Defence Industry and Shipbuilding

John Redwood Excerpts

Wednesday 11th July 2018 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

I beg to move,

That this House recognises the important contribution of the defence industry to the UK; calls on the Government to support the UK defence industry by taking into account the economic and employment benefits to the UK when awarding contracts and to publish a full, overarching defence industrial strategy; and further calls on the Government to make the competition for the Fleet Solid Support ships contract a UK-only competition to maximise the return on that contract.

Today could be a significant step forward for things coming home. Of course, I am talking about the contract for the fleet solid support ships. As a proud island nation, the UK shipbuilding industry is vital for our prosperity and defence—a message that workers’ representatives from the shipyards spelled out loudly and clearly to Members yesterday. The industry makes a substantial economic contribution, directly employing some 23,000 people and contributing £1.7 billion a year to the UK economy.

Throughout our history and to the present day, the industry has supplied our Royal Navy with the ships that it requires, thereby playing a crucial role in the defence of these islands. Our ships contribute to many NATO and EU missions, including Operation Atalanta, which combats piracy in the gulf of Aden and off the horn of Africa, and they were vital in the humanitarian relief efforts following last year’s hurricanes in the Caribbean.

In the light of events this week, I will not suggest which ship the Government most closely resemble, but the phrase “rearranging the deckchairs” comes to mind. I know that Members on both sides of the House want the industry to thrive, and the Government have an important role to play in that regard. I was disappointed to hear in Defence questions on Monday that the Government will not publish the conclusions of the modernising defence programme this week, as had long been promised. Instead, we have the Secretary of State’s less than inspiring commitment of “aiming to” introduce the headline findings before the summer recess. We wait with bated breath.

[John Redwood (Wokingham) (Con)]

I welcome the Opposition’s approach. We want a strong Navy and more ships built in Britain. Anything we can do together to achieve that will be greatly welcome, and I trust that the Government will agree.

[Nia Griffith]

I thank the right hon. Gentleman for his excellent intervention.

I hope that the delay will allow Ministers to reflect on the overwhelming case for an active defence industrial strategy that recognises the immense value of building in Britain and takes a longer term view of the orders that the Government will place, giving industry the confidence to invest in the UK and to plan for a steady stream of work.

Long-term planning is vital, not just for the prime contractors but for the supply chain companies and foundation industries such as the steel industry. It gives them the time to gear up to fulfil orders, and the certainty that they need to justify additional investment. A clear strategy needs to balance getting the very best value for the taxpayer—a crucial consideration, especially when the defence budget is under such strain—with the needs of our armed forces and defences. This would allow us to defend sovereign capabilities, support UK manufacturing and continue to develop the highly skilled jobs and apprenticeships that allow us to compete on the global stage. Research and development must be at the heart of any industrial strategy, promoting links with our universities and technical colleges. We should recognise the need to plan for the skill sets we will need in the future, and to inspire our young people, both girls and boys, with the challenge and excitement of pursuing a career in our world industry.

We have had the national shipbuilding strategy and the combat air strategy is being developed, so rather than just the defence industrial refresh it would make perfect sense for the Government to come forward with an overarching and far-reaching defence industrial strategy that would give industry the certainty it requires.