Oral Answers to Questions

Guto Bebb Excerpts

Monday 9th July 2018 Commons Chamber

[Chris Stephens (Glasgow South West) (SNP)]

3. What recent progress he has made on procuring fleet support ships for the Royal Fleet Auxiliary; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Defence (Guto Bebb)]

Since entering a four-year assessment phase in April 2016, the project has held three industry days. We have also undertaken a period of market engagement with UK and international shipbuilders. We formally launched the international competition on 5 June. Subject to normal approvals, our current intent is to award the contract in 2020.

[Chris Stephens]

Will the Minister finally give us a reason why the ships are being put out to international competition? Would it not be better if UK shipyards were block building the ships?

[Guto Bebb]

I am surprised by the hon. Gentleman’s question. I have explained several times at the Dispatch Box that we have adopted the shipbuilding strategy in full. The strategy is clear about defining warships as a capability that will be built in the UK and non-warships as a capability that will be subject to international competition.

[Andrew Bridgen (North West Leicestershire) (Con)]

Will the Minister confirm that any weaponry installed on the fleet support ships will be procured from British companies?

[Guto Bebb]

My hon. Friend is absolutely right. The weapons element of any ship that is not designated as a warship will be procured from the United Kingdom and fixed on to the platforms in the United Kingdom.[Official Report, 12 July 2018, Vol. 644, c. 7MC.]

[John Spellar (Warley) (Lab)]

Given that every other European country that has shipyards and procures such vessels builds them in their own shipyards, why will the Minister not accept that the problem is not with Brussels or with European regulations but with Whitehall and its refusal to back British industry, British workers and British steel?

[Guto Bebb]

I reject the right hon. Gentleman’s comments. This Department and this Government have supported our shipbuilding industry to such an extent that for the first time in 40 years we have actually secured significant orders for the export of British-designed warships to Australia. The right hon. Gentleman should recognise that the shipbuilding strategy is working by ensuring that our yards are competitive internationally. Protectionism is never a friend to a long-standing, secure industry.

[Kevin Foster (Torbay) (Con)]

I agree with the Minister that the superb recent news of the deal with Australia shows that we can compete internationally in this area. Does he agree that it is still important that local yards get the chance to bid and show that we are still at the cutting edge in this area?

[Guto Bebb]

My hon. Friend makes an important point. Our shipbuilding industry, our businesses and our yards are fully engaged with the process, and they are confident that they can bring forward a successful bid. The key thing is that they will be bringing bids forward knowing that they are competitive on the world stage, not just being protected due to a “Britain First” policy.

[Douglas Chapman (Dunfermline and West Fife) (SNP)]

I have just attended a good briefing by the hon. Member for Ludlow (Mr Dunne), whose report is called “Growing the contribution of defence to UK prosperity”. On shipbuilding, will the Minister take the report’s recommendations seriously to help retain jobs in Rosyth in my constituency? My constituents need to know that prosperity means prosperity and that the contracts are coming home.

[Guto Bebb]

First, I extend my thanks to the workers of the Rosyth yard for their fantastic work on our carriers. Secondly, the report that has been produced about the contribution of defence to the prosperity of the UK is important, but I return to the point I made earlier: we have adopted all the recommendations of the shipbuilding strategy, and we are already seeing the results.

[Wayne David (Caerphilly) (Lab)]

We on the Opposition Benches join the Secretary of State in offering our deep condolences to the family of Dawn Sturgess and express our full support for the police as they investigate this appalling incident.

This morning, the hon. Member for Ludlow (Mr Dunne) published an important review titled “Growing the contribution of defence to UK prosperity”. The review was commissioned by the Secretary of State for Defence. It cites the new Type 31e frigate as an example of how the MOD has started to take the prosperity of the British economy into account in procurement. If that can be done with the new frigates, why on earth can it not be done for the fleet solid support ships?

[Guto Bebb]

I thank the hon. Gentleman for his question but, once again, I refer him back to the shipbuilding strategy, which was endorsed on a cross-party basis. The key thing is that the Type 31e is a frigate and, as such, is designated as a warship. The fleet solid support ships are not designated as warships. We are very clearly following through the shipbuilding strategy, which we think will clearly improve the productivity of our yards and contribute to UK prosperity. The hon. Gentleman should do likewise.

