(2 years, 8 months ago)
Commons ChamberAs we have heard time and again today, we need to spend more on defence. This really could not be a graver time for the world. I do not think any of us in the House imagined that we would be in such a position, discussing this issue in these circumstances. Sadly, I think our armed forces are going to have a lot more to do over the coming years so we need to make sure that we fund and equip them appropriately. As a House we need properly and diligently to shoulder that massive responsibility.
One thing on which people have not yet focused very much but which I fear will be very much the focus of discussion in the coming years is just how difficult an economic situation the world is going to be in. Because of the sanctions and everything that has been going on in respect of our not wanting to engage with Russia and its exports of energy, materials and agricultural products, there is going to be massive food-price inflation throughout the world and in some of the world’s poorest areas, including the middle east, central Asia and north Africa. I am afraid that will almost certainly cause grave circumstances for the people who live in those areas, meaning we will be called on to help in all sorts of different ways, including from a humanitarian point of view and from a climate point of view. There will undoubtedly be lots of disputes and arguments about such matters over the coming years. We need to be clear-eyed about the economic damage that is going to be done to the world and to our economy because of this situation. As a result, we need to look at absolute numbers in respect of what we need to invest in defence to achieve the things we want to achieve: we must not be hung up on a particular percentage-of-GDP target, because that is going to be a moving feast and I think we will, unfortunately, be in a fairly major recession before too long.
I wish to focus on one procurement issue that, in the context I have set out, we need to accelerate: the procurement of the medium-lift helicopter requirement that was identified in the defence review. It has been put out to competition, but the context has changed—we are not in Kansas anymore—and we need to accelerate the procurement process and demonstrate to the world how the UK can procure in a more agile and nimble way than it has done in the past. In particular, if we want to get the helicopters into service by 2024, and given the various stresses on global supply chains, it makes sense to get a decision as soon as possible.
May I quickly make the point that competition is still important, because experience has shown us that, when there been no competition, we have ended up with poor procurement?