Submarines and Frigates (Plymouth)

Gerald Howarth Excerpts

Tuesday 26th April 2011 Westminster Hall

[The Parliamentary Under-Secretary of State for Defence (Mr Gerald Howarth)]

Mrs Brooke, it is a great pleasure to serve under your chairmanship for this important debate.

I must state at the outset that I am responding to the debate on behalf of Her Majesty’s Government in the stead of the Under-Secretary of State for Defence, my hon. Friend the Member for Mid Worcestershire (Peter Luff), who is the Minister with responsibility for defence equipment, support and technology. I am very pleased to say that he is in Japan undertaking work that I hope the House will approve of: promoting Britain’s defence interests and defence exports to that country. Consequently he is unavoidably detained overseas and so it falls to me to respond to the debate.

As is customary, I begin by congratulating my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile) on securing this important debate. I also congratulate the other hon. Members who have taken part in it, most notably my hon. Friend the Member for Portsmouth North (Penny Mordaunt), my hon. Friend the Member for New Forest East (Dr Lewis), who is an esteemed former Front-Bench colleague, and the hon. Member for Plymouth, Moor View (Alison Seabeck). Along with my hon. Friend the Member for Plymouth, Sutton and Devonport, all three of them have taken part in various defence debates in this Parliament. Indeed, my hon. Friend the Member for New Forest East and the hon. Member for Plymouth, Moor View have participated in such debates during the many years they have been in the House, and are therefore noted contributors to the wider issues of defence. They are not limited simply to their constituency interests, which I always think is a rather healthy manifestation of political expression in the House. It is healthier than simply articulating the case for one’s own constituency.

I must also say that, as ever, it is a great pleasure to participate in a debate with the hon. Member for North Durham (Mr Jones). I have sparred with him for many years and personally we have always enjoyed the best of friendships, although I am delighted to say that I am now on the Government Benches and he is on the Opposition Benches.

Where Royal Navy vessels are based is an important topic for the entire House. It has an impact on both service personnel and their families, and on local jobs and infrastructure. I want to take this opportunity to acknowledge the important role that Plymouth has played in the defence of the nation throughout our seafaring history and to pay tribute to the constituents of my hon. Friend the Member for Plymouth, Sutton and Devonport. Those men and women have contributed so much to the United Kingdom’s defence, at home and overseas.

The story of the naval base at Plymouth stretches back as far as the time when the English fleet sailed out to face the Spanish armada. Famously, Sir Francis Drake, who was a vice-admiral in that fleet, was playing bowls on Plymouth Hoe when he sighted the armada. Indeed, the fleet accommodation centre at the base in Plymouth is still known within the Royal Navy as HMS Drake, in his honour. Since the time of the armada, the base has survived more than four centuries of warfare, including heavy bombing during the blitz. That is thanks in large part to the hard work and resilience of the people of Plymouth.

As everyone knows, we have had to make some difficult decisions in recent times as a result of the utter incompetence of the previous Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), who virtually destroyed the public finances. It always astonishes me how few people in this country understand the magnitude of the budget deficit problem that we inherited. I ask people at various gatherings, “How much was the budget deficit in May 2010?”, and very few people—even well informed ones—know the answer. For the benefit of putting it on the record, I will say now that the deficit then was £150 billion. For those of us interested in defence, that translates to the cost of three Type 45 destroyers each and every week of the year. The deficit is that great. To put it in a wider historical perspective, my hon. Friend the Member for New Forest East and I both remember that in 1979 the budget deficit was £8.25 billion; now it is some 20 times greater. [Interruption.] That statement is true. The hon. Member for North Durham is mumbling away, but I remind him that Jim Callaghan left an economic legacy almost as bad as that left by the last Labour Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath, last year.

Of course, it is in the context of the current budget deficit that we have to address the position on defence. As my right hon. Friend the Secretary of State for Defence has said, the budget deficit is itself a threat to our national security, and if we were not dealing with it in the way the Chancellor is dealing with it now, the UK would most likely have found itself in the same position as Greece, Ireland and Portugal.

[Mr Kevan Jones]

What a load of nonsense.

[Mr Howarth]

It is not a load of nonsense. I was in the financial world and I understand how important it is to secure the support of the international financial community. It is just as important for an individual, if they have an overdraft, to have the support of their bank manager. When the nation is in the dire straits it now finds itself in, it is absolutely imperative that we have the support of the international financial community. That support is what deserted Greece, Ireland and Portugal. Does the hon. Gentleman wish to intervene?

