Defence Aerospace Industrial Strategy

Lord Walney Excerpts

Thursday 16th November 2017 Commons Chamber

[Ruth Smeeth]

This is the perfect chance for the Government to ensure that there is a real opportunity to have an industrial strategy. They must put their money where their mouth is and move forward with such a strategy.

My second point relates to the retention and development of our domestic skills base. Our defence aerospace industry operates at the absolute cutting edge of modern technology. This is a highly skilled, highly qualified workforce, and their talents are a national resource that need to be nurtured as well as retained. Such expertise enabled us to play a major role in developing the F-35 alongside our US partners—a project that was secured by our unique knowledge through the design of the Harrier jump jet.

When deals stall and future projects are uncertain, those jobs are put at risk, and if they go, those skills go with them. Once the capability to develop and produce complex systems in any field has been lost, it can be incredibly difficult and time-consuming to rebuild. One has only to look at the experience of the Astute programme to see the danger. Delays in our procurement of a new submarine programme led to significant redundancies of very specific skills which meant that, embarrassingly, when we eventually decided to upgrade our submarine capability, we had to go cap in hand to an American firm to help us rediscover and upskill the skills that we had lost after the completion of the Trident programme in Barrow.

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

My hon. Friend is right to mention the problem in Barrow, and I am sure she will agree that not only was reskilling a problem, but there was a massive extra cost to the taxpayer in a programme that had only one supplier. In aerospace we could lose out to competitors. Other people make aeroplanes, but we are the only ones who make submarines for ourselves.

[Ruth Smeeth]

My hon. Friend speaks with authority about his constituents and their work in Barrow.

As I was saying, that loss of skills was not just a national embarrassment. The erosion of capability can have serious and long-lasting consequences for our sovereign military capability. Let us not repeat previous mistakes. Let us develop a comprehensive industrial strategy for our defence aerospace sector, and ensure a steady drumbeat of orders to maximise the benefits of an already highly successful exports market.

Central to that strategy must be a forward-thinking plan that starts to consider what a post F-35 future may look like. We need commitment to the development of a sixth-generation combat fighter, to ensure that we have a British option for our next multi-role air defence asset. It will not surprise Members to know that the development of both the Typhoon and the F-35 projects took two decades from concept stage to mass production. We need to commit now to developing that new platform with a view to the finished product entering service in the 2030s—I will still be a young Member.

We should also use that project as an opportunity for a realignment away from a US-led development process, and turn towards our partners in Europe. The F-35 is an exemplary piece of kit, and we should be proud of our involvement in its development. If we are to maximise the benefits for our domestic defence aerospace industry, we must play a lead role in the development and construction of the sixth-generation fighter, and not operate in the long shadow of the US military industrial complex.

Finally, a defence aerospace industrial strategy sends a message to the world that we are serious about our future defence commitments, as well as our long-term security and that of our allies, and it provides us with opportunities to build lasting relationships with international partners. It would also demonstrate that the UK may be leaving the European Union, but we are not leaving the world and we are open for business.

When a nation develops an over-reliance on foreign imports for its defence capabilities, that does not just impact on jobs and industries; it also sends a signal to the world about that nation’s lack of confidence in its own industry and society. Put simply, great nations become great by acting as though they are. If we put our faith, and our active, long-term support, into our domestic defence aerospace industry, it will show the world that we are leaders in the field and intend to keep it that way. The time is right for the development of this strategy. Industry is willing; the military are wanting. What we need now is Government action.

--- Later in debate ---

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

It is, as always, a pleasure to follow the right hon. Member for New Forest East (Dr Lewis). Let me add my congratulations to my hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth) on securing the debate.

The right hon. Gentleman is right about the need for collaboration. However, the uncertainty, which I hope the Minister will be able to clear up, is about the extent of the Government’s commitment to the future of aerospace. As a country, we are in a parlous position. A slowdown is affecting many of Barrow’s neighbouring constituencies in the north-west, with the prospect of job losses. There is uncertainty over future orders for which, as my hon. Friend said, the export market remains absolutely key. There is also a big question mark over the determination and even the capacity of the Ministry of Defence to look forwards and do the necessary planning.

If this were about aerospace alone, it would be concerning enough, for all the reasons set out so adeptly by my hon. Friend: the massive contribution aerospace makes to our overall industrial base; the advanced manufacturing jobs it brings; the contribution of its capability to our country; and its defence engagement role in being able to underpin our strategic defence relationships with key partner nations. However, it is in not only aerospace where this vital forward look that the Government need to be doing could be stalling. I was alarmed to hear recently that the key spending on the Government’s future submarine programme, the unfortunately titled MUFC—maritime underwater future capability—had been cut without explanation. That creates the impression that the Government think they are about to hit a wall due to the comparative spending restrictions imposed and the build-up of capabilities. When Conservative Members were in opposition, they criticised —understandably at times—the last Labour Government for shifting projects to the right, yet it appears that an alarming number of projects might be going the same way.

We have the sense that the Government, having lauded the aim of balancing the books, as they spuriously put it, and of looking to the future, are now going back into crisis mode—just getting from one Budget to another. When future planning suffers, it is not only an problem for our future capability, because we end up with inferior capability now, potentially buying off the shelves, meaning that we spend much more and lose jobs. The Government have a window in which they can acknowledge the problems and concerns that are building up before putting them right, and I hope that the Minister will do that today.