Contingent Liability

Harriett Baldwin Excerpts

Monday 9th October 2017 Written Statements

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

I have today laid before Parliament a departmental minute describing a Contingent Liability (CL) in the region of £150 million associated with Programme HADES.

Programme HADES will provide the continued delivery of motor transport, supply, aircraft and ground engineering, and airfield support services. HADES will replace expiring unit-specific multi-activity contracts at a number of units from 1 April 2018. The programme will ensure continuity of service provision at minimum cost and is essential to support strategic defence and security review 2015 outcomes.

The maximum CL is in the region of £150 million, which ensured healthy competition from prospective tenderers. There is also a further CL of £643,000 associated with the indemnity given to contractors for terminal redundancy liability associated with ex-authority staff.

The Treasury has approved the proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before the House, a Member signifies an objection by giving notice of a parliamentary question or a motion relating to the minute, or by otherwise raising the matter in the House, final approval will be withheld pending an examination of the objection.

[HCWS144]

Armed Forces

Harriett Baldwin Excerpts

Wednesday 19th July 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

It is truly an honour to serve under your chairmanship this afternoon, Sir Roger, and it is a privilege to respond to this debate. It has been a very good and effective debate on a topic that we often do not have the opportunity to discuss, so I congratulate my hon. Friend the Member for Aldershot (Leo Docherty) on securing it. I also congratulate him and his gallant colleagues on participating in it. It has been truly fascinating to hear of his distinguished service and the contribution it makes to our deliberations in this place.

I would point out that it would normally be the Minister for the Armed Forces, my hon. Friend the Member for Milton Keynes North (Mark Lancaster), who would respond to this debate, but he is going out to visit some of our brave men and women on deployment at the moment, so he sends his regrets for not being with us today.

Several common themes emerged in the debate. I will attempt in the time available to me to touch on each of them. The first was the importance of the armed forces covenant in all our communities. I hope that everyone here today can share with me the aspiration that next year, when we have the 10th anniversary of Armed Forces Day, we will help our local areas to put on a really tremendous celebration. I am proud to have been part of the Government that enshrined the armed forces covenant in law in 2011.

We also heard about some of the issues around accommodation; in particular, from the hon. Member for Islwyn (Chris Evans), who spoke very forcefully. A new contract was announced today with Carillion. In the last financial year we put another £68 million into accommodation, but I will certainly pass back what the hon. Gentleman said about the issues he has seen in his constituency.

I certainly heard a lot of support from Government Members for spending at least 2% of GDP on defence. I hope that the Labour party shares that aspiration; it was in its manifesto.

[Wayne David]

We do.

[Harriett Baldwin]

Nevertheless, it is a shame that we have not had quite as good a turnout of Labour Members as we have had of Government Members.

A number of colleagues mentioned the Armed Forces (Flexible Working) Bill. That has started its passage through the House in the Lords, and I was glad to hear a range of supportive voices from the Government Benches for that legislation.

We heard about the issue around the base closure at York, which is scheduled to happen in 2031. We hope that setting such a long-term time horizon will give people the chance to plan around it, and of course there will be significant investment in the Catterick garrison, which is about an hour away from York, in terms of basing decisions.

[Bob Stewart]

I really must protest, Minister, that in my constituency there is not one military unit, and I want that rectified. What is she going to do about it?

[Harriett Baldwin]

I think that everyone can see that my hon. Friend himself embodies that military unit. Beckenham is well served in terms of the voice of the armed forces.

A number of hon. Members talked about celebrating the year of the Navy. It is a very exciting year, with HMS Queen Elizabeth going off on her sea trials from Scotland recently. It was also very exciting to announce recently the first of the new frigates, the Type 26. I assure the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) that not only will the way we are ordering the frigates ensure that we have those eight anti-submarine warfare frigates, but it will provide the best value for the public purse. That idea is behind the approach we are taking.

As far as the Type 31e is concerned, we are still in the pre-concept phase on that, and the approach that we take on procurement is that we will always make decisions at the last responsible moment.

[Wayne David]

Will the Minister give an assurance that she will encourage the use of as much British steel in the new frigates as is humanly possible?

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[Harriett Baldwin]

I thank the hon. Gentleman for raising that point. We have published our requirement—I think it is about 4,000 tonnes of steel per frigate—on the Government pipeline website, and we encourage our contractor to look where possible to procure British steel.

As for the other issues raised on the naval front, a number of hon. Members asked about the national shipbuilding strategy. I can certainly say that it will be published in due course, but we are aware of the excitement in Scotland among those awaiting the report. Given the previous exciting events I have mentioned in terms of the Navy in Scotland, we do not want to overexcite the hon. Member for Dunfermline and West Fife (Douglas Chapman) with everything all at once.

[Douglas Chapman]

I can assure the Minister that I am an extremely calm person. The time we have been waiting for the shipbuilding strategy has become unacceptable. We were told in previous debates and in answer to questions that the strategy was expected by spring. Then, in the Minister’s own words, it was expected by summer. Going by the weather outside, it is summer. Can she give us a date for when she expects to make the announcement?

[Harriett Baldwin]

I am pleased that we are giving the hon. Gentleman ships. This week, we are cutting steel on the first of the Type 26s. We have had the HMS Queen Elizabeth sea trials. We will be naming the HMS Prince of Wales later this year. I was up in Govan cutting steel on an offshore patrol vessel earlier this year. We are giving him ships, and he will get his shipbuilding strategy in due course. By the way, he is wrong to say that there is no admiral in Scotland, because Rear Admiral John Weale, the Flag Officer for Scotland and Northern Ireland, lives on his road in Argyll and Bute.

[Douglas Chapman]

To clarify, I am not the Member for Argyll and Bute.

[Harriett Baldwin]

I apologise. The admiral lives nearby.

I want to reassure colleagues on the stories in The Times this week about the F-35 joint strike fighter. We strongly disagree with the conclusions that the journalists came to. We are confident that the programme is within its budget envelope, despite the fluctuation in the exchange rate. We are also proud of the amazing capability it is demonstrating. We already have 10 of the planes in the States, as colleagues will know. We have about 100 British pilots and ground crew over there, with the pilots learning how to fly them. I have had the pleasure of speaking to one of them, who used to fly the Harrier. He said that this jet is the most amazing jet he has ever come across. The Navy and the Air Force are excited about the arrival of the planes into the UK.

In terms of our overall aspiration for defence, our vision is that we will protect our people, our territories, our values and our interests at home and overseas through strong armed forces and in partnership with allies to ensure our security and to safeguard our prosperity. This debate is a welcome opportunity to reaffirm the Government’s commitment to the defence and security of our country and to the armed forces, which so many Members have spoken about and of which we are all so very proud. I pay tribute to the many servicemen and servicewomen who are currently involved in operations at home and overseas to ensure our safety, security and prosperity.

