(10 years, 1 month ago)
Commons ChamberI am sure that the Minister would like small and medium-sized enterprises to benefit from these contracts as much as large companies. What is he doing to make it easier for SMEs to get into the supply chain?
As I have told the House during nearly every session of defence questions, securing greater penetration of the MOD’s contracting base by SMEs is an important priority for the Ministry and for me. On Tuesday next week I shall chair the latest SME forum to discuss that very subject.
I thank my hon. Friend not just for her question, but for her letter. I have seen letters from various schools in her constituency, and I note that a large number of them are state schools with existing CCFs. It would not be our plan at all to threaten any existing CCF, and we will do everything we can to ensure that that does not happen. However, we have to look at a good funding solution for our expansion programme, which is exactly—with a new Secretary of State—why we have consulted on it.
T7. I welcome the contract awarded for maritime support at HM Naval Base Clyde. Will the Minister give more detail about how many apprenticeships will be created through the contract?
I can give the hon. Gentleman a little extra detail, but I may not satisfy him completely. The contract values by location are £1.98 billion at Devonport, £600 million at Portsmouth and £632 million at the Clyde, which breaks down to £2.6 billion for Babcock and £600 million for BAE Systems. Of course, both those companies are intimately engaged in the defence apprenticeship programme.
(10 years, 8 months ago)
Commons ChamberI am most grateful to my hon. Friend, whose own constituency has a very strong defence footprint with Raytheon, which I might mention later. He is absolutely right to raise the issue of the seven decommissioned nuclear hulks, which are lashed against the wall in the basin, as it is unclear whose responsibility they would be if Scotland were independent. My understanding is that if they are determined to be fixed now in Rosyth, they would pass as a liability to the Scottish Government. However, if we believe they are part of the overall movable pool, a fraction of the 17 decommissioned submarines we have in the UK would be the responsibility of the Scottish Government. Either way, the Scottish Government would be stuck with a clean-up to do and would not know how to go about doing it. My hon. Friend is entirely right to have raised the subject. I hope that we can get some idea from Ministers in the two Governments over the next six months about how such ambiguity might be resolved before the referendum.
On the broader point about the two carriers, it is obvious that Portsmouth will be their home and the location in which their routine maintenance will be carried out. That is the correct decision. I remember one of the earliest times that the hon. Member for Portsmouth North and I debated that maintenance with the former Prime Minister, my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown), in November 2010. As the Under-Secretary of State for Defence, the hon. Member for Ludlow (Mr Dunne), who has responsibility for defence procurement, said yesterday at Defence questions, Rosyth is clearly in prime position to provide deep maintenance. Babcock’s business plan is based on that assumption.
I congratulate my hon. Friend on securing the debate, and I believe that there will be many such debates over the coming weeks and months about Scotland’s future after the referendum in September 2014. Is he as alarmed as I am by the recent press release by Babcock and the trade unions at Rosyth, which stated that without defence contracts, it would be impossible to sustain Babcock’s presence, and therefore its work force, in Rosyth?
My hon. Friend is entirely correct. He is as perceptive as ever, because I was about to come to that point. Without that deep maintenance work, the Babcock business case is destroyed. Last week, Babcock’s industrial unions warned that 800 job losses would result. I pay tribute to the full-time convener, Raymond Duguid—one of my hon. Friend’s constituents—for his work and for the productive way in which the work force at Rosyth dockyard engage with the management. They are all on the same side; they all want to serve the customer, the nation and the Royal Navy. They have a shared concern, which it is important to highlight. Again, it is disappointing that not one SNP Member could be bothered to turn up for this important debate.
The work force and management have made it clear that there will be significant job losses, which will place the long-term viability of the yard under threat. I hope that the Minister will set out the Ministry of Defence’s vision for the future of the defence industry in West Fife. In the neighbouring constituency of my right hon. Friend the Member for Kirkcaldy and Cowdenbeath, there is a BAE Systems plant at Hillend, which makes parts for the Typhoon aircraft. In addition, my hon. Friend the Member for Glenrothes (Lindsay Roy) has Raytheon, a significant employer, in his constituency.
