National Shipbuilding Strategy

Debate between Lord Beamish and Harriett Baldwin

Wednesday 8th February 2017 Westminster Hall

[Harriett Baldwin]

I thank the hon. Gentleman for an obviously irresistible invitation. I hope I will be able to take him up on it in the not-so-distant future. For the record, I say to the hon. Member for Jarrow (Mr Hepburn) that I am in Newcastle tomorrow. I look forward to meeting a range of manufacturers. I will not specifically be meeting A&P Tyne on this occasion, but I met A&P in Falmouth only last week.

In the SDSR we announced our plans for a naval programme of investment. We are investing in two new aircraft carriers, which are currently being completed at Rosyth. We are investing in new submarines to be based in Scotland at Faslane. We have announced our plans for frigates. We are building five new offshore patrol vessels on the Clyde at the moment. We have ordered new aircraft, including the maritime patrol aircraft, the P-8, which will be based at Lossiemouth. Scotland is clearly doing well out of defence, and the UK is doing well in defence with Scotland, and 2017 is the start of a new era of maritime power, projecting the UK’s influence globally and delivering security at home. I do not have time in this debate to list all the different ships we have deployed across the world’s oceans.

I know the appetite of Members for publications. They will have all read the 2016 equipment plan, which we published last month. It laid out the plans in more detail and announced that the total amount that will be spent on the procurement and support of surface ships and submarines over the next decade amounts to some £63 billion. It is all part of the continued modernisation of the Royal Navy in the coming years, which will be underpinned by our national shipbuilding strategy. It is very much our intention that the strategy will be a radical, fundamental reappraisal of shipbuilding in the UK, with the aim of placing UK naval shipbuilding on a sustainable long-term footing. It will set the foundations for a modern, efficient and competitive sector, capable of meeting the country’s future defence and security needs.

[Mr Kevan Jones]

Can the Minister point out in the Budget where the budget line is for the Type 31?

[Harriett Baldwin]

The hon. Gentleman will have read the equipment plan. I do not have the exact quote here, but clearly we have a very ambitious equipment plan. We are expecting to spend some £63 billion on ships, support and submarines.

I want to convey to Sir John Parker the thanks of all Members who have spoken today for his excellent report. He is clearly a highly respected expert. Importantly, he has taken an independent approach to the report. He has had a high level of engagement with stakeholders. Members asked about his engagement. He has visited all key industry leaders and all the companies across the UK that design and build ships, including in Northern Ireland. He has visited small and medium-sized businesses in the supply chain. Industry stakeholders were engaged at all levels. He brought strong strategic direction and guidance to the work, for which we are immensely grateful. He also met trade bodies, trade unions, Ministers, civilian and military officials and, indeed, the hon. Members for Glasgow North West (Carol Monaghan) and for Glasgow South West (Chris Stephens). He has been thoroughly engaged with everyone.

I have not got much time left, so I will speak very briefly about exports, which a range of Members raised. The report makes an important recommendation about exports. We have already started that work, working closely with the Defence and Security Organisation in the Department for International Trade. Members can expect to hear more about that in the coming weeks and months.

The Type 26 programme is a key element of our investment plans. To meet our needs, we require eight to replace the eight anti-submarine-focused Type 23 frigates. Members will be aware that the Defence Secretary announced in November last year that, assuming successful completion of the negotiations, we expect to sign a contract for the first batch of the eight planned Type 26s and cut steel on the first ship this summer. That would give BAE Systems on the Clyde work until the early to mid-2030s. Commercial contract negotiations are intense and ongoing, so I cannot make any more information available to the House today. The investment will sustain shipbuilding skills at the shipyards on the Clyde and continue to provide opportunities in the wider supply chain around the UK. The ships will provide an anti-submarine warfare capability, which is essential for the protection of our nuclear deterrent. SNP Members had a bit of a political pop at me, but they would do well to remember what I have just said. Their two political obsessions—Scottish independence and ending our continuous at-sea nuclear deterrent—would be two of the worst things that could befall the Scottish shipbuilding industry.

Briefly on the Type 31e, Sir John recommended that a new class of lighter general purpose frigate should be given priority. He was clear that it should be designed to be exportable, but capable of incorporating the needs of the Royal Navy. A lot of work is under way on that in the MOD. It is in the pre-concept phase, and further information will be made available in the national shipbuilding strategy.

In summary, the MOD is working with colleagues across Government and with industry to examine Sir John Parker’s report and its recommendations in full. I recognise that Members value the shipbuilding jobs in their constituencies, and I assure them that the Government are committed to an industrial strategy that will increase economic growth across the country and refresh our defence industrial policy.

Oral Answers to Questions

Debate between Lord Beamish and Harriett Baldwin

Monday 30th January 2017 Commons Chamber

[Harriett Baldwin]

I can confirm that as of 1 October 2016, some 9% of the naval service strength was female—the departmental recruitment target is 15% by 2020. The Royal Navy has a number of initiatives to encourage recruitment and address the retention of female officers, including having more focused career management and increased access to flexible ways of working.

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

In the 2015 SDSR, and again last December in the first annual report on the SDSR, the Government were very clear that the sea trials for HMS Queen Elizabeth would begin this spring, but in response to a parliamentary question last week, the Minister informed me that the trials would now take place this summer. What are the reasons for that? What will the operational service date be for HMS Queen Elizabeth?

[Harriett Baldwin]

I can confirm that she will commence her sea trials this summer and enter into the same programme so that she can sail into Portsmouth later this year.

--- Later in debate ---

[Harriett Baldwin]

I am not sure whether my right hon. Friend is referring to the Ajax programme, but I can confirm that we have taken extensive steps to ensure that a significant portion of the manufacturing processes of the Ajax vehicles takes place in south Wales, and we will continue to work with our suppliers to ensure that we get significant UK content in all our procurement.

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

What are the reasons for the delay in the HMS Queen Elizabeth’s sea trials, and what will its in-service date be?

Oral Answers to Questions

Debate between Lord Beamish and Harriett Baldwin

Monday 7th November 2016 Commons Chamber

[Harriett Baldwin]

I pay tribute to my hon. Friend’s fantastic work representing his constituents in Yeovil and the magnificent work that they do. We took delivery of the most recent Wildcat helicopter just in the last month. We look forward to working with Leonardo in Yeovil as part of a major strategic partnership agreement. It is important that my hon. Friend puts such issues about helicopter manufacturing forward as part of the industrial Green Paper that the Department for Business, Energy and Industrial Strategy will produce later this year.

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

Last week’s announcement on the Type 26 frigate was good news for Scotland. What steps have been put in place to ensure that UK SMEs and larger companies, for example those based in the north-east of England, will gain work from this contract?

[Harriett Baldwin]

The hon. Gentleman is right to highlight this fantastic news for companies up and down the country, including our shipbuilders on the Clyde. We have already announced contracts worth some £1.9 billion which are related to this programme right across the UK. Importantly, we will be publishing, alongside our prime contractor, the opportunities for the British steel industry to bid into this manufacturing opportunity.