[Mr Jones]

I just wish that the Minister would not keep peddling this absolute nonsense. The idea that the UK economy is the same as the Greek economy is utter rubbish. The idea that somehow the UK’s credit rating was in peril, in terms of receiving the support of the international financial community, is complete nonsense. If he looks at long-term borrowing for Greece, he will see that more than 50% of its debt is on short-term loans of about three years. Most of the UK’s debt is on loans that are in excess of 14 years. If he is using the deficit argument as an excuse for decimating the armed forces, I can accept that he needs some cover for what he is doing; but he should acknowledge economic reality rather than just continually peddling nonsense.

[Mr Howarth]

It is wonderful that the hon. Gentleman can still come to the support of his former boss, the right hon. Member for Kirkcaldy and Cowdenbeath, after the devastation he wreaked on the country.

[Penny Mordaunt]

Does my hon. Friend the Minister agree that, in addition to the deficit that we inherited, it was the web of incompatible programmes that made the strategic defence and security review a particularly difficult exercise to carry out? Does he also agree that if there is any justification for not having a carrier strike force in the short term, it is that the SDSR has drawn a line in the sand and we are now preparing for the future? To do that, we need to look at maintaining three Navy bases in this country.

[Mr Howarth]

My hon. Friend is absolutely right. The SDSR sought to reflect the position that we found ourselves in. The hon. Member for Plymouth, Moor View was perfectly right to refer to the Treasury. Inevitably, the Treasury had an influence on the SDSR. My hon. Friend the Member for Plymouth, Sutton and Devonport made the point at the start of the debate that government is a question of priorities. This Government is not a Conservative Government; it is a coalition Government and the priorities were set by the Cabinet. The good news is that the Ministry of Defence took a lesser hit than many people imagined it would, and that is in large measure thanks to my right hon. Friend the Secretary of State for Defence, who ensured that the MOD did not fare as badly as some people had feared.

My hon. Friend the Member for New Forest East said that he wants me to be robust, and I will be. He is absolutely right to say that we face a dangerous world. That is what we said when in opposition, and the world is just as dangerous—if not more dangerous—than it was then. However, the cupboard is bare and we have had to allocate our resources as best we can. He also made the fair point that the 1998 strategic defence review was itself never fully funded, and therefore last year, when the Chancellor came to allocate the Budget across the Departments, the Ministry of Defence was hobbled by the fact that it was already underfunded for what it was trying to do—we took a double hit, one might say. These are challenging times, and the SDSR has had, and will continue to have, an impact on all areas of defence, but I can assure my hon. Friend that we are determined to maintain a strong and capable fleet that preserves our long and glorious naval tradition.

Nowhere is there greater evidence of that than at Devonport, which is the largest naval base in western Europe, stretching along four miles of coastline. The naval base and the associated dockyard employ approximately 12,000 people and are an important part of the local economy. The dockyard has been privately owned since 1997, and operated by Babcock Marine since 2007. Babcock also manages naval base support services in Devonport. Devonport contributes to the UK’s defence capability through its vital role as the only facility in the UK able to carry out the deep maintenance of submarines, and it undertakes the long overhauls that all submarines must undergo at least once during their service life. As well as that unique role, it carries out valuable work on the support and maintenance of complex warships, and is a centre of excellence for sea training and for the UK’s amphibious capability.

Babcock Marine, along with BAE Systems Surface Ships, is one of our key maritime industrial partners, and the Department works closely with it to ensure that Devonport and the other naval bases and dockyards have the level of work they need to sustain them, ensuring that critical skills, such as high-end design, systems engineering and combat systems integration are not lost, and that we continue to maintain the ability to carry out such work in Britain.

[Alison Seabeck]

Given that the Minister is standing in for the Minister with responsibility for defence equipment, support and technology, this is possibly an unfair question: under the business agreement—which was signed and is generally very welcome—how firm a commitment is expected from the companies, whether BAE or Babcock Marine, to continue to operate in Portsmouth, Plymouth or Faslane? The Minister might want to come back to me later on that.

[Mr Howarth]

As I understand it, the decisions are based on where the case for the best enterprise can be established. The agreement is between Babcock Marine, BAE Systems Surface Fleet and the Ministry of Defence, and the idea is to allocate the work around the three bases. As I shall say again in a moment, repeating the Prime Minister’s assurance, all three naval bases, including Portsmouth, will be maintained, for the very reason that everyone has been articulating: to maintain the capability and not to put all our eggs in one basket. That is the basis upon which the decisions are made, but I could invite my hon. Friend the Minister with responsibility for defence equipment, support and technology to drop the hon. Lady a note about it, if that would be helpful.