I commend the work of the House of Commons Defence and Scottish Affairs Committees, which have both looked at the implications of independence. Both Committees’ reports are useful, worthy and thoughtful pieces of work, and it is fair to say that they have reached similar conclusions. Many high-tech, specialised electronics companies such as BAE Systems and Raytheon would not be able to stay in Scotland unless specific guarantees were provided to the rest of the UK Government. So far, it has been clear from the SNP’s utterances that that is unlikely to happen. At a time when we are all pulling together and trying to secure, for example, new orders for the Typhoon in the middle east—we still hold out hope that we will also be successful in India and in Europe—it is slightly bizarre that the SNP is not engaging in a positive manner to help to secure those jobs in Scotland.
We cannot possibly discuss industrial strategy in Scotland without talking about the future of the Clyde. Incredibly difficult decisions had to be made, as part of the terms of business agreement, about the future of Portsmouth and the Clyde. I know how passionate people on the south coast are about the region’s, I think, 400-year history of shipbuilding, but the decision has been made to build the Royal Navy’s Type 26 frigate on the Clyde. We are seeing that arrangement developing, with the process of ensuring that Scotstoun, in particular, is ready to take on the work.
The SNP’s White Paper is a load of fiction. It says not only that an independent Scotland would buy the Type 26 but that the rest of the United Kingdom would build its Type 26s in Scotland.
I am grateful for that helpful intervention, which demonstrates something that the SNP will not acknowledge—namely, that there are and will continue to be alternatives to the Clyde. It is absolute nonsense to suggest that English MPs with shipyards in their constituencies would simply say to the Ministry of Defence, “Go on, give that multi-million pound order to another country, even though we have pressing needs in our own yards.” There is no way that English MPs would do that, be they in Plymouth, Appledore, Portsmouth or Barrow—or, indeed, on Tyneside. And how could we forget the Jarrow yard or the Birkenhead yard? There is no shortage of space for these construction contracts.
Speaking as one who represents a constituency on the banks of the Clyde, I can tell my hon. Friend and the hon. Member for Portsmouth North (Penny Mordaunt) that there were no celebrations there when Portsmouth was losing out and the Clyde was gaining. There is a connection and a deep sympathy between all the shipbuilding industries around the country.
My hon. Friend is absolutely right. That was not a day of celebration. There are genuine ties between the various yards. They share a common union body—the Confederation of Shipbuilding and Engineering Unions—and they campaign together to protect and sustain this crucial industry, which is in our national interest.
There is obviously no shortage of firms to carry out this work. I see that my hon. Friend the Member for Ochil and South Perthshire (Gordon Banks) is in the Chamber. He was gracious enough to take me along to see a company in his constituency, Vector Aerospace. He has been a real champion of that company. It is inconceivable to me that the British Army and the Royal Air Force would continue to send Chinook parts to Perthshire for repair, if Perthshire were to be in a foreign country, when they could have the work done elsewhere in the United Kingdom. I say again that it is disappointing that not one SNP Member is here tonight. Perhaps that is because they are fearties, but they should be here to make their case, and to explain to the people of Scotland what the implications of independence are for defence and the defence industries.
I have said quite a lot about manufacturing, so I shall turn now to the so-called Scottish defence force. Over the past 12 to 18 months we have seen the SNP changing its position and rewriting documents. It went from being outside NATO and completely opposed to it, to being a full member, without even having to apply. It then changed its policy again. When the Minister for Transport and Veterans, Keith Brown, appeared before the Defence Committee last July, he admitted that an independent Scotland would have to apply for NATO membership. That was then flatly contradicted by Alex Salmond, who continues to put around the lie that somehow Scotland would automatically be a member of NATO. It would be helpful if the Minister could tell us what he thinks about those contradictory positions. SNP Ministers say one thing when they are under oath in front of a Select Committee and then say something completely different when they are safely back in Scotland and they think that no one is paying attention to them.
There are some serious concerns about the ability of Scotland to defend itself given the SNP’s plans. It was quite clear from when the Defence Committee took evidence that, in order to maintain simple air defences, Scotland would need, according to Air Marshal Iain McNicol, the equivalent of two squadrons of Typhoon aircraft. The SNP now claims that it would inherit a number of aircraft from the Royal Air Force. That is based on the argument, with which I have a huge amount of sympathy, that that is what happened in Czechoslovakia when it broke up. A proportion of aircraft went to the Czech Republic and a proportion to the Slovak Republic. Even under the most generous of assumptions—the Ministry of Defence has done the figures and they were used by the Secretary of State last year—Scotland would have only eight Typhoon aircraft. It would have to spend more than £1 billion purchasing additional Typhoons.
