Oral Answers to Questions

Jeremy Quin Excerpts

Monday 7th December 2020 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

What steps he is taking to increase the take-up of UK-produced steel in defence procurement.

[The Minister for Defence Procurement (Jeremy Quin)]

The Government publish their future pipeline for steel requirements, together with information on compliance, with steel procurement guidelines. These measures enable UK steel manufacturers to plan better and bid for Government contracts.

[Jessica Morden]

Last month, UK Steel criticised the opaque procurement processes involved in the defence sector. I know the Government will agree that UK steel is vital to our national interests. Will Ministers therefore set clear and transparent objectives regarding UK steel in defence projects and commit to engaging with the industry early, meaningfully and often in the procurement process?

[Jeremy Quin]

I am sorry to hear that. We are very keen to engage fully with the steel industry; it is important that we do so. We need transparency, and that is absolutely a goal, as is reinforced by the Cabinet Office guidelines. Looking at the macro picture, however, I am sure that the hon. Lady would agree that the plans we put in place for the biggest single boost to defence expenditure in 30 years, with the commitments to Type 26, Type 31 and the fleet solid support programme, all suggest that there are going to be good opportunities for steel manufacturers in the future.

[Sir David Amess (Southend West) (Con)]

What steps he is taking to ensure that his Department’s spending supports (a) high-skilled jobs and (b) the wider UK economy.

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[John Spellar (Warley) (Lab)]

When he plans to issue the invitation to tender for contracts relating to the fleet solid support ships.

[The Minister for Defence Procurement (Jeremy Quin)]

It is a pleasure to hear from the right hon. Gentleman. No one could ever accuse him of being inconsistent on this subject. I am pleased to assure him, as I have previously, that we will be commencing the competition in the spring.

[John Spellar]

The Confederation of Shipbuilding and Engineering Unions has argued forcefully for defence orders to be brought forward to help our industry through the economic crisis, especially in our regions and nations. The Navy carrier group needs the fleet solid support ships, and the Department has the specifications from the previous bidding round. It is a project that is really shovel or welding-ready, so when is the Secretary of State going to get off his backside and start ordering these ships? [Interruption.] He may even want to intervene and answer himself.

[Mr Speaker]

I think we will leave it to the Minister to answer.

[Jeremy Quin]

I am most grateful, Mr Speaker, though the Secretary of State is raring to go.

Just to reassure the right hon. Gentleman, the specification has changed. It has changed because we now understand more about the carrier strike group and how we will deploy these important assets. It is on track, and we will get there. We have had two rounds of market engagement, and we may wish to do more market engagement. We have got a busy shipbuilding supply chain; there are a lot of orders going through. It is important that this is well based and well founded, and I want to make certain that we launch this competition successfully and, indeed, that it is concluded successfully.

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

The country has a vaccine for covid-19, and it will be rolled out as a matter of urgency to save lives. The Ministry of Defence has had approval for funding the defence industry. Will the Minister, as a matter of urgency, roll out the FSS and other shovel-ready defence projects now, not wait until to the summer, to give a real shot in the arm to the defence industry, and to retain thousands of jobs and create thousands of new jobs and apprenticeships for new technology graduates, as well as to support British workers and use the springboard of the British defence industry to lead the country out of this covid recession?

[Jeremy Quin]

I suspect that the hon. Gentleman is referring to the CSEU report on shovel-ready projects, which I commend. It is always good to have advice from those quarters, and indeed, many of them are already ongoing. I gently remind him, however, that the report praised the German Government for increasing spending by €10 billion to €12 billion over the next few years. It also praised the French—I think the French Minister has been asked to go before the Assemblée Nationale with an extra €1.5 billion, or around that number. That does not bear any comparison with our £24 billion investment in defence over the next few years. That is the biggest single boost to defence over the past 30 years, and it will mean a lot of orders coming through, to the benefit of British defence, the British armed forces, and British firms across the Union.

[Owen Thompson (Midlothian) (SNP)]

What discussions he plans to have with the Chancellor of the Exchequer prior to the conclusion of the integrated review of security, defence, development and foreign policy.

--- Later in debate ---

[Mark Pritchard (The Wrekin) (Con)]

What recent progress his Department has made on the Challenger 2 life extension programme.

[The Minister for Defence Procurement (Jeremy Quin)]

The assessment phase of the Challenger 2 life extension programme has concluded. The proposition is now being worked up prior to a decision being taken on the investment case.

[Mark Pritchard]

The Minister will be aware of the excellent Shropshire defence engineers who have recently been awarded an £860 million project for the Boxer vehicle delivered through RBSL—Rheinmetall BAE Systems Land. Would he like to put on record his thanks to all those in defence engineering in Shropshire and perhaps allude to the fact that, should the contract be awarded in the west midlands, it might be going to Shropshire?

[Jeremy Quin]

I would not comment on any particular forthcoming potential procurement, but I have visited Telford to see RBSL and I can absolutely endorse my hon. Friend’s remarks about the brilliant engineers and apprentices I have met there. He is rightly proud of the capabilities in defence throughout Shropshire, and I was delighted with the £860 million contract to support Boxer. It is a brilliant supply chain in Shropshire and throughout the UK.

[Richard Graham (Gloucester) (Con)]

What recent estimate he has made of the proportion of his Department’s overseas activity which is accounted for as aid.