Phalanx Availability Contract: Contingent Liability

Harriett Baldwin Excerpts

Tuesday 17th January 2017 Written Statements

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

The Secretary of State for Defence has retrospectively laid before Parliament a Ministry of Defence (MOD) departmental minute describing the contingent liability within the Phalanx close-in weapons system availability contract with Babcock Marine.

The departmental minute describes the contingent liability that the MOD will hold as a result of placing the new Phalanx availability contract, which will provide continuous support to the Navy’s operational fleet of ships. The maximum contingent liability against the MOD is therefore £268 million over the two-year life of the contract.

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

However, a break in the contract with Babcock Marine would have resulted in potential severe operational impact to the support of Phalanx, particularly those on-board ships deployed on operations and requiring contractor support to repair them. As such, and by exception, I approved the awarding of the new support contract with Babcock Marine from 22 December 2016, to come into effect from 31 December 2016. This ensures that support provided to Phalanx was not interrupted.

In accordance with the procedures established for cases of special urgency, the Department wrote to the Chairs of the Public Accounts Committee and the Defence Committee on 23 December 2016, in advance of incurring this liability, inviting them to respond with any objections. No such objections have been received.

I apologise that the Ministry of Defence did not allow 14 sitting days for Members of Parliament to signify an objection. Contracts of this type do not normally fall within the parliamentary notification requirement, and it only became apparent that this contract was different late in the process. I have asked Ministry of Defence officials to ensure that these exceptions are identified earlier in future.

The Treasury has approved the proposal. If, during the period of 14 parliamentary sitting days beginning on the date on which the minute was laid before Parliament, a Member signifies an objection by giving notice of a parliamentary question or by otherwise raising the matter in Parliament, I undertake to examine the objection and respond to the Member concerned.

[HCWS415]

Defence

Harriett Baldwin Excerpts

Wednesday 14th December 2016 Ministerial Corrections

[Edward Argar (Charnwood) (Con)]

Will my hon. Friend the Minister reassure me that we will continue to provide our armed forces with the best possible equipment and that, where appropriate and where that standard is met, that will be equipment developed and manufactured in the UK?

[Harriett Baldwin]

My hon. Friend is right that we need to focus on the best equipment and getting the right capability for our armed forces. We will also always seek the best value for money for the taxpayer, but we will seek to get that UK content as strong as possible. The F-35 is an example. Fifteen per cent. of each of the 3,000 planes in the global programme are made at Warton in the north-west, and the UK has been selected as the global hub for a large number of elements for the maintenance, repair, overhaul and upgrade of those fantastic aircraft.— [Official Report, 12 December 2016, Vol. 618, c. 495.]

Letter of correction from Harriett Baldwin:

An error has been identified in the response I gave to my hon. Friend the Member for Charnwood (Edward Argar) during Questions to the Secretary of State for Defence.

The correct response should have been:

[Harriett Baldwin]

My hon. Friend is right that we need to focus on the best equipment and getting the right capability for our armed forces. We will also always seek the best value for money for the taxpayer, but we will seek to get that UK content as strong as possible. The F-35 is an example. Fifteen per cent. of each of the 3,000 planes in the global programme are made at Samlesbury in the north-west, and the UK has been selected as the global hub for a large number of elements for the maintenance, repair, overhaul and upgrade of those fantastic aircraft.

Oral Answers to Questions

Harriett Baldwin Excerpts

Monday 12th December 2016 Commons Chamber

[Nigel Huddleston (Mid Worcestershire) (Con)]

3. 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 an equipment plan worth £178 billion over the next 10 years, we are renewing our capabilities. We spend up to 20% of our science and technology budget on research, and we have launched an £800 million innovation fund.

[Nigel Huddleston]

The Minister will be aware that the Ministry has a reputation among some suppliers of being somewhat challenging to work with. What is she doing to try to improve working relationships, particularly with small and medium-sized enterprises, including many of the defence industry suppliers in Worcestershire?

[Harriett Baldwin]

My hon. Friend and constituency neighbour is absolutely right that it can be challenging to work with Ministry of Defence procurement processes. We are particularly keen to encourage small and medium-sized businesses to apply for business with us. We want to increase the level of our spending that we procure from small businesses from 19% to 25%. Acting on direct feedback from small businesses, we have introduced a network of supply chain advocates to help smaller businesses through the maze of defence procurement, and their contact details are available to my hon. Friend and other Members on request.

[Toby Perkins (Chesterfield) (Lab)]

The Minister has referred to renewing our capabilities. I have previously asked her about the programme to renew the Type 45 power and propulsion systems. I recognise that there are commercial sensitivities, but will she tell us whether there is a budget for the programme of improvements to the Type 45 power and propulsion systems, and when does she expect all six vessels to be improved?

[Harriett Baldwin]

I am very pleased to be able to confirm to the hon. Gentleman that there is a budget, and that progress is being made. These incredibly capable ships are performing a wide range of tasks. For example, HMS Daring is now in the Gulf, acting as part of our deployment there.

[Rebecca Pow (Taunton Deane) (Con)]

21. Small firms in my constituency, such as GSI ExoTec Precision, which specialises in producing beryllium-based products, have the technology and the ideas that could help us to maintain our defence advantage. Will the Minister confirm how such firms can access the £800 million innovation fund, and when might the first competition stage start?

[Harriett Baldwin]

I am delighted to tell my hon. Friend that I was able to launch the first competition on Thursday at the University of Strathclyde in Glasgow. In the first competition—for up to £3 million—we are looking for new ways of exploring data to inform decisions. It does not sound as though that is exactly the area of specialisation with which the business my hon. Friend mentioned is engaged, but there will of course be further competitions, and applications are also open for a wide range of different ideas to be fed in directly.

[Brendan O’Hara (Argyll and Bute) (SNP)]

No one would deny that it is vital to do everything we can to encourage innovation in the defence sector. Does the Minister agree with me that to foster an environment in which innovation can flourish, business and industry have to be able to trust what they are told by the Government? Given that, will she take this opportunity to explain to the shipbuilding industry exactly why she did not deliver on the copper-bottomed assurances, which she gave on at least four occasions, that the national shipbuilding strategy would be published before the autumn statement?

[Harriett Baldwin]

Mr Speaker, did you pick up in that question any congratulations on or delight at the fact that I was at the shipyards on the Clyde on Thursday, cutting steel for two new offshore patrol vessels? I remain astonished at the very grudging way in which the Scottish National party fails to recognise the billions of pounds of work that is being sent to shipyards on the Clyde.

[Brendan O’Hara]

For the record, I am absolutely delighted that the OPVs are being built on the Clyde. Will the Minister take this opportunity to apologise to workers and management across the UK shipbuilding industry for the misleading and contradictory statements that have come from the Ministry of Defence during the past few months? Will she also take this opportunity to explain why the shipbuilding strategy did not appear when she promised it would appear?

[Harriett Baldwin]

It is lucky the hon. Gentleman gets a supplementary, so that he can say some vague, grudging words of welcome for the fact that we have just announced two decades’ worth of work on the Type 26 frigates in Scotland. He is complaining about the lack of publication of a report that has been published; the Government will provide their response next year. [Interruption.] Sir John Parker’s report on shipbuilding was published on 29 November. I am sorry the hon. Gentleman has not had a chance to read it, and will send him a personally signed copy.

[Mrs Maria Miller (Basingstoke) (Con)]

The Minister’s focus on innovation is absolutely right. Will she look at the excellent work of the National Aerospace Technology Exploitation Programme, which is already running more than 100 innovation projects, and establish how she can help to continue that work?

[Harriett Baldwin]

Mr Speaker, you were absolutely right to call my right hon. Friend, who has asked such a calm and helpful question about the excellent work of that organisation. She also will be familiar with the work of the Defence Growth Partnership at Farnborough and the fantastic way in which it works to promote the excellence of the UK aerospace industry to people all around the world.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

4. What assessment he has made of the effectiveness of the RAF’s military operations in Iraq and Syria.

--- Later in debate ---

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

The Government are committed to increasing the defence budget by 0.5% a year in real terms, as well as increasing our equipment budget by 1% above inflation each year until 2020. Put simply, that means more ships, more planes and an increase in cutting-edge equipment for our Special Forces.

