Shipbuilding on the Clyde

Debate between Iain Wright and Philip Dunne

Monday 25th April 2016 Commons Chamber

[Mr Dunne]

My hon. Friend is right to highlight that obfuscation on the part of the official Opposition. I draw to his attention the backlog of work ahead of shipbuilders in this country as a result of our equipment plan and our commitment to build the eight Type 26 vessels. No warship yard in Europe has the prospect of eight warships to look forward to. From that perspective, those working in those yards in Scotland can take considerable heart from the fact that they are working in our yards, rather than those elsewhere in Europe.

[Mr Iain Wright (Hartlepool) (Lab)]

The Secretary of State for Defence has stated in the past that UK warships are only built in UK yards, but what percentage of the total contract value will flow to British companies, and what specific work will be given to the British steel industry from those contracts, with regard to not only the value of the orders in the supply chain, but the swift timetabling for the awarding of contracts, to help the beleaguered British steel industry now?

[Mr Dunne]

That is a good question, and I wish that I were in a position to give the hon. Gentleman a full answer. What I will say is that the vast majority of the contracts that have been placed thus far have gone to UK contractors. In relation to the systems and long-lead items that have been placed thus far, the contracts have gone primarily to BAE Systems and Rolls-Royce; in relation to the gearboxes, they have gone to David Brown. As far as the steel content is concerned—I know this is a matter of great interest to the hon. Gentleman—I have made it very clear previously in the House that UK steel mills will have the opportunity to bid for steel tenders that are put out by the prime contractor over the course of this programme. It will be up to the British steel industry to see whether it is in a position to match those orders for the specification and the timelines required.

Oral Answers to Questions

Debate between Iain Wright and Philip Dunne

Monday 26th November 2012 Commons Chamber

[Mr Iain Wright (Hartlepool) (Lab)]

14. What plans he has for the future of Defence Equipment and Support; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

Our evaluation of how best to improve the delivery of procurement and support is progressing well. A soft market testing of the potential for a Government-owned contractor-operated model is due to conclude before Christmas, and the outcome of the value-for-money comparison is expected shortly. Subject to those conclusions, we are on track to make decisions on how we intend to proceed in the new year. In the meantime, we continue to drive efficiency and improvements within Defence Equipment and Support.

[Mr Wright]

Defence procurement is a key part of an active industrial strategy. Defence firms need certainty to plan and invest for the long term. There has been far too much uncertainty over the future shape and direction of Defence Equipment and Support. Notwithstanding what the Minister has said, the position is still vague, with promises made about the new year. Will he provide further clarity and, in so doing, help British businesses to invest for the long term?

[Mr Dunne]

The single most effective answer to the hon. Gentleman’s question is that this Government have removed the overspend in the defence equipment budget that we inherited from Labour. By narrowing the spend for the next 10 years into a £160 billion envelope, it is now clear that some 95% of that money is committed and the contractors know that the programmes will be delivered. That was not the case under the previous Government.