Oral Answers to Questions

Maria Eagle Excerpts

Monday 6th January 2025 Commons Chamber

[Alan Strickland (Newton Aycliffe and Spennymoor) (Lab)]

10. What steps he plans to take through the defence industrial strategy to increase support for defence sector SMEs.

[The Minister for Defence Procurement and Industry (Maria Eagle)]

We are delivering for defence, boosting spending by £3 billion in real terms this coming financial year. I hope that more of our procurement spend can go to SMEs. The defence industrial strategy will set the conditions to unlock the full potential of SMEs, to seize future opportunities and ensure the growth and resilience of our defence manufacturing base, providing more good jobs in every nation and region.

[Alan Strickland]

The North East Technology Park in Sedgefield is home to many innovative defence businesses, producing satellite technology and biological and radiation detection equipment that is used by our allies across the world. Those businesses proudly contract directly with the Defence Advanced Research Projects Agency, NASA, the American Defense Department and other allied Governments, but too often they struggle with MOD procurement rules, which exclude SMEs. Will the Minister meet me and NETPark businesses to discuss how to remove the red tape that hits small businesses in my constituency and across the country that are designing and producing innovative defence supplies?

[Maria Eagle]

First, I would be happy to meet my hon. Friend and his North East Technology Park businesses as soon as possible. The Government recognise that SMEs face particular challenges, which I want to address. Through the defence industrial strategy we will reduce barriers to entry and foster a more diverse community of suppliers, including non-traditional SMEs and those that are developing future technologies. We will also send a clear market signal about our preference to grow onshore production capability.

[Mark Pritchard (The Wrekin) (Con)]

As part of the defence industrial strategy, does the Minister of State recognise the link between successful defence vehicle manufacturing, such as Rheinmetall BAE Systems Land manufacturing the Challenger 3 tank in my constituency, and the onshoring of barrel technology and defence engineering? Does she recognise the link between that skills cluster and the importance of companies such as RBSL having a future in manufacturing not just vehicles but barrels? I look forward to her visit to my constituency in the coming days.

[Maria Eagle]

I do not disagree at all. I look forward to visiting the right hon. Gentleman’s constituency and to seeing the potential of firms. He is completely correct that clusters of excellence and skill are the way forward. I look forward to visiting his constituency shortly.

[Mr Calvin Bailey (Leyton and Wanstead) (Lab)]

The defence sector supports one in 60 of our jobs in this country—more than 400,000 well-paid jobs that are central to this Government’s growth mission and to our nation’s security. However, the majority of those jobs are outside London and the south-east. Therefore, growth and—crucially—engagement with defence and security are inhibited for young people in constituencies such as mine. Will the Minister confirm that the key ambition of our defence industrial strategy will be to broaden access to the defence sector in every region, including constituencies such as mine?

[Maria Eagle]

I am happy to accept that point, and I agree. Plenty of jobs and skills will be needed around the country in every nation and region, so that we improve matters everywhere.

[Mr Andrew Snowden (Fylde) (Con)]

Christmas came early for the UK defence industry when Spain placed an order for 25 Eurofighters on 20 December, and Italy followed suit on the 24th. But there is still nothing from the UK Government on the 25 Typhoon jets that are needed for the RAF. Will the Minister spread some festive cheer into the new year, and give us an update on where the Government are with placing that order for 25 Typhoon fighter jets—a delayed Christmas present for the UK defence industry and the RAF?

[Maria Eagle]

I recognise the hon. Gentleman’s point. It is certainly true that exports are important, in addition to production for our own use. We are working very hard on the export campaigns. I cannot say any more than that at present, but I can assure him that we are working very hard. The rest of our spend on such matters is part of the SDR. Once that is completed, there will be conclusions. It might not be a Christmas present—I do not know when his birthday is—but a present some time later.

[Mr Speaker]

I call the shadow Minister.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

On defence industrial strategy, the new amphibious multi-role support ships are several years away—a point the Armed Forces Minister obviously appreciated when, in opposition last January, he wrote to his local paper to say that scrapping HMS Albion and Bulwark would be bad for our national security, for the Royal Navy and for Devonport. When the Defence Committee looked at this issue a few years ago, it firmly concluded that the decision would be “militarily illiterate”, yet today the Ministry of Defence is all for it. Even if the Minister for Defence Procurement and Industry does not agree with the Defence Committee, does she at least agree with the Armed Forces Minister that these vital ships should be retained?