[Mr Speaker]

One of the great merits of having the Clerk in front of me is that I am on the receiving end of his specialist advice. May I say, for the benefit both of the right hon. Member for New Forest West (Sir Desmond Swayne), who takes an interest in these matters, I know, and of the House, that the letter to which reference was made is strictly speaking a letter to the House and for its benefit? Notwithstanding the motivation of the right hon. Gentleman in saying, “You need not write,” may I with the greatest respect say to the right hon. Gentleman, a distinguished former Minister, that that is not for him to judge—the letter is for the House’s benefit. He may be disinterested in it, but others may be interested. We will leave it there.

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[Edward Argar]

Will my hon. Friend the Minister reassure me that we will continue to provide our armed forces with the best possible equipment and that, where appropriate and where that standard is met, that will be equipment developed and manufactured in the UK?

[Harriett Baldwin]

My hon. Friend is right that we need to focus on the best equipment and getting the right capability for our armed forces. We will also always seek the best value for money for the taxpayer, but we will seek to get that UK content as strong as possible. The F-35 is an example. Fifteen per cent. of each of the 3,000 planes in the global programme are made at Warton in the north-west, and the UK has been selected as the global hub for a large number of elements for the maintenance, repair, overhaul and upgrade of those fantastic aircraft. [Official Report, 14 December 2016, Vol. 618, c. 5-6MC.]

[Andrew Stephenson (Pendle) (Con)]

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

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[Mr Douglas Carswell (Clacton) (UKIP)]

T7. Does the Minister support Sir John Parker’s recommendation that the construction of the Type 31 frigate be opened up to a much wider range of defence contractors, rather than just BAE Systems, and that in doing so we can end the defence cartel and embrace more competition?

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

I thank the hon. Gentleman for having read that excellent report, for which we thank Sir John Parker. The Government will respond to his 34 recommendations in spring 2017.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

T9. At RAF Odiham in my constituency, 97% of the outdated junior-rank accommodation either has the worst grading or has been condemned. Will my hon. Friend meet me to discuss meeting the approved requirement that has already been determined?

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[George Kerevan (East Lothian) (SNP)]

The unit cost of the five P-8 Poseidon aircraft that Norway is buying is $300 million, including the data uplink. After the Brexit devaluation, the unit cost of the nine P-8s that the UK is buying is nearer to $400 million dollars. Does the Minister call that value for money?

[Harriett Baldwin]

I am not quite sure of the hon. Gentleman’s exact point, because if it were up to him and his party, we would not be buying P-8s or basing them in Scotland.

[Marcus Fysh (Yeovil) (Con)]

Will my hon. Friend support me in obtaining Department for Communities and Local Government sponsorship for the lion’s share of funding to bring forward the iAero innovation hub in Yeovil? Rapid innovation in unmanned aerial vehicles could help the MOD to deliver aid and support our military.

[Harriett Baldwin]

I thank my hon. Friend for his tireless campaigning on behalf of the excellent work done in his constituency on interesting, innovative projects, such as the unmanned helicopter system. We have committed to spend some £3 billion with Leonardo over the next 10 years as part of our long-term partnering arrangement.

[Mrs Madeleine Moon (Bridgend) (Lab)]

The Israeli and US navies have recently been attacked with anti-ship missiles by Hezbollah and the Houthis. Is it not time to look again at the River-class offshore patrol vehicles and the Type 31 frigate to ensure that they have ASAM capability?

[Harriett Baldwin]

It is important that the Royal Navy continually assesses the capabilities with which ships are fitted. I cannot go into some sensitive details at the Dispatch Box owing to operational requirements.

[Chris Philp (Croydon South) (Con)]

The UK’s frigates and destroyers are currently protected with Harpoon missiles with a range of 80 miles. Those missiles will be coming out of service in 2018, leaving our frigates and destroyers defended by Mark 8 guns with a range of 17 miles and, from 2020, Sea Venom missiles with a range of just 11 miles. Will the Minister reconsider extending the service life of the Harpoon missiles to ensure that our ships are properly defended?

[Harriett Baldwin]

The Royal Navy is, of course, continuously assessing the capabilities it requires, and work is ongoing across the Department to consider the options for the Harpoon replacement.

[Chris Bryant (Rhondda) (Lab)]

Thanks to the Cluster Munitions (Prohibitions) Act 2010, brought in by the Labour Government, we do not use or sell cluster munitions any more, but the Government are also required under the Act to persuade their allies not to use cluster munitions either. What are the Government doing to try to stop the Saudis from using cluster munitions in Yemen?

[Harriett Baldwin]

In line with our obligations under the cluster munitions convention, we continue actively to discourage all states that are not party to the convention from using cluster munitions and we encourage them to accede to it without delay. We have raised the issue of ratification of the convention at ministerial level with Saudi Arabia.

[Kelly Tolhurst (Rochester and Strood) (Con)]

I was disappointed to learn of staff reductions at BAE Systems, including at the site in my constituency. Will my right hon. Friend outline what support his Department can offer to our local suppliers to ensure that the skills behind the innovation are secured in my constituency?

[Harriett Baldwin]

I share my hon. Friend’s disappointment at the news that BAE Systems is reducing employment at the Rochester site—after all, we are spending quite a lot of money with BAE at the moment. But I am sure that the people she mentions have exemplary skills, and I can say on behalf of the Government that we will do everything we can to make sure that those valuable skills are redeployed in other areas of this avionics speciality.

[Toby Perkins (Chesterfield) (Lab)]

Further to the hon. Lady’s answer to me earlier, I am glad that she gave confirmation about the budget, but can she tell us when the last of the six Type 45 destroyers will have the new power and propulsion system fitted?

[Harriett Baldwin]

I cannot give the hon. Gentleman an exact timetable, because that has not been finalised, but I can tell him that the budget is in place, the contract will be competed for in the normal way, and that ongoing improvements are being made—as they have been made—all the time to that power and propulsion system.

[Several hon. Members rose—]

Offshore Patrol Vessels

Harriett Baldwin Excerpts

Thursday 8th December 2016 Written Statements

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

I am pleased to announce that the two additional offshore patrol vessels that we committed to build in last year’s Strategic Defence and Security Review will be named HMS Tamar and HMS Spey. The construction of the first, HMS Tamar, formally began today.

These names follow the River Class nomenclature of the Royal Navy’s Offshore Patrol Vessel fleet and continue the tradition of recognising the service, history and battle honours of earlier ships of the name.

Since 1758, six ships have been named after the River Tamar in south-west England, and battle honours were won for Burma 1824-25 and Ashantee 1873-74. Most recently, HMS Tamar was the name of the Royal Navy’s shore establishment in Hong Kong until 1997.

Since 1814, seven ships have been named after the River Spey in north-east Scotland, and battle honours were won for the Atlantic 1940-43, North Africa 1942-43 and Burma 1944-45. The most recent ship, a minesweeper, left service in 1998.

These new 2,000 tonne ships, together with the three already in build, will deliver a more modern and capable fleet, supporting our destroyers and frigates in delivering their tasking, as well as enhancing our contribution to maritime security and fisheries protection.

[HCWS338]

Awards for Valour (Protection) Bill

Harriett Baldwin Excerpts

Friday 25th November 2016 Commons Chamber

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

It is truly a privilege to be able to respond on behalf of the Government to the Bill introduced by my hon. Friend the Member for Dartford (Gareth Johnson). I congratulate him on winning a number so high up the ballot for his private Member’s Bill and on his success in bringing forward this measure today.

To some people the impersonation of our military heroes may seem a trifling matter, worthy more of humour than of concern. There is, for instance, the case of a man who claimed to be a member of the entirely fictitious Royal Warwickshire Dog Handlers, and another who went to great lengths to have the commando dagger insignia tattooed on his arm, only to find out that it was pointing in the wrong direction. Men who seemed plausible would, on closer examination—to borrow a phrase—appear to have spent more time in a fancy dress shop than on the front line.