The same is true with regard to the Royal Navy. Again, the SNP is making contradictory statements. It claims in its party policy that it wants a squadron of submarines, yet in its White Paper, there was no mention of submarines. Perhaps like many other SNP policies, that has sunk beneath the waves.
The SNP has also claimed that it would need 15,000 regular personnel. Although the Minister and I may disagree on aspects of the strategic defence and security review, I am sure that we agree on the correct way of approaching a defence policy. One needs to set out strategic aims and threats, what posture needs to be adopted and what personnel and equipment numbers are needed to effect that posture. Then one needs to put together the money. What the SNP has done is to pick a random figure of 15,000. At no point has it provided any coherent explanation as to what it is, nor has it explained from where the troops would be recruited. Where would these air men and women, sailors and soldiers come from? The SNP claims that it is entitled to those members of the armed forces who have some sort of Scottish qualification.
Is the SNP not also claiming that, in order to keep the same level of work force at Faslane, it would base the Army, the Navy and the Air Force in that area—putting all its eggs in one basket? How defensive is that?
My hon. Friend makes an important point. The SNP proposes to put its joint headquarters command for the three services at Faslane. The best and most optimistic estimate that the Defence Committee was able to make of the total headcount of the conventional Navy that the SNP would create under the joint headquarters command is that it would only, at most, provide approximately 4,500 personnel at Faslane, compared with the 8,000 who are there now. That force will get bigger over the next year as the Astute-class moves to Faslane. The SNP’s numbers just do not add up.
The other point that has not been touched on is training. If we were to assume that within the 15,000 head count, about 8,000 to 10,000 were Army, the SNP would need approximately 200 officer cadets every year to populate its officer corps.
Sandhurst takes only 120 international students a year at the moment and the SNP is silent on where its officers will be trained. Are we going to see “MacSandhurst” in the Glen? Are we going to see “MacDartmouth” or “MacCranwell”? Will the SNP come back to the Minister after independence begging for places at Sandhurst, Dartmouth and Cranwell? Those are the unanswered questions.
Finally, on the issue of cap badges, the SNP claims that it is entitled to all the Scottish regiments but has never quite explained what it means by a Scottish regiment. The 1st Foot and the Blues and Royals might disagree, but arguably the oldest regiment in the British Army is the Coldstream Guards. Coldstream is a fine Borders town only a few miles from England from which General Monck set off to restore the monarchy in 1660, hence its name being given to the guards unit formed in the new army. It would appear that the SNP would argue that it is entitled to the Coldstream Guards, except that the Coldstream Guards predate the British Army as they date from 1660. I know that I am in a room of knowledgeable historians who would all be able to tell the House that they were part of King Charles II’s English army. Even at that simple level, the SNP has no basic understanding of what a Scottish regiment is.
What happens to all those Scots who are serving in other regiments? They might not wish to come back to the Scottish defence force. What will happen to those men and women who are serving in so-called Scottish units who are not lucky enough to be from Scotland? What will happen to our fine Fijians? We have the finest Fijians in the Scottish battalions. Would they be forced to adopt the Scottish defence force?
In short and in conclusion, the SNP’s plans are incoherent, they do not add up and they are dishonest. The SNP owes it to the people of Scotland to set out the reality before 18 September so that people can make a choice. Tonight, young, brave Scotsmen and women are serving in the armed forces around the world—in Afghanistan, the Falklands or elsewhere. I hope we will always remember how proud they are to serve our nation.
I have not had that opportunity personally, but I have through third parties. I know that my friend and colleague, the hon. Member for North Down (Lady Hermon), has businesses in her constituency that have clearly told her and their staff that Scottish independence would have a detrimental impact on them, and some of my constituents work for those companies as well.
The report continues:
“On current UK Government plans, by 2020 Scotland will be home to one of three Royal Navy main bases, including all its submarines, one of the British Army’s seven Adaptable Force Brigades and one of three Royal Air Force fast jet main operating bases.”
