Lord Walney
Main Page: Lord Walney (Crossbench - Life peer)Department Debates - View all Lord Walney's debates with the HM Treasury
(11 years, 5 months ago)
Commons ChamberI will take one more intervention, then I will make some progress.
I very much appreciate the Chief Secretary to the Treasury giving way. Further to the point on the submarine building industry, and in relation to the £4 billion saving that he has just mentioned, does he accept that chart 2 on page 42 of the document includes the platform, the missile, the infrastructure, the warhead and the policy change costs, but does not include the cost of bringing forward the next submarine project to plug the gap in the Barrow shipyard’s order book? That omission could cripple submarine building in this country for ever.
One of the review’s assumptions is that we would wish to maintain our sovereign submarine building capability. That is the policy of the Government and it sounds as though it is the hon. Gentleman’s policy, too—[Interruption.] If hon. Members will calm down for a second, I will tell them that it does include the cost of maintaining that capability. All the alternatives include the procurement of further submarines after the successor.
As the House knows, the review was commissioned by the Prime Minister and Deputy Prime Minister, initially with my hon. Friend the Member for North Devon as the Minister in charge. My hon. Friend deserves a huge share of the credit for this work. It has been taken forward under the auspices of the Cabinet Office, with a cross-government team of expert civilian and military officials. I should like to take this opportunity to thank them for their hard work.
During my visits to Aldermaston, Faslane and Coulport as part of the review, I had the privilege of meeting many of the submariners of the Royal Navy, as well as the scientists, engineers and other civilians who support them. They are some of Britain’s hidden heroes, often unsung, who operate at the limits of human understanding. Seeing them in action also gives me confidence that if the next Government were to change their mission, they would deliver it just as effectively, and in the most efficient and credible way. The review will provide the opportunity to do that.
As I said in response to an earlier intervention, it is also important to be clear what the review was not about. First, it was not about short-term savings to help to deal with the current deficit. It is possible under some of the options that savings against current plans would start to accrue from the mid-2020s, but this is not about back-filling budgets in the next Parliament. As I also said earlier, the review has not addressed the question of whether the UK should remain a nuclear weapon power, because complete unilateral disarmament is not the policy of either the Conservative party or the Liberal Democrats—or, indeed, of Labour. The review did not seek to address the question of whether we should possess nuclear weapons. However, the scale and posture of our nuclear weapon capability can change.
The right hon. and learned Member for North East Fife (Sir Menzies Campbell) has a point, but does it not prove that we have learnt from our past mistakes and clearly the Liberal Democrats have not?
I did not say that, actually. I said what the Defence Secretary has said—that in thinking about the new nuclear submarines, we should consider whether it would be viable to have three. That is an option worth looking at. We would then have to bring forward the successor programme for Astute. If we deleted two boats—[Interruption.] The hon. Member for North Devon says, “It’s all right if we do it.” The fact is that if we went down to two we would have a deterrent that is absolutely useless. It would not save the £4 billion that the Chief Secretary suggested because unless we had mass lay-offs in the submarine-building programme, we would have to bring forward more work, including on the successor for Astute.
Is that not the exact point? Would it not be helpful if the Chief Secretary made clear whether he wants to save that £4 billion over 30 years and decimate Barrow and the submarine-building industry, or whether he will bring forward the work and eliminate all those savings?
It is a pleasure to follow the hon. Member for North Devon (Sir Nick Harvey), even if I think it is regrettable that he did not take this opportunity to clarify the remark about sending Barrow workers to the Bahamas, which caused real offence in my constituency. I do acknowledge, however, that he has spent a lot of time over the past two years on this review, even if I find his conclusions completely wayward.
This was supposed to be the Liberal Democrats’ opportunity to show that they could be trusted with the defence of the realm, and I have to say they have blown their chance spectacularly. Smashing the hegemony of a blinkered defence cartel that silenced any debate on the deterrent was heralded as one of the great Lib Dem wins from the coalition negotiations. We can imagine Lib Dem Members reassuring their concerned activists: “Yes, we’re more unpopular than we’ve ever been. Yes, we’re breaking our promises to students. Yes, we’ve given up any hope of being called the progressive party for a generation. Yet we bring you a referendum on the alternative vote, and we will challenge the tyranny of Trident renewal that has bewitched the two other parties.” It has not gone very well, has it?
As I understand it, now the Liberal Democrats’ position is pro-Trident. It might be because of the fact that they are only going to have two submarines, but is that not a major change from the last general election?