One of the mechanisms in place for ensuring that we can maintain the capabilities is the surface ship support alliance between Babcock Marine, BAE Systems Surface Ships and the Ministry of Defence. In answer to the hon. Lady’s question, the alliance meets regularly to discuss the best allocation of support work, so that the work is balanced between various locations. The alliance has been in place since September 2009, and the proof of concept phase has demonstrated the benefits of collaborative working between the Department and the industry, and should lead to the delivery of a more sustainable programme of surface ship support work. I hope that that addresses the hon. Lady’s point.

It is important to emphasise that the Department is not alone in providing employment opportunities in Plymouth. Plymouth city council and local business leaders are actively seeking to attract investment and business into the area, and I hope there will be further opportunities to maximise the benefits to the city from the proposed release of MOD sites. We remain committed to working with other Departments, and with trade unions and local councils, as opportunities emerge.

Moving on to base-porting more specifically, the Devonport flotilla includes HMS Ocean—a landing platform, helicopter and the largest ship in the Royal Navy—on which last year I was privileged to sign a defence co-operation treaty with Brazil. The 22,000 magnificent tonnes of British steel standing there in the harbour were a manifestation of the influence that the military can bring on behalf of our country around the world, and we should not forget that. Also based in Devonport are the active Type 22 frigates, seven of the 13 Type 23 frigates, HMS Albion and HMS Bulwark—amphibious landing platform docks—four ships of the oceanographic squadron, and six Trafalgar-class nuclear-powered submarines. That is a substantial portion of our naval fleet, and the flagship of the Royal Navy, HMS Albion, is the first Devonport-based ship in living memory to hold the responsibility of fleet flagship.

The tough decisions that have had to be made as part of the SDSR mean that the Royal Navy’s fleet will decrease in size. As a result, the number of vessels based at Devonport will be reduced, but Devonport’s importance as a vital strategic asset supporting the Royal Navy will not be diminished. As I mentioned a moment ago, the Prime Minister confirmed in the debate that followed the SDSR announcement last year that we are determined to retain all three naval bases, and to keep them busy. We advocated that in opposition, and have kept our word. Any decisions taken on future base-porting arrangements for the Royal Navy’s vessels will therefore take into account the long-term sustainability of all three naval bases.

The SDSR made it clear that the Royal Navy has a bright future, with new aircraft carriers, Type 45 destroyers, new submarines and new frigates, and that maintaining 19 frigates and destroyers was the best option for delivering a sustainable and flexible surface fleet. To implement that decision, the Secretary of State for Defence announced on 15 December that the four remaining Type 22 frigates—HMS Chatham, HMS Campbeltown, HMS Cumberland and HMS Cornwall—would be removed from service. The decommissioning of Cumberland was delayed because of her involvement in supporting enforcement action against Libya under United Nations Security Council resolution 1973, and I should like to take this opportunity to congratulate the ship’s crew for their fantastic work during that deployment, which emphasised the versatility of the Royal Navy at its best.

The seven Type 23 frigates based at Devonport, along with the six at Portsmouth naval base, will form the backbone of the Royal Navy’s frigate fleet until the introduction of the Type 26 global combat ship at around the turn of the decade. I am lead Minister for the global combat ship, which we hope to build in collaboration with a number of other countries, and, like my hon. Friend the Member for Plymouth, Sutton and Devonport, would like to see more of them. We advocated in opposition that although the ships should not be exactly cheap and cheerful, they should not have the sophistication of the Type 45 destroyer, the unit cost of which was £1 billion—simply unaffordable.

[Alison Seabeck]

I understand the need for much more of a workhorse vehicle than an all-singing, all-dancing one; however, lovely as it will be to have the new Type 26s, I hope the Minister will strongly consider the fact that Plymouth has the skills to manage and support some of those vessels into the future.

[Mr Howarth]

I hear the hon. Lady’s representations, and shall duly convey them to the Minister responsible, but I have to say that we are nowhere near making the base-porting decisions on the Type 26.

[Alison Seabeck]

I understand that that decision is not imminent, but in thinking through the decisions that need to be made, the Department must look ahead. The decision must be part of a bigger strategic vision for the future.

[Mr Howarth]

The hon. Lady makes an extremely important point, which I endorse and emphasise for the record. It builds on something that the hon. Member for North Durham said about the Treasury. If we are to have the Future Force 2020 that we seek, it will depend on uplift in financial resources from the middle of the decade. One of the last things that the outgoing Chief of the Defence Staff, now Lord Stirrup, said to me was that if we want that uplift in 2015, we must start planning for it now. It is important that we as parliamentarians understand the importance of long- term planning. I hope the hon. Lady will forgive me for latching on to the point that she made about base-porting for the Type 26, but it feeds into a wider argument about defence planning, and she is right to make it.