This has been an excellent debate. We have heard not only from my hon. Friend the Member for Dartford, but from my hon. Friend the Member for South Thanet (Craig Mackinlay), who shared with us the example from his constituency of a UKIP councillor who wore the most implausible range of medals and was eventually forced to stand down. At the same time he was discovered to be a bigamist, which demonstrates that people who are impertinent enough to pretend to be recipients of medals to which they are not entitled may well be capable of crossing the threshold of propriety and doing other completely unacceptable things.

My hon. Friend the Member for Shipley (Philip Davies), in an extensive, detailed and well-researched speech lasting about 70 minutes, presented the case against the Bill. He argued passionately on behalf of those who wish to continue to impersonate people who are entitled to wear medals. He was on the side of Walter Mitty, but I have to say that the mood of the House is not with him.

[Philip Davies]

First, as the Minister knows, I was not on the side of Walter Mitty, and it is rather insulting of her to say that I was. Secondly, perhaps she could explain in passing why on 3 May this year the Ministry of Defence agreed with me, whereas now, in November it agrees with my hon. Friend the Member for Dartford. Can she tell us what has changed in the meantime?

[Harriett Baldwin]

My hon. Friend was certainly making a case for opposing the Bill. In a moment, I shall come to our reasons for supporting it.

We heard a very good speech from my right hon. Friend the Member for New Forest East (Dr Lewis), who chairs the Defence Committee. We are grateful for the time that his Committee spent taking evidence on the Bill, and for the insights that it has shared in its report. He gave another good example of the perhaps unintended consequences of failing to make this a criminal offence by telling us that his partner’s father had been questioned, during an event specifically for veterans, about his entitlement to wear the medal of which he is so rightly proud.

My hon. and gallant Friend the Member for Beckenham (Bob Stewart) argued passionately in favour of allowing people who wear medals in “Blackadder” and other dramatic events to be covered by the exemptions in the Bill.

[Bob Stewart]

I hope that the Minister will indulge me, because I wish to make a short comment. Tomorrow I shall have the extreme honour of presenting the order of the Légion d’Honneur to Canon William Clements in Coloma Court home in my constituency. The priest was offshore in a royal naval vessel on D-day, and I am going to his bedside to give it to him. That is a singular honour for me. I hope the Minister will forgive me for that intervention; I think it was appropriate.

[Harriett Baldwin]

I am glad that my hon. Friend made that intervention. He has rightly put a wonderful example on the record. I know that many people throughout the country are very grateful to be receiving the Légion d’Honneur from the French Government at this time.

I am pleased that the hon. Member for Leeds North East (Fabian Hamilton)—along with the shadow Defence Secretary, the hon. Member for Llanelli (Nia Griffith)— supports the Bill. He gave a very good example of how important it is that the Bill should protect the rights of family members to wear their loved ones’ medals, saying he proudly wears on his right breast on Remembrance Day the medals his father won for his service.

The mood of the House today is that the dishonest behaviour and egregious examples we have heard about are not harmless fun or mindless eccentricity; in actual fact, their implications are far greater and their ramifications far graver than many would appreciate at first glance, and all the more so when they involve the unauthorised wearing of decorations and medals. That is, first, because it is a gross affront to those who have genuinely served their country at considerable risk to themselves and who, as is intended, wear their medals with great pride. As Siegfried Sassoon wrote in “Memoirs of an Infantry Officer”:

“nobody knew how much a decoration was worth except the man who received it.”

But this is about more than feelings, important as they are, which brings me to my second point: wearing unauthorised medals is harmful because it undermines the integrity of our formal military honours system, a historical system that has honoured the bravery and dedication of our world-class armed forces since the 19th century. Thirdly, and perhaps most crucially, by undermining that system bogus medal-wearers erode the vital bond of trust and respect between the public and the armed forces.

It is for those very significant reasons that during the first world war the Defence of the Realm Regulation 41 made it an offence to

“wear a decoration or medal without authority”.

As we have heard in several contributions today, that prohibition was transferred into statute after the war, and later incorporated into the Army Act 1955 and the Air Force Act 1955. I should also mention that it is still an offence under the Uniforms Act 1894 to wear a military uniform without authority, and that offence carries a maximum penalty of a fine not exceeding level 3.

In the early years of this century, when the Armed Forces Act 2006 was drafted, the concern about Walter Mittys was not widespread, and the then Labour Government decided not to carry forward the offences into the new Act. The most egregious acts of deception in this regard, where the individual uses medals to which he is not entitled in order to obtain a financial advantage, are crimes of fraud and, as such, are rightly punishable at a much higher level.

The American Stolen Valor Act 2013 covers only the higher military awards for bravery, as well as certain other military awards such as the Purple Heart and some awards for combat service. But that Act makes it an offence only if the awards are being worn for gain. Nevertheless, the Government recognise the concern about the gap not covered by the Fraud Act 2006, which the Bill seeks to address. It is for that reason, I point out in response to the intervention by my hon. Friend the Member for Shipley, that the Government support the Bill. I know that there are questions about the extent of the problem.

[Philip Davies]

The Minister has explained, as she said she would, why the Government are supporting the Bill, but she has not covered why the Government did not support exactly the same measures proposed in the e-petition in May this year.

[Harriett Baldwin]

The Secretary of State has been thoroughly convinced by the excellent case put forward by my hon. Friend the Member for Dartford, by the power of his argument in the Chamber and by the way he has worked so constructively to address our previous concerns in his proposed legislation.

My hon. Friend the Member for Shipley questioned the extent of the problem in this country. I am grateful to the Defence Committee for producing its extremely thorough report, which acknowledges that the precise level of the problem is difficult to determine. There is clearly a greater awareness of it as an issue, perhaps because of the greater visibility afforded by social media and the appearance of groups dedicated to exposing these Walter Mittys. It is for that reason, and those that I have previously outlined, that the Government are now happy to offer support to the Bill.

The Committee’s report was ably summarised by my right hon. Friend the Member for New Forest East, who chairs the Committee, and it raised issues for the Government to consider beyond those immediately addressed by the Bill—in particular, the question of establishing a searchable database of holders of awards. Details of individual bravery or gallantry awards are published in the London Gazette—indeed, that is the origin of the term “gazetted” in relation to medals. However, the creation of a searchable database of holders would raise concerns about personal data and individual security. There is also the matter of who would be responsible for it and who would maintain it. It would be a long-term task for someone. When it comes to the various types and levels of campaign awards, a different issue arises—one of scale. For example, the Operational Service Medal for Afghanistan alone was issued to 150,000 recipients.

[Dr Julian Lewis]

I am grateful to the Minister for her support for the Bill. I am always cautious about databases for ex-service personnel. In this particular case, however, provided that the search engine was only able to accept the entry of a name that was already known to the person searching for any awards that that person had received, I do not see that that could create a security problem in the way that including details of ex-servicemen on censuses might do.

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[Harriett Baldwin]

My right hon. Friend rightly proposes a potential compromise, but other questions arise, including the scale of the exercise and whether the London Gazette might be able to maintain such a database. I look forward with interest to hearing constructive suggestions on those concerns from those who are following the debate.

[Bob Stewart]

My hon. Friend the Minister has hit the nail on the head with her comment that the London Gazette could keep such a database. Every gallantry award goes through the London Gazette, even those awarded to people who have done something for the security services. I am sure that some kind of system could be made available through the London Gazette that would enable the information to be accessed very quickly. At the moment, trying to find gallantry awards using the system at the London Gazette is almost impossible.

[Harriett Baldwin]

I share my hon. Friend’s support for that suggestion. It will be interesting to hear, as the Bill progresses, of any practical solutions to enable us to bring the system into the 21st century and create a database that is easily searchable and readily trusted. I hope that people will come forward with such solutions. The Government will of course make a fuller response to the Committee’s report in due course, but it is fair to say that we would need to consider carefully the practicalities of such a large task.

