Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Monday 11th June 2012 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

8. What his Department’s planned expenditure on new equipment is over the next 10 years.

[The Secretary of State for Defence (Mr Philip Hammond)]

Before I answer the question, I am sure the House will wish to join me in paying tribute to the three servicemen who have lost their lives in Afghanistan since the House last met: Captain Stephen Healey of 1st Battalion, The Royal Welsh, who was killed by an improvised explosive device in the upper Gereshk valley on Saturday 26 May; Corporal Michael Thacker, also of 1st Battalion, The Royal Welsh, who was killed by gunfire in Nahr-e Saraj on Friday 1 June; and Private Gregg Stone of 3rd Battalion, The Yorkshire Regiment, who was also killed by gunfire, on Sunday 3 June. We owe them a debt of gratitude for their service and sacrifice, which we will never forget. I know the thoughts of the whole House will be with their families and loved ones.

I am sure the House will also want to join me in paying tribute to the bravery of the British and American forces involved in the operation to rescue aid worker Helen Johnston and her three colleagues, and to the Afghans for the huge help they provided throughout. The rescue operation was conducted with immense skill and professionalism in the most difficult terrain imaginable. Through this operation, we send a clear message to terrorists around the world that the UK will not tolerate the kidnapping of our citizens.

As I announced to the House in May, the core committed equipment programme—which covers investment in equipment, data systems and equipment support—amounts to just under £152 billion over 10 years. This includes some £80 billion for new equipment and its support and, for the first time, over £4 billion of centrally held contingency to ensure the robustness of the plan. In addition, the Department has a further unallocated £8 billion in the equipment budget. This will be allocated to projects not yet in the committed core programme only when it is necessary to commit in order to ensure the required delivery, and when the project in question is demonstrated to be affordable and with military advice.

[Karen Lumley]

May I join the Secretary of State in offering my condolences to all those brave troops?

My visit to Afghanistan last year served to bring home to me how important it is for our troops that any uncertainty about future equipment supplies is eliminated. Therefore, will my right hon. Friend offer more details on the £4 billion contingency fund that is in place to ensure the robustness of the equipment programme?

[Mr Hammond]

I agree with my hon. Friend that what our armed forces particularly want to know is that, unlike sometimes in the past, they will always have the protective equipment and the support helicopters that they need. Through our balancing of the equipment plan and introducing the £4 billion contingency fund, they will have much greater assurance that that will the case. That is the least we owe to them.

[James Morris]

Whilst having a long-term plan for defence equipment is crucial for our conventional military capability, does the Secretary of State agree that we also need to be investing in cyber-defence capability, to combat threats to our national security from this rapidly evolving threat?

[Mr Hammond]

The Department certainly recognises the rapidly evolving threat from cyberspace, and we keep it under constant review. The national cyber-security programme has provided the Department with £90 million, and the Department has allocated some additional funding to increase investment in cyber-security this year, enhancing our existing capabilities. It will also be increasingly appropriate to consider cyber-security issues as an integral part of wider projects that depend on networked command and control capabilities.

[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

The sums the Secretary of State mentions are, indeed, substantial and will guarantee thousands, if not tens of thousands, of jobs. How many of those jobs does he envisage will be in Scotland in the event that Scotland decides to be separate?

[Mr Hammond]

Clearly, at this stage it is not possible to identify how many jobs will be created in different parts of the United Kingdom by the equipment programme we currently envisage. However, we enjoy an exemption from European Union procurement rules in respect of defence capabilities when we are procuring them in a way that protects our national defence capability, and if Scotland were not a part of the UK, it would be competing for defence contracts in the open market along with other providers in Europe and beyond.

[Mrs Madeleine Moon (Bridgend) (Lab)]

Since May 2010, £1,250,000 worth of kit and equipment have been stolen from the Ministry of Defence and its bases across the UK. That includes night vision goggles, body armour, military uniforms and boots, and even an aircraft fuselage. How much of the new spend will be covering unexplained thefts which have not been investigated and for which only one person has ever been prosecuted?

