Royal Fleet Auxiliary

John McDonnell Excerpts

Monday 6th December 2010 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

I refer to my entry in the Register of Members’ Financial Interests as the convenor of the National Union of Rail, Maritime and Transport Workers parliamentary—[Interruption.]

[Mr Speaker]

Order. I apologise to the hon. Gentleman. May I appeal—[Interruption.] Order. May I simply appeal to Members who are leaving the Chamber to do so quickly and quietly? It is quite simply a matter of courtesy—nothing more, nothing less.

[John McDonnell]

Thank you, Mr Speaker.

I refer to my interest as the convenor of the RMT group of MPs. I requested this debate to draw attention to and applaud the work of the Royal Fleet Auxiliary, and to raise concerns about its future in the face of looming cuts to ships and crew, and the threat of privatisation.

In the statement to the House on the strategic defence and security review, the Secretary of State for Defence made no reference to the Royal Fleet Auxiliary, nor is there a reference to it in the document. However, in the supporting documents, the future of the RFA is explained more specifically. It is clear from the policy briefing that there will be a range of cuts to ships:

“We plan to withdraw from service one Landing Ship Dock Auxiliary, one Auxiliary Oiler and one Auxiliary Oiler replenishment.”

It goes on to state that there will be personnel cuts:

“The Department has announced that there will be sizeable reductions in the number of civilians employed by MOD. The RFA will bear its share of these. The future manpower strength of the RFA will reflect its reduced size. Details will be announced in due course.”

More specific details were announced in a memorandum from Commodore Bill Walworth:

“SDSR for the RFA means we will lose a tanker, probably Bayleaf, an LSD(A)”—

landing ship auxiliary—

“probably Largs Bay, and an AOR”—

auxiliary oiler replenisher—

“probably Fort George.”

He stated that that would probably happen by April 2011. At the same time, we heard about the regeneration of Fort Austin, which is certainly welcome.

[Dr Julian Lewis (New Forest East) (Con)]

I am extremely surprised and alarmed at the suggestion that one of the Bay class ships might be disposed of. Those ships are brand new and have enormous military value, so much so that the Royal Navy has cast covetous eyes on them in the past, thinking that they ought to be fully RN-manned. Is the hon. Gentleman absolutely certain that there is a suggestion that Largs Bay might be disposed of so early in its service life?

[John McDonnell]

I can only refer the hon. Gentleman to the memorandum from Commodore Bill Walworth, who is responsible for the RFA, which specifically names those ships. I think that it is now in the public domain as a result of reports in Lloyd’s List. We will know the situation more clearly by April 2011, but those ships have been identified. I agree with the hon. Gentleman that it is worrying that a relatively new craft is concerned.

Further reviews are taking place, in particular the value for money review. The value for money review undertaken by the previous Government came to conclusions about the future of the RFA and its retention in the public sector. A further value for money review is linked to the SDSR and the comprehensive spending review. It looks as though the proposals, again according to a memorandum from Commodore Walworth, identify a target figure of 10% savings, which includes a significant number of personnel. If 10% is translated across, 220-odd seafarers could be faced with redundancy.

Anxieties have been raised in the various memorandums and documents that have entered the public domain about the potential privatisation of the service. A letter from Commodore Bill Walworth that I believe went to all personnel, including the unions, refers to a benchmarking exercise that has taken place with the shipping industry that was

“intended to demonstrate the value for money of the operational outputs that we all deliver.”

Benchmarking is perfectly appropriate if we are trying to ensure that there is value for money, but I have anxieties because of a further e-mail that is quoted in Lloyd’s List—I am not sure whether it has leaked or is in the public domain. It is from the RFA’s value for money review group:

“To date there has been work carried out to establish baseline costings of the RFA to inform the review and establish a set of requirements for the RFA that is understandable to”

the shipping industry. It continues:

“Two members of the Review Group will approach”

the shipping industry

“shortly to gauge their appetite to conduct the range of operations carried out by the RFA…This will probably start next week and we can anticipate some press interest.

RFA management has been involved in this work, to ensure that the private sector understands what is required to replicate current activity.

We will continue to work to ensure that when commercial offers are considered by the Review Group they take into account all that the RFA offers alongside that of the commercial options.”

[Mr Edward Leigh (Gainsborough) (Con)]

The hon. Gentleman should be congratulated on securing the debate, which gives us an opportunity to say that the Government must be aware that the Royal Fleet Auxiliary, with its unique place in our maritime history, is held in very warm regard on the Conservative Benches. Any attempt to privatise it, or to deal with it through death by a thousand cuts, will be fiercely resisted.

[John McDonnell]

I welcome the hon. Gentleman’s comments. My reason for seeking the debate was to get some clarity from the Government about what their intentions are, because at the moment we rely on e-mails circulated within the service itself appearing in Lloyd’s List.

The information that has been put into the public domain has left the RFA in an extremely worrying climate of uncertainty, which is not good for the service, certainly not good for the RFA personnel and their families, and not good, I believe, for the defence of the country.

