Oral Answers to Questions

Debate between Jeremy Quin and James Cartlidge

Monday 20th May 2024 Commons Chamber

[Sir Jeremy Quin (Horsham) (Con)]

The global combat air programme will be a terrific boost to our defence and aerospace industries. To maximise success, we must keep the Typhoon production lines going until it comes on board, so what are Ministers doing to ensure that we maintain exports?

[James Cartlidge]

The Chair of the Select Committee asks an excellent question, and I assure him that there is an effort across Government to promote key defence exports, not least the Typhoon. A key factor in our new integrated procurement model is the need to drive exportability. That will not only ensure industrial resilience, but give us protection against overly exquisite requirements from the domestic side, which can result in delayed procurement. It is a good question, and we are focused on delivering greater defence exports.

Armed Forces Readiness and Defence Equipment

Debate between Jeremy Quin and James Cartlidge

Thursday 21st March 2024 Commons Chamber

[James Cartlidge]

As my right hon. Friend has already intervened, I hope he will allow me to make some progress and refer to comments from colleagues.

Obviously, there has been particular debate about spending. The shadow Secretary of State was unable to answer whether Labour would match the figure of 2.5%, but a number of my colleagues wanted us to go further and faster. This point was put well by the hon. Member for Tiverton and Honiton (Richard Foord). The Chair of the Defence Committee and others have suggested that we should look back to the sort of GDP figures in the cold war, although they did not necessarily say that we should go to exactly those amounts. However, as was said by the hon. Gentleman, who I believe was in military intelligence, in those days almost all of eastern Europe was an armed camp full of Soviet divisions, whereas now those countries are in NATO, so the situation has changed profoundly.

As was rightly said by my right hon. Friend the Member for Elmet and Rothwell (Sir Alec Shelbrooke)—one of my predecessors as Minister for Defence Procurement—if we increase defence by a significant amount, the money has to come from somewhere. An increase from the current level of about 2.3% to 3% equates to £20 billion, which is not a small amount of taxpayers’ money. Even an increase to 2.5% equates to an extra £6 billion. So it is Government policy to support that but to do so when we believe the economy can support it on a sustained basis.

My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) made a passionate speech about how there had, in effect, been a cut to defence spending in the Budget, and several other Members said the same. I do not agree, although I accept that there is a debate about it. It is about the difference between the main estimate and the supplementary estimate, and some people have said it is about the inclusion of nuclear. To me, the nuclear deterrent is fundamental to defence, so of course it should be in the defence budget. We are not going to take out GCAP or frigates, and we are certainly not going to take out the nuclear deterrent, which is at the heart of the UK’s defence.

[Sir Jeremy Quin]

I like a lot of what the Minister is saying. It is right to say that we have, in Poland, Finland and Sweden, allies in NATO that produce great capability in terms of dealing with the threat from Russia, but since 1989 China, now one of the two biggest economies in the world, has gone on to be spending £232 billion alone on defence—and that is just the official number. We also now have a nuclear armed North Korea, with Iran making its way in the same direction. The world picture is darkening. That may not necessarily “directly impact” us, to use the words of other hon. Members, although I think it does, but it has indirect impact on some of our allies and on where they need to place their resources. It is a real concern and we should not forget that.

[James Cartlidge]

I am grateful to my right hon. Friend for that. It shows why I have repeatedly said that we need to reform defence procurement because of the need to stay competitive with our adversaries.

I agree with the Chair of the PAC, the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier), and my hon. Friend the Member for Devizes (Danny Kruger), that we cannot just look at what we want to spend and at the future aspiration; we have to look at how we spend the money that we have better. That is why on 28 February I announced our new integrated procurement model, to completely overhaul our approach to acquisition. I said in my speech—and I stand by this—that the current delegated procurement model, under the Levene reforms, has created an inadvertent tendency towards over-programming: as soon as there is financial pressure on the equipment plan, such as we have had through inflation, the single services compete to get their capability on contract. By contrast, the very definition of our integrated approach is pan-defence prioritisation, as we are seeing in practice in our pending munitions plan, which will address many of the concerns of right hon. and hon. Members about getting our industry up to spec in terms of missiles and other key munitions. Let me be clear that such prioritisation would be challenging even if we went to 2.5%, such is the nature of defence.

