Oral Answers to Questions

James Cartlidge Excerpts

Monday 25th March 2024 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

20. What steps his Department is taking to support defence jobs.

[The Minister for Defence Procurement (James Cartlidge)]

The most recent estimate shows that the Ministry of Defence supports about 209,000 jobs in industries across the UK. I am pleased to say that this figure will be boosted further by the confirmation last week that BAE Systems will partner with a firm in Australia to build its nuclear-powered submarines. That will support 7,000 additional British jobs across the programme’s lifetime.

[Selaine Saxby]

Would my hon. Friend agree that MOD procurement from small British companies in rural areas such as North Devon can significantly increase defence-related jobs there, and enhance the local economy, especially when those jobs are in high-wage research and development and manufacturing industries? Will he commit to ensuring that the additional high-skilled jobs and economic benefits resulting from contracts are considered in future procurement decisions?

[James Cartlidge]

That is an excellent point from my hon. Friend, who is a champion of defence small and medium-sized enterprises in her constituency. As to procurement rules supporting SMEs such as those in North Devon, our new integrated procurement model will ensure that UK industrial capability and exportability considerations are included in procurement evaluation criteria for items such as the new medium helicopter. However, to ensure that we absolutely maximise opportunities for British industry, on Friday, I announced that we will undertake a rapid review of how Cabinet Office social value rules impact on the development of sovereign capability.

[Mark Pawsey]

The Minister will be aware of the successful export order for high-value naval electric propulsion technology manufactured by GE in my Rugby constituency. That order is going to Singapore, and it was achieved with the assistance of the MOD and the Department for Business and Trade. Does that not show that support for this world-leading British technology enables new business in a fast-developing part of the world, while providing significant, new, high-value jobs for my constituents?

[James Cartlidge]

My hon. Friend asks an excellent question. I welcome the valuable contribution of GE in his constituency in supplying high-tech motors, including for Royal Navy ships, such as Type 26 frigates and Queen Elizabeth-class aircraft carriers. It is precisely because the Ministry of Defence recognises the importance of GE’s Rugby facility that we were pleased to reach an agreement with the company in 2019 to ensure that those motors continued to be manufactured there. Finally, he is right about export. It is such a key part of our new integrated procurement model, because it boosts industrial resilience and prosperity in constituencies such as his, while strengthening international alliances, such as, in this case, with the people of Singapore and the Singapore navy.

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

The Secretary of State will know that Huddersfield is a centre for defence industries; we have David Brown Gears and Reliance Precision, for example. I talk to them regularly. They say to me that one of the things that they miss is trained personnel. The Army, Navy and Air Force used to be the biggest trainer of personnel in the country. The diminished level of training in the armed services is reflected in the sector, which cannot get enough highly trained people to employ.

[James Cartlidge]

I am aware of those companies, which do an excellent job supporting the supply chain, particularly for our primes and for key programmes, especially naval programmes. I do not recognise the hon. Gentleman’s description of training. As he will be aware, defence is the biggest employer of apprentices in the country. We are doing everything we can to support that. The key is to have a close relationship with industry, and to bring it into our requirements early on, so that it can plan and deliver the supply signal, particularly for skills, to match our demand signal.

[Richard Foord (Tiverton and Honiton) (LD)]

I would like to build on the incisive question asked by the right hon. Member for Rayleigh and Wickford (Mr Francois). More than 125,000 applicants to the British Army were rejected in the past five years. It has emerged that 70% of applicants were dropped or withdrew at the paperwork stage. More than 8,000 withdrew their applications, having waited for at least six months. What consequences will Capita face for this record, and when might the Army bring soldier and officer recruitment back in house?

[James Cartlidge]

I encourage the hon. Gentleman to direct questions about recruitment to the Minister for Defence People and Families. As to the company the hon. Gentleman talks about, my focus is on industry and supporting jobs, which the original question was about. I think we have a fantastic record, boosted by not only the exports I referred to earlier, but the ones that my hon. Friend the Member for Rugby (Mark Pawsey) was talking about.

[Mr Speaker]

I call the shadow Minister.

