Defence Procurement and Supply Chains

Jim Shannon Excerpts

Tuesday 1st December 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you. I was waiting for it to drop to two minutes. Other have not attended and I will do my best, indeed, I will keep within the five minutes as instructed. I congratulate the hon. Member for Birkenhead (Mick Whitley). I have been in two Westminster Hall debates with him and he always goes with good and important subjects. That there are so many members present indicates how important it is for all of us to be here.

There have been some fantastic contributions, but I want to make a big play if I can, as hon. Members would expect, for Northern Ireland. I look forward to the Minister’s response. He is always very helpful in his responses, and I look forward to what he will be able to do to encourage me and my constituents to buy British, to sell British and see that everything British is better, as the hon. Member for Bracknell (James Sunderland) said. I concur with that comment because I am as British as the hon. Gentleman and the United Kingdom of Great Britain and Northern Ireland, and I want to see those benefits coming to us as well.

Defence procurement must be based on a holistic view of the United Kingdom of Great Britain and Northern Ireland, ensuring that each region’s manufacturing or supply networks benefit from defence contracts. I welcome the Prime Minister and the Chancellor’s commitment to the £16.5 billion spend on defence, shipbuilding, space and cyber research and other sectors over a four period. That was a real commitment, a real shot in the arm, and we are all very pleased to see that.

Many independent aerospace manufacturers have capacity to build other products to a high standard and should be made aware of procurement opportunities. What work has been done with, for instance, Bombardier in Northern Ireland to ensure that we can take advantage of these projects as well? It is always great to read, as in the recent award of contract for 200 armoured vehicles in Telford, that the MIV programme aims to source 60% by value of the contract from within the United Kingdom of Great Britain and Northern Ireland. To achieve that, the team have engaged with suppliers in England, Wales, Scotland and Northern Ireland. Does the Minister agree that breakdowns of supply would be useful to ensure that there is a spread of British money across every part of the United Kingdom of Great Britain and Northern Ireland? I just want to ensure that we are all part of and benefit from this strategic overplay. It is good news.

The right hon. Member for Warley (John Spellar) referred to apprenticeships, and I want to make a quick play for them as well. I have been on to the Minister responsible—not this Minister, by the way—and made a play for apprenticeships to be available in Northern Ireland. Bombardier offers apprenticeships, and many other companies in this sector offer opportunities. I very much concur with the comments about the need to ensure that apprenticeship opportunities through this procurement programme will be available for each and every person.

The questions put to the Secretary of State back in June still stand today. I implored him to work with colleagues in defence to ensure that Northern Ireland skills were used in defence contracts, with special reference—I say this quite unashamedly—to the second-to-none aerospace manufacturing skills in Northern Ireland. I implore the defence team to recognise and deploy the skills in Northern Ireland—and, indeed, in all regions. I am not looking to take anything away from anybody else; that would be grossly unfair. All I want to do is ensure that we get our share of the pie, so to speak, when it comes to the opportunities from the defence budget and how that is disbursed across the whole of the United Kingdom of Great Britain and Northern Ireland.

I recognise the importance of defence spending and highlight the fact that availability of procurement contracts for the small independent manufacturers or suppliers could be the post-covid-19 lifeline for small and medium-sized firms. That is exactly the point that the hon. Member for Bracknell made in his contribution. It would be a very positive thing, and let us be positive about what we can do; there is positivity in where we are at this moment.

I will finish with this point. A written question from my hon. Friend the Member for Belfast East (Gavin Robinson) showed that the MOD spends per head per year approximately £60 in Northern Ireland as opposed to £850 in areas in the south of England. I will say it again: I am not taking the bread from anybody else’s mouth. I am just saying: can we have a share of that for Northern Ireland? I believe that if we can do that, we all benefit in this great country of the United Kingdom of Great Britain and Northern Ireland.

[Sir Charles Walker (in the Chair)]

I call Angela Crawley to speak for five minutes.

--- Later in debate ---

[Jeremy Quin]

I am grateful to the hon. Gentleman for his intervention. I recognise the passion with which he addresses the issue of the Rolls-Royce concerns at Barnoldswick and the current action there. I hope that can be brought to a conclusion. I know my colleagues have said much the same. I am not aware of any long-term plans to remove the F-35 components from outside the United Kingdom. I am not aware of them and I hope we can continue and maintain a productive relationship with Rolls-Royce.

