Royal Fleet Auxiliary

Julian Lewis Excerpts

Monday 6th December 2010 Commons Chamber

[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.”

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Defence (Mr Andrew Robathan)]

I congratulate the hon. Member for Hayes and Harlington (John McDonnell) on securing this Adjournment debate on the very important issue of the future of the Royal Fleet Auxiliary, and on providing me with an opportunity to speak on the issue, albeit rather more briefly than I had expected. I understand his relationship with the National Union of Rail, Maritime and Transport Workers, and I applaud him for speaking up for the work force. I absolutely accept that that is right and proper. I will put a plug in for myself and mention that, when I first came into the House—in 1983, I think—I served on the Employment Select Committee, as it then was, and instigated and chaired an inquiry into employment in the merchant navy, which was then under serious pressure—as indeed it has been since.

I shall deal in a few moments with the review mentioned by the hon. Member for North Durham (Mr Jones). I say to everyone in the Chamber—there is a surprisingly large number of Members present for an Adjournment debate—that this is not the place from which we would have wished to start. I do not want to get into party political point scoring, but everyone understands that we are in a difficult financial and economic situation and that the Government cannot go on spending money that they do not have.

[Dr Lewis]

I fully appreciate the financial hole in which the Government find themselves, but surely it is a false economy when money has been spent on brand-new vessels such as the Bay class even to think of disposing of them at such an early stage of their lives.

[Mr Robathan]

As I said a moment ago, no one would have wished to start from here, but we have to look at all options. Some programmes in the defence budget have already been cancelled—they have been announced—even though we have spent a lot of money on them. We did not wish to do so, but we had no further money to pour into them.

Let me speak briefly about the Royal Fleet Auxiliary. It was established in 1905, providing coaling ships to supply the Royal Navy’s network of bases around the world. It has continued to evolve into what we see today in the global reach that the RFA delivers for defence and the Royal Navy. Although its origins are the merchant navy, the RFA has developed in a specialised way to meet the Royal Navy’s requirements. It is linked to the Royal Navy by heritage, which has been mentioned, tasks, management, chain of command and ethos.

The commercial merchant navy has had a long history of working with the Royal Navy over many centuries and has had to fight and defend itself to develop commerce around the world. Defending itself against piracy, for instance, is not a new challenge. More recently, developments in warfare and warships, specialisation of commercial ships and their design limit the utility of commercial shipping to providing core support to military operations. While commercial shipping has little knowledge of warfare, over the past 30 years the RFA has developed to meet the specialised needs of 21st century warfare.

The RFA is the modern example of merchant shipping working and prepared to fight alongside the Royal Navy. It is the means by which the Navy operates globally. Equally exposed to the risk, it is a key enabler for worldwide reach of the UK’s armed forces. The RFA has essential qualities that make it different, as the hon. Member for Hayes and Harlington said, and that enable it to deliver operational quality effectively to the Ministry of Defence and the Navy, blending the commercial manning and ship management models into military operations. As a result of the versatility of the ships and the knowledge that the work force has accumulated over many years, the RFA has become a deliverer of operational capability as well as an enabler.