A particular priority of our new acquisition model, as was referred to by the Chair of the Defence Committee, is spiral development: accepting 60% or 80% of requirements rather than 100% exquisite. The key to that is ramping up our engagement with industry, so we have held far more engagement events with industry at a secret level. Just this week, for example, we have held engagement between the strategic command and industry about cyber and electronic warfare—at a secret level, because we want to empower industrial innovation.

I have also said that exports are a key part of getting our industrial base as resilient as possible. So I am delighted to confirm the overnight news that BAE Systems will partner in Australia to build its nuclear-powered submarines. This is a major moment for AUKUS, and the collective submarine-building will support 7,000 additional British jobs across the programme’s lifespan.

My right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) and the hon. Member for South Shields (Mrs Lewell-Buck), who this week chaired the Sub-Committee on AI, both rightly stressed the importance of technology. To see that, one need only look at the situation in Ukraine and at the extraordinary propensity of electronic warfare, which underlines how the battle space has changed. So a key part of our system will be about learning the lessons from the frontline as rapidly as possible, as we spiral our own developments in response. We are learning those lessons. For example, as part of its drive to incorporate autonomous platforms flying alongside crewed fighters, the RAF is now progressing to procure drones to overwhelm an adversary’s electronic warfare defences. That underlines an important point: that advantage in future warfare and uncrewed combat, will not necessarily be gained by individual platforms and technologies; it will be their smart integration, across crewed and uncrewed systems, that will enable us to develop a force fit for the future. That is why I believe we need an integrated approach to procurement.

To conclude, the brief snapshot of military exercises that I have outlined today does not do justice to the breadth and reach of our armed forces. They are more than ready. They are out there, deployed all over the world, keeping us safe and defending our interests. Meanwhile, the reforms we have made to procurement will help us adapt to emerging threats and evolving technological possibilities. That is a key lesson from Ukraine and from our Defence Command Paper.

This Government will continue to back our armed forces with record levels of defence spending, an ambitious 10-year equipment plan and by forging a new partnership with industry to co-develop cutting-edge capabilities. It is a plan that will ensure that our defence industrial base is more resilient and our armed forces are better equipped. It is a comprehensive strategy for our national security, and I commend it to the House.

UK Armed Forces

Debate between Jeremy Quin and James Cartlidge

Monday 11th March 2024 Commons Chamber

[James Cartlidge]

I am grateful to the right hon. Gentleman for his comments about HMS Richmond. I am sure that we all agree and pay tribute to our Royal Navy personnel, who are there ultimately to defend not only themselves but freedom of navigation for the rest of the world. We should recognise the importance of the role that they are undertaking on behalf of our Government.

The right hon. Gentleman talked about the funding for next year. To be clear, that will represent a 1.8% increase in real terms and not the cut that he suggested. If we spend the money that we expect, it will amount to £55.6 billion—about 2.3% of GDP, which is traditionally how we measure our spending. That is significantly above the just under 2.1% in 2019, so it is a significant increase as a percentage of GDP.

The right hon. Gentleman also talked about recruitment, which is an important issue. My right hon. Friend the Minister for Defence People and Families is doing a lot of work on that and, as the right hon. Gentleman will be aware, in January we saw the highest number of applications to the Army in six years. A more positive picture is developing, recognising the importance of the mission. We should not talk down our armed forces when we expect people to apply and to want to be recruited into them.