Our armed forces are exceptionally busy. More than 24,000 servicemen and women were deployed on operations at some point during the past 12 months. The RAF has carried out some 1,300 air strikes in Iraq and more than 140 in Syria as part of our comprehensive strategy to defeat Daesh, working with our global coalition partners. Nearly 400 British soldiers are providing engineering and medical support as part of the United Nations mission in South Sudan. Some 500 personnel are still serving in Afghanistan, working with the NATO mission to support the Afghan security forces. With NATO, we have deployed a battlegroup to Estonia. The Royal Navy continues, as it has done since 1969—that is nearly 50 years—to provide our nuclear deterrent patrols, which are at sea every minute of every hour of every day. The Navy maintains an enduring presence in the Gulf and the south Atlantic.

There are many, many other operations and deployments in which our forces are demonstrating daily their unparalleled commitment and dedication to duty, and I am sorry I can mention only those few examples in the time available. This debate is about the future shape of the armed forces. I remind Members that two years ago the Government announced the biggest programme of new investment in our armed forces for a generation. The 2015 strategic defence and security review identified an uncertain world—several colleagues have reiterated that—that is changing rapidly and fundamentally. In response, the SDSR defined the role, size and capabilities of the Navy, Army and Air Force for the next 10 years. Joint Force 25, which is now coming into being, will ensure that the armed forces remain able both to conduct the full range of operations that they might be called upon to undertake and to succeed against ever more sophisticated and capable adversaries.

Colleagues mentioned cyber-security, which is a very important area of investment. We announced a further £1.9 billion investment in the SDSR to go into our cyber capabilities, whether that is to defend the homeland, to deter people from attacking us or in the offensive capability that has been used in the conflict in Iraq and Syria. We have the fully comprehensive national cyber-security strategy too.

In the time available to me, I will skip quickly through some points. It is important to emphasise that we are committed to increasing our defence budget in every year of this Parliament. That increase is not only linked to the size of the economy, but will be at least 0.5% above inflation every year for the rest of this Parliament. We are already the second largest defence spender in NATO and the fifth largest in the world. We will sustain that investment by continuing to meet the NATO guideline. We plan to spend £178 billion on new equipment and equipment support between 2016 and 2026. Colleagues raised points around that, but that investment will allow us to maintain the size and capabilities of the armed forces with impressive new equipment.

I have mentioned the first of the new aircraft carriers. The second is coming along pretty snappily behind. As my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) said, they are the largest ships that have ever been built for the Royal Navy. It is an immense achievement for those who designed and built her, and for those now serving aboard her. We have also committed to building the four new Dreadnought-class ballistic missile submarines to provide our nuclear deterrent through until the 2050s at least. I can confirm that we will have eight new Type 26 global combat ships—the anti-submarine warfare ones—and steel will be cut on the first of those by my right hon. Friend the Secretary of State for Defence tomorrow in Glasgow. I have mentioned other points about the Navy.

I wanted to talk about equipment for the Army. Divisions will be further reinforced by enhanced communications, which is very important. There will also be improved Warrior infantry fighting vehicles. I simply disagree with the tone of the hon. Member for Caerphilly (Wayne David), who talked down what we are doing and talked down all these programmes. The programmes are incredibly complicated and complex, and the people involved in delivering them are to be admired and thanked. We are also doing a life extension programme for our Challenger 2 tanks. We are ordering 50 upgraded Apache and Chinook helicopters.

Without having enough time to touch even the tip of the iceberg in all the things that are happening, I will conclude. In every aspect of what makes our armed forces among the very best in the world—whether that is the equipment they operate, the training they undertake or the men and women who serve in the Navy, Army and Air Force—the Government are working and investing for the future; a future in which Britain has the right armed forces to ensure the safety and security of our people.

Oral Answers to Questions

Harriett Baldwin Excerpts

Monday 10th July 2017 Commons Chamber

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

16. What progress there has been on the programme to build four Dreadnought submarines.

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

Thanks to the vote a year ago, the Dreadnought programme to replace the four Vanguard-class nuclear-armed submarines is on schedule. Construction on Dreadnought, the first of her class, commenced as planned in October 2016 at the BAE Systems yard in Barrow-in-Furness.

[Sir Desmond Swayne]

Will the handover from Vanguard to Dreadnought be seamless?

[Harriett Baldwin]

Certainly if I and the 80% of people who took part in the vote a year ago have anything to do with it, it will be. I gently draw the House’s attention to the fact that both the shadow Defence Secretary and the Leader of the Opposition voted in the opposite Lobby on that day.

[Mrs Latham]

The Dreadnought submarine programme is important to my constituents, many of whom work at the Rolls-Royce Raynesway facility which is building the pressurised water reactors that will go into those submarines. Rolls-Royce has been investing very heavily in the new facility to meet the demands of this programme. When will the Government make a decision?

[Harriett Baldwin]

My hon. Friend is absolutely right to highlight the fact that companies not just in Barrow-in-Furness but up and down this country are involved in carrying out highly skilled work in this incredibly elaborate programme. I had the pleasure of visiting Raynesway and her nearby constituency and I know how many people in Derby and in Derbyshire depend on that programme. I can assure her that we are making substantial investment in the site.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

We were looking forward to discussing this very issue with the Minister during the general election campaign. I do not know what happened to her; perhaps she can come up to see us next time. Will she put the Government’s full support behind our campaign now to raise education standards in the Furness area where, for generations, school leavers have had below average English and maths results, which is simply not good enough if we are to remain on track for the Dreadnought programme?

[Harriett Baldwin]

The hon. Gentleman is very kind to invite me for another visit to his constituency. I shall look forward to it. He rightly raises the important issue of the skills that we need as a country for these highly skilled and important jobs. I know that the Under-Secretary of State for Defence, my right hon. Friend the Member for Bournemouth East (Mr Ellwood), will be very happy to meet him to discuss what we are doing as we ensure that we put in place that pipeline of skills.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

I welcome the investment in the Dreadnought-class submarines, which will bring investment to Devonport dockyard in my constituency. Does the Minister agree that we also need to deal with the legacy of current and previous submarines and accelerate the slow pace of the submarine dismantling programme?

[Harriett Baldwin]

I congratulate the hon. Gentleman, who is the son of a submariner, on his arrival in this place. It is wonderful to have someone taking such a close interest in the matter. He will be aware that it is the subject of ongoing commercial negotiations. We will keep the House informed.

[Paul Scully (Sutton and Cheam) (Con)]

13. What estimate he has made of the level of defence spending required over the course of this Parliament.

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[Nigel Mills (Amber Valley) (Con)]

14. What steps he is taking to encourage innovation by defence suppliers.

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

With an equipment plan worth £178 billion and a rising defence budget, there are great opportunities for innovative suppliers. The £800 million innovation fund will provide the Ministry of Defence with the freedom to pursue innovative solutions in an open, competitive process.

[Nigel Mills]

Will the Minister ensure that there is greater risk appetite in which projects are selected for funding to ensure that our armed forces have the best technology available to them?

[Harriett Baldwin]

My hon. Friend is absolutely right to highlight this issue. It is one of the things that we weight when we consider awards through the innovation fund to ensure that the projects with the highest risks but the biggest potential pay-off are the ones that are invested in.

[Derek Thomas (St Ives) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[Angela Smith (Penistone and Stocksbridge) (Lab)]

T3. Given the delays in procuring the full order for Type 26 and Type 31 frigates, and given that HMS Ocean is to be paid off because of acute staffing shortages, just how does the Minister envisage that the Royal Navy will be capable of discharging its duties of protecting the UK at home and abroad?