I would describe it as a complete collapse in the Liberal Democrats’ position. Two years on, we have a taxpayer-funded document—how much did this process cost the taxpayer, by the way? The document basically confirms what we duped fools have been arguing for years—that unless people show their true colours and come out as unilateral disarmers, and in doing so advocate a path that we strongly believe would make the horror of a nuclear war more likely, there is no credible, cost-effective alternative to the fundamentals of the existing plan to replace our fleet of deterrent submarines.
The alternative review rejects as unworkable and even more expensive what had long been the Liberal Democrats’ preferred option—some sort of mini-deterrent. Then the fall-back plan of halving the number of replacement Vanguard submarines to two, fervently briefed to the newspapers over the weekend, turns out not to have been considered by the review at all. Would anyone like to explain this? Have Liberal Democrats realised that every idea they have put forward so far has collapsed under scrutiny? Did they come to a view that it was best not to test this one in the official review, lest those pesky facts and figures ruin it like all the others?
The hon. Gentleman may be aware that all the talk about the Liberal Democrat conference considering a two-boat option comes from a Liberal Democrat document that has been drawn up by a Liberal Democrat group. When I asked the Chief Secretary earlier today at a briefing whether any copy of the review was going to be taken to the Liberal Democrat conference for consideration, he said, “Well, I might take a copy, but it will just be in my briefcase.” In other words, the review is not the document that the Liberal Democrats are going to consider. They are going to consider a completely different document making completely different recommendations, which the review did not even bother to consider.
The hon. Gentleman is right. If we were living through a Monty Python sketch, this would be the point when the army major intervenes and says that this is all getting too silly and we have to stop it at once. But of course the consequences for the nation’s security, and the 13,000 people directly employed in Barrow and across the UK, would be bitterly serious if the Liberal Democrats had their way on their part-time deterrent idea. That is why it would be a very good thing if this shambolic process now sunk without trace. Even their own document makes it clear just how hopeless an alternative a part-time deterrent would be. It states that
“a 3-boat fleet would risk multiple unplanned breaks in continuous covert patrolling as well as requiring regular planned breaks for maintenance and/or training.”
They are effectively suggesting that we pay billions for something that we cannot be sure will be available to do the deterring when needed.
Proper analysis of the figures makes clear the economic folly of the argument. The Chief Secretary told me that he had considered the cost of maintaining Britain’s submarine-building capacity at Barrow and elsewhere, but his own document makes no suggestion, as far as I can see, that the savings take account of that. It suggests that the extra costs from 2025 of bringing forward the next submarine programme—the successors to the Astute—to avoid a crippling gap in the order book of the shipyard are simply not considered in the £4 billion saving. When he sums up, will the Minister finally confirm what the Chief Secretary has so far avoided admitting—that these relatively modest savings would be completely wiped out by the extra cost?
The choice that the next Government but one would face would be either to leave a gap in construction so large that it could end the country’s capacity to build submarines for ever, sacrificing all those 13,000 jobs, or to end up saving no money at all by embarking on a whole new submarine-building enterprise before it is needed by the Royal Navy.
Will the hon. Gentleman confirm that the figures are actually worse than that? The savings that the Chief Secretary set out will not accumulate until far later in the period, while the costs that the hon. Gentleman is describing would be incurred very early in the process.
Absolutely. On the Liberal Democrats’ official figures, the savings will not even start to accrue until 2025, but by that time work would have to be well under way in Barrow shipyard and the supply chain to make the costly preparations for the Astute successor submarines. The Liberal Democrats need to come clean about the extra cost, because it makes a mockery of what the right hon. Gentleman rightly said are incredibly modest savings over a 30, 40 or 50-year period.
It should be remembered that the capacity to build nuclear submarines is one of the very few sovereign protected capabilities deemed so important and sensitive that the overwhelming majority of construction must be carried out on British soil. The submarine supply chain—centred in Barrow, but stretching from Aberdeen to Plymouth—is so advanced and finely tuned that any period in which it is left idle risks destroying it entirely. That is the lesson of the mass redundancies in my constituency in the 1990s. It is a great shame that some of those who now have the privilege of governing do not seem to have learnt a thing.
On a point of order, Mr Speaker. I am distressed to raise this point, but for some reason the Chief Secretary seems to have adopted a posture of preserved deterrence—that is, he is not here. He left the Chamber shortly after the Opposition spokesman sat down, in a three-hour debate of such importance. I am afraid that I regard that as rather a discourtesy to the House. Did the Chief Secretary give a reason when he left the Chamber and, if not, should he not have done so as a courtesy to the House?