National Shipbuilding Strategy

Jim Shannon Excerpts

Wednesday 8th February 2017 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, Mr Evans. I am conscious of the time and will make sure that we all get a chance to participate.

I thank the hon. Member for Dunfermline and West Fife (Douglas Chapman) for bringing the issue forward today. He spoke very well, as he always does. He has been an advocate for shipbuilding across the United Kingdom of Great Britain and Northern Ireland, where we are all better together, as I often say, Mr Evans—I am sure that in this case you would probably say, “Yes, you’re probably right on that.” [Laughter.] I digress slightly, Mr Evans; I apologise for doing so.

This is an issue that I have given much thought to and had much discussion about, having just come off the Select Committee on Defence. I am pleased to see my hon. Friend the Member for Belfast East (Gavin Robinson) here. He took over my position on the Defence Committee and is already much involved in the issues. It is good to see him here and involved in the work on that Committee.

We have what is undoubtedly the finest Navy in the world. That is a recognised fact. That is no surprise, given that we are a small group of islands. At one stage we were described as the empire on whom the sun never set, as we controlled so much of the world. Our Navy was a major reason for that and our Navy retains a major role in the strength of the United Kingdom of Great Britain and Northern Ireland today.

A strong army needs a strong fleet, and this is where the national shipbuilding strategy must play its part in the process. These are the facts: the Ministry of Defence is in the middle of an ambitious recapitalisation programme for its naval surface fleet. The Government plan to spend some £19 billion over the next decade on surface ships for the Royal Navy and Royal Fleet Auxiliary.

The Royal Navy designates a class of frigates and destroyers as a Type. The Navy has a fleet of 13 frigates, all Type 23s, which will begin to leave service from 2023 onwards. Hon. Members who have spoken so far have expressed concern—it is my concern as well—about the delays and the timescale, and about the quantity and numbers as well. We look to the Minister today for a response that can put our minds at ease and allay our fears.

Plans to replace the fleet changed significantly in 2015, when the Government dropped proposals to replace it on a one-to-one basis with the yet-to-be-built Type 26 frigates. Only eight Type 26 frigates will be ordered, and a new class of general-purpose frigate, unofficially known as the Type 31s, will be developed. We spoke on the topic of the Type 26 in October, and my stance today is as it was then, when I said:

“It is my desire...to see the new British fleet built in Britain. As we have said, we are marching to the steady drumbeat of orders, and that must be the way we move.”—[Official Report, 18 October 2016; Vol. 615, c. 308WH.]

Hon. Members have suggested that although the drumbeat of orders is on paper, we need to have it confirmed and the timescale needs to be in place.

BAE Systems is the prime industry partner for naval warships and submarines. I welcome the Government’s confirmation that the steel is to be cut on the Type 26 in summer 2017, although as the hon. Member for North Durham (Mr Jones) said earlier, summer can develop into autumn—or indeed winter, whatever the case may be. The work will be at BAE’s two remaining shipyards, both located on the Clyde. Again, I can say it is within the United Kingdom of Great Britain and Northern Ireland. I welcome the commitment, but the Government have not gone far enough and there is much uncertainty about what the highly anticipated report will bring.

I read an interesting report—Members have referred to it—on a website called Save the Royal Navy. Its opinion on the Parker report states:

“On 29th November Sir John Parker’s report to inform the UK National Shipbuilding Strategy...was published. Commissioned by the Treasury, exasperated with decades of continual delays and cost increases to warship construction, the report is concise and written in clear layman’s language. The 34 recommendations are eminently sensible and the report has generated at least temporarily, a warm and fuzzy feeling of consensus and optimism.”

That is a positive response looking towards the future. However, that report goes on to say:

“Amongst independent observers there is cynicism about whether any of the recommendations of the report will be implemented at all. Most of the issues highlighted have long been known but nothing has been done for years. By commissioning the report, the Treasury has at least created a roadmap to escape the current shipbuilding malaise which will be difficult to ignore.”

Perhaps the Minister will respond to that. The report continues:

“It is now up to government to properly fund, endorse and enforce the recommendations when it formulates and implements the actual shipbuilding strategy next year. Should those in power be bold enough to do so, it would go a long way to reviving the RN and have great benefits to UK industry.”

This is exactly the phrase we want to see:

“It is now up to government to properly fund, endorse”

and fulfil the recommendations—and, I would say, their obligations as well. That is why we are here this afternoon. These are matters of national importance and we need to impress upon our Ministers, particularly the Minister who is here, the importance of implementing the review and incorporating the recommendations for shipbuilding for our Navy.

We do not always get full details from the Library, but on this occasion we have oodles of information, which has been very helpful to inform our speeches. One thing that has not been mentioned is the issue of logistics ships. We have heard much about frigates, but I want to mention logistics ships on the record, because—the Minister will know this—it seems that South Korea is going to build them, and I want to know: why are we not building them here? I mean no disrespect to South Korea—it has a lot to do and is very expert in what it does—but I would like our people to have the opportunity.

There has been a suggestion that conversions from commercial shipping might be the right solution. If it is the solution, let it happen at home, using our own shipbuilding expertise. We have shipbuilders throughout the UK and they must benefit from Government contracts. A Ministry of Defence principle ensuring that only home firms get the work is a must. It is important to entire communities that rely on the work and the money. More importantly, however, we do not ask for ships to be built only to save jobs; we need those ships for the security of the nation. Sometimes that point is lost in the debate. We are thinking about the security of the nation, to make sure that we are okay. We have a duty and responsibility. I should like to say that I have every confidence—provided that the Minister gives a good response today. We must impress on her how vital it is to have a strong, fully functioning Navy. That can happen only with proper frigates and the right types of ships.

I implore the Minister to set our minds at ease and ensure that the report takes into consideration all that has been said, in the valuable contributions made by all Members to the debate. Certain things cannot be scaled back, and one of those is our defence capability. The Navy is an essential component of that, which must be recognised in the forthcoming national shipbuilding strategy. I thank the hon. Member for Dunfermline and West Fife for setting the scene, and all other hon. Members who have spoken. We look to the Minister for the response that we need.