[Dr Julian Lewis]

In referring to the new frigates as cheap and cheerful, to use the Minister’s phrase—

[Mr Howarth]

It was your phrase.

[Dr Lewis]

My phrase was “cheap as chips”, actually. It upset the First Sea Lord of the day, although not too much. Will the Minister confirm that the reason why it is important and practicable to make the new frigates in that way is that modern methods of naval design enable the production of a ship that is modular? Therefore, we can produce a considerable number of hulls initially and then upgrade them with bolt-on modules as resources allow, rather than producing something expensive from the outset.

[Mr Howarth]

My hon. Friend, as ever, has latched on to an extremely important point. A big selling-point in my discussions with other nations about working in co-operation on the programme is that modular building design not only gives extraordinary flexibility, but is something in which we in the United Kingdom have a world lead. We did it with the Type 45s and we are doing it with carriers; we can do it with global combat ships as well.

My discussions with the Royal Navy, from the First Sea Lord down, have proved extremely encouraging. The Navy has understood the force of the argument and is working enthusiastically to that end. All of us in the House have an interest in ensuring the success of the programme. Personally, I am staking a lot on it myself. If I were to leave office having done only one thing—securing a new fleet of frigates for the Royal Navy—I should feel extremely proud.

On submarines, we have made it clear that the Clyde naval base will become the base port for all Royal Navy submarines. The Vanguard class submarines are already based there, and as the Astute class enters service, it too will be based at and operated from the Clyde. The Department has announced that it will move in-service Trafalgar class submarines from Devonport to Faslane, although we are still assessing how best to implement that decision. None the less, Devonport’s highly skilled work force will continue to be called on to deliver the highest standards of engineering in the vital area of submarine maintenance.

It is important to recognise that decisions about changing the base-porting of naval assets are not simple or straightforward. Although factors such as sustainability and work loads are of importance locally and to the nation as a whole, I am sure we all appreciate that any changes have a major impact on the welfare of the service personnel affected, particularly those with young families. Any decisions to change the arrangements are made only after extensive deliberation and consultation. At this point, I would like to put on the record—I am sure on everybody’s behalf—what an immense debt of gratitude the nation owes to the families of our servicemen and women in all three services. Without their support, the men and women on the front line would never be able to do their job.

As part of the process, as the hon. Member for Plymouth, Moor View said, full consideration must be given to the impact on naval service personnel and their families, reflecting the need to give them sufficient notice to plan their futures, in line with the naval service individual harmony guidelines. The guidelines exist to ensure that naval personnel retain the ability to enjoy leisure at their place of duty and that they do not spend excessive time away from their homes and families.

I am pleased to be able to confirm, therefore, that we have made a decision that I hope will reassure my hon. Friend the Member for Plymouth, Sutton and Devonport and the hon. Member for Plymouth, Moor View. We have decided to make no changes to base-porting arrangements for surface ships, including Type 23 frigates. The frigates at Devonport and Portsmouth will remain where they are for the foreseeable future. That will provide a period of stability for naval personnel and their families at our naval bases, for the naval bases at Devonport and Portsmouth and for our industrial partners, which I know my hon. Friend and other Members were seeking. It is our view that any review of those arrangements should be linked directly to the wider studies informing future strategic defence and security reviews, which we have committed to undertaking during each Parliament, so we do not anticipate any changes until 2020 at the earliest. I recognise that that decision will be of interest to many Members. The Minister with responsibility for defence equipment, support and technology, my hon. Friend the Member for Mid Worcestershire, will write to those Members shortly to provide the detail that I am sure they seek.

To answer a couple of points made by the hon. Member for Plymouth, Moor View, HMS Protector will be based at Portsmouth because, as I understand it, that reflects the base-porting arrangements in place for HMS Endurance. However, we expect to decide on the longer-term delivery of that capability, including base-porting arrangements and the future of HMS Endurance, next year. I hope that that puts the matter in context. My hon. Friend the Member for Plymouth, Sutton and Devonport referred to the university of Plymouth study. I say to all local Members that Ministers will be pleased to receive the results of that study.

In summary, I assure my hon. Friend and the whole House that we remain determined to make the fullest use of all three naval bases, including Devonport, and to capitalise on the excellent skills and experience that they have to offer. Difficult decisions have been taken, but everyone involved can now look forward to a period of stability, confident in the knowledge that they will continue to be central to our island nation’s influence, prosperity and security.