That is the role Scotland can play in defending the whole of the United Kingdom— Northern Ireland, Wales, England and Scotland: all of us.
I know that the hon. Gentleman spoke in the recent debate on cyber-security. We know about the many hard, physical aspects of defence, but cyber-security is a growing area of concern that is consuming more and more time, resources and money. He spoke at great length and with great knowledge about the subject, so I wonder whether he would care to devote a part of his speech to it today and underline the cost implications and the implications for a country that would not have the same level of defence in its interactions in the cyber world.
I thank the hon. Gentleman for his intervention. Cyber-security is clearly an important area. Many Members contributed to that debate, and I am no more knowledgeable on the matter that anyone else, but I understand its importance and the potential costs. There is a bigger picture, and I feel that the Scottish National party has unfortunately not taken it into consideration in its quest for the referendum. It must do so very honestly and very quickly.
The defence issue for Scotland is massive. To me, it fully underlines the need for the Union. However, personnel issues must be considered. On a more personal level, the Army base at Ballykinler, just outside my constituency, is due to lose some of its regiment, with the knock-on effect that 300 jobs in the area are at stake. However, the Ministry of Defence has assured me that the base will remain open. That follows lobbying by Members of Parliament and the local council. If that was to be replicated across Scotland, how many jobs would be lost? If Northern Ireland was to become independent—thank the Lord it will not, so long as the people of Northern Ireland have the decision to stay in the United Kingdom of Great Britain and Northern Ireland—those jobs would be lost.
My parliamentary aide has a friend who is based in Scotland in the Scots Guards, along with her husband. She has already said that, should Scotland become independent, she will transfer to England, because she feels that there would not be the capacity for job security and that the uncertainly for her and her husband would be too great. That is what my constituents are telling me. That will be replicated many times if Scotland becomes independent. There is the potential that it will lose many good men and women who are seasoned officers. How much will that weaken its defences?
In conclusion, we are very fortunate to have the contribution that our Scots brothers and sisters make in all the services—the Air Force, the Royal Navy and the British Army. We are very pleased to have them as comrades in arms. What is very clear, however, is this: we are better together, safer together and stronger together, and together we must remain.
(10 years, 8 months ago)
Commons ChamberThe growth of the internet has, without question, transformed our everyday lives. I say that as someone who spent many years working for a multinational corporation that introduced every home to the personal computer and introduced the business world to the speed of the e-mail. The importance of the internet is underlined by the part that it plays in our economy. The internet-related market in the UK is estimated to be worth £82 billion a year.
However, with greater openness, interconnection and dependence on technology comes greater vulnerability. To put that in perspective, cyber-attacks have been categorised as a tier 1 threat to the UK’s national security, which puts them up there with international terrorism, military crises and natural disasters. The threats to our national security from cyber-attacks are therefore real and growing.
Terrorists, rogue states and cyber-criminals are among those who are targeting computer systems in the UK. That is highlighted by the fact that 93% of large corporations and 87% of small businesses have reported a cyber-breach in the past year. Performing an attack need not be expensive. With minimal equipment in the right hands, a lot of damage can be done. However, protection against such attacks does not come cheap. The cost of a cyber-security breach can be between £450,000 and £850,000 for a large business and between £35,000 and £65,000 for small and medium-sized businesses, which are not insignificant sums. The UK faces a staggering 1,000 cyber-attacks every hour, at an estimated annual cost of £27 billion.
In cyberspace, power can be exerted by states, non-state organisations or individuals, or by proxy. The boundaries are blurred between the military and the civilian, and between the physical and the virtual. The threats to security and information in the cyber-domain include state-sponsored attacks, ideological and political extremism, serious organised crime, low-level individual crime, cyber-protests, espionage and cyber-terrorism.
Some of the most sophisticated threats to the UK in cyberspace come from other states that seek to conduct espionage, and some states regard cyberspace as a way to commit hostile acts “deniably”. That is why, alongside our existing defence and security capabilities, the UK must be capable of protecting our national interests in cyberspace.
