Strategic Defence and Security Review

Malcolm Rifkind Excerpts

Thursday 16th September 2010 Commons Chamber

[Sir Malcolm Rifkind (Kensington) (Con)]

The right hon. Gentleman is obviously right to raise what could be a very serious issue. The suggestions in the press, none of which have been confirmed, are that the decision to place the major contracts on Trident could be delayed until the next Parliament, which is presumably due to begin in 2015. As the major contracts at the moment are only expected to be signed in 2014, I hope he would agree that a 12-month delay would not be that serious and might allow the decision to be taken in a more favourable economic climate. If, on the other hand, the Government were contemplating a five-year delay beyond 2014, we would be in a very different situation.

[Mr Ainsworth]

Or even in a more favourable political climate. One of the difficulties is that people accept the reasonableness of what the right hon. and learned Gentleman has said and do not think it is a very significant decision. He needs to research this matter because, when it comes to building submarines, we have slowed the drum beat down so much that our ability to slow it down further simply does not exist. There is already a gap and we will lose the capability, which we will have to recreate—if we want to do so—at considerable expense to the taxpayer. That will not be for years to come—it will not be in the next two or three years—but down the line the expense will be massive and the kind of overheating in the defence budget that the Chairman of the Defence Committee complains about will have been hugely exacerbated.

--- Later in debate ---

[Nick Harvey]

Let me say this again: the decision on Trident has been taken. It was laid out in the coalition agreement, which made it perfectly clear:

“We will maintain Britain’s nuclear deterrent”

and, in due course, replace it. The value-for-money study, which is currently taking place but has yet to arrive at any decisions, may well consider the expenditure profile, and the order in which we programme different parts of the work, but I cannot speculate on that. However, the initial gate decision is on course to be made later this year or, at the latest, in the early part of next. We know that under the timetable, main gate will be at the tail end of 2014 or, possibly, in the early part of 2015; that is already known and understood. But, as the right hon. and learned Member for Kensington (Sir Malcolm Rifkind) pertinently pointed out in his intervention, if main gate happened to shift a few months, it would not make any difference in terms of either finance or, frankly, the impact on the industrial base. So, the issue involves complete speculation and does not have the significance that one or two people have suggested it might.

[Sir Malcolm Rifkind]

I welcome the Minister’s extremely reassuring remarks. In that context, I note the intensive press reports stating that the Treasury has pressed for the capital costs of Trident to be met from—presumably—the existing core budget of the Ministry of Defence. Is that the case, and, if we are to have both a conventional military and the independent nuclear deterrent, is it possible?

[Nick Harvey]

I rather agreed with the right hon. Member for Coventry North East, who said that that point is largely academic: the cost all comes out of the Treasury as a whole, and the particular line on which it is accounted is neither here nor there. We would want to be clear that the funds for Trident were on a separate line from that of the core defence budget. That is what the White Paper said, and as I understand it, that is still the position. However, where precisely it is accounted is neither here nor there; it is a completely semantic and academic point.