[Mr Hammond]

The hon. Lady can probably do the maths: she says £1.25 million worth of equipment has been stolen, and I have announced a £152 billion investment, so she can work it out for herself. As a member of the Defence Committee, which asked questions about this matter, she will know that of the equipment listed as stolen, a significant amount has been recovered, but not necessarily netted off against that figure, so in fact the total is probably less than the £1.25 million she suggests.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

May I, on behalf of the Opposition, join in the condolences offered to the families of the three servicemen who, tragically, gave their lives serving their nation?

A decision has been taken to cut the co-operative engagement capability, which was designed, among other things, to enable and support a reduction in the number of type 45s from eight to six. Dropping the programme, which has already cost the taxpayer £45 million, therefore poses capability risks. Will the Secretary of State tell the House what were the strategic—not the budgetary—reasons for his changing his mind?

[Mr Hammond]

I notice that the hon. Lady did not tell the House what was the strategic reason for Labour having delayed the programme for five years, before we grasped the nettle and decided to cancel it. We take decisions on the basis of advice from the Armed Forces Committee, which takes the budget available and decides what the priorities should be. In this case, the First Sea Lord and his colleagues on the Armed Forces Committee have decided that the programme is not a high priority for naval spending.

[Rosie Cooper (West Lancashire) (Lab)]

2. What his policy is on providing life insurance for service personnel.

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[Heidi Alexander (Lewisham East) (Lab)]

7. What recent assessment he has made of the armed forces contribution to implementation of security plans for the London 2012 Olympics; and if he will make a statement.

[The Secretary of State for Defence (Mr Philip Hammond)]

The armed forces recently conducted an extensive exercise to test their operational readiness to provide safety and security, in support of the police, during the Olympic and Paralympic games. The exercise achieved its objectives and I am confident that we are well placed to deliver this important role.

I am grateful to the hon. Lady for the constructive way in which she engaged with the Army on the air defence missile site at Blackheath in her constituency for the exercise, and to her constituents, the overwhelming majority of whom were supportive of it.

[Heidi Alexander]

The Secretary of State mentioned the proposal to site surface-to-air missiles on Blackheath as part of the Olympic security plan. It is my understanding that a final ministerial decision has yet to be taken. When will that decision be made, and will the Department be in direct contact with residents who live in close proximity to the proposed site to inform them of it?

[Mr Hammond]

The hon. Lady is right. We have received the military advice on the outcome of the exercise and Ministers will now consider it and make a final decision on the deployment of ground-based air defence systems. As you would expect, Mr Speaker, when a decision is taken, an announcement will be made first to the House, but I will ensure that the Army engages with residents who live in close proximity to the site to ensure that they are aware of all the ramifications of any decision to go ahead and deploy.

[Mark Pawsey (Rugby) (Con)]

Will the Secretary of State confirm that, to ensure effective interoperability between the emergency services and the armed forces, all parties involved with Olympic security will use a common communications platform?

[Mr Hammond]

The arrangements for effective command and control will involve military commanders being embedded with police gold commanders in their headquarters. I cannot give my hon. Friend a guarantee that they will use a common communications system, but the key decisions will be made by people sitting in the same room. They will then be passed down the respective chains of command.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

My constituents living in Bow quarter are rightly concerned about the Ministry of Defence’s plans to base surface-to-air missiles on their rooftops ahead of the Olympics. I wrote to the Secretary of State about that more than a month ago. When does he intend to respond to my request for a meeting to explain the risks to my constituents and answer their concerns? The consultation has been very thin.

[Mr Hammond]

I am not aware of a request from the hon. Lady, but the Army and MOD officials have engaged with a number of Members of Parliament who have sought a briefing. She is welcome to come to the Ministry of Defence at any time for a detailed briefing. There appear to be a very small number of her constituents who are opposed to the proposal, and there has equally been significant support from other areas. There is no risk to residents of the building. The water tower at Bow quarter was selected on military advice, because it is the right place to locate this particular defensive equipment.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

What has been done to keep local people informed about the deployment of those assets in their communities during the Olympic period?