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

I would have hoped for a few more words of welcome for the announcement of the Type 26 frigates, which will be ready for the out-of-service dates and replacement dates of the existing Type 23s. As the hon. Lady knows, HMS Ocean was always due to come out of service next year, and other amphibious capability will obviously be available.

[Tom Pursglove (Corby) (Con)]

I know from my constituency casework that access to appropriate housing is often a big challenge for those leaving the armed forces. What steps are being taken to ensure that armed forces veterans are prioritised on waiting lists, and that the appropriate help and support is properly being provided?

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[Jack Lopresti (Filton and Bradley Stoke) (Con)]

Will my hon. Friend confirm that the RAF will retain its existing surveillance capability—Sentinel—which proved so effective in Mali, and that the existing fleet will be maintained and continued?

[Harriett Baldwin]

I can confirm that. I had the pleasure of going to north Wales recently to extend the Sentinel contract to 2021.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

T9. Will the Minister reverse the decision to shut down Operation Northmoor, given the recent report in The Sunday Times on possible criminal behaviour by an SAS unit in Afghanistan?

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[Stephen Kinnock (Aberavon) (Lab)]

What conversations has the Minister had with British steel producers to maximise the use of British steel in the new Type 26 frigates, and what percentage of the steel that will be used to build those frigates will be British steel?

[Harriett Baldwin]

Again, I am glad that the hon. Gentleman welcomes the news on the Type 26 frigates. He will be aware that we publish on gov.uk the full pipeline in terms of our steel requirements. We do encourage our prime contractors to see where they can use British steel, and I am sure that in due course he will be pleased to see progress.

Contingent Liability

Harriett Baldwin Excerpts

Tuesday 27th June 2017 Written Statements

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

I am today laying a departmental minute to advise that the Ministry of Defence (MOD) has received approval from Her Majesty’s Treasury (HMT) to recognise a new contingent liability associated with the Type 26 Global Combat Ship Manufacture Phase 1 Contract.

The departmental minute describes the contingent liability that the MOD will hold as a result of placing the Type 26 Global Combat Ship Manufacture Phase 1 Contract, which will provide for the manufacture and testing of the first batch of Type 26 Global Combat Ships. The maximum contingent liability against the MOD is unquantifiable and will remain until the latest Out of Service Date of the ships manufactured under the contract, in the second half of the 21st century.

It is usual to allow a period of 14 sitting days prior to accepting a contingent liability, to provide hon. Members an opportunity to raise any objections. I regret that on this occasion pressing commercial and industrial requirements to sign the contract within the next few days together with the dissolution of Parliament, have meant that it has not been possible to provide the full 14 sitting days prior to taking on the contingent liabilities. Any delay would have risked losing significant financial benefits for the taxpayer. The Secretary of State for Defence has decided to proceed with the agreement, following scrutiny by the Department’s Investment Approvals Committee which confirmed that the contract offered best value for money for the taxpayer, and subsequent approval by HM Treasury.

Within the contract the exposure of BAE Systems Maritime-Naval Ships to a number of specified claims and to direct losses is limited to £50 million, while in respect of indirect losses and, within certain prescribed categories, catastrophic risks the contractor is indemnified against claims in excess of £50 million. It is the view of the Department that the likelihood of any claim is extremely low.

[HCWS14]

Contingent Liability

Harriett Baldwin Excerpts

Thursday 20th April 2017 Written Statements

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

I have retrospectively laid before Parliament a Ministry of Defence (MOD) departmental minute describing the contingent liabilities within the Astute boat 5 and 6 whole boat contracts with BAE Systems Marine Ltd.

The departmental minute describes the contingent liability that the MOD will hold as a result of placing the Astute boats 5 and 6 whole boat contracts, which will provide production, test and commissioning of the fifth and sixth Astute class submarines, HMS Anson and HMS Agamemnon. The maximum contingent liability against the MOD is unquantifiable and will remain until the respective out of service date of the submarine.

It is usual to allow a period of 14 sitting days prior to accepting a contingent liability, to provide Members of Parliament an opportunity to raise any objections. I apologise, but on this occasion, it was not possible to do so.

For boat 6 the Department was faced with exceptional sequencing from the completion of difficult negotiations. The Department faced the prospect of losing the deal and its associated £110 million savings, due to new changes to single source contract regulations introduced on 1 April 2017. As such the Secretary of State for Defence decided to proceed with the agreement, following scrutiny of the contract by the Department’s investment approvals committee which confirmed that the contract offered best value for money for the taxpayer, and subsequent approval by HM Treasury.

As a result of detailed work in connection with the boat 6 contract it has been recognised that contingent liabilities arising from the boat 5 contract, which has hitherto been considered not to require notification to Parliament, are in fact the same as those for boat 6 and should therefore have been notified, notwithstanding the fact that that no credible scenario has been identified in which a claim could exceed contractual limits.

Within both the boat 5 and 6 contracts, BAE Systems Marine Ltd limited their exposure to product liability to £1 billion per incident and £300 million in any 12-month period. This limits the contractor’s exposure for claims by the MOD for losses associated with the product being defective or deficient, and creates an exposure for the MOD for third party claims against the contractor for losses associated with the product being defective or deficient. It is the view of the Department that the likelihood of any claim is remote.

[HCWS602]

Oral Answers to Questions

Harriett Baldwin Excerpts

Monday 13th March 2017 Commons Chamber

[Nigel Huddleston (Mid Worcestershire) (Con)]

6. What recent discussions he has had with his international counterparts on NATO’s 2% GDP spending target.

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

Ministers have regular discussions with international counterparts on NATO’s 2% of GDP spending target. It is important that all NATO allies meet the 2% commitment they made at the Wales summit in 2014.

[Nigel Huddleston]

Will the Minister name which NATO allies do not currently spend 2% of GDP on defence? What reasons or excuses have they given for that?

[Mr Speaker]

Subject to the constraints of brevity, Minister.

[Harriett Baldwin]

Listing the 23 that do not spend 2% would take too long, but I reassure my hon. Friend that the five that do meet the target are the United States, the UK, Poland, Greece and Estonia. I am sure he can deduce from that the absentees.

[Mrs Madeleine Moon (Bridgend) (Lab)]

23. Germany currently spends 1.23% of GDP—€36 billion —on defence and to spend 2% it would need almost to double that, to €60 billion. Does the Minister appreciate that a rearmed Germany would give concern not only to some of its neighbours, but to Russia, thus potentially increasing the difficulties we face with tensions on the Russian border?

[Harriett Baldwin]

With the greatest respect, we think it is incredibly important that all NATO members, who share joint responsibility for the defence of the alliance, committed at the NATO conference in Wales in 2014 to spend 2% of GDP. We welcome the fact that eight further countries are now on a clear trajectory to meet that target, and Ministers from across all Departments continue to have discussions to encourage them to reach it.

