Strategic Defence and Security Review

Lord Campbell of Pittenweem Excerpts

Thursday 26th January 2012 Commons Chamber

[Mr Hammond]

I reassure my hon. Friend that I absolutely agree that morale is very important. I shall come to morale in a moment, and I understand that accommodation plays an important part in that. He will understand that there are thousands of moving parts in the defence budget, and trying to bring them back into balance is a massive challenge. Inevitably, people will always ask us to do more, more quickly, whether on accommodation, front-line equipment or any other area. We must try to balance the equation and get the judgment right.

As I said, the Ministry of Defence exists to deliver an effective solution within a sustainable budget envelope. NATO membership and our defence relationship with the United States and other key allies, such as France and Australia, are a vital part of the strategic solution as we move to Future Force 2020. It will, of course, be a smaller force, but it will be equipped with some of the best and most advanced technology in the world. It will be configured to be agile, focused on expeditionary capability and carrier strike, able to intervene by airborne or amphibious assault, and with the ability to deploy, with sufficient warning and for a limited time, a whole-effort force of about 30,000, or to maintain an enduring stabilisation operation at brigade level while concurrently undertaking one complex and one small-scale non-enduring operation. It will be a formidable regular force, supported by better trained, better equipped reserves who will play a greater role in delivering defence effect on the back of the extra £1.8 billion that we will invest in them over the next 10 years. All that will be underpinned by the expectation that, in most circumstances, we will be fighting alongside allies, and it will be supported with doctrines that will effectively address the threats of the future with the assets that we will have.

The proposal is about finally moving on from cold war reliance on mass to the “lethal and light” doctrines of flexibility and agility that the challenges of the new century require. It is not just the armed forces that need to reconfigure; the management of defence needs to change too, by developing a laser focus on delivering defence cost- effectively and accountably, protecting the front line and the taxpayer at the same time. Under my predecessor, that transformation had already begun. The recommendations of the Defence Reform Unit under Lord Levene were broadly accepted. Many have been implemented and others are in the pipeline. The Defence Board has been reconfigured to provide for a clear, single, joint service voice on military priorities, and a greater role for non-executive directors under the chairmanship of the Secretary of State. I reassure my hon. Friend the Member for Canterbury (Mr Brazier) that the single voice for the military on the Defence Board is supported by an effective armed forces committee, at which the chiefs of the individual services are able to work together to determine their combined order of priorities for the Defence Board’s allocation of available resource. That priority order is then presented to the Defence Board by the Chief of the Defence Staff—a presentation that has become extremely effective, because it carries with it the authority of all three services and the joint forces commander.

The Defence Infrastructure Organisation has been stood up to rationalise the Ministry of Defence estate and reduce costs by 25%. Defence Business Services has been created to unify human resources and other back-office functions across the Department. The reform of the procurement process has begun with the appointment of—you guessed it, Mr Deputy Speaker—Bernard Gray, who has now had four name checks, I think, so far in the debate, as chief of defence matériel, and the establishment of the major projects review board to hold those responsible for failing projects firmly to account.

This year will see the transformation accelerate, with an evolution towards a leaner, more strategic head office; the introduction of a stronger financial and performance management regime across the whole Department; the service chiefs being empowered to run their individual services and their delegated services budgets; the new joint forces command being stood up on 1 April; and the start of the reform of the MOD’s defence equipment and support business on the basis of a new matériel strategy.

The next few years will also see the beginning of considerable change on the ground as the rebasing programme set out in July last year is taken forward and the Army begins its return from Germany, as well as its withdrawal from Afghanistan and its internal restructuring to deliver five multi-role brigades. I know those last changes, in particular, are of great interest to individual Members. The House will understand that many of the changes are interdependent and complex, but I can give a commitment that I will make further announcements on the details of individual elements of the transforming defence programme as and when it is appropriate to do so.

[Sir Menzies Campbell (North East Fife) (LD)]

Will my right hon. Friend give way?

[Mr Hammond]

I thought that might provoke my right hon. and learned Friend.

[Sir Menzies Campbell]

First, I should apologise for being unable to be present at the beginning of the debate due to other responsibilities.

My right hon. Friend is right to say that the basing decisions have caused a great deal of disappointment. In the case of my constituency, the closure of RAF Leuchars, which has provided nearly 100 years of service in aerial warfare, has been particularly difficult to accept. Part of the argument in favour of that closure was that there would be specific deployments of units of the Army to occupy the base. So far, very little detail has been made available. May I encourage my right hon. Friend to ensure that the announcements he has just foreshadowed will be made as soon as possible?

