Type 26 Frigates: Clyde

Ian Murray Excerpts

Tuesday 18th October 2016 Westminster Hall

[Chris Stephens]

The hon. Gentleman may say that, and I may come on to that point, but the Government have never confirmed that that is the reason for the delay, and it would be useful if they were to say that today. If he is correct that there was a lack of money, I am sure that there are Committees and hon. Members in the House who would want to ask what happened with the money.

Lord West suggested to the Defence Committee that the defence budget for shipbuilding was spent. In answer to a question from my hon. Friend the Member for Dunfermline and West Fife (Douglas Chapman), he said:

“Shall I tell you what the problem is? Notwithstanding having said how much extra money there is for defence, in the near years there is not. There is almost no extra money available this year, and we are really strapped next year. The Government aren’t coming clean about that. I think if they did, people would understand.”

In answer to further questions, he outlined that delays can be costly in the long run. In response to the Chair of the Committee, he said:

“Every delay costs you money. These delays all cost money. You need a steady drumbeat of orders to keep high-tech industries going. Our complex surface warship building industry, like the submarine one, needs a steady drumbeat of orders.”

[Ian Murray (Edinburgh South) (Lab)]

My hon. Friend talks about the drumbeat and the starting point for the project. Is it not one of the key concerns that, even when the project starts, if the drumbeat is extended and the length of time for the completion of each ship is extended, by the nature of that equation, fewer workers will be needed?

[Chris Stephens]

That concern is felt not only by my hon. Friends, but by me and, crucially, the trade unions and workforce on the Clyde. What economic impact assessment has been carried out on delaying the Type 26 frigates? We know from an excellent report by the Fraser of Allander Institute, which was commissioned by GMB Scotland, that the two BAE yards at Govan and Scotstoun directly employ a total of 2,723 people. More than 1,000 of them, men and women, are skilled tradespersons. I am delighted that there has been an increase in women apprentices and women workers highly involved in high-tech industry. The report estimates that the two yards in Glasgow support a total of 5,943 jobs and, through that, £162.7 million of wages across Scotland as a whole. Returning to my original “eight plus five” question, will the Minister confirm whether the general purpose frigates will also be built on the Clyde, as confirmed by the former Prime Minister in the strategic defence and security review in November 2015?

We know that a national shipbuilding strategy will be announced soon. I am looking forward to that, when it comes, but I reiterate that we should not underestimate the frustrations of the workforce. They want to build ships. They want a long-term future for the Clyde that will begin with cutting steel for Type 26 frigates. I look forward to the Minister’s response to my questions.

--- Later in debate ---

[Brendan O'Hara]

My hon. Friend is absolutely correct. It is one of many broken promises that I am sure will not be forgotten.

[Ian Murray]

Will the hon. Gentleman give way?

[Brendan O'Hara]

I will. I thought the hon. Gentleman might want to intervene on this point.

[Ian Murray]

I am sorry that the cross-party consensus on such an important issue has been so inelegantly broken, but will the hon. Gentleman tell the House how many frigates would have been built had people voted yes in 2014?

[Brendan O'Hara]

Had the hon. Gentleman been in his place at the start of the debate, he would have seen that there was cross-party consensus. We were being very consensual. The Scottish people and the Scottish workforce have been betrayed by the Government. The hon. Gentleman would do well to focus on the Government and their betrayal, rather than attacking people who are defending Scottish workers.

With the old Type 23 frigates being withdrawn from service in 2023, the Type 26 programme had to start in early 2015, but the manufacturing of the eight ships will now not begin until the summer of 2017 at the earliest, with at least one union convener saying that it will not begin until 2018. That is a delay of at least two years, and possibly three. As we have heard, the lesson from all defence procurement deals is that if there are delays, costs will always increase.

What is the reason for the delay? Is it that the Government think that we no longer need Type 26s? That is not the case. As Peter Roberts, a senior research fellow at the Royal United Service Institute, said, the Government are talking about

“a level of Russian submarine activity that we have not seen since the 1980s…That poses a significant threat for the UK”.

If the delay is not on the grounds of national security, and it is not a strategic decision, it can only be based on cost. Perhaps Lord West of Spithead, the former First Sea Lord, was absolutely right when he said that

“there is not enough money in the MOD”

to start construction. He said that before Brexit, and he could say it with bells on now.

Despite the Minister’s protestations that the

“national shipbuilding strategy…is not something that is affected by the outcome of the referendum”,

we all know that if prices are denominated in dollars, costs will soar.

When the Secretary of State for Defence came to the House on 27 June—the first day the House sat after the EU referendum—he said that he was

“not prepared to sign a contract with BAE Systems until I am absolutely persuaded that it is in the best interests of the taxpayer”.—[Official Report, 12 September 2016; Vol. 614, c. 592.]

Are we to assume that that was mere coincidence? The hon. and gallant Member for Beckenham (Bob Stewart) got it absolutely right when he said that the project has been delayed because the Government have run out of money. They have run out of money because they have committed far too much of their procurement budget to Trident. It would be an unforgivable betrayal of the Clyde workers if they were the ones who had to pay not only the price of Brexit, but the price of Trident, which has been ring-fenced within defence procurement. Once again, it appears that the Government are prepared to sacrifice our conventional defence capabilities to their obsession with Trident and nuclear weapons. I look forward to the Minister letting me know about that.

If there is not a lack of will and there is sufficient money, prove us wrong and give us a start date. The workers on the Clyde have had far too many broken promises. An important supply chain is at risk in the defence manufacturing sector. We need confirmation that the five general purpose frigates will also be built on the Clyde. I would appreciate it if the Minister addressed that point in her remarks. The work needs to start now. The workers on the Clyde have been betrayed too often. Will the Minister break that chain of betrayal and let-down? Give us a date for when work on the Type 26 programme will start.