[Mr Peter Bone (Wellingborough) (Con)]

25. I dissociate myself from the remarks made by the hon. Member for Bridgend (Mrs Moon); that was an extraordinary statement about Germany.Since you have been here, Mr Speaker, how many Ministers have come to the Dispatch Box to say exactly the same thing—that we are encouraging other NATO members to meet the target? Some of our European partners take the whole thing for granted in the knowledge that we and the Americans pick up the bill. What are we actually going to do about it to get them to pay what they should pay?

[Harriett Baldwin]

I reassure my hon. Friend that there has been progress. Five countries now meet the 2% target, up from three in 2014; 10 countries now meet the 20% pledge on major equipment and research; and the cuts to defence spending overall have been halted. I am sure, though, that everyone would agree with the sentiment he expressed: we cannot reiterate too often that we hope everyone will reach the 2% pledge soon.

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

Last month, the International Institute for Strategic Studies concluded that the Government have in fact missed the 2% NATO defence spending target, and that they would have missed it by even more had they not included budgetary headings such as pensions, which do not contribute to our defence capabilities and were not included when Labour was in government. Is it not time that we went back to the criteria used for defence spending when the Labour party was in power so that we may give our armed forces the resources they need?

[Harriett Baldwin]

Well, honestly, I wonder whether the hon. Gentleman has read the Defence Committee’s report, which

“commends the UK Government’s commitment to UK defence and finds that its accounting criteria fall firmly within existing NATO guidelines”—

as does NATO itself. It would be worrying if we were to follow his party leader, who wants to see cuts to defence spending, the abandonment of our NATO allies and the scrapping of the nuclear deterrent.

[Dr Julian Lewis (New Forest East) (Con)]

May I helpfully suggest to the Minister that one way she could avoid these arguments about whether we have or have not scraped over the 2% line is to recognise that the last time we faced threats like those we face today was the 1980s, when we used to spend between 4.5% and 5% of GDP on defence? Let us settle for 3% so that we can avoid this sort of argument.

[Harriett Baldwin]

I appreciate my right hon. Friend’s campaign. We are proud of the fact that we are spending substantially more than the 2% target; that we have a growing defence budget for the first time in many years; and that we are on track to have a £178 billion equipment plan over the next decade.

[Wendy Morton (Aldridge-Brownhills) (Con)]

7. What recent assessment he has made of progress in the international campaign to tackle Daesh.

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[Michael Fabricant (Lichfield) (Con)]

8. What international operations the Royal Navy is conducting in support of UK economic interests and the Global Britain campaign; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

The 2015 national security strategy strengthens the historic role of the Royal Navy in promoting our national prosperity. Royal Navy ships are deployed today around the globe, from the Falklands to the Gulf and the Caribbean, supporting the UK’s economic interests.

[Michael Fabricant]

I thank my hon. Friend for her answer. I believe that she was waving the flag for Britain and our exports with HMS Penzance in Abu Dhabi recently. Does she agree that it is about not just protecting our seaways, but waving the flag and promoting Britain and our exports, particularly those from the west midlands?

[Harriett Baldwin]

Indeed, I was delighted to be welcomed on board HMS Penzance in Abu Dhabi and to thank the crew for the valuable contribution they are making in mine counter-measures. The Royal Navy will deploy ships to various ports throughout 2017. Only last week, HMS Ocean visited Beirut where the ship acted as a showcase for British industry—indeed midlands industry—including Jaguar Land Rover and Aston Martin.

[Richard Drax (South Dorset) (Con)]

When the United Kingdom leaves the EU in two years’ time, our military commitments are likely to increase. Will my hon. Friend assure me that we will have enough Royal Navy ships to ensure that our commitments on our shores, on our trade routes, to our dependants and to NATO are met?

[Harriett Baldwin]

My hon. Friend is absolutely right to highlight the importance of the Royal Navy. Of course, 2017 is the year of the Royal Navy as it prepares to welcome the new aircraft carriers, submarines, frigates, offshore patrol vessels and the aircrafts from which to fly.

[Mike Weir (Angus) (SNP)]

9. What progress he has made on implementing the defence estate strategy.

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[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

Of course we want UK steel to be used wherever possible. That is why last year we published the full pipeline of steel that we will need across the whole of Government. We work with our suppliers to encourage them to use British steel producers, where available, in that pipeline.

[Jake Berry (Rossendale and Darwen) (Con)]

At Defence questions on 30 January, I asked the Minister how many people were currently working in defence procurement and what plans the Government have to reduce that number. She subsequently wrote to me to say that 11,500 people are currently working in procurement. Given that this equates to 149 people per ship in the Royal Navy, 14 people per aircraft in the Royal Air Force and one person per seven soldiers, will she now say what steps the Government are going to take to reduce this extremely large number?

[Harriett Baldwin]

I would like to emphasise to my hon. Friend that a lot of those people will in fact be uniformed. What often happens is that they rotate through the teams that are involved in procurement because there is no one better than our uniformed personnel to decide on the requirements that are needed. However, he is absolutely right that they are not immune to the need, across the whole of defence, to continue to find ways to spend more efficiently.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

T4. Last week the Royal United Services Institute published a report demonstrating that the Royal Navy is no longer designed for sea control in the north Atlantic. Indeed, there is not one major surface vessel based in Scotland. Can the Minister confirm that the lesser spotted national shipbuilding strategy, if and when we eventually see it, will redress this strategic imbalance?

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[Mr Jim Cunningham (Coventry South) (Lab)]

T7. Following on from the answer that the Minister gave to my hon. Friend the Member for Sheffield, Brightside and Hillsborough (Gill Furniss), can she name the projects in which British steel is actually being used to safeguard British steelworkers jobs?

[Harriett Baldwin]

We are committed to building Type 26 frigates, and that forms part of the pipeline of defence procurement where we are going to need steel. Our main supplier is running a competition in which I believe five UK firms are participating.

[Dr Julian Lewis (New Forest East) (Con)]

Did Ministers see the evidence given to the Select Committee on Defence last Tuesday by four eminent professors of law, indicating that there is no legal reason why a statute of limitations cannot be brought forward to prevent the hounding of our service personnel for pre-Belfast-agreement-related matters? Will Ministers work with the Committee by giving evidence to us that might enable such a statute to be brought forward?

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[George Kerevan (East Lothian) (SNP)]

Will the Secretary of State confirm that the deep maintenance and repair of the engines of all British F-35 fighters will be done in Turkey, and what, if any, security issues arise from this rather strange decision?

[Harriett Baldwin]

I will follow this up with the hon. Gentleman, but I can confirm—I am sure he shares my delight—that north Wales has been selected for the global hub outside the US for all the maintenance and repair of the avionics.

[Kirsten Oswald (East Renfrewshire) (SNP)]

The Secretary of State will have seen reports of armed drones operated from RAF Waddington with a kill list targeting UK citizens. If those reports are right, what happened to the commitment to come to the House at the earliest opportunity if lethal force was used in self-defence, and does the kill list extend beyond geographical areas where military action has been authorised by this House?

National Shipbuilding Strategy

Harriett Baldwin Excerpts

Wednesday 8th February 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

In the short time available to me—I want to leave a bit of time for the hon. Member for Dunfermline and West Fife (Douglas Chapman) to say a few more words at the end of the debate—I will attempt to answer all the questions that hon. Members have put this afternoon, to the extent that I can.

