Military Aircraft Manufacturing

Mark Menzies Excerpts

Wednesday 8th May 2019 Westminster Hall

[Mark Menzies (Fylde) (Con)]

I beg to move,

That this House has considered the future of military aircraft manufacturing in the UK.

It is a great privilege to serve under your chairmanship, Mr Rosindell. To avoid any doubt, if during the course of the debate I refer to the Eurofighter, I am referring to an aircraft and not to Euro-fighters such as yourself—a Euro-fighter in a very different context.

The aerospace sector in general is a key driver of the UK manufacturing economy. In 2017 the industry contributed £6.6 billion to the UK economy, amounting to about 4% of total manufacturing output. Across the length and breadth of our nation, 900 businesses were involved, employing in excess of 90,000 people. I want to focus on the defence and military section within that.

The aerospace sector has accounted for 87% of defence exports over the past 10 years. The UK combat air sector has an annual turnover of over £6 billion, supporting 18,000 jobs. In the supply chain on programmes such as Typhoon, more than 10,000 full-time equivalents have been employed over the past 10 years, with 40,000 people involved at the peak of the programme. There are over 1,000 companies nationwide, in defence, aerospace and associated industries.

My constituency of Fylde is home to the Warton and Samlesbury business units. In Warton, BAE Systems employs 6,200 staff, who focus on Typhoon, Hawk and the future air platforms currently being worked on by the Government. At the Samlesbury business unit, the F-35 programme is being generated. Between those two sites, over 10,000 people are employed. I am very proud that my part of Lancashire plays an integral part in the UK’s defence manufacturing sector.

The purpose of this debate is not to criticise the Government’s work, because the Government have been very committed. I commend the current Minister and his predecessors, as well as the Prime Minister, for the focus that has been given to military aircraft strategy. It is important that the Government recognise the importance of retaining sovereign defence capability. Any fool can go out and buy aircraft that are manufactured overseas, but it takes something quite remarkable to invest in this country’s sovereign capability.

It is very important that we do not lose sight of the fact that we retain such a significant work share in the F-35 programme because of the capability that the United Kingdom was able to put on the table. That capability had been generated over decades from programmes as far back as Harrier, as well as the Typhoon programme. Without investing in sovereign capability in design, build and development, if we seek a place at the table on another country’s defence aircraft platform, we might get the crumbs rather than the lion’s share.

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

I congratulate my hon. Friend on securing the debate. He is making an interesting and excellent speech. The economic benefits are obvious to see, as are the benefits of having those capabilities for domestic defence. Does he agree that having those world-leading sovereign capabilities also allows us to influence strategic decision-making processes on an international basis?

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[Mark Menzies]

My hon. Friend is very modest. He also represents a constituency with a substantial defence footprint, and he has dedicated much of his career in this place to fighting for the workforce and the interests of the companies he represents. His point is solid. Across the whole range of skills and technologies that building a modern, sophisticated aircraft platform gives us—whether in avionics, engine design, low radar signature and so on—it is critical that having that sovereign capability not only allows us to influence the manufacturing programmes that we may become part of, but is an incredible part of the UK’s strategic relationship with our key allies. That is something we must never lose sight of.

The combat air strategy, which the Government outlined in Farnborough in 2018, sets out the ambition for a new combat aircraft, expected to come into force in the 2030s. Government and industry have pledged over £2 billion over the next decade to the future combat air systems technology initiative. Team Tempest has also been created. That is welcome, but it is not likely to remain sovereign, due to cost; the reality is that we will need international partners, as we have done with Typhoon and Tornado, and with programmes as far back as Jaguar. It is incredibly important that the United Kingdom plays a significant role in shaping Typhoon, so that we do not lose any of that ability, which we hold so dear.

When it comes to sovereign capability, we are reaching a point where our workforce, which holds the skills required in the sector, may run out of work, and redundancies will follow. That is why it is crucial that the Government continue their support for the Typhoon export programme. The work currently taking place at Warton is for our export partners, which, in the case of Typhoon in Warton, is Qatar. If the supply chain is allowed to grind to a halt due to lack of export orders, we will lose not only the people and skills, but the ability and cash needed to innovate and invest.