[Maria Eagle]

Neither of the ships has been at sea for years—one since 2022 and the other since 2017—and neither was due to go back out to sea before their out-of-service date. The question of who might be said to have scrapped them is moot; the ships have not been scrapped, but we took the tough decision in November to retire ageing capabilities, so that we can save the money for dealing with the threats that we will face in future.

[Manuela Perteghella (Stratford-on-Avon) (LD)]

13. What steps his Department is taking to ensure that veterans have access to appropriate housing.

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[Tristan Osborne (Chatham and Aylesford) (Lab)]

T8. BAE Systems in my constituency recently announced an extra £200 million in avionics investment to support the F-35 programme, which will secure 200 extra jobs in the Warren Wood area. Will the Minister commit to reviewing our investment in our defence industry, to ensure that more jobs are secured by well-trained young people throughout the country? Will he also commit to visiting the site to witness that expansion and celebrate that success with our residents and community?

[The Minister for Defence Procurement and Industry (Maria Eagle)]

Yes, she will make a commitment to visit the site. I agree with my hon. Friend: our defence industrial strategy will enhance the incentives for long-term investment in the UK defence sector. It will encourage investment by private firms, alongside public money, align the imperatives of national security, and ensure that we have the necessary skills.

[Pippa Heylings (South Cambridgeshire) (LD)]

T4. The Defence Secretary said in October that despite conflict returning to Europe, the number of Army personnel would drop to below 70,000 next year, the lowest level since 1793. The problem is not just recruitment, but retention. More people are leaving than are joining. In 2023, 15,000 people left the armed forces, while only 11,000 joined. Will he commit to addressing the recruitment-retention balance in this year’s strategic defence review?

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[Louise Jones (North East Derbyshire) (Lab)]

The procurement of Ajax wasted hundreds of millions of pounds—money desperately needed in my North East Derbyshire constituency. Can the Minister update me on the progress made in learning the lessons of that failure and implementing the findings of the Sheldon report?

[Maria Eagle]

Yes. My hon. Friend will know that the report was produced under the previous Government. Its findings were set out under the previous Government, and I think they announced that all the necessary steps to implement all 24 recommendations—15 were accepted and nine were accepted in principle—had been completed. We need to continue to learn the lessons and make sure that such problems do not arise in other programmes.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

The cost of the 10-year equipment plan for the Defence Nuclear Organisation stood at £44 billion in 2019. In 2022, it went up by 27% to £60 billion, and in 2024 it inflated by 62% to £99.5 billion. Can the Secretary of State reassure us that the MOD has not lost the run of itself on this worst-of-all defence procurement debacles? What personal commitment can he give the House that he has the foggiest idea what to do about it?

[Douglas McAllister (West Dunbartonshire) (Lab)]

The naval base at Faslane and companies such as BAE Systems support thousands of jobs in my constituency. Does the Minister agree that we need to grow an integrated, innovative and resilient defence sector that will address problems such as skills shortages and the need for strategic long-term partnerships?

[Maria Eagle]

Yes.

[Lincoln Jopp (Spelthorne) (Con)]

When the Secretary of State appeared at the Defence Committee recently, he was sitting alongside his permanent secretary when the permanent secretary announced that it was his aspiration to reduce the number of MOD civil servants by 10% within this Parliament. Does the Secretary of State recognise and welcome that aspiration?

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[Maria Eagle]

The hon. Gentleman makes an important point. I hope that our defence industrial strategy, in enabling SMEs to access contracts and work for the MOD more easily, will increase that number substantially.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Will the Minister agree to meet me to discuss the figures for the incidence of blood cancers and sarcomas in veterans and current service personnel who have crewed particular military helicopters?

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[Graeme Downie (Dunfermline and Dollar) (Lab)]

I recently visited HMS Swiftsure at Rosyth in my constituency, a former Royal Navy submarine now being safely and securely dismantled and recycled by Babcock, as a pilot project of the submarine dismantling programme. Will the Minister provide an update on the programme, which could secure hundreds of jobs in Dunfermline and Dollar by dealing with similar submarines at Rosyth over the coming decades?

[Maria Eagle]

My hon. Friend will be aware that despite the fact we have had nuclear submarines since 1980, we have never dismantled one, so there is a lot of work to be done. What is happening with Swiftsure is very encouraging and will hopefully provide many jobs in dismantling nuclear submarines. I hope my hon. Friend will be happy with that reply.