“Advanced persistent threat” is the term used most often to describe threats that are unlikely to be deterred by simple cyber-hygiene measures. Acts of aggression or malice in cyberspace differ from those in other domains. Cyberspace is regarded as an asymmetric domain, which means that even adversaries of limited means can pose a significant threat to military capabilities. We will all agree that cyberspace is a complex and rapidly changing environment.
The British Security Service estimates that at least 20 foreign intelligence services are operating to some degree against UK interests in cyberspace, and their targets are in the Government as well as in industry. The Government have pledged £650 million for cyber-security over four years—0.6% of the cost of attacks. It is therefore essential that the MOD works alongside other Departments and the Security Service to ensure that there is no duplication or inefficiency, given budget constraints. We believe that the Government must ensure that every company working with the MOD, regardless of its size or the scale of its work, signs up to a cyber-security charter. That will ensure that hackers cannot use small suppliers to get into the systems of major defence companies.
With the armed forces now so dependent on information and communications technology, should such systems suffer sustained cyber-attack, their ability to operate could be fatally compromised. Because events in cyberspace happen at great speed, there will not be time in the midst of a major international incident to develop doctrine, rules of engagement, or internationally accepted norms of behaviour. That is why the Defence Committee recommended that the MOD make the development of rules of engagement for cyber-operations an urgent priority, and ensure that the necessary intelligence, planning and co-ordination functions are properly resourced.
The rapidly changing nature of the cyber-threat demands that a premium be placed on research and development to enable the MOD to keep pace with, understand, and anticipate that threat. The Government should make it a priority to develop robust protocols for sharing information with industry to allow expertise to be pooled. A cyber-threat has the capacity to evolve with almost unimaginable speed, with serious consequences for the nation’s security.
In conclusion, I repeat our call for the Government to ensure that every company working with the Ministry of Defence, regardless of its size or the scale of its work, sign up to a cyber-security charter.
(10 years, 10 months ago)
Ministerial CorrectionsTo ask the Secretary of State for Defence what support his Department provides to employers to assist employees who are army reservists; and how their skills will enhance the employer's company.
[Official Report, 6 January 2014, Vol. 573, c. 15-16W.]
Letter of correction from Anna Soubry:
An error has been identified in the written answer given to the hon. Member for Inverclyde (Iain McKenzie) on 6 January 2014.
The full answer given was as follows:
SaBRE-Supporting Britain’s Reservists and Employers-is an organisation supported by the Ministry of Defence which is positioned to provide support to both reservists and employers. It maintains a website
www.sabre.mod.uk
that provides information for employers including detailed advice on the benefits of employing reservists and examples for companies of HR policies tailored to reservist employees. SaBRE also operates a telephone helpline that is available for both reservists and employers to address specific inquires. Further, each of the 13 Reserve Forces’ and Cadets’ Associations (RFCAs) has a Regional SaBRE Campaign Director able to provide a personal, face-to-face service for employers at a local and regional level.
In the White Paper ‘Reserves in the Future Force 2020: Valued and Valuable’ (Cm 8655) the Government pledged to improve the relationship between Defence and employers. Financial support is given to assist employers to recruit staff or to cover overtime to fill an absence left by a mobilised employee. An incentive payment of £500 per employer per month is also available to some small and medium enterprises. Under our fresh approach to the Reserves, employers will have greater awareness and predictability of when their staff may be mobilised.
Reserve Service will benefit different employers in different ways. For some, the improved skills, experience and training of the individual reservist will be beneficial. For some, where the reservist’s military role is close to their civilian one, there will be more benefit from transferable skills.
For some companies and sectors, Reserve Service suits and supports their business models. Reserve Service might support corporate social responsibility objectives and be part of their social action plans, alongside any wider volunteering policies.
The correct answer should have been:
(11 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Indeed. That is a very valuable point. At the moment, 6,700 jobs are based at Faslane and Coulport. Under the existing United Kingdom Government proposals, which I understand are supported by all parties, that number would rise to 8,200 in the fairly near future. We have the opportunity to balance 50 years of security of employment and job growth with the United Kingdom on one hand and the great unknown of separation on the other.
Does my hon. Friend share my concern about the devastating impact that the loss of those jobs would have on the communities from which employees come, such as Helensburgh, Clydebank and Inverclyde?
