Defence Budget

Lord Howell of Guildford Excerpts

Wednesday 4th March 2015 Lords Chamber

[Baroness Symons of Vernham Dean (Lab)]

My Lords—

[Lord Howell of Guildford (Con)]

My Lords—

[Baroness Stowell of Beeston]

Order. If we are taking it in turns, it is the turn of those on the Labour Benches, but there are two Labour Peers seeking to get in.

[Lord Astor of Hever]

My Lords, the coalition agreement stated that we will honour our commitment to spend 0.7% of GNI on overseas aid from 2013 and enshrine that in law. Those funds are being used for very worthwhile causes. For instance, DfID has contributed £35 million to our efforts to tackle Ebola in west Africa.

[Lord Howell of Guildford]

My Lords, does the Minister agree that although the noble Lord, Lord West, and others are quite right in wanting our Armed Forces to be fully and properly equipped, nevertheless, in modern conditions, large areas of defending the national security and safety of our citizens and the British nation lie outside the classical definition of defence expenditure? Does he not agree that they should be taken more into account, because they are part of the defence of this nation in future—a matter which I am not sure that the American general who spoke the other day fully comprehended?

[Lord Astor of Hever]

My noble friend mentioned hybrid warfare in a question last week, and there is also the very serious issue of cyber warfare, so I entirely agree with him.

Armed Forces: Baltic Defence

Lord Howell of Guildford Excerpts

Tuesday 24th February 2015 Lords Chamber

[Lord Astor of Hever]

My Lords, sufficient defence spending is particularly required in light of recent events. We need to be able to deal with multiple challenges and undertake a range of operations across the military spectrum, as well as maintain our standing commitments. This Government have consistently committed to spending 2% of GDP on defence and 20% on equipment, and, along with the US, we have been one of only two allies that currently meet the NATO guidelines.

[Lord Howell of Guildford (Con)]

In their present mood, the Russians are likely to be using a whole variety of hybrid and cyber forms of warfare, as they have in the recent past in the Baltic area. Are we fully prepared to meet that?

[Lord Astor of Hever]

My Lords, NATO is working to tackle the challenge of hybrid attacks. There is little new in the tactics and techniques of hybrid warfare, such as subversion and the use of proxy forces, but the scale of sophistication of Russian activities, combined with the use of new instruments such as cyber, presents a new challenge and we are doing our best to get on top of it.

Energy Bill

Lord Howell of Guildford Excerpts

Tuesday 9th July 2013 Grand Committee

[Lord O'Neill of Clackmannan]

I would not perhaps go quite so far as my noble friend on these matters but it is important that we get from the Minister an indication of the regime under which a privatised gas storage and pipeline system would operate. Given that this will be a natural monopoly, as has been clearly explained, it ought to be under the regulatory scrutiny of Ofgem. If it is to be a natural monopoly, it should be regulated. At the moment, who owns it and for what purposes we leave other people to worry about. However, those of us who attended the talk last week by Peter Atherton might find it difficult to identify a potential purchaser of this system because it seems that it is a kind of secondary purchase, given the dire nature of a number of the obvious potential purchasers. They have far greater strains on their balance sheets than acquiring an asset like this, no matter how profitable it might be.

We may be worrying needlessly that this power will be granted as the Government may not do anything about it. However, were they to do so, it is important that an asset of this nature should not fall into monopoly hands of an unregulated character. Therefore, I certainly want to be given a clear indication from the Minister this afternoon that if this asset is to be privatised it will come under the scrutiny and regulation of Ofgem. I am not certain that such a move would raise sufficient money. It may be just another burden that DECC has to carry at present, and it feels that it would be simpler to transfer it. However, that is not the issue in question here: it is whether the people who buy the asset have unlimited powers to do whatever they wish with it or whether it should be subject to some kind of regulation. It need not necessarily be draconian but, rather, light-touch regulation—the kind which, in some respects, the regulator applies to National Grid and the wires and the pipes it owns and operates.

[Lord Howell of Guildford]

I am looking forward to the Minister’s reply. I am sure that he will have that sort of balance in mind. I reassure the noble Viscount, Lord Hanworth, that at the time of the fall of the Soviet Union I was approached by a Russian general who asked whether I or anyone I knew would like to purchase a fully integrated Russian military pipeline system throughout the Russian Federation, which he thought would become available and would be sold by the Soviet army. Therefore, the noble Viscount can be reassured that these ideas are not original and that similar ideas have been suggested in the past.

As the noble Viscount would expect, I wish to comment on his points about denationalisation, which is subtly different from privatisation, which was aimed at widening the ownership of the assets and taking them away from the giant nationalised corporations which were killing innovation and screwing the customer. That was the plan. To say that it is discredited seems odd when this plan has been adopted round the world including in China, Russia, the United States and every major economy throughout Europe. A more balanced approach than the one he adopted would help his case.