Submarines and Frigates (Plymouth)

Lord Beamish Excerpts

Tuesday 26th April 2011 Westminster Hall

[Oliver Colvile]

The decision has been made, but other issues must be taken into account. I agree that we inherited a £38 billion shortfall, which needs attention. I also agree that from 2015 we must ensure that we have the ability to build up our capacity.

[Mr Kevan Jones (North Durham) (Lab)]

Will the hon. Gentleman explain where he gets the figure of £38 billion from? Even his own Front Benchers have now retreated from that election propaganda put out by Conservative central office.

[Oliver Colvile]

That debate is certainly above my pay grade, but my understanding is that there is a shortfall within the defence budget, and that needs to be sorted out sooner rather than later. What is important is that we must contain public expenditure. It must be reduced, and that is part of the general thrust of what we inherited and must try to deal with.

The principal issue of the level of defence spending is not affordability, but deciding political priorities. If the events in the middle east continue, I firmly believe that our defence budget may have to be reviewed. During the past 13 or 14 years, there has been real uncertainty about Devonport’s future both as a dockyard and as a naval base. Let me make it clear that I am not suggesting that Plymouth should take precedence over Portsmouth, Faslane or Rosyth, but I am arguing that Ministers should not put too much reliance on one naval port for surface ships, and another for submarines. Indeed, my right hon. Friend the Secretary of State for Defence has already said that we should avoid putting all our eggs in one basket. However, I want to challenge the previous Government’s plans to base-port both aircraft carriers, all the Type 23s, all the Type 45s and eventually the new Type 26s in Portsmouth, and to move the submarines currently based in Plymouth and the submarine school at HMS Raleigh in Cornwall to Faslane.

Last October, when I asked my right hon. Friend the Prime Minister to confirm that Plymouth Devonport will continue to play a major role in the defence of our country and will remain a premier naval port, he replied:

“I can absolutely confirm that.”—[Official Report, 19 October 2010; Vol. 516, c. 817.]

In all fairness, he added that both Plymouth and Portsmouth would have to face some challenges. We in Plymouth are up for that, but we are worried that if the previous Government’s plans are implemented, there will be a real threat that Devonport will be left with just three amphibious assault ships and five survey vessels.

I am grateful that the strategic defence and security review confirmed that Devonport will retain flag officer sea training, and deep maintenance work at the dockyard, and that the city will host the amphibious capability through 3 Commando Brigade, which is currently in Afghanistan. However, I am worried that the decision to move the seven Type 23s from Devonport to Portsmouth was taken at a time when the four Type 22s were expected to stay in service for at least another few years. That could make quite a difference to the balance of UK base-porting, and could do enormous damage to the skills base in a city and region where both skills and wages have traditionally been low. If the Government allow Devonport dockyard’s waterfront work to decline, they could make it difficult for Babcock, or its successor, to retain and attract the skilled work force needed to refit our nuclear submarines and surface ships. In my opinion, such a collapse in a service that provides unparalleled value for money could have an impact on whether Babcock is able to deliver economies of scale. That in turn could see greater costs for the Ministry of Defence and the taxpayer, and lead to a reduction in competition.

--- Later in debate ---

[Mr Kevan Jones (North Durham) (Lab)]

It is a pleasure, Mrs Brooke, to serve under your chairmanship. I congratulate the hon. Member for Plymouth, Sutton and Devonport (Oliver Colvile) on securing this debate. He follows his predecessor Linda Gilroy, in being a strong advocate of Plymouth and the dockyard. As a Member, she was tenacious in debate. As a member of the Select Committee on Defence, she put the case not only for Plymouth but for the Navy. On numerous occasions, as a Minister I was on the receiving end of her representations.