[Leo Docherty (Aldershot) (Con)]

4. What his priorities are for the NATO summit in Brussels on 11 and 12 July 2018.

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[Martin Whitfield (East Lothian) (Lab)]

24. What assessment he has made of the effect on the UK defence and military aerospace industry of the UK leaving the EU.

[The Parliamentary Under-Secretary of State for Defence (Guto Bebb)]

The Ministry of Defence is working closely with the defence industry to understand the implications and opportunities presented by our departure from the EU. We will continue to work with our allies and partners on the development of the capability that we need to keep us safe, and much of this already takes place outside an EU framework. The UK defence industry is globally competitive and I am confident it will continue to thrive in the future.

[Mr Bailey]

The EU Galileo satellite navigation system is vital for Britain’s future defence capacity. What discussions has the Secretary of State had with the Chancellor of the Exchequer on the finances required for an independent system in the event of a post-Brexit exclusion from this EU project?

[Guto Bebb]

I am glad to say to the hon. Gentleman that a cross-governmental group is looking into this issue to ensure that we are prepared for the possibility of having to build an independent system for the United Kingdom, but I repeat from the Dispatch Box what I have said previously: our preference is to remain involved in the Galileo project. To exclude the United Kingdom from the project would harm the project and do nothing to enhance the defence of Europe or the United Kingdom.

[Thangam Debbonaire]

People in Bristol working in the defence and aerospace industry and its supply chain are worried sick about their future if Airbus leaves because of Brexit. The industry supports thousands of jobs across the country, so why can the Government not reassure trade unions and the employers that there is a clear plan for this sector? What have they got against people in the aerospace and defence industry?

[Guto Bebb]

I do not think that this Government have anything against the aerospace industry. Indeed, the combat air strategy, which was announced by this Department recently, is a sign of our confidence in a world-beating aerospace sector. I will be very pleased when the completion of that work on our new combat air strategy is announced, as it will highlight what this country has to offer. I can assure the hon. Lady that other countries in Europe are very keen to work with us on that combat air strategy.

[Martin Whitfield]

Given the importance of future co-operation with the EU on a multitude of defence and security issues, will the Minister confirm when the Secretary of State intends to hold a bilateral meeting with Federica Mogherini, the EU High Representative?

[Guto Bebb]

I will write to the hon. Gentleman about the meeting between the Secretary of State and the individual from the Commission whom he named. I have to say that I have also been in Brussels recently with regard to this issue. It is clear from our perspective that we want to be involved with European defence firms. We would also like to be involved with the European Defence Agency, but the way in which this has been put together by the Commission makes that very difficult, because the third-country offer being made to the United Kingdom would not be beneficial to our position at this point, so there is still a lot of negotiation to be done. None the less, we are very, very clear that we would like to be involved in these projects.

[Tom Pursglove (Corby) (Con)]

Does my hon. Friend agree that the £20 billion Australian frigate order is yet another example of the confidence that there is in the UK defence industry as we leave the European Union?

[Guto Bebb]

It is, undoubtedly, a fantastic good news story for the United Kingdom. As I have said, it is the first time that we have exported a warship design in more than 40 years, and great credit should be offered to the teams at BAE and across Government who have worked so hard to ensure that that happens. It is a great success story for our industry and for the United Kingdom.

[Fabian Hamilton (Leeds North East) (Lab)]

Major defence companies are clearly deeply concerned about the effect of this Government’s Brexit policy on their operations in the UK. Rolls-Royce has started to move some functions to Germany while the chief executive of Airbus has said that the Government have

“no clue on how to execute Brexit without severe harm.”

Given that the man who was meant to be leading the UK’s approach to Brexit has now resigned because he has no confidence in his own Government’s approach, how on earth can business trust that this divided Government will deliver a Brexit deal that protects jobs and the economy?