The 2015 strategic defence and security review set out a clear plan for the Royal Navy. For the first time in a generation, we are growing our Royal Navy, and this major programme of investment will increase our nation’s power and reach. There seems to have been quite a lot of discussion in the debate about the exact timings for various different documents. We made it clear in the Budget last year—I will quote the exact wording—that:

“The government has appointed Sir John Parker to lead the national ship building strategy, which was confirmed in the Strategic Defence and Security Review 2015. He will report by Autumn Statement 2016.”

In the end, it was 29 November. My office assures me that a copy of the report was sent to the hon. Member for Argyll and Bute (Brendan O'Hara). I am happy to take bids on whether it has been suitably autographed. If he has not received it, he should have, by this stage.

[Brendan O'Hara]

Will the Minister give way?

[Harriett Baldwin]

I will, if he has not received a copy.

[Brendan O'Hara]

I have not received a copy. I look forward to a signed copy; it would be far more valuable. If what she is now saying is right, why did she say on no fewer than four occasions that the national shipbuilding strategy will be delivered by the autumn statement? It was unequivocal.

[Harriett Baldwin]

It is about the distinction between the report and the Government’s publication of the national shipbuilding strategy. A range of people raised this issue, so I make it clear that we are considering Sir John’s recommendations, and we will provide a full response, which will be what we can all call the national shipbuilding strategy. It will be published in spring 2017. I am sure Members will appreciate that I cannot be more precise than that in terms of a specific date.

[Chris Stephens]

rose—

[Kirsten Oswald (East Renfrewshire) (SNP)]

rose—

[Harriett Baldwin]

If Members want to take up my time, I will give way.

[Chris Stephens]

Will the Minister outline the process? A few Members have mentioned that, including the hon. Member for Caerphilly (Wayne David). Once the Government publish the national shipbuilding strategy and its response to Sir John Parker, what is the process? Who feeds into that response?

[Harriett Baldwin]

I will be talking a little more about that in my speech.

[Gavin Robinson]

In previous engagements at the Defence Select Committee, the Minister has indicated her willingness to travel throughout the United Kingdom to see the other opportunities that are available. Given that the largest dry dock and the second largest dry dock in the United Kingdom are in my constituency at Harland and Wolff, I look forward not only to the Minister visiting, but to formulating plans that can feed in to her final report and considerations.

[Harriett Baldwin]

I thank the hon. Gentleman for an obviously irresistible invitation. I hope I will be able to take him up on it in the not-so-distant future. For the record, I say to the hon. Member for Jarrow (Mr Hepburn) that I am in Newcastle tomorrow. I look forward to meeting a range of manufacturers. I will not specifically be meeting A&P Tyne on this occasion, but I met A&P in Falmouth only last week.

In the SDSR we announced our plans for a naval programme of investment. We are investing in two new aircraft carriers, which are currently being completed at Rosyth. We are investing in new submarines to be based in Scotland at Faslane. We have announced our plans for frigates. We are building five new offshore patrol vessels on the Clyde at the moment. We have ordered new aircraft, including the maritime patrol aircraft, the P-8, which will be based at Lossiemouth. Scotland is clearly doing well out of defence, and the UK is doing well in defence with Scotland, and 2017 is the start of a new era of maritime power, projecting the UK’s influence globally and delivering security at home. I do not have time in this debate to list all the different ships we have deployed across the world’s oceans.

I know the appetite of Members for publications. They will have all read the 2016 equipment plan, which we published last month. It laid out the plans in more detail and announced that the total amount that will be spent on the procurement and support of surface ships and submarines over the next decade amounts to some £63 billion. It is all part of the continued modernisation of the Royal Navy in the coming years, which will be underpinned by our national shipbuilding strategy. It is very much our intention that the strategy will be a radical, fundamental reappraisal of shipbuilding in the UK, with the aim of placing UK naval shipbuilding on a sustainable long-term footing. It will set the foundations for a modern, efficient and competitive sector, capable of meeting the country’s future defence and security needs.

[Mr Kevan Jones]

Can the Minister point out in the Budget where the budget line is for the Type 31?

[Harriett Baldwin]

The hon. Gentleman will have read the equipment plan. I do not have the exact quote here, but clearly we have a very ambitious equipment plan. We are expecting to spend some £63 billion on ships, support and submarines.

I want to convey to Sir John Parker the thanks of all Members who have spoken today for his excellent report. He is clearly a highly respected expert. Importantly, he has taken an independent approach to the report. He has had a high level of engagement with stakeholders. Members asked about his engagement. He has visited all key industry leaders and all the companies across the UK that design and build ships, including in Northern Ireland. He has visited small and medium-sized businesses in the supply chain. Industry stakeholders were engaged at all levels. He brought strong strategic direction and guidance to the work, for which we are immensely grateful. He also met trade bodies, trade unions, Ministers, civilian and military officials and, indeed, the hon. Members for Glasgow North West (Carol Monaghan) and for Glasgow South West (Chris Stephens). He has been thoroughly engaged with everyone.

I have not got much time left, so I will speak very briefly about exports, which a range of Members raised. The report makes an important recommendation about exports. We have already started that work, working closely with the Defence and Security Organisation in the Department for International Trade. Members can expect to hear more about that in the coming weeks and months.

The Type 26 programme is a key element of our investment plans. To meet our needs, we require eight to replace the eight anti-submarine-focused Type 23 frigates. Members will be aware that the Defence Secretary announced in November last year that, assuming successful completion of the negotiations, we expect to sign a contract for the first batch of the eight planned Type 26s and cut steel on the first ship this summer. That would give BAE Systems on the Clyde work until the early to mid-2030s. Commercial contract negotiations are intense and ongoing, so I cannot make any more information available to the House today. The investment will sustain shipbuilding skills at the shipyards on the Clyde and continue to provide opportunities in the wider supply chain around the UK. The ships will provide an anti-submarine warfare capability, which is essential for the protection of our nuclear deterrent. SNP Members had a bit of a political pop at me, but they would do well to remember what I have just said. Their two political obsessions—Scottish independence and ending our continuous at-sea nuclear deterrent—would be two of the worst things that could befall the Scottish shipbuilding industry.

Briefly on the Type 31e, Sir John recommended that a new class of lighter general purpose frigate should be given priority. He was clear that it should be designed to be exportable, but capable of incorporating the needs of the Royal Navy. A lot of work is under way on that in the MOD. It is in the pre-concept phase, and further information will be made available in the national shipbuilding strategy.

In summary, the MOD is working with colleagues across Government and with industry to examine Sir John Parker’s report and its recommendations in full. I recognise that Members value the shipbuilding jobs in their constituencies, and I assure them that the Government are committed to an industrial strategy that will increase economic growth across the country and refresh our defence industrial policy.

Oral Answers to Questions

Harriett Baldwin Excerpts

Monday 30th January 2017 Commons Chamber

[John Howell (Henley) (Con)]

14. What steps he is taking to encourage innovation by defence suppliers.

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

With a rising defence budget and equipment plan worth £178 billion over 10 years, there are great opportunities to encourage innovation. We are spending up to 20% of our science and technology budget on research, creating an £800 million innovation fund and launching a defence and security accelerator to fund great innovative ideas fast.