It is worth reminding ourselves of the long and proud history of the RFA, which the hon. Gentleman has just touched upon. It celebrated its centenary in 2005, having started life in 1905 to give the Royal Navy capability and support at sea, food, fuel, ammunition and supplies. Its motto is “Ready for Anything”. It has always been crewed by civilians, who act as reservists, and has played a major role in every engagement of the past century. RFA officers and ratings delivered distinguished and professional support in every naval theatre of operations in the second world war, from the Arctic to the Pacific. Since then, the RFA has served to support the Royal Navy and Army in Korea, Suez, Cyprus, Kuwait, Borneo, Belize, Aden and even the Icelandic cod wars.

[Stephen Pound (Ealing North) (Lab)]

My hon. Friend reads out that roll of very considerable honour, so I am sure he needs no reminding that the RFA vessel Sir Galahad suffered fatalities in the Falklands. Those who crewed that ship died for our country at that time.

[John McDonnell]

I can only say that it reflects the professionalism, commitment, courage and determination of the officers who served on the Sir Galahad that they held to their task throughout the period of being blitzed.

More recently, the RFA played a crucial role in the Gulf war and was cited by the Select Committee on Defence for its vital contribution through the effective delivery of logistics and support. Its crews are civilian and follow the merchant navy training qualification pathways, but over the years it has developed specialist training in helicopters, firefighting, the use of defence systems, specialist navigations, naval communication systems and command systems. It now provides amphibious support and strategic sealift facilities, and provides casualty reception and forward repair functions.

Interestingly, an element of the RFA’s work that has not been sufficiently highlighted in the past is its role following natural disasters. It has provided aid and support, playing a key role in a number of African countries, in Sri Lanka and in the Caribbean. It is now working heavily alongside the US coastguard to tackle drug smuggling operations, and some may have read in the past month that RFA Fort Victoria, in a patrol between Somalia and the coast of the Seychelles, intercepted Somali pirates. That is an incredible record of professionalism, service, courage and determination, and the service is a world leader in its field.

There are 2,300 seafarers in the RFA, and they are employed under RFA conditions of service, which reflect their need to serve in war zones and face war hazards at times. The cost is £100 million. It is cost effective and highly efficient, but stretched to meet existing demands.

[Sarah Newton (Truro and Falmouth) (Con)]

I thank the hon. Gentleman for securing this debate, and I would like to associate myself with his comments on the excellent service that the RFA provides. Does he agree that there is real innovation in how it works with industry? In particular, I am thinking of A&P, the ship repairer at my port of Falmouth, which in the Minister’s own words has delivered excellent value for money.

--- Later in debate ---

[John McDonnell]

I have the Minister’s response to the hon. Lady’s parliamentary questions demonstrating the RFA’s broader contribution to what is described as the maritime cluster and the excellent role the service provides beyond the narrow remit of logistics.

If there are to be cutbacks to ships and crew, many of us will be extremely concerned. There is already pressure on this severely stretched service, and further cuts will undermine the service’s potential. It is an ever-changing world. We cannot judge what the challenges will be in the future, so we need to retain the capacity to respond to threats and disasters that might occur. However, it is extremely doubtful whether, with the planned cuts, the threat of privatisation and the cutbacks in personnel, the service would be able to respond to those challenges. The whole edifice of the RFA will be put at risk if the cuts go ahead.

There are wider ramifications for the maritime industry. The RFA is now the major employer of UK officers and ratings. It has gone down from 30,000 UK officers and ratings in 1980 to fewer than 9,000 today, and the RFA is the largest single employer. Cuts on this scale would significantly reduce our national pool of merchant seafarers, deny opportunities to the next generation and damage what we describe now as the maritime cluster and our ability to rise to future challenges in terms of both the Merchant Navy and the Royal Navy. It would also be a devastating blow to the morale of the existing personnel.

If job cuts are to happen, may I suggest to the Minister that, given the age profile of current serving personnel, they could be achieved through natural wastage rather than redundancies? However, my intention is to persuade the Government not to pursue any further jobs cuts or closures of ship or craft at all.

On the threat of privatisation, there is concern that the service could, if privatised, be subject to commercial pressures of the market that would not maintain the long-term commitment to the service required. The search for short-term profits by sweating the assets, as we have seen in other privatisations, could undermine the service. It is a risky enterprise. Also, if it is privatised, it is highly likely that it would be taken over by a foreign-owned company, with the potential for a foreign crew. Again, Maersk, the Danish conglomerate, has already expressed an interest. However, there are strategic and political sensitivities, if not risks, if such a key strategic service is no longer in the ownership and control of the state it serves. This is not a back-room function; it is a front-line service operating in war zones.

Before the Minister responds, my hon. Friend the Member for North Durham (Mr Jones) would like to say a few words, because he played a role in the last Government on this issue. May I quickly say, therefore, that if the cuts, or the threat of privatisation, go ahead, there will be a sense of grievance and anger at the thought that this service and its personnel, with a history of courageous and effective service, could be sold off to the highest bidder from wherever.

I warn the Government that there would be a backlash. Yes, it would be led first by the unions, but there would be a much wider sense of betrayal in the wider community. I therefore urge the Government to make clear their intentions for the future of the RFA and reject the cutbacks and privatisation. On behalf of the RMT—Nautilus will feel the same—I would welcome a meeting with the Minister to talk through the issues facing the RFA and to look to plan its long-term future. The service is too important to allow considerations of short-term savings to put it at long-term risk. I urge the Minister to think carefully before any further decisions are made.

[Several hon. Members]

rose—