[Maria Eagle (Garston and Halewood) (Lab)]

Defence procurement can strengthen UK sovereignty, security and economic growth. We on the Opposition Benches believe that defence investment should be directed first to UK businesses, so that we make, buy and sell more in Britain. With that in mind, what steps is the Minister taking in his rapid review to ensure that social value considerations properly take into account the huge advantages to the UK economy of awarding more contracts to British businesses, so that we create more defence jobs here in the UK? That does not seem to happen at present.

[James Cartlidge]

I think there is considerable consensus, because I agree with the right hon. Lady about the importance of sovereign defence capability, and not just because of the economic benefits, although those are crucial. As we enter this era, which has been described as pre-war, it is vital that we have a UK sovereign industrial base. As the Ukrainians have learned, there are certain skills and capabilities that we will need in country, should we get to a hotter military situation, and that is why that is such a priority for us.

[Keir Mather (Selby and Ainsty) (Lab)]

7. What steps he is taking to end the hollowing out of the armed forces.

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[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

15. What recent assessment he has made of the effectiveness of the defence procurement system.

[The Minister for Defence Procurement (James Cartlidge)]

The Department uses a range of measures to assess the effectiveness of defence acquisition. We have reduced the average time taken to deliver our projects and programmes, but we must go further to drive pace, so last month I announced our new integrated procurement model.

[Nick Smith]

The National Audit Office has previously highlighted MOD pilot training procurement failures, so is the RAF now meeting its pilot training quotas? Is the Minister satisfied with progress in that key area?

[James Cartlidge]

The hon. Gentleman asks a very important question. Of course, training is fundamental to bringing in the next generation to man our capability. I recently had the pleasure of visiting RAF Valley, where I discussed the issue with the RAF. It was able to confirm to me that, for the first time in a long time, there were more students taking up their places rather than in holds. That is a key metric in which we are seeing significant progress, but yes we want to go further.

[Stephanie Peacock]

Last March, the Government said that they would have their Ajax scheme ready between October 2028 and September 2029. Given that only 25% of armoured vehicles have been produced, are the Government on target to meet that deadline?

[James Cartlidge]

Yes.

[Mr Mahmood]

Notwithstanding the waste of £5 billion in procurement since 2019, will the Minister join the shadow Secretary of State for Defence, my right hon. Friend the Member for Wentworth and Dearne (John Healey) in a campaign to make in Britain, ensuring our industry and economy move together to support not just our defence, but our economy? How will he achieve that given that Tata Steel—to which we have paid £500 million —is cutting down its blast furnace capacity? How will we be able to proceed with the AUKUS contract and other contracts without virgin steel?

[James Cartlidge]

On the important question of steel, we do not expect the closure of Port Talbot to have a significant impact on defence, but obviously we will continue to monitor that situation. I would just gently point out that in 2022-23, the last year for which we have figures available, 89% of spend by the MOD with industry was with British industry. It will be an awful lot harder to make that level of spend if Labour is unable to commit to matching our spending commitments. If the hon. Gentleman is so concerned, perhaps he will join other colleagues on the Labour Benches in insisting that the shadow Secretary of State confirms whether he will match 2.3% of GDP now and our target of 2.5% as soon as the economy supports it.

[Sir Alec Shelbrooke (Elmet and Rothwell) (Con)]

May I take this opportunity to also place on record my thanks to the Minister for Armed Forces, my right hon. and gallant Friend the Member for Wells (James Heappey) for all the work he has done? It was a joy to work with him when I was in the Department.

I thank the Minister for Defence Procurement for his procurement review. It is an excellent document, moving forward in a pragmatic way. As part of that review, will he reassess where potential gaps might occur between old platforms being retired and new platforms being delayed? Does he agree that housing procurement—accommodation for our armed forces—is as much an operational capability as a tank?

[James Cartlidge]

My right hon. Friend makes an excellent point. He made a similar point in the debate on readiness last week about the importance of accommodation. I think we can all agree that there is a tendency in defence to focus on the big shiny platforms. Accommodation is a key priority; we are very committed to improving accommodation. We know that in the winter before this one performance was not satisfactory. That is why we put in extra investment of £400 million and announced a winter plan. I am pleased to say that we have made huge progress, for example in ensuring that thousands of properties have work achieved on damp and mould.