[Mr Hammond]

I can reassure my right hon. and learned Friend on that point. RAF Leuchars is not so much closing as transforming its role to become the home of one of the five multi-role combat brigades after the rebasing of the Army back to the UK.

The purpose of all the changes is to increase the investment we can make in service people and their equipment and training, to increase investment in the front line by making the back office more efficient and more accountable, and to deliver value for money in defence. I know that change is unsettling and that the threat of change and the uncertainty it brings can sap morale, which my hon. Friend the Member for Colchester (Sir Bob Russell) mentioned. I will make every effort to ensure that the people who are directly affected by the proposals are kept fully informed as they progress and that we get the changes made as quickly as humanly possible.

--- Later in debate ---

[Mr Murphy]

My hon. Friend the Member for Barrow and Furness (John Woodcock) is over my right shoulder, and I would not wish to steal his speech, because without anticipating its detail I expect it will be a detailed rebuttal of my right hon. Friend the Member for Newcastle upon Tyne East (Mr Brown). Briefly, our view remains that we believe in the minimum credible independent nuclear deterrent. The timing of the Government’s process does surprise many, because it seems to be designed for internal political dynamics rather than the defence of our nation, but generally we do support the retention of the minimum independent nuclear deterrent, and we look forward to an informed debate about its renewal.

[Sir Menzies Campbell]

Will the right hon. Gentleman give way?

[Mr Murphy]

I have given way more often than I probably should have, Mr Deputy Speaker, given that I am sure you will encourage me to sit down in just a couple of minutes, but on the basis that he is not only a right hon. and learned Member but also a friend, I will give way briefly to the right hon. and learned Member for North East Fife (Sir Menzies Campbell).

--- Later in debate ---

[Sir Menzies Campbell]

The right hon. Gentleman has spoken at some length and with some eloquence about the uncertainties that face the defence of the UK, but has he considered the uncertainties that would face the defence of the UK were there to be an independent Scotland—not least for Scotland, but for all the rest of the United Kingdom? Our reputation and our capability are well recognised; how far does he think these would be capable of being sustained in the event that there was an independent Scotland?

[Mr Murphy]

The right hon. and learned Gentleman makes a compelling argument. I look forward to being part of the discussion during the referendum campaign. I have only two more points to make: the first is about finance but the other is about Scotland, which will allow me to respond to that intervention in more detail.

The Secretary of State mentioned the £38 billion figure, but that is Ministers’ response to every single issue. They use a catch-all Conservative assertion as a fact and so attempt to escape their responsibility, but in its report on the SDSR the Defence Committee stated:

“We were disappointed by the MoD’s response to our requests for a breakdown of the MoD’s financial commitments, including details of the components of its estimate of a £38 billion gap in the defence programme”.

When the previous Secretary of State gave evidence to the Committee, he was asked to provide that information, but it has still not received it. He said that he would provide it, but when challenged he said:

“Offhand, I couldn’t give an actual figure, but I will get it for the Committee.”

The Committee has not received it. In evidence to the Public Accounts Committee, the MOD director of general finance said that

“Ministers have committed to making a public statement”

on the MOD’s spending gap. They have not made it. We look forward to the promised information being made available not only to the Defence Committee and the House, but to the forces, their families and the country. Until Ministers provide it, there will be an enormous gap in the Government’s explanation for their decisions.

Finally, let me respond to the point about Scotland made by the right hon. and learned Member for North East Fife and my hon. Friend the Member for Bridgend (Mrs Moon), who unintentionally but inelegantly described Scotland as “our back door”. For many of us it is home and we want never to see a Royal Navy battlegroup off the coast of Scotland, except perhaps as it sails from there to foreign shores; but while there are real worries about the Government’s defence policy on the Opposition Benches and across the country, those are dwarfed by the worries about the defence plans of another Government on these isles—the Scottish Government.

Although I criticise the rushed nature of the UK Government’s defence review, I make the opposite criticism of the Scottish National party Government’s approach. Their party has been around since 1943—

[Sir Menzies Campbell]

They’re not around today.

[Mr Murphy]

They are almost represented by my hon. Friend the Member for Edmonton (Mr Love), who is almost sitting in their usual place. An expat Scot, he looks as though last evening he spent a lot of time enjoying Burns night. [Laughter.]