I note the range of comments about the 2.5% and want to make several points. The first is that the right hon. Gentleman said that we had not spent that percentage since Labour were in power. Well, something extraordinary happened at the end of their time in power: they crashed the economy, we had a full-on banking crisis and a letter was left for our Government saying “there is no money.” It is no surprise that we had to take difficult decisions, but despite that we have shown our commitment to the armed forces.

When he was Chancellor of the Exchequer, the Prime Minister approved the largest ever increase in defence spending since the cold war, and there has been further money since then in the Budget. Of course, we are committed to 2.5% when the circumstances allow. For all the right hon. Gentleman’s bluster, he has not even committed to matching our current spending on defence, let alone 2.5%; we challenged him on that at Defence orals and he was not able to give any commitment whatever to spending.

The public know where we stand: 2.3% in the year ahead and 2.5% when the economics allow. We do not have a clue where Labour stands.

[Sir Jeremy Quin (Horsham) (Con)]

I agree with the Minister that we have extraordinarily capable armed forces whose productivity is second to none. However, as is set out in “Ready for War?”, our Defence Committee report, they are extremely engaged globally and have a great deal to do, much of which is invaluable. At the same time, they are having to prepare for the “pre-war” phase to which the Defence Secretary referred. In that context, does my hon. Friend agree that the timing of the 2.5% target—that is very welcome and a very good first step—needs to be determined by the level of threat as a priority expenditure, rather than as economic conditions allow?

[James Cartlidge]

I do not think that we can commit to levels of public expenditure or tax cuts, for example, without being confident that the economy can support them in a prudent fashion—an entirely reasonable and rational approach. However, I totally agree with my right hon. Friend the Chair of the Defence Committee. We all recognise that we are living in a more dangerous world—the Secretary of State has alluded to the threats we face not just in Ukraine but in respect of other adversaries around the world—and I totally understand why there is the wider debate on what we spend, but we already have a significant budget, and we must ensure that it is spent well and delivers value for money. That is why a key priority for me is reform of our procurement system so that we can ensure that our armed forces can prioritise effectively. Ultimately, it is the capability that we have now that will determine our ability to warfight.

Defence Acquisition Reform

Debate between Jeremy Quin and James Cartlidge

Wednesday 28th February 2024 Commons Chamber

[Sir Jeremy Quin (Horsham) (Con)]

I congratulate the Minister on the statement, which looks to the future. There is a lot in it to commend. In particular, it is absolutely right to focus on data collection and making certain we are AI-ready. I am delighted about DSTL’s enhanced role, which was one of the learnings from Ajax, and I am pleased that all the recommendations of the Sheldon report are being taken forward.

On closer industrial working at secret and exportability, that is entirely consistent with the defence security industrial strategy. That is absolutely welcome and a very positive sign. Above all, I am delighted with the emphasis on spiral development and the new concept of the MDC. We all know the benefits of that: getting something that is right and appropriate on to the frontline where it can be spirally developed is good for industry—it sees the drumbeat of orders—and good for the services, which do not need to think they are going to get everything in one bite. It is all positive.

The only thing I would ask is that we should not forget the basics. The Minister referred to this in his statement, but SROs who have enough bandwidth, support, and time and length on a project are absolutely critical, as is a culture in which they can experiment, and if something ain’t working, they should be able to pull stumps. That should not be a source of shame, but an inevitable consequence of being forward-leaning, modern and experimental. They should say, “This isn’t working; reinvest the cash elsewhere.” That should be commended when SROs come to the Minister with that kind of circumstance.

[James Cartlidge]

I am very grateful to the Chairman of the Select Committee; he is absolutely right. Let me take those two points. On the importance of SROs, the biggest issue we face, ironically, for all the talk about technology, is people—that is across the economy in many ways and across the public sector. Yes, we want to empower SROs. There are some brilliant SROs in the Department and it has been a pleasure to work with them. I stress that I think we are now at the point where 90% of SROs spend at least 50% of their time solely on one project. That is very positive.