We all know what a dreadful situation is confronted by the aerospace industry in general. In practice, in defence, we continue to invest and provide that lifeblood of support to our companies that I hope will enable them to remain and prosper inside the UK. I will come on to the FSS point made by the hon. Gentleman later in my remarks.

The proposer of this debate, the hon. Member for Birkenhead (Mick Whitley), mentioned Cammell Laird, which is in his constituency, and I congratulate the company on its work through the pandemic. It has done sterling work on the Type 45 power improvement programme, and it is great to see HMS Dauntless re-floated with key equipment installed and back on to trials. The company has also been working with the Royal Fleet Auxiliary—currently RFA Wave Knight and RFA Tidesurge. With them, and the work of other companies in the marine sector, Birkenhead continues to provide invaluable contributions to the defence and the UK’s wider prosperity.

More broadly, the north-west has one of the highest per capita defence equipment spends of any region in the country. These figures might upset the hon. Member for Strangford (Jim Shannon). The spend is £270 per head per year in the north-west, some way behind Scotland and indeed, Wales, but way ahead of Northern Ireland. The hon. Member for Strangford is absolutely right that we need to lift up and level up the economy.

[Jim Shannon]

We have an excellent MOD contractor in Thales in Belfast, which I know the Minister is aware of. It is very much involved in cyber-security. I encourage the Minister, when looking towards cyber-security contracts and procurement for the future, to note that Thales could perhaps very much feature in that.

[Jeremy Quin]

I have the gift of foresight. Only very recently, I was on a call with the First Minister of Northern Ireland with Northern Ireland defence contractors, talking about the opportunities that may come up. I know that the Chief of the Air Staff will be in the Province to talk about opportunities in aerospace, and we are minded to see how we can support all parts of the United Kingdom, absolutely including Northern Ireland.

To go back to the north-west, the Typhoon programme makes a significant contribution to the UK economy, generating billions of pounds through exports. That is an important issue, which my hon. and gallant Friend the Member for Bracknell raised. That will be enhanced not only by the recent radar development, which has secured in excess of 600 jobs, including 120 jobs at BAE Systems Warton in Lancashire, but also by the recently signed Quadriga contract, which secures further skilled manufacturing work to build parts of 38 new aircraft at BAE Systems Samlesbury, including engineering roles that are central to the UK’s future combat air ambitions.

We can be positive about the future for defence across the UK. The four-year settlement provides the financial certainty needed to pursue a radical modernisation programme to meet today’s threats and prepare for the future.

I urge the hon. Member for Portsmouth South to be a little patient. We have the funding envelope and we are looking forward to producing the integrated review and the defence and security industrial strategy. These are three important parts of the stool that will take us forward for the next few years. It is a platform for the future. I recognise the hon. Member’s eagerness to see those things announced. I would ask him to be patient a little longer. He is obviously happy with the first part of the stool—we have the other two legs to produce, and I hope to bring them forward as soon as practical. As he appreciates, these are cross-Government reports. We will bring them forward when we can.

The four-year settlement ensures that the armed forces will be able to adapt to the threat with cutting-edge technology, compete effectively in the information age and fight decisively when required. It will position the UK as a global leader in the new domains of cyber and space and transform the UK’s capabilities across sea, land and air.

As has been stated, it is underpinned by record investment of at least £6.6 billion on military research and development. I hope to encourage the hon. Member for Liverpool, Riverside (Kim Johnson), who is keen to see us committing to programmes. The announcement that the Prime Minister made confirmed our order of eight Type 26 and five Type 35 frigates.[Official Report, 7 December 2020, Vol. 685, c. 6MC.] It also supports a subject close to the heart of a number of people in this Chamber—the future of the fleet solid support ship programme, which will supply our carrier strike group, and which I know is of direct interest to the right hon. Member for Warley (John Spellar), as it is to the hon. Member for Birkenhead, among many Members. That is an ongoing process, as the right hon. Member for Warley knows; I look forward to his Defence question next week. The competition will be launched next year. I was going to say in the spring, which is but a short step away. We are looking forward to spring dawning.