[Mr Hammond]

The Army has engaged with local authorities in the first place, and more recently with local community groups. We have a standing Army capability to go out and engage with any groups that want to be engaged with, and to brief Members of Parliament. I am very happy to brief any Members who are affected by the proposals.

[David Mowat (Warrington South) (Con)]

9. What recent discussions he has had with the Secretary of State for Communities and Local Government on access to social housing for former members of the armed forces.

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[Nicky Morgan (Loughborough) (Con)]

16. What assessment he has made of the effect on the armed forces of a balanced defence budget.

[The Secretary of State for Defence (Mr Philip Hammond)]

A balanced budget gives our armed forces confidence that once a project is in the programme, it is real, funded and will be delivered, so that they can plan with certainty. The balanced budget is a firm baseline for the transformation to an armed forces that are smaller, but that will be adaptable, agile, well equipped with the best technology and supported by a Ministry of Defence that is re-focused around their needs.

[Rebecca Harris]

Will the Secretary of State give me a further assurance that in future we will never again return to an unbalanced defence budget, which saw us buying very expensive, high-ticket items while our brave personnel were going without some of the basic equipment they needed in theatre on the ground?

[Mr Hammond]

My hon. Friend has put her finger on the problem: in the past we had an armed forces budget that was out of kilter, and were trying to support armed forces that were not properly resourced. The consequences were inadequate protective equipment and inadequate military equipment to do the job they were being asked to carry out. I believe that we have an absolute moral responsibility, when we ask people to put themselves in harm’s way, to equip them with the kit that they need to be as safe as possible in doing that.

[Nicky Morgan]

My right hon. Friend will be aware that we live in a very uncertain world, in which new threats are evolving—we have already heard mention of cyber-security threats. Is he convinced that now that we have a balanced budget, there is scope to tackle these new threats and to provide the kit that our armed forces need?

[Mr Hammond]

As my hon. Friend says, we live in a very uncertain world and the threats are changing, and technology also is changing very rapidly. Precisely for that reason, we have kept £8 billion-worth of headroom in the equipment programme, rather than allocating every last penny of it, as was the practice in the past. Too often in the past, we have had to cancel or abandon expensive commitments in order to respond to changes in technology or threat. We should not be in that position in future.

[Derek Twigg (Halton) (Lab)]

In terms of the budget and the impact on armed forces personnel, what is the Secretary of State’s policy on service personnel who have lost a limb or have other disabilities staying in the armed forces? Has an across-the-board decision been taken that anyone who has lost a limb will have to leave, or is it down to individual circumstances or commanding officers?

[Mr Hammond]

It is down to individual circumstances. We have given a clear commitment that as long as someone who has suffered injuries on active service is in the process of treatment or rehabilitation, where it is appropriate for them to remain in the Army, they will so remain. Once they have completed the rehabilitation process, we will do our very best to find positions that they can fill in the Army. Many service people who suffer disabilities as a result of their service have been found positions that they can continue to hold down in the Army, but we cannot give a guarantee that nobody will be medically discharged after they have completed the rehabilitation process.

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

Given that the Secretary of State’s statement about supposedly balancing the defence budget relates only to the 45% of the budget spent on equipment, how will his announcements this week of compulsory redundancies in the armed forces affect the other, unaccounted for, 55% of the budget? When can we expect the details of how he has balanced the rest of the budget?

[Mr Hammond]

I am not sure that the hon. Gentleman was here when I made my statement, but he is completely wrong; my statement related to the whole budget, not simply the equipment plan. As he will know, the announcement of a reduction in the size of our armed forces was made last year. We are now making a series of tranches of redundancy announcements, of which the one due tomorrow will be the last for the Royal Navy and the RAF, to get us eventually to armed forces of the size specified for Future Force 2020 in the strategic defence and security review.

