Jeremy Quin
Main Page: Jeremy Quin (Conservative - Horsham)Department Debates - View all Jeremy Quin's debates with the Ministry of Defence
(3 years, 6 months ago)
Commons ChamberWe are implementing changes through the acquisition transformation scheme to improve cost controls. Through the outline strategic case, we are ensuring that the right expertise is brought together at the outset, so that projects are properly risk assessed and, with the right commercial expertise available, set up for success.
The National Audit Office recently concluded that for the fourth year in a row the defence equipment plan remains unaffordable. While the extra money for defence is to be welcomed, how will the Minister ensure that the investment does not simply disappear into a black hole but delivers on the new capabilities we need as a nation to deal with emerging security threats?
The hon. Gentleman’s point is very wise and we would endorse it. We need to invest in the right capabilities to meet the threats of the future. it is good to hear someone on the Labour Benches speaking sense. We agree that that is exactly where our funds should be directed—to meet the threats of the future. That is being undertaken through the integrated review, which is a cross-Government review. More information will be coming out in due course, but we are very focused on it.
The defence equipment plan has seen escalating costs over time, and agreeing priorities has proved to be difficult. The NAO says that industry has a prioritised list of funding options following a multi-criteria decision analysis exercise. This sounds worth while, if a bit of a mouthful, so will the Minister commit to publishing that list of priorities?
The hon. Gentleman needs to look to the outcome of the integrated review that will take place in due course, which will set out the overarching strategic priorities for the Government in meeting the needs of this country across a broad spectrum of foreign affairs and defence. It is from that strategic set of decisions that we need then to ensure that our procurement follows.
Sustainability is considered at all the appropriate stages of the acquisition lifecycle, from setting requirements to disposal. In addition, we are improving sustainability in the defence estate, which offers a significant opportunity for the future.
We face a climate crisis, and we must build back greener out of the pandemic. Will the Government undertake to do more to increase investment in research and development in low-emission planes and ships, working in collaboration with the civil sector? Will he meet me and Airbus, and others, to discuss the opportunities to boost innovation and production of non-military planes and ships—like the US does with Boeing—to help us meet our net-zero obligations? Will he boost exports, so that defence expenditure can be used to defend us against climate change?
We are focused on the Government’s world-leading commitment to net zero 2050, and defence will, without doubt, play its part. A lot of work is ongoing regarding how we can increase our activity in that sphere, but we have discussions with commercial entities and throughout the MOD about how we can tackle carbon emissions throughout the armed forces. That includes, recently, clearing MOD planes to use up to 50% sustainable aviation fuel. That is a good step in the right direction, and others will undoubtedly follow.
I am pleased to report that throughout the covid pandemic, Defence has continued to maintain a steady drumbeat of orders. Those include recent orders to enhance F-35, a project that particularly benefits the north-west of England, and the next generation munitions solution, which saves £563 million over the course of its contract and supports jobs in Glascoed, Tyne and Wear, and Stoke-on-Trent.
Beautiful Hastings and Rye has a number of excellent small to medium-sized manufacturing businesses serving the defence industry. What steps is my hon. Friend taking to ensure that, as part of defence procurement and the levelling-up agenda, those small companies are given the opportunity to benefit from any increase in defence procurement spending, thereby increasing jobs and helping to turbo-charge our local economy?
My hon. Friend has already discussed the brilliance of her small and medium-sized enterprises with me in the past, and I expect I will be hearing a lot more about them in the future. The good news is that with our SME action plan in place, which I would encourage them to look through, SMEs are now accounting for nearly 20% of all defence procurement expenditure. With a £24 billion investment in defence to come forth, there is plenty for them to go at.
What progress has been made with the upgrade of the British armoured vehicle capability? What are the Government doing to ensure that those contracts are fulfilled by British-based manufacturers such as David Brown Santasalo, which is based in my constituency?
It was a great pleasure for me and the Secretary of State to join my hon. Friend in visiting David Brown last year to discuss its vital work on Type 26 frigates not only for us, but our allies. Investment in UK armour, as I think my hon. Friend knows, is ongoing with the Boxer programme and Ajax. Other projects are also under active consideration.
So many industries have been hit hard by the pandemic, including aerospace and engineering companies in Wolverhampton North East. I am delighted to hear about more and more procurement contracts. What steps is the Minister taking to start as many of those contracts as quickly as possible, so that we can really help our industrial economic recovery?
I understand my hon. Friend’s question. Throughout the pandemic, we have made certain to maintain the drumbeat of existing orders so that they have continued. Through the interim payments scheme, we have helped to support defence companies with cash where that has been required. It is right that core defence decisions are taken on an holistic basis in the context of the integrated review. However, we have, where possible, advanced procurement in particular on improvements to the defence estate, where tens of millions of pounds of improvements are ongoing as we speak.
The Warrior CSP is now at an advanced stage in its demonstration phase. It has been ongoing for a period—it is now 75% through—but all projects are subject to the integrated review. I know that my hon. Friend would not expect me to comment on any particular project at this stage, but I will say that it is one of a huge number of contributions that Bedfordshire makes to defence, including across Ajax, Wildcat and Tempest. It is a county that has got a great investment in and support for our services.
I am not aware of the details of that case, and it would be unwise to comment without learning more, but I will look into it and write to the hon. Lady.