Oral Answers to Questions

John Healey Excerpts

Monday 24th May 2021 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

[John Healey (Wentworth and Dearne) (Lab)]

The Prime Minister said back in November that the current four-year funding for defence would create “10,000 jobs every year”. Six months on, how many new defence jobs have been created?

[Mr Wallace]

I went recently to Telford to launch the Challenger 3 contract, which will grow to a significant number of jobs—nearly 200 to 300 from that alone. The Boxer coming on stream, which my hon. Friend the Member for Colne Valley (Jason McCartney) mentioned, will produce up to another 400 to 600 jobs. The Type 31 contract up in Rosyth is now moving apace, with the buildings now in place and the steel-cutting due; that will also unlock, and is delivering, hundreds of new jobs. Across the board, as we have said, there will be thousands of new jobs because of the increase in funding that we have received.

The right hon. Member for Wentworth and Dearne (John Healey) often comes to the House to say that we are cutting defence and tries to focus on the resource departmental expenditure limit, even though that itself is not a cut. With the capital departmental expenditure limit, the significant increase for capital spending will go on our equipment programme: vast amounts will be made in the United Kingdom, which means more jobs in their thousands.

[John Healey]

The Secretary of State will need a better answer than that, because it is down to him to deliver the Prime Minister’s “10,000 jobs every year”, yet since he has been Defence Secretary, the black hole in the budget has grown to £17 billion, only three of the MOD’s 30 major military projects are on time and on budget, and he has agreed to a real funding cut in revenue spending over the next four years. What is he doing to fix what has been the long-running Achilles heel of the MOD: delivery, delivery, delivery?

[Mr Wallace]

The £17 billion that the right hon. Member refers to is the sum that was identified by the National Audit Office before the defence settlement. So what have I done? I have got a £24 billion defence settlement over the next four years. I am sure the right hon. Member, having previously worked in the Treasury, can do the maths. He will see that that is the first thing I have done, and it is something I do not think anyone else has achieved since the cold war. It is the highest settlement since the cold war. But he is right to highlight the concerns on major projects. Major projects are always the Achilles heel for the Ministry of Defence, and it is important that we keep an eye on this in full and drive through, ensuring that we deliver efficiencies, but also ensuring that we cross every t and dot every i. The reason that he knows they are the Achilles heel is that in 2010 the NAO report identified that his Government at the time also had a major black hole in the equipment programme, which grew at one stage to £3 billion in a single year.

--- Later in debate ---

[Mr Wallace]

Mr Speaker, I will get the hang of Topical Question 1 one day. I hope the answer will be better the second time around.

The Government are committed to bringing forward measures. Those measures were mentioned in the Queen’s Speech, and we will obviously publish them as soon as possible. As a former Northern Ireland veteran myself, I know it is incredibly important that we recognise that many of those veterans served with distinction and bravery, and upheld the law to their highest ability. It is deeply regrettable that we see many of them brought to trial—or under investigation, rather than trial—for vexatious reasons, and we are committed to make sure that that does not happen.

[John Healey (Wentworth and Dearne) (Lab)]

May I, from the Opposition Benches, strongly endorse the concern and condemnation the Defence Secretary has expressed over the actions of the Belarus authorities? May I also say that we strongly support the work of Operation Tangham, but in the light of recent press stories, can I ask the Defence Secretary for his assurance that if he takes any decision to commit combat troops to Somalia, he will report such a decision to this House first?

May I ask about the Army’s fighting vehicles? The Defence Secretary wrote off over £1 billion of taxpayers’ money in March when he scrapped the Warrior. Weekend reports say that the MOD has also paid out £3.2 billion for the Ajax, and so far received only a dozen delivered, and those without turrets. A figure of £4 billion is the total size of the Government’s levelling-up fund over the next four years. Given that the Secretary of State has conceded this afternoon that delivery is the MOD’s Achilles heel, will he accept that Parliament now needs a system of special measures for the MOD so that British forces and the British taxpayer get much better value from his Department?

[Mr Wallace]

I think the right hon. Member is looking at the special measure. The reason I am here as the Secretary of State for Defence is to get the record level of investment that will put right not only five years or 10 years, but 20 years of mismanagement of these programmes. Sometimes that means taking tough decisions, and the Warrior will be retired when it runs out in 2025; it is not just going to be cancelled as such. It was also important to make sure that we invested in parts of the land capability that I thought, and indeed that officers thought, were the right thing for the future of the Army—the Boxer armoured vehicle. For that investment, not only do we get a factory in Telford and hundreds of jobs, but we get one of the very best wheeled armed vehicles in the world. For his £3.3 billion on Ajax, he will get over 500 vehicles when they are delivered, and much of that money has already been committed. He will also get a factory in Wales, which I am sure he is pleased about. In both projects, we will get the intellectual property, so that when we export those vehicles around the world, not only will British defence profit, but so too will the people of the United Kingdom through their jobs.