[Mr James Arbuthnot (North East Hampshire) (Con)]

The news that the defence budget is balanced is obviously very welcome, but there will inevitably be a certain amount of scepticism about it. Does my right hon. Friend accept that if he is to dispel that scepticism, the sooner he can provide absolute clarity about exactly how he has balanced the budget, and exactly how the £38 billion black hole that Defence Ministers referred to is calculated, the better?

[Mr Hammond]

I accept that there will be a certain amount of scepticism. In relation to the equipment plan, there are two parts to the answer. First, the armed forces committee has confirmed that the equipment plan that we set out and funded does deliver the capabilities required for Future Force 2020. Secondly, we have submitted the programme to the National Audit Office for review, and we will publish the result of that review in due course. In respect of the 55% of the annual budget that is not taken up by the equipment plan, the proof of the pudding is in the eating, and Members in all parts of the House will look to see a defence budget that comes in within the spending plan total, as they did in 2011-12.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

11. What progress he has made on promoting innovation through his Department’s procurement processes.

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[Chris Ruane (Vale of Clwyd) (Lab)]

12. What budget his Department will require after 2015; and if he will make a statement.

[The Secretary of State for Defence (Mr Philip Hammond)]

The budget after 2015 will be set at the next spending review. Our current planning assumption is for a flat real-terms budget settlement overall, with a 1% real-terms increase per annum in the equipment and support budget, as agreed with the Treasury.

[Chris Ruane]

When will the Secretary of State publish the National Audit Office report on the budget and equipment programme? Such impartial information is needed by us as MPs, the public and the defence industry.

[Mr Hammond]

I completely accept that, and as I said to my right hon. Friend the Member for North East Hampshire (Mr Arbuthnot) a few moments ago, I am aware of the fact that the degree of confidentiality around the defence budget invites scepticism when such announcements are made. As soon as we have the report from the National Audit Office, we will publish it.

[Mr Iain McKenzie (Inverclyde) (Lab)]

13. What assessment he has made of the potential effect of independence for Scotland on Royal Navy construction projects.

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[The Secretary of State for Defence (Mr Philip Hammond)]

My departmental responsibilities are to ensure that our country is properly defended now and in the future through the delivery of the military tasks for which the Ministry of Defence is mandated; that our service personnel have the right equipment and training to allow them to succeed in the military tasks; and that we honour our commitments under the armed forces covenant. In order to discharge those duties, I have worked with the chiefs of staff and my senior officials to ensure that the Department has a properly balanced budget and a force generation strategy and a defence equipment programme that are affordable and sustainable in the medium to long term, details of which I have already announced to the House.

[Graham Evans]

Will my right hon. Friend join me in congratulating the members of the armed forces who played such a splendid role in the magnificent diamond jubilee celebrations, remembering that many of those men and women fought bravely in Afghanistan until recently?

[Mr Hammond]

My hon. Friend is absolutely right. The relationship between the monarch and the armed forces is historic and important. Her Majesty the Queen, as head of the armed forces, has maintained and strengthened those links throughout her 60-year reign, and she enjoys the deep loyalty and affection of her armed forces. The diamond jubilee celebrations were a welcome opportunity for the armed forces to demonstrate the affection and esteem that they have for Her Majesty.

[Gemma Doyle (West Dunbartonshire) (Lab/Co-op)]

May I bring to the attention of the Secretary of State the comments of the head of Army manning, who said that the 4,100 soldiers, sailors airmen and women facing redundancy this week should transfer to vacancies in the Army, Navy or Air Force? Does the right hon. Gentleman appreciate how angry this comment has made those who are being rewarded for their years of service with a P45, and can he confirm how many vacancies are currently available?

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[Mrs Mary Glindon (North Tyneside) (Lab)]

T8. When Sir John Holmes reports on his review of the medals system, is the Prime Minister likely to keep his pre-election promise so that after 67 years the surviving Arctic convoy veterans at last receive a British medal in acknowledgement of their brave service?