Like the hon. Member for Plymouth, Sutton and Devonport, I pay tribute to the people of Plymouth. As a Minister, I had the honour to visit the town several times. Its contribution to the defence of the country is not only recent, and we should be thankful for what it did previously. I also pay tribute to the men and women of the Royal Navy currently serving in Afghanistan, including the Royal Marines, mentioned by the hon. Gentleman. We often see Afghanistan through an Army prism, but it is important to recognise the contribution made by the Navy.

The hon. Gentleman mentioned HMS Raleigh. It is an excellent facility, and I once had the honour of taking a passing-out parade there. The best of British youth can be changed in a matter of 10 weeks from what one mother described as being difficult to get out of bed and not knowing how to use an iron to people who can make a huge contribution to our country’s defence. We should be proud of the young men and women at HMS Raleigh.

[Oliver Colvile]

May I associate myself with those remarks? I recently visited Lympstone, another Royal Marines training centre. I decided not to go into the sheep-dip because I did not want to spend two hours walking about soaking wet. Nevertheless, I was desperately keen and interested in what was being done.

[Mr Jones]

The hon. Gentleman is right to recognise the work that is done at Lympstone. He and my hon. Friend the Member for Plymouth, Moor View (Alison Seabeck) mentioned the economic contribution that the dockyard makes not only to Plymouth itself but to the surrounding area; some 25,000 individuals are directly employed by the dockyard and there is a knock-on effect on local business. In addition, I have seen for myself the support that exists for the excellent university.

My hon. Friend rightly paid tribute to the trade unions at the dockyard which, over many years, have campaigned for the dockyard and ensured that its case is put to both Tory and Labour Governments. The hon. Member for Plymouth, Sutton and Devonport mentioned the cross-party nature of the campaigning that has been carried out by the local authority. When I visited Plymouth, I was very impressed with the way in which the members of the local authority, irrespective of political party, spoke with one voice for Plymouth and the dockyard.

The previous Labour Government conducted a naval base review, in which the decision was made to support Faslane, Plymouth and Portsmouth. However, there were those who said that we should put all our eggs in one basket at Portsmouth, as the hon. Member for New Forest East (Dr Lewis) mentioned. I am sure that there are many who still say that and the Minister will have to address those pressures in the coming weeks. It has been said, perhaps unfairly, that some of the naval top brass prefer Portsmouth to Plymouth because it is nearer to London.

The review was supposed to bring some stability to the future footprint of the Royal Navy in the UK, which is important. Earlier, we mentioned forces accommodation. When I was the Minister responsible for armed forces accommodation, I was conscious that we needed long-term investment in the naval estate. However, that is difficult, especially if the sword of Damocles is hanging over a site—whether it be a naval base, an RAF base or an army base—because there is a tendency not to invest. We have certainly seen that at Faslane and other places. The delay by the previous Government in making a decision on the long-term basing of submarines meant that investment did not go into armed forces family accommodation. If we want our armed forces to be ready for deployment and to fight in difficult situations, it is vital to have good family accommodation and support. For far too long, we have thought of the families as secondary to the fighting forces. They are, in my opinion, integral and important. That is particularly relevant for the Royal Navy because individuals are away at sea for many months. It is important that, while they undertake their duties, they are content and feel that their families are being well looked after.

The naval base review agreed that HMS Ocean, HMS Albion and HMS Bulwark would be based at Plymouth along with the hydrographic survey ship and the Type 22s and Type 23s. More importantly, there was also a 15-year agreement with Babcock Marine on the dockyard itself. When people look at the arguments for or against Plymouth or Portsmouth, they should consider the fact that the dockyard at Portsmouth has not been viable since 1984, when it was closed. That is an important argument for retaining Plymouth. We need a dockyard capability not only for nuclear but for the refit of existing frigates and other service ships.

With the decommissioning of the Type 22s under the strategic defence and security review, there will be very little left at Devonport. The current review will consider whether the dockyard has a future. However, as the hon. Member for New Forest East so eloquently put it, to put our eggs in one basket would be a mistake. The arguments that were proposed by the previous Government in their base-porting review are relevant today. Although the SDSR is a defence and security review, it is basically led by the Treasury. Having dealt with the Treasury on a number of occasions, I am sure that it will be breathing down the neck of the Minister to ensure that it gets every last pound from any decisions that are made to free up money in the short term.

