AUKUS

Lord Mountevans Excerpts

Thursday 29th February 2024 Grand Committee

[Lord Mountevans (CB)]

My Lords, I join in congratulating the noble Lord, Lord Risby, on sponsoring this important and timely debate. AUKUS is an agreement of the greatest significance, a very high-tech defence project within the non-proliferation framework. It is also a significant opportunity for Australia, Britain and the United States for employment and the development of leading-edge technology.

From all that we hear, things in general are proceeding well, but it is still very early days for AUKUS. My understanding is that there has been solid progress on where the project needs to go, but there remains a great deal of detail to be decided. I want to look at some detail on the workings between the partners.

The three countries are close allies, but there is a need for vigilance so that the opportunities and benefits are shared equally. The United States has a particular strength—an admirable strength—in defence technology. This is a very good thing. But there is a risk, and a very real one, that the tech opportunities will be taken by the United States at the expense of Australia and Britain. What steps are the Government taking to ensure that Britain and Australia benefit appropriately, as envisaged in what I believe to be the spirit and intent of the agreement? We need to be confident that the benefits are mutual.

It is intended that the UK and Australia also grow and enhance their technological, business and academic bases. The protection of IP is essential for the development of our industrial, academic and research bases. It is also vital for Britain and Australia to maintain and grow employment, especially under pillar 1. We also need to be vigilant to ensure that Britain does not end by losing skills, not least experienced Royal Navy engineers, to our very good Australian friends.

In a project of this scale and importance, it is essential that what might be termed a common information infrastructure is established, especially for the delivery of pillar 2 capabilities. We are assured that an advanced capabilities forum is in the process of being established as an essential vehicle for the exchange of information between government and industry trilaterally.

For Britain and Australia, negotiations to gain approval under the US International Traffic in Arms Regulations regime—ITAR—as outlined by the noble Baroness, Lady Stuart, could inadvertently handicap broader UK exports outside of the AUKUS partners. Discussions with ITAR must be carefully handled, and with great attention.

A final point: the three nations are close allies and very good friends. The behaviour between them over the next 20 years and more will be critical to the success of AUKUS. Given its long-term nature, it is necessary to bear in mind that there will be elections in each country, very likely at different times, as pointed out by the noble Lord, Lord Risby. There is a need for great tact and understanding between the partners. What thoughts does the Minister have has on this serious requirement?