The Government support the Bill’s Second Reading today. It has some drafting issues that we will seek to help my hon. Friend the Member for Dartford to address in Committee, and I hope that he will take that as a constructive process, as we want to help him to produce a Bill that will achieve his laudable aims. I look forward to discussing the Bill further in Committee. Above all, I look forward to putting into statute our steadfast commitment to maintaining the solemnity of our military honours system for the sake of our brave servicemen and women, past, present and future, who have served and will continue to serve this country with selfless commitment, loyalty and integrity. I therefore once again congratulate my hon. Friend on introducing the Bill, and I urge the House to support its Second Reading today.

Oral Answers to Questions

Harriett Baldwin Excerpts

Monday 7th November 2016 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

1. What steps he is taking to ensure that SMEs are included in the supply chain for defence procurement programmes.

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

May I add my congratulations to Andy Murray? Having said those remarks, I am sure that Mr Speaker will be able to watch many more matches played by the world’s No. 1 tennis player. It is absolutely fantastic news.

Small businesses are vital for growth and innovation, whether they work directly with the Ministry of Defence or through our prime contractors. We have committed to increase our direct and indirect procurement spending with small and medium-sized enterprises from 19% to 25% by 2020.

[Mark Pawsey]

It is good to hear from the Minister that our armed forces can benefit from the innovation and entrepreneurship of small businesses. However, one such business in my constituency tells me that dealing with the Department can sometimes be overly bureaucratic, including the need to apply to remain on a list of approved suppliers. Can the Minister take any steps to simplify the process and encourage even more small businesses to come forward?

[Harriett Baldwin]

We recognise that processes are overly bureaucratic. We have got rid of the idea of an approved suppliers list, and we are working hard to reduce red tape. We are introducing a shorter contract and a network of supply chain advocates. May I suggest that any businesses in my hon. Friend’s constituency or any other contact the relevant supply chain advocate? I look forward to sending my hon. Friend those details later today.

[Mr John Spellar (Warley) (Lab)]

Will the Minister outline what steps are being taken to help British businesses? In that context, will she tell us why the Department decided to procure combat garments for the Army from a Spanish company rather than a Scottish one?

[Harriett Baldwin]

We welcome competition in procurement for all our contracts. We also recognise that our £178 billion equipment budget is being spent with more than 5,000 businesses here in the UK.

[Marcus Fysh (Yeovil) (Con)]

SMEs make up a large part of the helicopter manufacturing industry in my constituency and they are worried that the potential local closure of GKN foreshadows an erosion of that. What support can my hon. Friend provide to keep a full helicopter manufacturing capability in the Yeovil area?

[Harriett Baldwin]

I pay tribute to my hon. Friend’s fantastic work representing his constituents in Yeovil and the magnificent work that they do. We took delivery of the most recent Wildcat helicopter just in the last month. We look forward to working with Leonardo in Yeovil as part of a major strategic partnership agreement. It is important that my hon. Friend puts such issues about helicopter manufacturing forward as part of the industrial Green Paper that the Department for Business, Energy and Industrial Strategy will produce later this year.

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

Last week’s announcement on the Type 26 frigate was good news for Scotland. What steps have been put in place to ensure that UK SMEs and larger companies, for example those based in the north-east of England, will gain work from this contract?

[Harriett Baldwin]

The hon. Gentleman is right to highlight this fantastic news for companies up and down the country, including our shipbuilders on the Clyde. We have already announced contracts worth some £1.9 billion which are related to this programme right across the UK. Importantly, we will be publishing, alongside our prime contractor, the opportunities for the British steel industry to bid into this manufacturing opportunity.

[Michael Fabricant (Lichfield) (Con)]

One reason we have bureaucracy, which was mentioned by my hon. Friend the Member for Rugby (Mark Pawsey), is to ensure that SMEs stay in business during the whole course of a contract. The biggest enemy of any SME is a poor cash flow. What is the Department doing to ensure that SMEs are paid promptly?

[Harriett Baldwin]

My hon. Friend is right to highlight that this is an important issue, which is why the Ministry of Defence is so committed to being able to pay our invoices promptly. We give that guidance to our prime contractors, and I would certainly like to hear of any examples from Members of where prime contractors are not passing on that prompt payment from the MOD to their suppliers.

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

The Minister will be aware of the fabulous job being done by SMEs and large companies to deliver the Royal Navy carriers at Rosyth, both of which are on time and on budget. How does she plan to reward Rosyth and its highly skilled workforce after the carriers are gone? What good news has she got for Rosyth today?

[Harriett Baldwin]

I would have thought the hon. Gentleman might have started by welcoming Friday’s announcement about the shipbuilding jobs on the Clyde, but he is absolutely right that it is a wonderful national moment as we complete these two fantastic carriers at Rosyth. I am sure he and I are both looking forward to seeing the Queen Elizabeth sail down the Forth some time next year. Given the ambitious shipbuilding strategy that we have and the national shipbuilding strategy that will be announced nearer to the autumn statement, I am sure that there will be great news for shipbuilding across Scotland and the whole of the UK.

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

2. What assessment he has made of the effectiveness of the RAF's campaign in Iraq and Syria.

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[Dr Philippa Whitford (Central Ayrshire) (SNP)]

4. What recent support the armed forces have provided to the military campaign of the Saudi-led coalition in Yemen.

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

The UK is not a member of the Saudi Arabian-led coalition. British armed forces personnel are therefore not involved in selecting targets, carrying out strikes, or directing or conducting operations in Yemen.

[Dr Whitford]

The UK continues to supply arms to Saudi Arabia, despite repeated bombing of civilian targets and non-governmental organisation hospitals in Yemen. The most conservative figures from the United Nations Human Rights Council demonstrate that there have been at least 10,000 casualties and 4,000 confirmed dead in a country facing humanitarian disaster. Will the Minister and the Secretary of State heed the previous call by the Business, Innovation and Skills and the International Development Committees to end export licences for these arms, or are these casualties just considered a fair price to pay?

[Harriett Baldwin]

We will be responding to those reports imminently, but I want to put on record that we have one of the most robust arms export control regimes in the world. We are aware of the alleged violations that the hon. Lady mentions and we take alleged violations in this conflict extremely seriously.

[Kevin Foster (Torbay) (Con)]

I am sure the Minister will agree that in this situation we have to be careful what we wish for, given the alternatives. Will she outline what support the UK Government are giving to the parties involved to ensure compliance with international humanitarian law?

[Harriett Baldwin]

My hon. Friend is right to say that in this situation the UK particularly supports a political solution. We believe that this is the best way to bring long-term stability to Yemen and to end the conflict. With respect to ongoing support, the UK backed UN resolution 2216, as my hon. Friend knows, and we have an ongoing defence engagement relationship with the Saudi Arabian Government.

[Keith Vaz (Leicester East) (Lab)]

Last Monday, the Security Council discussed Yemen for the first time in six months. I observed the proceedings. There was unanimous support for an immediate ceasefire and the four-point plan put forward by Matthew Rycroft, our ambassador. Will the Minister speak to the Foreign Secretary in person or through the Defence Secretary to ensure that a new resolution is tabled as soon as possible so that it can be discussed and passed, and the humanitarian and military crisis can be dealt with?

[Harriett Baldwin]

The right hon. Gentleman, who pays such close interest to this subject, will be aware that the UK continues strongly to support the work of the UN special envoy, Ismail Ould Cheikh Ahmed, and we strongly support a political solution. I will certainly pass on the sentiments he has just expressed to colleagues in the Foreign Office.

[Lilian Greenwood (Nottingham South) (Lab)]

5. What steps his Department is taking to ensure that the provisions of the armed forces covenant are being implemented effectively in the UK.

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[Karl MᶜCartney (Lincoln) (Con)]

7. What estimate he has made of the increase in defence spending over the course of this Parliament.

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

This Government put our security first. The spending review confirmed that the Ministry of Defence’s budget will rise by 0.5% above inflation in every year to 2020. We will spend 2% of GDP on defence each year, and the defence budget will rise to almost £40 billion by the end of the decade.

[Karl MᶜCartney]

Sentinel aircraft based at RAF Waddington in my constituency play a vital role in the fight against Daesh, so may I welcome the Department’s announcement of £130 million support contract funding from our growing defence budget? Will the Minister confirm how many jobs that will sustain?

