Wednesday 20th June 2018

(6 years, 5 months ago)

Commons Chamber
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Gavin Williamson Portrait Gavin Williamson
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As we see it, 2% is very much a floor: a base on which to build. We can be very proud to be one of the few nations in NATO that meet the 2% commitment, and we can be exceptionally proud of the work done under the leadership of my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon)—and, of course, that of my right hon. Friend the Chancellor before he moved to the Foreign Office—in establishing that all NATO members needed to spend more.

Julian Lewis Portrait Dr Julian Lewis (New Forest East) (Con)
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There are various metrics by which our peacetime defence investment can be measured, one of which is how it compares with spending on other high-expenditure departmental matters such as health, education and welfare. Does my right hon. Friend recall that as recently as the 1980s, we were spending roughly the same on defence as we were spending on health and education? I am not saying we should repeat that, but given that we are spending two and half times as much on education as we spend on defence, and four times as much on health—and that was before the recent rise—does he not believe that defence has fallen a bit too far down the scale of our national priorities?

Gavin Williamson Portrait Gavin Williamson
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I could see the excitement on the Chancellor’s face as my right hon. Friend outlined his proposals. I was not sure whether it constituted agreement that we should be setting those targets, but I am sure that we shall have to negotiate on the issue over a long period.

We must ensure that NATO is adapting—and continues to adapt—to the times, and also to the threats that it faces. Since its creation, we have always seen Britain leading from the front. Not only do we assign our independent nuclear deterrent to the defence of the alliance, as we have for the past 56 years, but our service personnel and defence civilians are on the ground in Eastern Europe at this very moment, providing a deterrence against Russian aggression.

 

It has been my privilege to see their dedication and devotion to duty in Estonia, where we are leading a multinational battlegroup, and in Poland where they are supporting the United States forces. And at the same time our sailors are commanding half of NATO’s standing naval forces, and our pilots, ground crew, and aircraft have returned to the Black sea region, based in Romania, to police the skies of our south-eastern European allies. Just last year UK forces led the Very High Readiness Joint Task Force and we became the first ally to deliver cyber-capabilities in support of NATO operations.

Meanwhile, UK personnel form a critical part of NATO’s command structure. So I am proud that the UK will be sending more than 100 additional UK personnel to bolster that command structure, taking our total to well over 1,000. As we look at the emerging threats and the challenges our nation faces going forward, it is clear that we must make sure that NATO has the resources: that it has the capability and the people to man those command structures, in order for us to meet those threats.

NATO needs the extra support to deal with the growing threats. The dangers we face are multiplying all the time and come from every direction. We are confronting a host of new threats from extremism to cyber-warfare, dangers global in nature that require an international response and a global presence. We are witnessing the rise of rogue states conducting proxy wars and causing regional instability, while old threats are returning.

Russia is a case in point. Back in 2010 Russia was not clearly identified as a threat. The focus of our attention was ungoverned spaces such as Afghanistan and Iraq, but by 2015 the emergence of new threats was becoming apparent to everyone and this threat has accelerated and increased over the last three years.

In 2010 our Royal Navy was called on just once to respond to a Russian naval ship approaching UK territorial waters; last year it was called on 33 times. Russian submarine activity has increased tenfold in the north Atlantic, to a level not seen since the cold war. The Russians are also investing in new technology, through which they aim to outpace our capability. They are concentrating on our weaknesses and vulnerabilities, and we must be realistic and accept that we are going to have to invest in new capabilities to deal with these new threats.

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Julian Lewis Portrait Dr Julian Lewis (New Forest East) (Con)
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I believe that I am right in saying that this is the third defence debate this year to be held in the main Chamber and if the opening speeches—

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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Order. I apologise for interrupting the right hon. Gentleman just as he is starting. I had omitted to tell him and the House that there has to be an initial time limit of seven minutes, which will begin not from when the right hon. Gentleman started, but from now.

Julian Lewis Portrait Dr Lewis
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That is very generous of you, Madam Deputy Speaker.

If the opening speeches in this debate are anything to go by, I think that the temperature will be very similar to that of the first two debates and show a welcome unanimity on both sides of the House about the importance of defence investment in peacetime to ensure that we minimise the chances of conflict breaking out.