[Mary Robinson]

Thales in Cheadle is a global centre for innovation and excellence in underwater combat systems and sonar. The delivery of that technology relies on the retention of high-tech skills. What steps is the Ministry of Defence taking to ensure that we continue to encourage the right environment for firms such as Thales and for smaller firms in my constituency by investing in complex engineering skills training and development to support innovation?

[Harriett Baldwin]

I draw my hon. Friend’s attention to the recently launched skills strategy, which is called “Securing Defence Skills for the Future”. The Ministry of Defence and the armed forces are already the biggest provider of apprenticeships in the UK. I know that Thales also runs highly competitive apprenticeships and graduate training programmes, and that it is particularly committed to increasing the number of women with these skills.

[John Howell]

How can small firms in my constituency that have great, innovative ideas bring them to the MOD without getting caught up in a bureaucratic procurement process?

[Harriett Baldwin]

I am sure that my hon. Friend noticed that, on Thursday, I launched the Enduring Challenge, which is run by the defence and security accelerator. It is designed to be a simple front door allowing anyone with a great idea that could benefit UK defence and security to enter into defence. The funding for that will be available throughout the year. On the other side of that door are helpful innovation partners who will guide small firms through a simplified procurement process, and I encourage firms from across the UK to visit the accelerator website on gov.uk to see how they can develop the next world-beating idea.

[Mr John Spellar (Warley) (Lab)]

But in order to innovate, companies must have markets and customers. President Trump has clearly proclaimed that he intends to buy American, so will the Minister assure us that, whether it is high-tech equipment, cars or supplies, her Department will actually start to buy British?

[Harriett Baldwin]

As the right hon. Gentleman knows, we are of course the industry’s biggest customer. He will also know that there are great examples of international collaboration. For example, we are purchasing 138 planes from the 3,000 in the F-35 programme, and 15% of each of those 3,000 planes is being built in the north-west of England. We have also been selected as the global hub for the repair and maintenance of those planes.

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

How are the UK Government helping defence suppliers to innovate and secure part of the £1.4 billion that is spent on repairing the UK’s nuclear weapons systems? Does the Minister agree that it would help those suppliers if there was transparency and accountability about the weapons not working effectively?

[Harriett Baldwin]

That is another example of where we work closely with companies in the defence supply chain on a range of ways in which they can innovate. We put a premium on innovation right across the defence industrial base, and the right hon. Gentleman draws attention to one of the areas where human innovation has been outstanding.

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

6. What deployments the UK is making as part of NATO’s assurance measures in Estonia and Poland.

--- Later in debate ---

[Ian Mearns (Gateshead) (Lab)]

10. What recent assessment he has made of the (a) adequacy of the size of the Royal Navy’s fleet and (b) capability of that fleet to respond to global threats.

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

The Royal Navy is growing for the first time in a generation, with new aircraft carriers, submarines, frigates, patrol vessels and aircraft all on their way; 2017 is the start of a new era of maritime power, projecting Britain’s influence globally and delivering security at home. [Interruption.]

[Ian Mearns]

Sorry, it is my back, Mr Speaker.

[Ian Mearns]

Thank you, Mr Speaker. The Select Committee on Defence recently said, in a fairly damning report, that the Royal Navy’s fleet of just 17 usable frigates and destroyers is

“way below the critical mass required”.

Does the Minister agree with the many former Sea Lords who gave evidence to the Committee that the number of vessels is just not sufficient, given that we are island nations, to protect our interests on the high seas?

[Harriett Baldwin]

My sympathies to the hon. Gentleman. I wish to emphasise that the 2015 SDSR announced that we will maintain our fleet of 19 frigates and destroyers, and committed to eight Type 26 global combat ships, three new solid support ships and two new offshore patrol vessels. That is in addition, of course, to the two new aircraft carriers, which, as he knows, are well on their way.

[Mr Speaker]

We all wish the hon. Member for Gateshead (Ian Mearns) well. Knowing what a robust character he is, perhaps I can say that no injury will dare to get him down for long.

--- Later in debate ---

[Harriett Baldwin]

I can confirm that as of 1 October 2016, some 9% of the naval service strength was female—the departmental recruitment target is 15% by 2020. The Royal Navy has a number of initiatives to encourage recruitment and address the retention of female officers, including having more focused career management and increased access to flexible ways of working.

[Mr Kevan Jones (North Durham) (Lab)]

In the 2015 SDSR, and again last December in the first annual report on the SDSR, the Government were very clear that the sea trials for HMS Queen Elizabeth would begin this spring, but in response to a parliamentary question last week, the Minister informed me that the trials would now take place this summer. What are the reasons for that? What will the operational service date be for HMS Queen Elizabeth?

[Harriett Baldwin]

I can confirm that she will commence her sea trials this summer and enter into the same programme so that she can sail into Portsmouth later this year.

[Mrs Flick Drummond (Portsmouth South) (Con)]

Will the Minister join me in wishing Godspeed to HMS Diamond, which is shortly to leave from Portsmouth to lead the NATO taskforce in the Black sea?

[Harriett Baldwin]

I certainly will join my hon. Friend in wishing Godspeed to HMS Diamond and, indeed, to all our destroyers that are currently on a range of different tasks around the globe.

[Hannah Bardell (Livingston) (SNP)]

12. What recent assessment he has made of the security situation in Yemen.

[Peter Grant (Glenrothes) (SNP)]

16. What recent assessment he has made of the security situation in Yemen.

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

The security situation in Yemen has been concerning since 2014, when Houthi forces and those loyal to former President Saleh took over the capital Sana’a and forced out the legitimate Government of President Hadi.

[Hannah Bardell]

As the suffering in Yemen unfolds, the world watches in horror. Nearly 2.2 million people are internally displaced, half of them women and girls. Evidence from Amnesty International shows that partially exploded, UK-manufactured BL755 cluster bombs are lying unexploded, injuring and maiming many people. Despite the Foreign Office Minister denying their existence, the UK Government’s own investigations back up media reports that such cluster bombs have been deployed in the war in Yemen, so when will this heartless Tory Government wake up, do a proper investigation, take on Saudi Arabia and stop the sale and deployment of these bombs?

[Harriett Baldwin]

I think the hon. Lady must have missed the statement that my right hon. Friend the Secretary of State gave on this issue in December. I can confirm that the humanitarian situation is extremely serious. As a result, the UK is the fourth largest donor to Yemen and is committing more than £100 million this year.

[Peter Grant]

The single biggest contributor to the humanitarian disaster in Yemen is the Royal Saudi air force, which has systematically destroyed almost the entire infrastructure of the country, leaving 7 million people in danger of starvation because food cannot be got to them. How much worse does the humanitarian crisis have to get before the United Kingdom stops selling £2 billion-worth of weapons per year to a Government who are accused of 250 different war crimes in Yemen?

[Harriett Baldwin]

The UK position is of course that a political solution is the best way forward to bring long-term stability to Yemen and end the conflict there. The hon. Gentleman will be aware that the coalition in Yemen is supported by United Nations resolution 2216. He will also be aware that there are regular incursions into Saudi territory, and I am sure he will recognise the legitimate self-defence of the Saudi-led coalition under United Nations resolution 2216.