[Harriett Baldwin]

My hon. Friend is absolutely right to highlight the important role played by Sentinel aircraft based in his constituency. The contract is good news for the UK defence industry and it will sustain about 120 jobs at RAF Waddington in Lincolnshire, and about 40 jobs at Hawarden airfield in Broughton in north Wales.

[Nick Smith (Blaenau Gwent) (Lab)]

The pound has dropped nearly 20% in value and the price of vital military kit that we buy abroad is set to sky-rocket, so will the Minister confirm that we have enough contingency to pay for the F-35 fighters planned for the new aircraft carriers?

[Harriett Baldwin]

The hon. Gentleman will know that there is a double lock in terms of the budget and that it is based not just on 2% of our economy, which I am pleased to say grew again in the third quarter. There is also a lock in terms of a rise of 0.5% above inflation every year to 2020.

[Mr Julian Brazier (Canterbury) (Con)]

Will my hon. Friend confirm that this issue arose from the first review for about 30 years to result in an increase, rather than a reduction, in the size of the armed forces? Does she agree that, as the world gets more dangerous, it is all the more important that we get more bang for the buck from every pound spent?

[Harriett Baldwin]

May I pay tribute to my hon. Friend for his efforts during his time at the Department? They resulted in the settlement in the 2015 autumn statement, which I mentioned earlier. He is absolutely right to say that defence spending is going up every year, and that is so that we can invest in the new Type 26 frigates, aircraft carriers, attack helicopters, fast jets, armoured vehicles and, as we heard last week, our cyber-defences.

[Brendan O'Hara (Argyll and Bute) (SNP)]

May I begin by sending my condolences to the family and friends of Lance Corporal Joe Spencer, who was tragically killed at RAF Tain last week?

On Friday, I warmly welcomed the announcement that steel would be cut on the Type 26 frigates in summer 2017. However, I repeat my point that the contract remains unsigned, so will the Secretary of State get a move on and sign it? The defence procurement Minister said last year that Type 23s would be replaced by Type 26s on a like-for-like basis. Is that still the case?

[Harriett Baldwin]

I think I detected in that question a sliver of a welcome for the fact that my right hon. Friend the Secretary of State announced on Friday two decades’ worth of shipbuilding work on Type 26 frigates in Scotland. I remind the hon. Gentleman that none of that shipbuilding would have happened if he had achieved his desired outcome in the Scottish referendum.

[Brendan O'Hara]

Is it not the case that only the original order for 13 Type 26s would have kept the yards working until 2035? Now that there are only eight and there is no confirmation of the general purpose frigates, how can an order for just eight Type 26s secure two decades’ worth of work on the Clyde?

[Harriett Baldwin]

Did you, Mr Speaker, detect any mention there of the five offshore patrol vessels that are also being built on the River Clyde? The hon. Gentleman’s comments are absolutely extraordinary. I am reminded of the P.G. Wodehouse phrase—[Interruption.]

[Mr Speaker]

Order. It is bad enough for the hon. Member for Argyll and Bute (Brendan O'Hara) to ask a question that is too long, but for him to rant for too long and then, when the Minister gets up to reply, to continue ranting is not statesmanlike behaviour by the hon. Gentleman, for whom I previously had high hopes.

[Harriett Baldwin]

As P.G. Wodehouse said:

“It is never difficult to distinguish between a Scotsman with a grievance and a ray of sunshine.”

[Sir Gerald Howarth (Aldershot) (Con)]

As the former Minister responsible for Type 26s, may I warmly welcome the order for them, although I and the nation could well do with more? I also welcome the decision to maintain defence expenditure at 2%, but may I remind my hon. Friend that last year that was done only by viring £1.2 billion of expenditure from the Department for Work and Pensions to the Minister of Defence? Why is it that I am hearing from senior officers that their budgets are being cut this year and that they are having to find in-year savings? Where is the extra cash?

[Harriett Baldwin]

I pay tribute to my hon. Friend for his enormous contribution. He has always made the case for a growing defence budget. I am sure that he, too, will welcome not only the announcement we made last week about the Type 26 frigates, but the announcement made at last year’s strategic defence and security review that we would develop a general purpose frigate and commit to at least five of those.

[Nia Griffith (Llanelli) (Lab)]

It is right that the Government are sticking to our NATO commitment to spend 2% of GDP on defence, but as the Select Committee on Defence has noted, the Government are doing so only by including areas that were not previously counted. Can the Minister tell us what defence expenditure would be as a percentage of GDP if we used the accounting rules that were used in 2010?

[Harriett Baldwin]

We use exactly the methodology that NATO approves, and everything is consistent with NATO’s definition. I would like to take this opportunity to clarify whether the Labour party will also commit to spending 2% of the country’s GDP on defence.

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

8. What assessment he has made of the effectiveness of the armed forces’ contribution to the range of operations in which they are involved.

--- Later in debate ---

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

The Ministry of Defence meets the Treasury regularly as part of its routine business. The spending review set out the Ministry of Defence’s spending plans for the rest of this Parliament. The defence budget is growing at 0.5% above inflation each year until 2020. We also have access to the new joint security fund. These commitments mean that the defence budget will rise to almost £40 billion by the end of the decade.

[Chris Elmore]

I thank the Minister for her answer. I listened carefully to the answer she gave to my hon. Friend the Member for Blaenau Gwent (Nick Smith) on the cost of the pound and the purchasing power of the Ministry of Defence. The Royal United Services Institute has suggested that the purchasing power of the UK’s defence budget could be cut by 2% as a result of the fall in sterling. What plans do the Government have to offset that?

[Harriett Baldwin]

Again, I put on the record the fact that defence spending will go up regardless of currency fluctuations because of the double lock on the defence budget. As part of ongoing management of the budgets at the Ministry of Defence, we pay and have paid regard to the currency risk in terms of our procurement programme.

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

When Ministers meet the Chancellor of the Exchequer will they remind him that although the defence budget is going up in absolute terms it is nevertheless at a lower proportion of GDP than ever before? We really ought to be looking at something approaching the 3% mark, bearing in mind the fact that the level of threat we face today is similar to that of the 1980s, when we regularly spent between 4.5% and 5% of GDP on defence.

[Harriett Baldwin]

My right hon. Friend was calling for 5% the other day—“Go for five and stay alive” was the catchphrase he came up with, I think. He is right that it is important that we continue to keep the Ministry of Defence’s budget under review, and we were very pleased that last year the spending review committed to a rise of 0.5% above inflation every year during this Parliament. Another spending review will have to look at the budget again in due course.

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

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

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

We have heard a lot this afternoon about the Type 26 frigate, but I should like to ask about our minesweeping capability. What progress and innovation in minesweeping technology has been made for the Navy?

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

I was delighted recently to announce, along with our French partners, an unmanned maritime minesweeping capability. We are building the demonstration phase, which will be an innovative and interesting investment in minesweeping technology.

[Luciana Berger (Liverpool, Wavertree) (Lab/ Co-op)]

T4. Shortly after the EU referendum, the Defence Secretary said that Britain could continue even after Brexit to take part in EU defence missions, such as the ongoing operations to tackle smuggling, people smuggling and piracy. We are now just months away from Britain triggering article 50 and our forces and our allies need certainty about what Britain’s continued participation might look like. Will the Minister or the Defence Secretary provide us with that certainty today?

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[Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)]

T5. Following publication of the highly critical marine accident investigation report on the collision between the stern trawler Karen and a dived Royal Navy submarine, and given the report’s urgent recommendations, what progress has been made on updating the Royal Navy fishing vessel code of practice?

[Harriett Baldwin]

I will look into the matter the hon. Gentleman raises and write to him.

[Simon Hoare (North Dorset) (Con)]

Most of us in this place would welcome the announcement, made last week, with regard to the Type 26 ships. Does my right hon. Friend share my bemusement at the carping and pettifogging from some hon. Members about this rather welcome announcement?

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[Mr John Spellar (Warley) (Lab)]

T7. When the Department decided to purchase the P-8A maritime patrol aircraft from the United States without competition, what arrangements did the Minister make to secure work for British companies and British workers?