The shadow Secretary of State referred to the importance of investing in the whole range of conventional capabilities. As far as I can see, that is common ground among all the main parties in this House, even though there are differences of opinion about the nuclear dimension. The difficulty that we face is that defence investment costs a lot of money, and defence inflation has been running ahead of defence investment. As a result, we repeatedly hear phrases such as “hollowing out” and “black holes in the budget”. It was useful that she said that she felt that defence investment, in real terms, had fallen by about £10 billion.

I do not think I am giving away anything more than I should by saying that in a few days’ time the Defence Committee will publish a new report entitled, “Indispensable Allies?”, referring to the defence relationship between the United States, the United Kingdom and NATO. In that report, we do some calculations and projections about defence investment. We can see that at every level at which we estimate gross domestic product to grow over the next few years, an extra 0.5% of GDP equates, roughly speaking, to £10 billion. That is why when my hon. Friend the Member for North Wiltshire (James Gray) referred to the need to move towards 2.5% or 3% of GDP, we understood the sorts of figures that we are aiming to achieve.

It was slightly unfortunate that when we published our most recent report, “Beyond 2 per cent”, a few days ago, it coincided with the welcome announcement that £20 billion will be found for investment in the national health service. As I said in an intervention, while we obviously welcome the investment that is made in other high-spending Departments, it is important to remember how defence used to compare with those other calls on our Exchequer. At the time of the cold war in the 1980s, which is in the memory of most of us sitting in this House today, we spent roughly the same on health, on education and on defence. Now we spend multiples more on activities other than defence. Indeed, welfare—on which we used to spend 6% in the 1960s, just as we spent 6% on defence at that time—now takes up six times as much of our national wealth as does defence. So it is fairly easy to see that, by any standard of comparison, defence has fallen down the scale of our national priorities.

We have been very focused on Europe today because of the debate that took place immediately prior to this debate. It is worth reminding ourselves of the steps that led to the foundation of NATO. This may come as a slight surprise to some Members, but it actually goes back to the end of 1941, when three small European countries, Norway, Belgium and the Netherlands—who had all been overrun by Nazi Germany and whose Foreign Ministers were taking shelter in London—made an approach to the British Foreign Office. They said, “We’ve tried being neutral. We’ve tried keeping out of power politics. It has failed. Our countries have been occupied by brutal aggressors. When this terrible war is over, we want Britain to have permanent military bases on our territory so that we can never be caught out like this again.” It was from that invitation given to the United Kingdom to base military forces in countries that had put their trust in pacifism and neutralism, and had that trust betrayed, that NATO ultimately came into existence.

The Secretary of State began by paying tribute to the people who made the ultimate sacrifice in a time of war. It is certainly the case that when a war breaks out, there is no shortage of people willing to make that sacrifice, and what is more, there is no shortage of money to be invested in fighting and winning that conflict. The question that always faces us is what to do in peacetime. There is a paradox of peacetime preparedness, if Members will excuse the alliteration, which is that we prepare by investing in armed forces that we hope will never be used. That is what we have to do, and it is a difficult battle to fight to persuade people in peacetime to invest money in things that we hope we will not have to send into action.

Martin Docherty-Hughes Portrait Martin Docherty-Hughes (West Dunbartonshire) (SNP)
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In terms of future investment in something that we do not want to have to use, does the right hon. Gentleman appreciate that some of that future investment could be lost through dollar dependency in the equipment plan, meaning that any additional moneys coming from the Government would be lost and have no long-term benefit?

Julian Lewis Portrait Dr Lewis
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Yes. The hon. Gentleman, who is a valued member of the Defence Committee, has argued that point consistently on the Committee. The Government certainly need to bear that in mind when placing orders for expensive new equipment, at least during a period of uncertainty when there is doubt that the pound will hold its value against another currency.

In conclusion, we have an opportunity in this NATO summit to show that we are leading by example. It was never the case that we were anywhere near the NATO minimum of defence expenditure. It was always the case that we were second only to the Americans. We must try to restore that situation, and that means raising more money for defence and spending more money on defence. Spending 2.5% of GDP will restore us to where we were a few years ago; 3% of GDP should be our target, because only that way can we be ready for the threats that sadly face us today and show no sign whatever of diminishing.