Ministry of Defence (Procurement)

Lord Evans of Rainow Excerpts

Wednesday 19th October 2011 Westminster Hall

[Gordon Henderson]

I thank my hon. Friend for his intervention and for reminding me of that additional scandal—which is what it is, ultimately—about an agreement that allows the Canadians to employ whomever they want with the British taxpayer paying up to 80%. I, too, urge Ministers to enter into immediate negotiations with the Canadian Government to reduce the percentage of the total operating costs of BATUS paid for by the British taxpayer. I hope they do so, and it can be done, because the memorandum of understanding is a rolling contract—there is no bar on opening negotiations at any time.

The MOD pays the Canadians £20 million a year to use the BATUS training area which is, as my hon. Friend said, a fantastic training facility, and I would certainly not want it to close. Entering into new negotiations with the Canadian Government might pose a threat because the Canadians could turn round and ask the British to leave, but I do not believe they would. It is Canada’s interest as much as ours to have that joint training facility, and I remind Ministers that it is a joint training facility for which we Brits pay 80% of the cost. In addition to the £20 million that Britain pays for use of the training area, the UK pays a proportion of the operating costs, which is around £80 million a year, so the total cost of the facility is £100 million a year. In the current economic climate, with members of the armed forces being asked to accept cuts in pension entitlement and allowances, it is surely right that the MOD makes an effort to reduce the cost of operating BATUS.

[Graham Evans (Weaver Vale) (Con)]

I congratulate my hon. Friend on securing this debate. I, too, was on the parliamentary scheme visit to Canada, and I could not decide whether the Canadian Government wanted the British Army at BATUS. Given what my hon. Friend has just said, would it be worth considering leaving Canada and using other areas such as Scotland and Germany? The Army of the Rhine has to return to the United Kingdom, and perhaps we could look at more cost-effective areas instead of staying in BATUS.

[Gordon Henderson]

My hon. Friend is right to point that out. While we were visiting BATUS, it became clear that with the number of oil wells in the 2,700 sq km of training area, which is essentially protected by the Canadian Government, there must be tremendous pressure on them from the oil companies to encourage the British Army to leave BATUS. That is a risk, as I pointed out, but my hon. Friend is right in suggesting that other options are open to the British Government, not only in Scotland and Germany, but perhaps with expansion of the training area in Kenya, which colleagues may visit in the new year.

My personal view is that nothing that we can provide in this country is suitable for armoured warfare and tank manoeuvres. That is a problem with Scotland, although it could provide good training facilities. Germany is an option, but Kenya would pose a risk because of what might happen if there were a change of regime to an unfriendly Government and we had to leave. At least Canada is a long-standing ally and, I hope, a long-standing future ally.

I do not want BATUS to leave Canada, but in the present economic climate the Canadian Government will recognise that the British Government must do something to reduce costs, and I ask the MOD to start those negotiations. If we could negotiate a more equitable 60:40 split, which would be a reasonable split for a shared facility, that would save British taxpayers at least £20 million a year, and probably more. A more equitable cost share would encourage the Canadians to be more cost conscious when considering whom they employ, how many people they employ, and how they operate. That should be considered.

Good negotiation is the key, and there is the rub. I simply have no faith that some other procurements negotiated by the MOD provide the best possible deal for British taxpayers or, perhaps more importantly, the armed forces personnel who must live with the consequences of those contracts.