[Harriett Baldwin]

The right hon. Gentleman is very knowledgeable about these matters, so, again, I would have thought he would welcome the fact that we are acquiring this capability, which will be based at Lossiemouth in Scotland. Discussions with Boeing are ongoing in relation to the substantial inward investment it is making in the United Kingdom.

[James Berry (Kingston and Surbiton) (Con)]

The increase in Russian aggression is concerning many of our NATO allies. Can my right hon. Friend provide reassurance on what reassurance he has given to them in the face of this increased aggression?

Type 26 Frigates: Clyde

Harriett Baldwin Excerpts

Tuesday 18th October 2016 Westminster Hall

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

Let me start by saying what a pleasure it is to serve under your chairmanship this afternoon, Mr Hollobone. I congratulate the hon. Member for West Dunbartonshire (Martin Docherty-Hughes) on securing this debate and for providing me with the opportunity to update the House on this important subject.

The 2015 strategic defence and security review restated this Government’s commitment to the Type 26 global combat ship programme. It was a positive strategic defence and security review for the Royal Navy, committing to an increase in the size of the service for the first time in a generation.

There has been a high level of interest in the programme since we announced our plans and I, along with ministerial colleagues, have consistently confirmed the Government’s continuing commitment to it. Let me once again reiterate that commitment. The Type 26 global combat ships remain critical for the Royal Navy and nothing has changed since last year’s strategic defence and security review. We are going ahead with eight anti-submarine warfare ships and all eight ships will be built at the BAE Systems shipyards on the Clyde.

We have backed up our commitment with significant investment as we continue to progress the Type 26 programme. We announced in March this year the award of a contract with BAE Systems, valued at £472 million, to extend the Type 26 demonstration phase to June 2017, enabling us to continue work with industry to develop an optimised schedule for the programme to reflect the outcome of the strategic defence and security review; to mature further the detailed ship design ahead of the start of manufacture; to invest in shore testing facilities; and to extend our investment in the wider supply chain to cover almost all the equipment for the first three ships.

[Wayne David]

I welcome what the Minister has said, but it is worth pointing out that so far there is nothing new in it. Will she tell us when the manufacturing start date will be?

[Harriett Baldwin]

I did not say that in updating the House there would necessarily be anything new, but I do want to reiterate the commitments that I have previously made.

The work will benefit suppliers across the country, injecting an estimated £200 million into the UK supply chain and sustaining 1,600 high-quality jobs, an estimated 600 of which—more than a third—are in Scotland. From Loanhead in Midlothian, where the helicopter handling equipment will be built, to Fleet in Hampshire, where communications equipment will be developed; from Dunfermline in Fife, where the steering gear will be built, to Huddersfield in West Yorkshire, as mentioned by my hon. Friend the Member for Colne Valley (Jason McCartney), where the gearboxes will be constructed—this investment is good news for UK industry. Furthermore, we announced in July the latest commitment of £183 million to buy the maritime indirect fires system—the five-inch gun—for the first three ships. That takes our total investment in the Type 26 programme so far to £1.8 billion, which is hard evidence not only of our commitment to the programme but of real progress in delivery.

[Chris Stephens]

Like the shadow Minister, the hon. Member for Caerphilly (Wayne David), I am guessing that we are not going to get a date for cutting steel this afternoon. Is it the Ministry of Defence’s intention to tell us the expected date for cutting steel on the Clyde before or after the autumn statement?

[Harriett Baldwin]

The hon. Gentleman is going to get a lot of interesting stuff from me this afternoon, so he will have to sit on the edge of his seat as I speak. I will give the hon. Member for West Dunbartonshire three minutes to sum up.

A key focus of this afternoon’s questions has been the timetable for the programme and the building of the ships. The timing of the award of the build contract and the build schedule itself are key components of the ongoing commercial negotiations between the Government and BAE Systems. We are negotiating a deal that aims to optimise the Royal Navy’s requirements, in terms of the capability that the ships will deliver; to achieve value for money for defence and the taxpayer; and to deliver a build schedule that drives performance by industry. Those negotiations are continuing, so I am not in a position to give a specific date for when an agreement will be reached. I am sure hon. Members will appreciate that, to protect the Ministry of Defence’s commercial interests, disclosing any such detail would be inappropriate at this time.

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

The Government have given assurances to Lockheed Martin and those working on the F-35s in Fort Worth in America right through to the end of 2030, but they are totally unable to do so to the workforce at BAE Systems in Scotstoun and Govan to the end of this decade. Surely there is a mismatch between their commitment to British workers and their commitment to those in America.

[Harriett Baldwin]

With the greatest respect, I do not accept the hon. Gentleman’s statement. We have an incredibly ambitious shipbuilding programme in this country. In Scotland at the moment, we are building the two largest warships that the Royal Navy will ever take delivery of. The hon. Gentleman cannot complain in any way about the ambition of our shipbuilding programme in the Clyde; I do not accept that in any way, shape or form.

I want to touch on the national shipbuilding strategy, which was raised by the hon. Member for Strangford (Jim Shannon) and others. I hope the assiduous Member for Strangford has had a chance to meet with Sir John Parker, who hails from Northern Ireland, as part of his review. He is a leading authority on naval shipbuilding and was appointed independent chair of the shipbuilding strategy. He will make his recommendations by the time of the autumn statement.

[Jim Shannon]

The Minister will be aware that Sir Mark Stanhope, the First Sea Lord of the Navy, attended the Defence Committee. He said that if we do not cut the steel soon, some very old frigates will be protecting brand new carriers and the strategic nuclear deterrent, and he warned that the Navy is in danger of not being able to fulfil all the requirements expected of it. The date is so important—can the Minister give it to us?

[Harriett Baldwin]

In answers to the House, we have disclosed the out-of-service dates for the existing Type 23 frigates. They are a matter of public record. Clearly, the acquisition of the Type 26 global combat ship will be crucial to the future of the UK’s shipbuilding industry, and will form part of the national shipbuilding strategy. The Type 26 global combat ship will form a key component of the future maritime force, but last year’s strategic defence and security review also considered more widely how it will replace our current in-service frigates.

Hon. Members will be aware that there are currently 13 Type 23 frigates in service with the Royal Navy. The eight Type 26 global combat ships will be built to replace the current eight anti-submarine warfare Type 23 frigates on a one-for-one basis. The capability currently provided by the five general-purpose Type 23 frigates will be met by a new class of light, general-purpose frigate that will, by the 2030s, enable us to increase the overall number of frigates. The programme to take that commitment forward is in its pre-concept phase and is a key part of the national shipbuilding strategy. I look forward to receiving Sir John Parker’s recommendations on taking the programme forward soon.

[Brendan O'Hara]

If the Minister is unable to give a date for when the steel will be cut on the Type 26s, will she at least confirm that the five general-purpose frigates will be built on the Clyde?

--- Later in debate ---

[Harriett Baldwin]

I have given the hon. Gentleman a range of dates for some of the commitments we have already made and some of the contracts we have already placed as a result of this programme, which sustain jobs across the UK.

The need to ensure we have the skills required to deliver Type 26 also came up in the debate. That is an essential factor in the successful delivery of the programme and is crucial to our strategic aim of placing UK shipbuilding on a sustainable long-term footing.

In the interests of time, I will quickly skip through the issue of offshore patrol vessels. We are looking forward to the delivery of HMS Forth—a ship of that class—next year, and HMS Medway and HMS Trent remain on track.

It is important to put the Type 26 programme in its wider context. Overall, last year’s SDSR achieved a positive and balanced outcome. We are growing the defence budget in real terms for the first time in six years and delivering on our commitment to spend at least 2% of GDP on defence. The SDSR enables us to invest £178 billion in new equipment for our armed forces over the next decade, an increase of £12 billion on previous plans. In the maritime sector, we have set the trajectory for expansion of the Royal Navy’s frigate fleet as we spend about £8 billion on Royal Navy surface warships over the next decade.