On my right hon. Friend’s point about cultural change, let me be frank. We can publish all the strategies we want, but if they are not delivered and do not change the culture, they will not have the effect on output that we want.

Let me return to my drone example. My right hon. Friend spoke about the need to learn from failure, which is how many of the greatest entrepreneurs in the world have succeeded. On the day of my visit to the SME that was developing a highly effective drone to be used on the frontline, the people there had received bad news, but crucially, they took that bad news, they spiralled the platform, they learnt from it, and they made sure that when it went out again it was competitive. That is the key to the system.

Ukraine: Military Equipment

Debate between Jeremy Quin and James Cartlidge

Tuesday 27th February 2024 Commons Chamber

[Sir Jeremy Quin (Horsham) (Con)]

I welcome all that the Government have been doing, including on Brimstone and the package of £245 million-worth of ammunition. However, may I ask specifically about 155 mm shells and the BAE Systems production line? Has it now got the orders to ensure that it is working at maximum capacity, on a war footing, to produce all it can to support Ukraine and indeed, in due course, our own stockpiles?

[James Cartlidge]

It is a pleasure to take my first contribution from my right hon. Friend in the Chamber since he became Chairman of the Select Committee. I look forward to further discussion with him later this afternoon on other matters before the Committee. He is right to stress the importance of that contract—155 mm shells are one of the fundamental munitions we need to see both replenished for the UK armed forces and, where possible, provided into Ukraine, along with other key artillery classes. I can confirm that we signed that contract with BAE last July and it should lead to an eightfold increase in 155 mm production, initially in the Washington plant, but thereafter in south Wales. I am keen to see that get going as soon as possible.

Ukraine

Debate between Jeremy Quin and James Cartlidge

Tuesday 19th December 2023 Commons Chamber

[James Cartlidge]

I believe that until recently the hon. Gentleman was a member of the Defence Committee, and I am grateful for that support from him and from his party. He asked a number of questions, but I think the most important was the one about what we could say about the support we are providing for Ukraine right now.

In my opening remarks I emphasised the importance of the maritime capability coalition, and Members will be more than aware of the importance of the Black sea and getting grain out of Ukraine. Since that corridor reopened, some 5 million tonnes of grain have been exported, and it is extremely important for us to retain that. We should also recognise that Ukraine has had significant success in pushing the Russian fleet eastwards to enable that to happen. However, we must not be complacent, which is why we are providing this naval support. We and Norway are joint leaders of the MCC, and when I visited Norway last week, it was clear that we are very strong naval partners because of the shared threat to our home waters that we face from Russian submarines, but we will keep on looking at what more we can do, and I am grateful to Members in all parts of the House for their support.

[Jeremy Quin (Horsham) (Con)]

In response to the question from the right hon. Member for Wentworth and Dearne (John Healey), my hon. Friend referred to UK companies helping Ukraine to build out its own defence capabilities. That is obviously to be welcomed, but can he also reassure us that the work we are doing to resupply Ukraine is an opportunity we are seizing to broaden and deepen UK defence capabilities, so that in the worst-case scenarios we can enhance our own ability to restock ourselves and our allies?

[James Cartlidge]

It is a pleasure to take a question from my right hon. Friend. He was an excellent Minister for Defence Procurement and an excellent Minister generally, and I always enjoyed the many Cobra meetings that were overseen by him, but he speaks with equal strength from the Back Benches, and his question is very important. When it comes to opportunities for future industrial production in Ukraine, I would like to see an opportunity for us to work together for our mutual benefit to create ordnance not just for Ukraine but for ourselves, because maximising that demand signal is the best way in which to secure the strongest possible military industrial base.

Charter for Budget Responsibility

Debate between Jeremy Quin and James Cartlidge

Wednesday 20th July 2016 Commons Chamber

[James Cartlidge]

I will repeat the point. I think that monetary policy comes first in the present circumstances. I think that the Governor of the Bank of England is a very reassuring force in these times. He issued those warnings about Brexit because he was asked to state his opinion, and he stated it as honestly and transparently as he could. Once Brexit was the result—and it was a shock, as I think everyone concedes, even those who wanted Brexit passionately—he was a very reassuring presence for the Government.

