability to handle conflict while awaiting the arrival of greater American participation.

We need to remember that fundamental lesson of history—the lesson of Suez. Although the US is mandated to come to the aid of NATO member states that are victims of external aggression, we may find ourselves in much more complex situations in which NATO member states are active in a conflict without the support of the United States. Indeed, we were active in a recent conflict in Libya without the active support of the United States on the ground.

The simple truth, of course, is that we do not know what the future holds. Imagine what the reaction would have been if we had told people in 1985 that in 20 years’ time Russia would have a thriving if unequal capitalist economy and that Russians would own most of the most expensive London properties, premier league football teams and even daily newspapers. They would have said that my hon. Friend the Member for Aldershot and I were fantasists if we had argued that Russia would be in the position she is in today. More recently, the events of the Arab spring have challenged many of our assumptions about the middle east and north Africa while confirming others. It is incumbent on us, therefore, not only to uphold the 2% commitment but to set it as a minimum, not a target.

I recommend that Members read the recent Civitas report on defence acquisition, behind which my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) was a driving force. It states:

“The painful truth is that, on two per cent of GDP, we cannot maintain the kind of robust defence structure we did in the past, where we were able to organise and equip our armed forces; to match all potential competitors and to undertake all likely contingencies simultaneously; to support all our foreign policy objectives through influence and deterrence; and to cope with all the non-combat tasks they might be called upon to perform.”

That sums up the situation very well, and the report focuses on our actually meeting the 2% commitment.

The Bill promoted by my hon. Friend the Member for Aldershot is admirable in its simplicity. In fewer than 700 words, it lays out clear commitments, as well as simple oversight structures, to ensure that this country maintains, at the very least, its NATO target of 2% of GDP spending on defence.

The Chancellor of the Exchequer announced in July that the United Kingdom will meet that target. I do not need to stress the point—my hon. Friend has dealt with it more than adequately—but it is not enough for the Chancellor to make that commitment, because we do not know what events will rock us in the future. Indeed, the Government are currently being rocked by a row about cutting tax credits. I understand what the Chancellor is doing in terms of addressing the budget and I do not want to argue about tax credits, but the political turmoil we are going through in order to cut them is going to save £5 billion, which is the exact sum by which we have increased the international aid budget. That is an interesting analogy. I suspect that the reason the Government were so reticent to make the 2% commitment to defence during and after the general election—we have had to wade through blood, in a sense, to get it—is that the defence budget is so much bigger and more complex than the international aid budget that the Chancellor is, quite rightly, desperately worried about how he is going to deal with the deficit. I do not blame him for that: it is his job and these are very complex and difficult issues.

The Bill simply provides clarification and a useful political tool for us to not only meet but exceed the target. It also requires the Government to explain their actions if they fail to meet that condition. I pray that the Bill is passed, because not only has it given us the opportunity to debate the issue, but it will allow us to scrutinise the Government on their primary commitment and most absolute function, which is the defence of the realm.