Therefore, it is important that those who lament or complain about the United Kingdom’s defence export strategy do not lose sight of the tens of thousands of men and women—and apprentices—whose jobs depend on that carefully controlled export strategy. I urge the Government to work closely with our partners in Germany, to ensure that their decision to block export licences to some of our key export partners does not have a catastrophic impact on the UK’s defence manufacturing system.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing the debate. Everyone here will be aware of the work of the armed forces parliamentary scheme, including the dinners that it hosts here, and those who sponsor those events. At those events we gather knowledge and we get a sense of the importance of those companies to all the regions of the United Kingdom. There is a labour skills base in Northern Ireland, Scotland and Wales, which we need to utilise to its full capability. Does he agree that, when it comes to the advantages of military aircraft manufacture in the UK, every region has a part to play?

[Mark Menzies]

The hon. Gentleman makes a very valid point.

I will now focus on the national value framework aspect of the combat air strategy, which states that the UK must consider a number of items. For example, it is important to maintain military capabilities and our ability to respond quickly and effectively to threats. We must maintain choice in our future combat air capability and acquisition. We must sustain investment in highly skilled jobs throughout the supply chain, the contribution to the UK’s science, technology, engineering and maths skills base, the development of high-end technologies, and the influence on international and trade relationships.

Above all, we need to ensure that we protect the UK’s operational, technological and economic advantage, and the ability, when required, to act independently, freely and at will. As part of any future strategy, we must also ensure that the needs and future requirements of the RAF are central and critical.

[Mr Philip Dunne (Ludlow) (Con)]

I congratulate my hon. Friend on securing the debate. He is making a powerful speech and I agree with everything he has said thus far. Does he agree that to sustain the supply chain, which is an important focus of the national value proposition that he has just made and of his earlier remarks, it is important that the Government’s combat air strategy is backed up by contracts? That will allow the primes involved in Team Tempest and the supply chain that will support them to start investing to ensure that we maintain the design and engineering skills at the highest level for such a strategy to have an effect.

[Mark Menzies]

It comes as no surprise that my right hon. Friend’s intervention is full of facts and knowledge, because he speaks as a former Minister for Defence Procurement. He is right that the people involved in the early stage of the development of platforms such as Team Tempest need that assurance and they need contracts to come through. It is important that the money that the Government have already committed at Farnborough, which I understand is part of the overall £2 billion envelope, begins to feed through into live programmes and work, and not just at large organisations such as BAE Systems, but at many of the smaller organisations within the supply chain. An aircraft supply chain is not a light that can be switched on and off; we have to maintain the drumbeat and ensure that programmes have work coming through and that innovation has a purpose.

On Team Tempest, is it possible for the Minister to update us today on where we are at with regard to building partnerships with other partner nations? What does that international collaborative effort look like? Where does he think we can go in terms of not only building a platform that is flexible in meeting the needs of the RAF, but ensuring that the platform is highly exportable and can take on the likes of France and the United States, which have several aircraft platforms that will fulfil a number of key segments of the export market? If we do not have an exportable aircraft as part of our future programme, and we rely solely on RAF orders or orders placed by partner nations, the programme will not be able to sustain the UK manufacturing sector in future.

I thank the Minister for the work that he and his predecessors have done to drive innovation within the manufacturing sector, but I urge him to look at programmes such as Hawk. Although it is not as shiny or exciting as future programmes such as Tempest, it is the solid trainer aircraft that we have depended on for the past 30-plus years, and it is fair to say that it is the only military aircraft that the United Kingdom manufactures throughout.

I pay tribute to the trade unions representatives, particularly from Brough, who come down, speak to members and get their points across. I urge the Minister to continue to work with the trade union movement in the military aircraft sector to ensure that we have a united team building a platform for the future and ensuring the UK’s manufacturing base. With that, I will conclude and give him time to respond.