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

I am delighted that the MOD has confirmed the procurement of additional Chinooks, given that RAF Odiham, in my constituency, is the home of the Chinook force. However, it is also home to the fleet’s frontline maintenance, second line engine repair, and in-depth upgrade and modification. Given that 85% of the Chinook fleet sustainment takes place in the UK today, can I have my hon. Friend’s assurance that RAF Odiham will remain the home of the Chinook, and that there will be a similar, if not higher, level of maintenance of the new variants here and across Britain?

[James Cartlidge]

I greatly enjoyed my visit to Odiham, where my hon. Friend and I discussed a wide variety of issues. He is right to draw attention to our commitment to the procurement of 14 extended-range Chinooks—they have a huge range, of 1,000 miles—but there is also the industrial benefit to the UK and, of course, to my hon. Friend’s constituency. I can confirm that not only has that procurement made us a £300 million saving, but it will contribute £150 million-worth of benefit to the UK’s prosperity.

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

Will my hon. Friend update the House on progress made with UK-Ukraine defence manufacturing co-operation, especially with regard to removing the hurdles? Is there anything more that the Government should be doing?

[James Cartlidge]

My hon. Friend has championed this matter consistently. I am pleased to say that we held the first UK trade mission in December, and that there will be further such missions. I can confirm most importantly that, following that mission, UK defence companies and the Ukrainian Government have signed the following agreements. Babcock has been being awarded a three-year contract by the Ukraine ministry of defence to support and maintain two mine countermeasure vessels; BAE Systems and AMS Integrated Solutions have signed an agreement that will enable them to offer specialised artillery systems support directly to the Ukrainian armed forces; and Thales has signed a memorandum of understanding with the Ukrainian drone company AeroDrone, which will bring together the best of Ukrainian and Northern Irish engineering to deliver new capability to Ukraine’s forces.

[Mr Speaker]

I call the Scottish National party spokesperson.

[Dave Doogan (Angus) (SNP)]

Procurement of the new medium-lift helicopter has been characteristically suboptimal under the present Government, but this particular Defence Procurement Minister has managed, with his inverse Midas touch, to ensure that costs have grown from about £1 billion to £1.3 billion, delivery forecasts have slipped six delayed years to 2031, and the number of assets to be received has fallen from 44 to 35. Given that the forecast will inevitably slip to the right, service personnel will be under-resourced and the budget will almost certainly grow, what possible confidence can anyone have in this Defence Procurement Minister?

[James Cartlidge]

I will take no lectures from the hon. Gentleman, whose party has been unable even to procure a ferry. [Hon. Members: “It says here!”] I know the subject, and I can confirm to him, because I am very proud of this, that at my insistence our competition for the new medium helicopter will involve a far greater emphasis both on supporting UK industry and on supporting exports. It is by supporting exports that we secure industrial resilience and support for prosperity across the United Kingdom. Of course it is a competition, but we have three very good entrants.

[Nigel Mills (Amber Valley) (Con)]

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

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[Dame Caroline Dinenage (Gosport) (Con)]

The 2016 better defence estate plans earmarked Fort Blockhouse in Gosport for disposal, yet eight years later after numerous delays, the site is still rotting at the taxpayer’s expense. It is doing nothing for the local economy, the local community or the MOD. Will the Minister please update me on when can we will finally see some progress on that site?

[The Minister for Defence Procurement (James Cartlidge)]

I enjoyed my visit to my hon. Friend’s constituency, where we looked at a range of infrastructure and accommodation. I appreciate that she wants to see progress, but I stress that while we are engaging as closely as possible with Gosport Council on this and want to make progress, it is a complex site with significant defence events assets still in place relating to the Defence Infrastructure Organisation and the Royal Navy. I am committed to looking at what more we can do and to engaging further with her.

[Jessica Morden (Newport East) (Lab)]

T8. Tens of thousands of pregnant women in Gaza are suffering from malnutrition and are at serious risk of delivering their babies unsafely and without healthcare. Will the Secretary of State outline what steps he is taking, along with the Foreign Secretary, to support the delivery of food and medical supplies to those particularly vulnerable women?