Oral Answers to Questions

Jim Murphy Excerpts

Monday 25th February 2013 Commons Chamber

[Mr Hammond]

I shall leave it to my right hon. Friend the International Development Secretary to explain how DFID proposes to spend its budget. There is already a high level of co-operation between the Ministry of Defence, the Foreign Office and DFID. It makes absolute sense to look at how we spend the budgets available across those three Departments in order to achieve their objectives and secure the UK’s vital national interests.

[Mr Jim Murphy (East Renfrewshire) (Lab)]

Last May the Secretary of State announced to an outburst of self-congratulation that he had balanced the MOD’s books and, as we have heard, he even called on the National Audit Office to validate his assertion. Instead, however, the auditors have declared that his costings are “over-optimistic” and his approach “not statistically valid”. Put simply, the NAO said:

“The costings are not sufficiently robust to support the affordability assertion.”

Is it not now time for the Defence Secretary, just like the Prime Minister, finally to admit that he has failed to deliver on his boasts on the MOD budget?

[Mr Hammond]

No, and I am sorry that the hon. Member for West Lancashire (Rosie Cooper) has stolen the right hon. Gentleman’s thunder. We now have an equipment plan that includes £4.8 billion of centrally held contingency, £8.4 billion of contingency in the individual projects, and £8 billion of unallocated headroom. The right hon. Gentleman might have noted that the right hon. Member for Barking (Margaret Hodge) recently said that, since the election, the MOD has made

“welcome progress…particularly on the purchasing of equipment”

and “great strides forward”. That is in marked contrast to the National Audit Office and Public Accounts Committee’s assessment of what happened under the previous Government.

[Mr Murphy]

The Secretary of State should spare us the lecture. This is the party that sold off the Harriers, that could not decide which aeroplanes to put on the carriers, that sends our one carrier to sea without any aeroplanes and that cost the country tens of millions of pounds.

To return to the budget, we now know that when the Defence Secretary told this House that the defence budget was balanced, he meant that only 40% of it was costed. The National Audit Office looked at just £1 in every £5 of the MOD’s budget, and even then it discovered a £12.5 billion black hole in the plans. The NAO said:

“Achieving affordability is…contingent on savings being achieved elsewhere in the budget.”

Will the Defence Secretary confirm the NAO’s figure for the new black hole and that his plans to boost the equipment budget will fall on the back of further cuts to our armed forces and their welfare?

[Mr Hammond]

No. The right hon. Gentleman is simply wrong. The figure of £12.5 billion is from CAAS—the internal cost assessment and assurance service. It was quoted by the National Audit Office and has subsequently been reassessed at £4.4 billion. [Interruption.] No, it was by CAAS and has been reassessed at £4.4 billion. The right hon. Gentleman is simply wrong.

Labour has to decide whether it is going to engage seriously in this debate or not. At last year’s Labour conference, the right hon. Gentleman told his party that it

“must deal with the issues we would if we were in power…No smoke and mirrors, no delay in tough decisions”.

Just two weeks ago, however, he told The Daily Telegraph:

“I’m not going to say we will guarantee to overturn this cut or the other.”

Which is it to be: tough decisions or more ducking and weaving?

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

I am grateful for this opportunity to announce a comprehensive set of measures implemented in the MOD by the Secretary of State to ensure that both former and current employees are clear about the rules and restrictions on access.

For the first time, a list of all ex-MOD personnel who are subject to lobbying restrictions under the rules of the Advisory Committee for Business Appointments will be available for all MOD staff to see. The MOD permanent secretary has written to all former MOD personnel who are subject to business appointment restrictions to remind them of their duties under the advisory committee, and to the Association of Defence Suppliers to ensure that industry members are aware of the rules. Transparency measures have been radically increased, and since the review the permanent secretary has removed nearly 2,500 passes allowing access to the MOD’s main building to ensure that only members of staff who require regular access to the MOD are granted it. Passes that have not been used for 60 days have been disabled, and there will be an ongoing audit of those who are granted visitor passes.

[Mr Jim Murphy (East Renfrewshire) (Lab)]

When Ministers were last asked about the need to double the reserve force numbers, they dodged the question, instead talking about the increase in Territorial Army inquiries. Today we have heard from Ministers that they are hopeful that the policy will be a success. However, a policy that the country needs to be a success is being totally mishandled, with missed targets and too few businesses aware of the Government’s plans. Instead of talking about inquiries, will Ministers now place on record the fact that recruitment targets are being missed? Surely, in relation to this important issue, accepting that there is a problem would be the first step towards dealing with the problem.

[Mr Hammond]

Let me say to the right hon. Gentleman that the way in which we will not increase confidence in the Territorial Army, and will not increase reserve numbers, is arbitrarily cancelling its members’ training, cutting their kit and relegating them to the second division, which is what his party did in government. [Interruption.]