As for fiscal policy, Opposition Members have mentioned measures such as huge amounts of investment. This may be only my personal view, but I would always emphasise that it is private sector investment that we should seek to drive, and a key part of that is the credibility of the Government’s overall stance.

[Jeremy Quin]

We hear calls for a fiscal stimulus, and I recall that there were similar calls during the financial crisis. People demand shovel-ready infrastructure projects, saying, “Let’s spend the money,” but such things always take time. The idea that a magic tap can be turned on and immediately flood the economy with a fiscal stimulus is illusory, and that is why people turn to monetary policy first. There are those who get excited and say that we need the ability to change now, but I think that that is a delusion.

[James Cartlidge]

I agree with my hon. Friend, but I would make one point about shovel-ready projects. We have quite an advanced business plan for a Sudbury bypass. If the Government decide to go down the Keynesian route of looking for shovel-ready schemes, we are ready in South Suffolk, and we are waiting for the bypass for which we have been campaigning for many decades.

There is an aspect of the charter for budget responsibility that has not yet been mentioned during today’s timely debate. The charter states:

“The Treasury’s objectives for fiscal policy are to: ensure sustainable public finances that support confidence in the economy, promote intergenerational fairness, and ensure the effectiveness of wider Government policy”.

The phrase “promote intergenerational fairness” strikes me as incredibly important. I hope that my Whip will show me some intergenerational fairness, and allow me a couple more minutes. I will not be long.

We have had a Conservative leadership election, and we are still having a Labour leadership election, but, as far as I am aware, no one has debated the following facts. Our national debt stands at £1.65 trillion; according to the Institute of Economic Affairs, our liabilities amount to £5 trillion; and it is estimated that, by 2062, all pensioner benefits will cost £491 billion. I was going to say a lot more about that, and there is a lot more that needs to be debated, but I am getting the hint.

The Economy

Debate between Jeremy Quin and James Cartlidge

Wednesday 18th November 2015 Commons Chamber

[James Cartlidge]

Ultimately, my hon. Friend is talking about the importance of investment. It is necessary to reduce the deficit, and therefore eventually the long-term debt, in order to build an economic policy that is credible to outside investors and gives them the confidence to invest in this country. That is the key reason.

[Jeremy Quin]

I thank my hon. Friend, who is absolutely right. He is not the only wise person to make such remarks; the head of the CBI did so only recently. That fiscal rule gives companies the confidence they need that they can invest in this country and will continue to see long-term progress being delivered by this country.

The hon. Member for Dundee East (Stewart Hosie) talked about the need to have export-led growth. One of the problems we have with our balance of trade—I mentioned it in an intervention on the hon. Member for Hayes and Harlington—is that we are growing while our major markets are shrinking or teetering on the edge of recession. That is the sad aspect of the position we are in. While I am delighted that we have one of the best rates of growth of any country in the G7, it would be a lot easier if the whole of Europe were growing at the same pace. Whereas other countries are taking strong dividends out of this country from the investments they have made—dividends have gone up by 30% in the UK economy since 2010—we are not getting the same capital returns from the investments that we are making overseas. Nor are they in a position to buy the goods that we are manufacturing. There are many good stories to be told about our export business, particularly in the automotive sector, but if our customers cannot afford to buy our goods, that will inevitably come through in the statistics.

The answer is that we should be investing more and expending more effort on the growth markets of the world. I have to say to the hon. Member for Dundee East, and to other hon. Members, that we see the growth in China and in India, and we know how important they are. One would have needed the sleeping prowess of a Rip Van Winkle not to have noticed the efforts that the Government are making in India and in China to ensure that we are opening up those markets for our exports in future. I oppose the motion.