Employment: Defence Expenditure

Lord Lee of Trafford Excerpts

Tuesday 12th October 2010 Lords Chamber

Tabled By

[Lord Lee of Trafford]

To ask Her Majesty’s Government how many jobs in the United Kingdom are sustained by defence expenditure.

[Lord Lee of Trafford]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare a number of shareholdings in companies benefiting from defence spend.

[The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Astor of Hever)]

My Lords, first, I am sure that the whole House will wish to join me in offering sincere condolences to the families and friends of: Trooper James Leverett, the Royal Dragoon Guards; Private Thomas Sephton, 1st Battalion the Mercian Regiment; Bombardier Samuel Robinson, 5th Regiment Royal Artillery; Marine David Hart, 40 Commando Royal Marines; Major James Bowman, 1st Battalion the Royal Gurkha Rifles; Lieutenant Neal Turkington, 1st Battalion the Royal Gurkha Rifles; Corporal Arjun Purja Pun, 1st Battalion the Royal Gurkha Rifles; Marine Matthew Harrison, 40 Commando Royal Marines; Marine Jonathan Crookes, 40 Commando Royal Marines; Sergeant David Monkhouse, the Royal Dragoon Guards; Senior Aircraftman Kinikki Griffiths, 1 Squadron RAF Regiment; Staff Sergeant Brett Linley, 11 Explosive Ordnance Disposal Regiment, Royal Logistics Corps; Corporal Matthew Stenton, the Royal Dragoon Guards; Lance Corporal Stephen Monkhouse, 1st Battalion Scots Guards; Sapper Mark Smith, 36 Engineer Regiment; Lance Sergeant Dale McCallum, 1st Battalion Scots Guards; Marine Adam Brown, 40 Commando Royal Marines; Lieutenant John Sanderson, 1st Battalion the Mercian Regiment; Rifleman Remand Kulung, 1st Battalion the Mercian Regiment; Sapper Darren Foster, 21 Engineer Regiment; Sapper Ishwor Gurung, 69 Gurkha Field Squadron, 21 Engineer Regiment; Lance Corporal Jordan Bancroft, 1st Battalion the Duke of Lancaster’s Regiment; Lance Corporal Joseph Pool, 1st Battalion the Royal Regiment of Scotland; Captain Andrew Griffiths, 2nd Battalion the Duke of Lancaster’s Regiment; Kingsman Darren Deady, 2nd Battalion the Duke of Lancaster’s Regiment; Sergeant Andrew Jones, Royal Engineers; Trooper Andrew Howarth, Queen’s Royal Lancers; Corporal Matthew Thomas, Royal Electrical and Mechanical Engineers; Rifleman Suraj Gurung, 1st Battalion the Royal Gurkha Rifles; and Sergeant Peter Rayner, 2nd Battalion the Duke of Lancaster’s Regiment.

I turn to my noble friend's Question. The last available information, published in UK Defence Statistics 2009, estimated that 300,000 full-time jobs in the UK were supported by Ministry of Defence expenditure and defence exports: 155,000 directly and 145,000 indirectly. In addition, the MoD employed 177,840 service and 85,850 civilian personnel as at 1 July 2010.

[Lord Lee of Trafford]

My Lords, first I join these Benches in the earlier tribute, and also send the condolences of the whole House to the relatives and friends of Linda Norgrove.

I thank my noble friend for his Answer. David Cameron described the defence budget as,

“the biggest mess I've inherited as Prime Minister”.

The highly irresponsible decision of the previous Government to order the two aircraft carriers, recently and sarcastically described in the media as “HMS Unaffordable” and “HMS Impecunious”, when the MoD was effectively bust and before a defence review, has clearly skewed the current SDR, making it now even more financially rather than strategically focused. Will my noble friend tell the House whether defence contractors have been helpful in modifying or waiving their penalty clauses, given our overall national financial situation; and will he confirm the promise that we will get a defence industrial strategy by the first quarter of 2011?

[Lord Astor of Hever]

My Lords, the MoD's key suppliers have been working with the department on a commercial basis, looking at ways to improve innovation and cost reduction across the board in support of the SDSR. With regard to the second part of my noble friend’s supplementary question, I confirm that we are developing a new defence industrial and technology policy that is intended to replace the previous defence industrial strategy. We will launch this process on 2 November this year in an event co-hosted by ADS, the industry’s representative body, and there will be a Green Paper by the end of the year. After a formal consultation period in the new year, we will publish a White Paper next spring that will set out our industrial and technology policy for the next five years or until the next SDSR.