[Alison Seabeck]

If the defence review was, as we all believe, Treasury led, does my hon. Friend not find it surprising that the Treasury does not seem to be listening to the wider socio-economic case about the implications for Plymouth, given the huge cost implications of making the wrong choice?

[Mr Jones]

I agree with my hon. Friend. The hon. Member for Plymouth, Sutton and Devonport suggested that that review is being presented to Government. I urge my hon. Friend and the hon. Gentleman, along with the trade unions and the local council, to make the case strongly to Government. However, I have to say that I sympathise with the Minister. Under any Government, the bottom line is that the Treasury will look only at the budget of the Ministry of Defence. My hon. Friend is right to make the wider case. Closing a dockyard might save money on the defence budget, but in terms of the overall spend to Government, it would cost money in the long term.

I was impressed with the way in which Plymouth, and particularly the university, tried to diversify into other naval-related and maritime sectors. Such efforts would be taken away if the dockyard were closed and the effects would be felt for many years to come. I come from a region which unfortunately saw the end of naval shipbuilding on the River Tyne under a previous Conservative Government, so I am not sure whether this Government will take much cognisance of the wider effects that such closures will have on the region or its capabilities.

The danger that we face is that the Treasury, which is leading the decisions in the SDSR, will make short-term decisions that will have long-term implications. If we were looking for an example of where a short-term decision could be made and we could get things wrong, this would be it.

Although I accept that the hon. Member for Plymouth, Sutton and Devonport is a strong advocate for the armed forces and would argue for a larger defence budget, I have to say gently to him that it is naive to pin his hopes on an increase in the defence budget after 2015 saving his dockyard. The Treasury will not reopen facilities once they are closed and will not invest in new capacities. Its policy will be one of entrenchment rather than expansion. Both he and my hon. Friend must ensure that the case for Plymouth is put very strongly and effectively.

In closing, we are already seeing the effects of the short-term decision not to have any carrier-based air strike force for 10 years, in terms of our inability to deploy air power in Libya effectively and swiftly. Certain Ministers in the Ministry of Defence are recognising that it is now time to look again perhaps at the SDSR and to do so not only through the prism of the Treasury. We must realise that, if we are going to be a nation that wants to project power around the world—both naval influence and other types of influence—a strong, effective Navy is an important part of that aspiration. In addition, a well financed and strategically thought out defence policy is a cornerstone of any such aspiration.

[The Parliamentary Under-Secretary of State for Defence (Mr Gerald Howarth)]

Mrs Brooke, it is a great pleasure to serve under your chairmanship for this important debate.

I must state at the outset that I am responding to the debate on behalf of Her Majesty’s Government in the stead of the Under-Secretary of State for Defence, my hon. Friend the Member for Mid Worcestershire (Peter Luff), who is the Minister with responsibility for defence equipment, support and technology. I am very pleased to say that he is in Japan undertaking work that I hope the House will approve of: promoting Britain’s defence interests and defence exports to that country. Consequently he is unavoidably detained overseas and so it falls to me to respond to the debate.

As is customary, I begin by congratulating my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile) on securing this important debate. I also congratulate the other hon. Members who have taken part in it, most notably my hon. Friend the Member for Portsmouth North (Penny Mordaunt), my hon. Friend the Member for New Forest East (Dr Lewis), who is an esteemed former Front-Bench colleague, and the hon. Member for Plymouth, Moor View (Alison Seabeck). Along with my hon. Friend the Member for Plymouth, Sutton and Devonport, all three of them have taken part in various defence debates in this Parliament. Indeed, my hon. Friend the Member for New Forest East and the hon. Member for Plymouth, Moor View have participated in such debates during the many years they have been in the House, and are therefore noted contributors to the wider issues of defence. They are not limited simply to their constituency interests, which I always think is a rather healthy manifestation of political expression in the House. It is healthier than simply articulating the case for one’s own constituency.