Indeed. Some 6,700 jobs would be lost. To be fair, many are naval jobs in uniform. Presumably many of those people would be relocated elsewhere, and therefore would not be directly made redundant, but the other jobs would obviously be lost if Faslane and Coulport were closed, as would all the support jobs in the community. It has been estimated that up to 11,000 jobs could be lost. The information that I have seen makes that figure higher; it suggests a multiplier of roughly 2.5 plus the additional jobs, or potentially about 19,000 jobs lost in the Faslane and Coulport area, which will clearly have a horrendous impact. It has not been made obvious what would replace those jobs or what alternative naval facilities would be provided there.
Not at the moment.
It is my firm hope that we can see these dreadful weapons put beyond use as soon as possible after we achieve our independence. The report goes into some detail on possible scenarios, and it is very heartening to hear that the weapons could be disabled within days. The report’s title asks whether we can terminate Trident within days or decades, and, in direct answer to the hon. Member for Airdrie and Shotts (Pamela Nash), I do not know whether we can realistically do it within days, but I am certain it will not take decades.
After Scotland votes yes, there will be 18 months in which we negotiate those matters that need to be agreed between the two Governments. Trident will be high on that list. I hope that, by the end of that period, we will be well on the way to seeing those weapons gone from our shores for ever.
The hon. Gentleman makes it clear that the SNP’s position is to rid Scotland of nuclear weapons. How does that square with the SNP’s desire to creep back under the nuclear umbrella and gain security through joining NATO?
Twenty-five of the 28 member states in NATO do not have nuclear weapons. The hon. Member for Epping Forest (Mrs Laing) asked whether NATO would let Scotland in if we wanted rid of nuclear weapons; I remind her that Canada, a member of NATO, got rid of its nuclear weapons in 1984 and Greece, another member of NATO, got rid of them in 2001. It is not unprecedented. Norway does not have nuclear weapons, for example.
Much of the rest of the report goes into detail about the options open to the UK Government in finding an alternative to Faslane. Frankly, that does not appear to me to be the concern of the Scottish people or Government. It is a matter for the UK Government, should they wish to continue with the possession of nuclear weapons. Scottish independence gives the remainder of the UK the perfect opportunity to accept that it can no longer justify the possession of such weapons and to decide that it will no longer have them, but that is a decision for it to make. It is worth noting that even some military figures have begun to question the wisdom of retaining Trident in the UK, given the huge cuts to conventional forces.
I have given way to the hon. Gentleman twice already.
A yes vote would get rid of a weapon of mass destruction, and we are not allowed to keep it anyway. If we were to become a new nation after independence, as the no campaigners claim we would, we would not be able to keep nuclear weapons under the non-proliferation treaty. New nations are not allowed to host nuclear weapons, so it would be illegal under international law for us to have them. We would have to get rid of them and it would be up to the UK how to deal with that.
Scotland wants rid of nuclear weapons. As my hon. Friend the Member for Angus put it, even Scotland’s Westminster MPs want rid of Trident. Not long ago, in 2007, 33 voted against Trident and 22 voted for it. They are in good company, because the majority of people in Scotland want rid of it, as do the Churches and the trade unions. Every part of civic society supports the notion that we must get rid of that weapon of mass destruction. That is why I say that Trident will be an iconic issue in the referendum—because so many people in Scotland oppose it.
I cannot give way, because more hon. Members want to speak.
Trident is a system for the Brezhnevs of the world, not the bin Ladens. It is for another age, and people understand that. Yet the Government will spend up to £100 billion on renewing it. Can we believe that? In a triple-dip recession—a time of austerity, the bedroom tax and hard living for most of our constituents—they are prepared to spend £100 billion on the renewal of Trident. That is an appalling decision for any Government. Scotland’s share of the upkeep alone is £163 million, and there is so much more that we could do with that, as my hon. Friend the Member for Angus said. Faslane will have a fantastic future as a conventional naval base. As an independent country we will be able to respond to our own defence needs.
(12 years, 5 months ago)
Commons ChamberI completely accept that, and as I said to my right hon. Friend the Member for North East Hampshire (Mr Arbuthnot) a few moments ago, I am aware of the fact that the degree of confidentiality around the defence budget invites scepticism when such announcements are made. As soon as we have the report from the National Audit Office, we will publish it.