As I have explained, we continue to progress the Type 26 global combat ship programme. Hon. Members with constituents who work at the shipyards on the Clyde rightly emphasised the importance of the Type 26 global combat ship programme to the workforce. In response to concerns expressed on their behalf, the Ministry of Defence has consistently restated its commitment to the programme and confirmed that all eight ships will be built on the Clyde. There should be no lingering doubt on that point or on the idea that Royal Navy vessels would be built on the Clyde had Scotland voted to leave the United Kingdom.

[Chris Stephens]

The Minister mentioned the national shipbuilding strategy, which has to report by the autumn statement. I am going to ask the question I asked earlier: does she expect an announcement on the procurement of Type 26 frigates by the autumn statement? That would be helpful for my constituents.

--- Later in debate ---

[Harriett Baldwin]

The hon. Gentleman is doing the right thing in representing the interests of his constituents. He is correct that the national shipbuilding strategy will report by the autumn statement.

Let me conclude, because I want to leave time for the hon. Member for West Dunbartonshire. It is of crucial importance to the Royal Navy that the Type 26 programme delivers the capability it needs. Equally, for the taxpayer it is crucial to ensure the delivery of a programme that represents value for money for the scale of investment it represents.

Defence

Harriett Baldwin Excerpts

Tuesday 11th October 2016 Ministerial Corrections

[Christina Rees]

Now that Government Departments are mandated to provide information about the proportion of UK steel used in the Crown Commercial Service, will the Minister please tell the House what percentage of UK steel is used in current defence projects and what percentage will be used in future?

[Harriett Baldwin]

The hon. Lady rightly speaks up for steel production in her constituency. She will be very pleased to know that, for the largest project that the UK Government have ever procured that uses steel—she will be aware that that is the carrier programme currently under construction on the Clyde—the vast majority comes from Tata Steel. I believe it is 94%.

[Official Report, 12 September 2016, Vol. 614, c. 586.]

Letter of correction from Harriett Baldwin:

An error has been identified in the response I gave to the hon. Member for Neath (Christina Rees) during Questions to the Secretary of State for Defence.

The correct response should have been:

[Harriett Baldwin]

The hon. Lady rightly speaks up for steel production in her constituency. She will be very pleased to know that, for the largest project that the UK Government have ever procured that uses steel—she will be aware that that is the carrier programme currently under construction in Rosyth—the vast majority comes from Tata Steel. I believe it is 95,000 tonnes.

Oral Answers to Questions

Harriett Baldwin Excerpts

Monday 12th September 2016 Commons Chamber

[Alberto Costa (South Leicestershire) (Con)]

10. What steps he is taking to increase the level of defence spending with small firms.

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

Small businesses are crucial for growth and innovation in this country, and we want them to take an increasing share of our growing defence budget. We are committed to achieving 25% of our procurement spend being with small and medium-sized enterprises by 2020. That target is 10% higher than the one set during the last Parliament.

[Victoria Prentis]

May I say how nice it is to see my hon. Friend in her place? May I drill down a little and ask her what steps she can take to ensure that the Ministry of Defence’s largest customers use small firms to deliver their contracts?

[Harriett Baldwin]

My hon. Friend is absolutely right that it is essential that we work on that not only in our direct defence procurement process but with our supply chains. I am delighted to be able to let the House know that the supply chain advocate network and the supply chain champions, which my predecessor announced, are well under way, and that last year the Ministry of Defence was able to have direct spend with almost 5,000 different companies.

[Alberto Costa]

What measures can the MOD take to reduce the regulatory burden on small firms such as those in my constituency when they make applications for defence equipment procurement?

[Harriett Baldwin]

My hon. Friend is right to highlight ways in which we can make the process easier for small and medium-sized businesses. For example, this year we removed the turnover requirement in the pre-qualification process, and we are working towards simplifying the contract terms and reducing them to just three pages.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I welcome the Minister to her new position. Will she take notice of what happens in Huddersfield, where we have David Brown Gear Systems and many other fine companies making things that our defence forces want? Will she dissociate herself from the term “fat and lazy”, which was used about British businessmen? We have no fat and lazy businessmen in Huddersfield.

[Harriett Baldwin]

Those were certainly not my words, and I pay tribute to the many businesses in Huddersfield and South Yorkshire that do such wonderful work in supplying the Ministry of Defence.

[Richard Arkless (Dumfries and Galloway) (SNP)]

On Wednesday I raised the issue of an engineering company in my constituency that had gone into administration. I place on record my appreciation of the Minister, who, at very short notice, scrambled around and rearranged her diary to meet the administrators, who are in the Gallery today. We thank her very much. In advance of that meeting, will she agree to work with me and the administrators to leave no stone unturned, so that we can do our best to save valuable jobs and engineering experience at Penman?

[Harriett Baldwin]

The hon. Gentleman is working hard to represent the interests of his constituents; not only did he raise this case last week at Prime Minister’s questions but I am pleased to say that we will be able to meet him and the administrators later today.

[Mark Pawsey (Rugby) (Con)]

In Rugby we are very proud of the contribution that GE Power Conversion is making to the Type 26 global combat ship programme; it is also important to recognise its contribution to the local economy through the orders it places with subcontractors and through local small businesses.

[Harriett Baldwin]

My hon. Friend is absolutely right to highlight that earlier this year we were able to announce contracts for some of the long lead-time items as part of that programme, and also to highlight the way in which small and medium-sized businesses play such an important role in that supply chain.

[Kate Hollern (Blackburn) (Lab)]

It is interesting to listen to the Minister. I greatly support the aim of 25% of defence expenditure being with small and medium-sized enterprises by 2020. However, figures published last month showed clearly that only 2% of spending went to companies assessed as SMEs. The SME status of suppliers is determined by independent verifiers. Why has there been no assessment of new MOD suppliers since 2014? Is the Department resorting to creative accountancy?

[Harriett Baldwin]

I do not recognise the figures that the hon. Lady cited. I can confirm that in 2014-15 we spent 19% with small and medium-sized businesses. She will be aware that, as she highlighted, the contract with Dun and Bradstreet for evaluating the characteristics of different firms, which is a Cabinet Office contract, ended in 2014. We are in the process of discussing with Cabinet Office colleagues what the successor framework will be like.

[Mr Dominic Raab (Esher and Walton) (Con)]

5. What steps he is taking to prevent abusive litigation against the armed forces.

--- Later in debate ---

[Christina Rees (Neath) (Lab/Co-op)]

7. What steps he is taking to ensure that the British steel industry and its workers benefit from current and future defence procurement.

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

We positively encourage bids from British companies to ensure they are in the best possible position to win future steel contracts. We have issued new policy guidance to address the barriers which might prevent UK steel producers from competing effectively in the open market.

[Christina Rees]

Now that Government Departments are mandated to provide information about the proportion of UK steel used in the Crown Commercial Service, will the Minister please tell the House what percentage of UK steel is used in current defence projects and what percentage will be used in future?[Official Report, 11 October 2016, Vol. 615, c. 4MC.]

[Harriett Baldwin]

The hon. Lady rightly speaks up for steel production in her constituency. She will be very pleased to know that, for the largest project that the UK Government have ever procured that uses steel—she will be aware that that is the carrier programme currently under construction on the Clyde—the vast majority comes from Tata Steel. I believe it is 94%.

[Tom Pursglove (Corby) (Con)]

I wholly support the increasing use of small firms for defence procurement, but will the Minister undertake to encourage those small firms to use British steel wherever possible?

[Harriett Baldwin]

My hon. Friend is absolutely right that it is a process of encouraging competition not only within the procurement process, but where there are long lead-time items. In our strategic defence and security review, we clearly set out the largest programme of investment in ships for some time, and there will be a lot of long lead-time items. Small business and producers will be able to work with those who are procuring contracts with prime contractors to find a place in that supply chain.

[Kate Hollern (Blackburn) (Lab)]

Recent defence procurement decisions have failed to take into account the benefits to the UK economy gained by manufacturing domestically. A growing number of products, particularly steel, are procured abroad. Will the Minister therefore commit to assess the wider economic and social benefits derived from building the three new solid support vessels in the UK with British steel, and to share that information with the House?