[Daniel Zeichner (Cambridge) (Lab)]

24. There was widespread concern at the Secretary of State’s disclosure in December that UK-made cluster bombs had been used by Saudi Arabia in Yemen. The Saudi Government have since said that they will not continue their use, but there is no way of enforcing that commitment. Will the Minister tell us whether the Secretary of State has personally urged the Saudi Government to sign the cluster munitions convention, which implements a complete ban on this most destructive of weapons?

[Harriett Baldwin]

Yes, I can confirm that the Government regularly urge Saudi Arabia to sign the cluster munitions convention. I can also confirm that, in his statement in December, the Secretary of State welcomed the announcement that UK munitions would no longer be used.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

20. We know that the UK sold 500 BL755 cluster munitions to Saudi Arabia, but the Ministry is keen to give the impression that only one of them has been dropped in Yemen. Will the Secretary of State commit to demanding a full current inventory, including serial numbers, of the remaining munitions stockpiled in Saudi Arabia, as well as records for those no longer in the Saudis’ possession?

[Harriett Baldwin]

I draw the hon. Lady’s attention to my previous answer about how we welcomed the Saudi Government’s commitment. We do not routinely hold records of other nations’ use, storage or location of UK-manufactured equipment, particularly items that were supplied decades ago under previous Governments.

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

As the Minister knows, there are serious allegations that both sides in the conflict in Yemen have broken international humanitarian law. Those claims are particularly worrying to us in this country because we now know that United Kingdom-supplied cluster munitions have been used in Yemen. What action are the Government taking to push for a full, independent, United Nations-led investigation into the alleged violations of international law in Yemen?

[Harriett Baldwin]

We do not oppose calls for an international independent investigation into these incidents but, first and foremost, we want the coalition to investigate allegations of breaches of international humanitarian law attributed to those groups and for the investigations to be thorough and conclusive.

[Several hon. Members rose—]

[Sir David Amess (Southend West) (Con)]

15. What funding he has allocated to increase the size and capability of the Royal Navy.

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

This Government are committed to increasing our maritime power to project our influence across the world and to promote our prosperity. Over the next decade, we will spend £63 billion on new ships and submarines. The Royal Navy will have two new Queen Elizabeth-class aircraft carriers, new submarines, frigates, aircraft, patrol vessels, support ships and tankers.

[Sir David Amess]

When the Queen Elizabeth sets sail, does my hon. Friend agree that it will be testament to the skill of British workers and our superb Navy? It will show Britain as a global force, so will she make sure that Portsmouth gives the ship a wonderful welcome?

[Harriett Baldwin]

It will be a moment of enormous pride this year when the Queen Elizabeth sails into Portsmouth harbour. I am sure that my hon. Friend will join many people on the pier at Southend, hoping for a glimpse and waving as she sails past.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

T2. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Tom Pursglove (Corby) (Con)]

T3. What assessment has my right hon. Friend made of Trident renewal on associated supply-chain jobs in the United Kingdom?

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

I can confirm that the Dreadnought submarine programme is a major national investment programme that will sustain thousands of jobs across the UK. The benefit will extend well beyond the major companies leading the programme.

[Nia Griffith (Llanelli) (Lab)]

Army recruitment levels are now worryingly low, due in no small part to the Government’s total failure to manage the contract with Capita, allowing that parasitic company to sponge off the public purse while bringing in only 6,900 of the target of 9,500 Army recruits? Will the Minister review Capita’s contract and improve his Department’s monitoring procedures to stop leech-like companies siphoning off taxpayers’ money for little or no return?

--- Later in debate ---

[Marcus Fysh (Yeovil) (Con)]

T7. I welcome the visit to Yeovil earlier this year of the Under-Secretary of State for Defence, my hon. Friend the Member for West Worcestershire (Harriett Baldwin), and the investment in Crowsnest fleet protection to be provided by our Merlin helicopters. What is she doing to ensure that Boeing works with Leonardo in Yeovil on the UK’s Apache helicopters, and to encourage Boeing further to build capability in the strategic aerospace cluster in Yeovil?

[Harriett Baldwin]

I was very impressed when I visited my hon. Friend’s constituency earlier this month. Of course, Leonardo helicopters will support our existing Apache Mk1 helicopters until they are retired from service. I am delighted that Boeing announced last week that it will make the UK its European base for training, maintenance, repair and overhaul across its defence platforms. I am sure it will want to discuss that with Leonardo, which is well placed to secure subcontract work on the next generation Apaches.

[Natalie McGarry (Glasgow East) (Ind)]

When will the Secretary of State answer calls to grant an independent inquiry into the botched Trident II D5 missile test to inform this House and our constituents what went wrong? What plans has he made to ensure that the House can be confident that the procedure for providing information is reliable and timely?

--- Later in debate ---

[Jake Berry (Rossendale and Darwen) (Con)]

I am sure that the whole House will have heard with some joy that the MOD’s procurement process is to be simplified and diversified. To help us to judge the success of this, will the Minister say how many people currently work in procurement at the MOD and whether that number will go up or down between now and the end of the Parliament?

[Harriett Baldwin]

I can provide in writing the exact number of people, as of today, who work there. As this is a bespoke trading entity, the aspiration is that we do not manage the head count in terms of our procurement but manage down the cost of procurement.

[John Cryer (Leyton and Wanstead) (Lab)]

In the light of recent events, how relaxed is the Secretary of State about Trump having his finger on the nuclear button?

--- Later in debate ---

[John Redwood (Wokingham) (Con)]

Will Ministers take action to make sure that more of the new light tanks we buy are made in Britain?

[Harriett Baldwin]

I am not sure whether my right hon. Friend is referring to the Ajax programme, but I can confirm that we have taken extensive steps to ensure that a significant portion of the manufacturing processes of the Ajax vehicles takes place in south Wales, and we will continue to work with our suppliers to ensure that we get significant UK content in all our procurement.

[Mr Kevan Jones (North Durham) (Lab)]

What are the reasons for the delay in the HMS Queen Elizabeth’s sea trials, and what will its in-service date be?

Defence Equipment Plan

Harriett Baldwin Excerpts

Friday 27th January 2017 Written Statements

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

I am pleased to place in the Library of the House today the fifth annual summary of the Defence equipment plan. The plan shows the Ministry of Defence (MOD)’s progress in delivering an affordable programme.

The National Audit Office (NAO) is publishing in parallel its independent assessment of the affordability of our equipment plan. Its report notes the size, challenges and financial complexity of the Defence equipment programme. One consequence of the progress we have made to date is the agreement between the NAO and the Department to move from the NAO providing external assurance of the major projects report, to internal, but still independent validation by the MOD’s Cost Assurance & Analysis Service. The NAO also points out where we must continue to improve and refine our work in the future. We will continue to work openly with the NAO to demonstrate the financial robustness and affordability of the equipment plan.

The Government are committed to the Defence budget increasing by 0.5% above inflation each year for the remainder of this Parliament. We are planning to spend £178 billion on equipment and support out to 2025-26, which will provide our Armed Forces with the equipment to deliver Joint Force 2025.