[Mr Philip Hammond]

Perhaps I should be clear that the remit of the medals review is to look at the process and at the factors that are taken into account when making such decisions. So the review will look at the framework and the basis on which decisions are taken, and it will then be for individual decisions to be reviewed within any new framework that is put in place.

[Mr John Baron (Basildon and Billericay) (Con)]

T3. Defence diplomacy is a key component of Britain’s soft power capability. What steps are the Government taking to ensure that defence diplomacy is therefore at the forefront of our foreign and defence policy, and will the Minister highlight some of the programmes currently being pursued in the MOD?

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[Mr Andrew Turner (Isle of Wight) (Con)]

T6. May I welcome the arrival of the new C-17 aircraft, which plays a vital role in transporting our troops and our equipment, and ask the Secretary of State to add to that?

[Mr Philip Hammond]

Yes. I am happy to say to my hon. Friend that I went to Brize Norton to see the new C-17 aircraft a couple of weeks ago, just a few days after it had been delivered. This aircraft will reinforce the vital, strategically important air bridge with Afghanistan, which is especially important at a time when the ground lines of communication through Pakistan are closed. In the longer term, the C-17 represents a step change in our capability to support operations, including humanitarian operations and disaster relief, and, very importantly, to support the aero-medical evacuation of wounded personnel back to the United Kingdom.

[Nick Smith (Blaenau Gwent) (Lab)]

Given that there is clearly concern on both sides of the House, may I press the Minister on when we will get a full statement to Parliament on the future of our regiments, particularly the well-loved Welsh Cavalry?

[Mr Hammond]

The Chief of the General Staff is in the final stages of an analytical review of recruiting demographics and manning across the Army, looking at the future needs of the Army but also at the very important historical threads that run through the Army. As soon as we have completed that exercise, I will make a statement to the House, and I confidently anticipate that that will be before the summer recess.

[James Morris (Halesowen and Rowley Regis) (Con)]

T7. Encouraging strong leadership in our armed forces is vital to the development of an agile fighting force, so will the Secretary of State join me in welcoming the recent appointments of Commander Sarah West and Commander Sue Moore, both of which are major milestones demonstrating the achievements of women in the armed forces?

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[Jo Swinson (East Dunbartonshire) (LD)]

An effective and trusted Afghan national army is key to a smooth transition. When I visited Afghanistan last year, I heard that although recruitment is going well, attrition remains a challenge. Will the Secretary of State look into the fact that attrition rates are not monitored for the different ethnic groups, so we do not know whether there is more of a problem with the Tajiks, Pashtuns, Hazaras or Uzbeks? That information would surely be useful in addressing the problem.

[Mr Philip Hammond]

I am grateful to the hon. Lady. My understanding, although I will have to check this, is that attrition is measured by ethnic group in the army. I will take the matter up with my Afghan counterpart on my next visit and let the hon. Lady know what I find out.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

How is the review into the alternatives to Trident going?

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[Elizabeth Truss (South West Norfolk) (Con)]

Given that the Government are proceeding with the short take-off and vertical landing variant of the joint strike fighter, will the Secretary of State say when a decision will be made about the basing of that aircraft? Does he agree that RAF Marham would be an ideal location because of its engineering facilities and its proximity to the US base at Lakenheath?

[Mr Philip Hammond]

My hon. Friend is nothing if not diligent in promoting the case for RAF Marham to be the home base of the STOVL JSF aircraft. We are well aware of its engineering capabilities and of its proximity to USAF Lakenheath, where F-35s are likely to be based. The decision does not need to be taken yet, and it will not be taken until it needs to be.

[Stephen Gilbert (St Austell and Newquay) (LD)]

In the United States, the rate of suicides by active military personnel is almost one per day, which is higher than the rate of combat casualties. What are the equivalent figures for the three UK armed services?