[Harriett Baldwin]

The hon. Lady is right again to highlight the fact that, in our strategic defence and security review, we set out a programme in which we are investing in more ships and more aeroplanes, and there is more cyber-investment. She mentions the solid support ships. They will not be procured until later in the Parliament, but I assure her that we will do everything we can with those long lead-time items and the programmes that have been set out in advance to ensure that British companies, including British steel companies, have all the information they need to be successful.

[Nigel Mills (Amber Valley) (Con)]

8. What recent assessment he has made of the value for money obtained from single-source defence procurement contracts.

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

Competition remains the best way of securing value for money but sometimes we need to place single-source contracts. We therefore established a new regime backed by statute with an independent regulator to ensure contract costs and profit rates are both reasonable and transparent.

[Nigel Mills]

I thank the Minister for that answer. If the Single Source Regulations Office to which she refers seeks to proceed with its current proposal to reform the profit rates on those contracts, will she commit that those changes will this time have the Government’s support?

[Harriett Baldwin]

Yes, in March this year we reduced the profit rate on single-source contracts from 10.6% to 8.95%. The regulator will then recommend a rate for 2017, which we will consider carefully, along with its recommendation on multiple profit rates.

[Mrs Madeleine Moon (Bridgend) (Lab)]

What steps will the Minister take to ensure that, where single-source contracting is placed abroad with, say, American companies, there are appropriate levels of set-aside, so that apprenticeships and the seed-corning for future capability in British defence companies are protected and facilitated?

[Harriett Baldwin]

The hon. Lady will be aware that that is an ongoing subject of discussion, and of the commitment that General Dynamics has made in Wales in the part of the world she represents to create 250 jobs in the supply chain for the Ajax vehicles.

[Mr Philip Hollobone (Kettering) (Con)]

Whether contracts are derived from single source or open competition, unnecessary costs can be incurred when design specifications are changed after the contract has started, for example with the Type 45s. What steps is the Minister taking to ensure that late changes after contracts have started no longer occur?

[Harriett Baldwin]

My hon. Friend is right to highlight one of the major themes that came out of the review into how we can improve defence procurement. As he rightly points out, there were problems with the design of the Type 45, which was ordered at the beginning of the previous decade, that have subsequently been costly to rectify. That is why we now take such care on design: to prevent such things from happening in future.

[Andrew Gwynne (Denton and Reddish) (Lab)]

I welcome what the Minister said in answer to an earlier question about targets that are in place to ensure small and medium-sized enterprises in the UK benefit from defence procurement. When she is considering value for money and single-source contracts, can she assure the House that value for money includes British jobs, British skills and, as my hon. Friend the Member for Bridgend (Mrs Moon) said, investment in apprenticeships?

[Harriett Baldwin]

I thank the hon. Gentleman for mentioning apprenticeships and our commitment to continuing to work with our single-source suppliers. We can clearly see that they are some of the lead providers of apprenticeships across the defence procurement area.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

9. What recent assessment he has made of the effectiveness of his Department’s support for commercial applications of UK military research.

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[Mr Douglas Carswell (Clacton) (UKIP)]

12. If he will make it his policy to co-operate with NATO members at the concept and assessment stage of the procurement cycle for the Type 31 frigate.

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

While we must maintain the UK’s freedom of action to operate independently, interoperability with our NATO allies is fundamental to virtually all UK defence capabilities. For the general purpose frigate, the Royal Navy is already exploring how that could be delivered, and considering how the ship will operate within NATO.

[Mr Carswell]

Does the Minister agree that opening up more of the procurement process to a broader range of suppliers, and avoiding any hint of protectionism, may make it possible to keep the cost of replacing our frigates low?

[Harriett Baldwin]

The hon. Gentleman takes a close interest in defence procurement issues, and I know that, like the rest of the House, he will be eagerly anticipating Sir John Parker’s national shipbuilding strategy, which he has committed himself to publishing before the autumn statement. In that context, the hon. Gentleman will obviously be aware that complex warships can only be built in the United Kingdom.

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

When can we expect an announcement on the building of the Type 31s? We have the capability, we have the skills, and presumably we have the budget. Scotland expects!

[Harriett Baldwin]

Let me gently remind the hon. Gentleman that we are building these ships because we all decided to remain part of the United Kingdom. We are in the process of providing our armed forces with more ships, more aircraft and more equipment than ever before. As soon as we have a concrete timetable to announce to the House, we will do so.

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

13. What changes have been made to the timetable for building Type 26 and general purpose frigates on the Clyde.

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[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

T2. Easat Radar Systems in Stoke-on-Trent is a cutting-edge business supplying coastal-based radar surveying UK waters and exporting round the world. This is the kind of British-based defence manufacturing we need as Russia continues to test our defences and security concerns about breaches to our coastline grow. The Minister for Defence Procurement is already coming to Stafford. I invite her to come to Stoke-on-Trent afterwards to visit Easat Radar Systems to give the business the support it deserves.

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

The hon. Gentleman is a doughty champion of businesses in Stoke-on-Trent. I know that the Secretary of State has already offered a meeting with businesses in that constituency, and I look forward to hearing more about the particular one he mentioned in his question.

[Robert Jenrick (Newark) (Con)]

T8. Will the Minister support the recent application by the Magnus Church of England Academy for a new cadet force? Does he agree that schools such as that academy, situated within a deprived area and with a persistent problem of white working-class boys, are exactly where new cadet units will make a difference?

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[Toby Perkins]

Thank you; very kind. A few moments ago the Under-Secretary of State for Defence, the hon. Member for West Worcestershire (Harriett Baldwin), said that we were procuring more warships and aircraft than ever before. That is far removed from reality. In setting the record straight, can she confirm whether such information is part of the induction into the Ministry of Defence team, or did she come up with it all by herself?

[Harriett Baldwin]

I recommend that the hon. Gentleman read the strategic defence and security review. He can see that we are increasing defence spending every year and we are investing in more ships, more planes, more troops who are ready to act, better equipment for our special forces and more for cyber, in contrast to the Labour party, which wants to scrap our nuclear deterrent, withdraw from NATO and abolish our Army. Labour cannot be trusted with our security.

Oral Answers to Questions

Harriett Baldwin Excerpts

Monday 16th December 2013 Commons Chamber

[Mr Hammond]

No, I do not, as the hon. Gentleman will not be surprised to hear. Defence acquisition is one of the most complex business areas in the country. It has a long history of challenge, as has been recognised under both Governments, and we are working on what I hope will be a long-term solution. The Gray report was commissioned by the previous Government, and we have sought to maintain a thread of continuity from the thinking that underpinned it. Unfortunately, it has not been possible to proceed to a GoCo at this time, but I believe that the exercise has been extremely valuable in informing this process, and it is clear that DE&S is making incremental progress, even though the step change that we were hoping for with GoCo was not able to be delivered.

[Harriett Baldwin (West Worcestershire) (Con)]

20. What recent discussions he has had with his NATO counterparts on security in the Baltic region.

[The Secretary of State for Defence (Mr Philip Hammond)]

I have regular discussions on Baltic security with my NATO counterparts. I met them at the NATO defence ministerial on the 22 and 23 October, I visited Estonia on 2 December and I attended a meeting of the Northern Group in Helsinki on 3 December. The Northern Group consists of the northern European NATO Allies with the addition of Sweden and Finland.

[Harriett Baldwin]

At those meetings, did my right hon. Friend discuss with his Baltic counterparts the recent Russian military exercise called Zapad 13?

[Mr Hammond]

My hon. Friend is obviously aware of the issues that are of concern to our Baltic and Nordic colleagues and the subject of Zapad 2013 did indeed come up. The stated intention of the Zapad 2013 exercise was to repel terrorists threatening Russia and Belarus. To that end Russia claims that it deployed 11,900 troops and 180 items of military equipment, including 10 tanks, 40 aircraft and 10 ships. Some of our Nordic and Baltic colleagues see that as a slightly excessive response to a terrorist threat exercise, but Members of the House will understand that the Baltic states in particular continue to express unease about a large-scale Russian exercise close to their borders.