[HCWS442]

UK Helicopter Industry

Harriett Baldwin Excerpts

Tuesday 24th January 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

It is a pleasure to serve under your chairmanship, Mr Howarth, this morning. I congratulate my hon. Friend the Member for Yeovil (Marcus Fysh) on securing this timely debate on the UK’s helicopter industry. He is absolutely right to raise this issue, which is important for his constituents, particularly given Yeovil’s long history of supporting our helicopter industry, which he highlighted. I welcome the opportunity to highlight to the House the work we are doing.

This is an ideal moment both to take stock and affirm that our armed forces are indeed the biggest customer of the UK helicopter industry, and to summarise some of the investment that the Government have made and continue to make in the industry. We have spent considerable sums over recent years investing in our helicopter capabilities for our armed forces, and much of that investment has been focused on Leonardo, with more than £1 billion spent on the development and manufacture of 62 Wildcat helicopters; some £800 million spent on delivering 30 Merlin mark 2 into service; and about £330 million being spent on developing the Merlin mark 4 upgrades across a 25-aircraft fleet. That investment is vital in ensuring that we have the helicopter capability we need for decades to come. The helicopters also need to be kept in tip-top condition and filled with the latest equipment.

On 9 January I was delighted to go to my hon. Friend’s constituency of Yeovil to announce a £271 million deal with Leonardo’s helicopter division to provide through-life support and training for Wildcat, which is one of the most advanced helicopters in the world. That will not only deliver a key capability for the Royal Navy and Army but will sustain 500 vital skilled jobs in the UK, most of which, as my hon. Friend has pointed out, are in the Yeovil area.

In addition, just last week I announced a £269 million contract with Lockheed Martin for the Crowsnest helicopter-based surveillance system. It will act as the eyes and ears of the Royal Navy’s ships, helping to keep our armed forces safe as they deploy around the world. The contract will also secure more than 200 highly skilled UK jobs, about 60 of which, I understand, are in the south-west—no doubt very close to, if not in, the Yeovil constituency. I reassure my hon. Friend that that and other commitments underpin our spending of more than 2% of our GDP on defence and security, which will be maintained for every year of this decade. The commitments are all part of the Government’s 10-year £178 billion plan to provide our armed forces with the battle-winning equipment they need.

Given that Leonardo’s helicopter division is based in Yeovil, my hon. Friend is especially interested in the helicopter element of that. Last year, we put in place a 10-year strategic partnering arrangement with Leonardo, building on the many decades of work we have done with the company. That arrangement is key to maintaining and improving cost-effective support for our helicopter fleets.

On my recent visit, I was briefed not only about the thousands of people employed directly by Leonardo’s helicopter division in Yeovil, but about the supply chain of companies, which my hon. Friend mentioned. I pay tribute to the 4,300 people who work at the royal naval air station—RNAS—Yeovilton, one of the Navy’s two principal airfields. More than one third of the UK’s military helicopter fleet is based in, and maintained from, Yeovil. The people working there will continue to support our Merlin and Wildcat helicopters for at least the next two decades. Indeed, the company will also support our current Apache fleet until they are retired. Put simply, it is clear that none of that world-leading capability would be possible without the expert work undertaken every day by the British helicopter industry, particularly by those working in my hon. Friend’s constituency.

The industrial strategy Green Paper, which was launched yesterday, has been mentioned. It signals the start of an extensive period of engagement with businesses, local leaders, local enterprise partnerships and other stakeholders right across the country, and offers an “open door” challenge to industry to come up with proposals that will transform and upgrade the sector. The consultation will provide a firm basis on which the Government can deliver a strategy that will drive growth and productivity for decades to come across all parts of the UK and all industries. The Ministry of Defence is fully engaged with the work, recognising as it does that the defence industry provides significant opportunities in many sectors and in all parts of the UK.

For defence in particular, as we outlined in the 2015 strategic defence and security review, we have a national security objective to promote UK prosperity, part of which includes a refresh of our defence industrial policy, which was mentioned by the hon. Member for Leeds North West (Greg Mulholland). That work is well under way, and an industry consultation has just been completed. I will take on board the representations I have received today regarding the opportunities that UK defence and security companies have to compete, grow and develop successfully in a global market. We want to use our defence spending to help the industry sustain vital skills, and to promote prosperity through developing the export potential of new equipment, including helicopters.

The industrial backdrop and each of the themes that have come up in this debate—skills, exports and new technologies—is as applicable to the helicopter industry as it is to any other. Those themes are already enshrined in our strategic partnering arrangement with Leonardo’s helicopter division, which was signed in July 2016. I take on board my hon. Friend’s invitation to go and mark the anniversary of that signing with our Italian colleagues and friends. We are already very engaged in working with Italy on the Typhoon aircraft as well.

[Jim Shannon]

In my earlier intervention I mentioned apprenticeships but the Minister has not mentioned them. In the strategy, could we have a confirmation of a commitment to apprenticeships?

[Harriett Baldwin]

The hon. Gentleman is right to re-emphasise that point. It was a pleasure to meet the apprentices employed in Yeovil by Leonardo’s helicopter division when I visited. I think I am right in saying that the armed forces are the biggest provider of apprenticeships. The defence industry partners we work with are also enormous providers, so we have a key role in that regard.

I want, briefly, to touch on exports and on how important they are to our work on helicopters at Leonardo in Yeovil. Leonardo has sold the Wildcat aircraft to South Korea and the Philippines, and continues to sell the Merlin to customers with demanding operational requirements. The contract I saw last week, for example, was for the search and rescue variant currently being manufactured for Norway. Those sales bring valued jobs and prosperity to the local region, and have contributed an average of more than £700 million a year to UK defence exports for the past five years—a truly remarkable sum. We are doing everything we can, building on the specialist skills of Government, our network of defence attachés in embassies around the world and our newly created Department for International Trade, where the Defence and Security Organisation resides. The latter provides specific export support to Leonardo, meeting regularly with the company and doing whatever it can to use Government resources to create a strategic export plan for the firm, with the aim of maximising civil and defence exports and producing an ongoing impact on UK prosperity.

My hon. Friend mentioned important initiatives such as iAero, which is being driven by leading south-west aerospace partners. Through the aerospace growth partnership, industry and Government have committed £3.9 billion to aerospace research to 2026, including on rotary wing, from which the UK helicopter industry will benefit. We are also co-funding a project with Leonardo to understand the potential of a rotary wing unmanned air system capability, which I had the privilege of witnessing at first hand in Benbecula last October.

My hon. Friend raised the matter of jigs and tooling for Wildcat held at the GKN premises in Yeovil. I can confirm that that is Ministry of Defence equipment but also that we have not yet been given a proposal by the industry about the next steps. We would expect to be able to make a decision by July, however, and I look forward to working with my hon. Friend closely during this time. That decision will take into account not only the specific proposal but the UK’s wider interests.

In conclusion, I emphasise how grateful I am that the outstanding skills and expertise of those employed on helicopter-related work in the UK, particularly in the south-west, are helping us to meet our ambitions and our commitment, ensuring that we continue to deliver cutting-edge, battle-winning capability for our armed forces in the UK for years to come.

Question put and agreed to.