13. What assessment he has made of the potential effect of independence for Scotland on Royal Navy construction projects.
The defence industry in Scotland, particularly shipbuilding, plays a key role in equipping and supporting the UK armed forces. Defence contracts sustain thousands of skilled jobs and generate billions of pounds for the economy of Scotland. The Government greatly value the highly skilled work force in Scotland. Although the Government are not making plans for separation, as we are confident that the Scottish people will continue to support the Union in any referendum, it is worth noting that the UK has not had a complex warship built outside the UK since world war two. Were we to do so in the future, companies in a separate Scotland would, of course, be free to compete for those contracts, along with international bidders. However, any exemption from EU rules governing public procurement contracts would apply only to warships ordered from our own national yards.
The Minister has made very clear the position of Scottish shipyards, should separation for Scotland take place. Can he clarify the position for suppliers of fixtures and fittings based in Scotland when applying for contracts, if those contracts are given to English shipyards?
The way the EU rules work is that if a Government declare something to be warlike, they can claim an exemption from the EU competition rules on the basis of national security. In the case that the hon. Gentleman describes, those contracts would be non-warlike and would be subject to normal competitive rules. Scottish companies would have to win against global competition.
(12 years, 8 months ago)
Commons ChamberI understand where my hon. Friend is coming from, but unfortunately the previous Government decided that the project would be led by the Germans, despite all the connections the UK has with India. I can assure him that we and BAE Systems are taking a very active part not only in preparing ourselves in case the Indians would like us to resubmit and talk to us again, but in discussions with EADS, Cassidian, the German Government and our other two partners. We are also working very hard on the export drive to make up for the loss and damage done by Labour when it was in government.
6. What recent progress he has made on the carrier programme; and if he will make a statement.
My aim is to announce a balanced budget for defence and a properly funded equipment programme for the first time in a generation, and to deal with the £38 billion black hole we inherited from our predecessors.
As part of that process, we are reviewing all programmes and I will announce the outcome of this work when it is complete, but as my right hon. Friend the Prime Minister said last week, we will be guided by the facts and be realistic about costs and risks. If the facts change, we will, if necessary, change our plans and not plough on regardless, as the previous Government did.
Does the Secretary of State not agree that it is essential that we continue with the carrier programme to ensure that our troops in conflict far from our shores can at least have air supremacy and to bring much-needed jobs to our shipyards around Britain, including on the Clyde, where many of my constituents work?
The hon. Gentleman will know that the strategic defence and security review committed us to a regeneration of carrier strike capability, and the building of the carriers is well advanced. I can reassure him on that front. There is no intention to revisit the decision to build the carriers. The review is about how we operate them, use them and ensure that they remain affordable into the future.
(12 years, 9 months ago)
Commons ChamberI am grateful to my hon. Friend. In fact, the acquisition of the eighth C-17 aircraft was an extremely high priority for the military. It reinforces the Afghanistan air bridge at a time when the ground lines of communication through Pakistan are closed.
The purchase was possible because the MOD is moving forward with the process of delivering a credible and sustainable budget with which Treasury officials are comfortable. Trust between the Treasury and the MOD has been the crucial missing ingredient in the past, and rebuilding it has allowed the Treasury to sign off the acquisition of the new aircraft from an in-year underspend. The Treasury would traditionally have been very reluctant to do so without seeing MOD hard numbers for the following year.
T7. I thank the Minister for his reply to my right hon. Friend the Member for East Renfrewshire (Mr Murphy) on the service premium. However, was the Secretary of State aware that extra support would be cut off if a serving parent died in the service of their country before it was disclosed in The Sun and other newspapers, which pressured the Government into a U-turn?
The hon. Gentleman also raises that important point. The truth is that that is a Department for Education responsibility. Let us remember that this Government introduced the pupil premium, and it is therefore new, but it would be fair to say that we in the Ministry of Defence had not appreciated that this might happen. The Department for Education is looking to ameliorate any problems, but let us remember that the pupil premium is about the transience of service children attending schools—[Interruption.] Well, that is why we introduced it. Circumstances change when a child is settled, but we do not wish them to be disadvantaged.