I must also say that, as ever, it is a great pleasure to participate in a debate with the hon. Member for North Durham (Mr Jones). I have sparred with him for many years and personally we have always enjoyed the best of friendships, although I am delighted to say that I am now on the Government Benches and he is on the Opposition Benches.

Where Royal Navy vessels are based is an important topic for the entire House. It has an impact on both service personnel and their families, and on local jobs and infrastructure. I want to take this opportunity to acknowledge the important role that Plymouth has played in the defence of the nation throughout our seafaring history and to pay tribute to the constituents of my hon. Friend the Member for Plymouth, Sutton and Devonport. Those men and women have contributed so much to the United Kingdom’s defence, at home and overseas.

The story of the naval base at Plymouth stretches back as far as the time when the English fleet sailed out to face the Spanish armada. Famously, Sir Francis Drake, who was a vice-admiral in that fleet, was playing bowls on Plymouth Hoe when he sighted the armada. Indeed, the fleet accommodation centre at the base in Plymouth is still known within the Royal Navy as HMS Drake, in his honour. Since the time of the armada, the base has survived more than four centuries of warfare, including heavy bombing during the blitz. That is thanks in large part to the hard work and resilience of the people of Plymouth.

As everyone knows, we have had to make some difficult decisions in recent times as a result of the utter incompetence of the previous Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), who virtually destroyed the public finances. It always astonishes me how few people in this country understand the magnitude of the budget deficit problem that we inherited. I ask people at various gatherings, “How much was the budget deficit in May 2010?”, and very few people—even well informed ones—know the answer. For the benefit of putting it on the record, I will say now that the deficit then was £150 billion. For those of us interested in defence, that translates to the cost of three Type 45 destroyers each and every week of the year. The deficit is that great. To put it in a wider historical perspective, my hon. Friend the Member for New Forest East and I both remember that in 1979 the budget deficit was £8.25 billion; now it is some 20 times greater. [Interruption.] That statement is true. The hon. Member for North Durham is mumbling away, but I remind him that Jim Callaghan left an economic legacy almost as bad as that left by the last Labour Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath, last year.

Of course, it is in the context of the current budget deficit that we have to address the position on defence. As my right hon. Friend the Secretary of State for Defence has said, the budget deficit is itself a threat to our national security, and if we were not dealing with it in the way the Chancellor is dealing with it now, the UK would most likely have found itself in the same position as Greece, Ireland and Portugal.

[Mr Kevan Jones]

What a load of nonsense.

[Mr Howarth]

It is not a load of nonsense. I was in the financial world and I understand how important it is to secure the support of the international financial community. It is just as important for an individual, if they have an overdraft, to have the support of their bank manager. When the nation is in the dire straits it now finds itself in, it is absolutely imperative that we have the support of the international financial community. That support is what deserted Greece, Ireland and Portugal. Does the hon. Gentleman wish to intervene?

[Mr Jones]

I just wish that the Minister would not keep peddling this absolute nonsense. The idea that the UK economy is the same as the Greek economy is utter rubbish. The idea that somehow the UK’s credit rating was in peril, in terms of receiving the support of the international financial community, is complete nonsense. If he looks at long-term borrowing for Greece, he will see that more than 50% of its debt is on short-term loans of about three years. Most of the UK’s debt is on loans that are in excess of 14 years. If he is using the deficit argument as an excuse for decimating the armed forces, I can accept that he needs some cover for what he is doing; but he should acknowledge economic reality rather than just continually peddling nonsense.

[Mr Howarth]

It is wonderful that the hon. Gentleman can still come to the support of his former boss, the right hon. Member for Kirkcaldy and Cowdenbeath, after the devastation he wreaked on the country.