[Guto Bebb]

The chief executive of Airbus made very similar comments back in January, but he would also be very pleased with the plans that were announced by the Prime Minister at the Chequers meeting. The key thing is that defence industries in the United Kingdom are confident—they have larger order books and they are winning contracts for the first time in generations in some countries. On top of that, I am also in regular discussions with defence companies in other parts of the world, which are very keen to invest in the United Kingdom.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

8. What recent assessment has he made of the UK armed forces’ amphibious capability.

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[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

9. What estimate he has made of the number of jobs that are dependent on the UK’s status as a tier 1 nation.

[The Parliamentary Under-Secretary of State for Defence (Guto Bebb)]

The UK has always been and will always be a tier 1 military power, supported by a world-class defence industry. Last year, we spent £18.7 billion with UK industry and commerce, directly supporting 123,000 jobs throughout the United Kingdom. Through the modernising defence programme we are considering how to grow even further the already substantial contribution that defence makes to UK prosperity.

[Stephen Metcalfe]

Does the Minister agree that the excellent news of the BAE Systems contract to sell Type 26 frigates to Australia has come about in part because our Royal Navy has decided to buy them, and the rest of the world knows that, as a tier 1 military nation, we buy the best and most advanced equipment?

[Guto Bebb]

My hon. Friend makes an important point. Quite clearly the capability of the Type 26 was understood and appreciated by our Australian counterparts, but the key element was the fact that the Royal Navy is committed to this platform as our future anti-submarine warfare frigate. There is no doubt that my hon. Friend is absolutely right that when the Royal Navy shows confidence in a piece of equipment, the rest of the world takes note.

[Ruth Smeeth (Stoke-on-Trent North) (Lab)]

21. Now that the Foreign Secretary has resigned and the Prime Minister seems confused about what our tier 1 status is, what are we doing to ensure that we retain tier 1 military status?

[Guto Bebb]

Well, I thank the hon. Lady for her question. It is important to understand that tier 1 is shorthand for the fact that we are a country that can reach globally in terms of our military capabilities. That has always been the case for the United Kingdom, and it shall remain the case for the United Kingdom under this Government.

[Chris Davies (Brecon and Radnorshire) (Con)]

10. What steps he is taking to improve mental health support for members of the armed forces and veterans.

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[Deidre Brock (Edinburgh North and Leith) (SNP)]

18. What steps the Government are taking to secure shipbuilding contracts from other countries for Scottish yards.

[The Parliamentary Under-Secretary of State for Defence (Guto Bebb)]

The national shipbuilding strategy seeks the long-term growth of UK shipbuilding, including Scottish yards. The Ministry of Defence works closely with industry and the Department for International Trade on export campaigns for platforms, sub-systems and support. We seek to build on our recent success in the Australian SEA 5000 competition—for example, through our Type 31e frigate programme, which considers exports from the outset.

[Deidre Brock]

Part of BAE Systems’s bid to win the order to build ships for the Australian navy was the promise that workers on the Clyde would have already ironed out any problems with the ships because they were being built for the Royal Navy first. Is it not the case that the expertise and craft of Clyde ship workers allow BAE to make huge profits by building those ships in Adelaide, but there will be no benefit for the Scottish yards at all? Is it not the case that Scotland’s shipbuilders have been sold down the river?

[Guto Bebb]

With supporters such as the hon. Lady, I shudder about the future of the Scottish shipbuilding sector. The yards on the Clyde will benefit immensely from this vote of confidence in their design capability. The supply chain will benefit immensely from opportunities that come from this contract, and other export opportunities are available for both the Type 26 and Type 31, which will be built in the United Kingdom. She speaks ill of her own constituency in Scotland with such a negative attitude.

[Michelle Donelan (Chippenham) (Con)]

19. What recent discussions he has had with the National Security Adviser on the existing and changing intensity of the threat environment.

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[Tom Brake (Carshalton and Wallington) (LD)]

T4. Much equipment is bought in dollars and the value of the pound has fallen since the EU referendum. How much less equipment have the Government been able to buy in dollars, and how will the shortfall be filled?

[The Parliamentary Under-Secretary of State for Defence (Guto Bebb)]

The right hon. Gentleman should be aware that, like every other Department, the MOD hedges to ensure that we are not affected by currency fluctuations. Indeed, changes since the start of the year have been beneficial. At this point in time, the effect will be minimal.

[Lyn Brown (West Ham) (Lab)]

T7. Cyber-security is more important than ever and should be—