National Shipbuilding Strategy

Debate between Martin Docherty-Hughes and Steven Paterson

Wednesday 8th February 2017 Westminster Hall

[Steven Paterson]

The hon. Gentleman must have read my mind, because I am coming on to say that point 18 of the NAO report summary states:

“Changes in foreign exchange rates, such as those that happened after the EU referendum, can pose a significant risk to the Plan’s affordability in the future. As at 10 January 2017, the pound was 21.4% below the exchange rate with the US dollar and 4.2% below the exchange rate for the euro used in the Department’s planning assumptions. Approximately £18.6 billion of the Plan is denominated in US dollars and £2.6 billion in euros over 10 years.”

That will have a major impact.

I understand that the Department has a certain amount of protection against foreign exchange rates in arranging its finances, but does it not worry the Minister that such a large amount of the plan is predicated on foreign exchange rates, with the Government appearing to be gambling that the rate will not go up further? Given the Government position that economists cannot be trusted, which is what many current Ministers said during the recent referendum—and going by even a cursory look at the financial predictions before Brexit—can we really have any confidence that the envisaged programme can be afforded? That is why we need reassurance today.

The shipbuilding strategy is long overdue and, given the current state of the Department’s books, it is badly needed to provide clarity for those working in shipbuilding and those monitoring our national defence readiness going forward.

[Martin Docherty-Hughes]

My hon. Friend will correct me if I am wrong but, to take F-35s as an example, they are 85% built in the United States, and therefore bought in dollars. That is critical when we reflect on the impact of the fall in the pound compared with the dollar.

[Steven Paterson]

Absolutely. That illustrates the point very well. I hope that the Minister will reassure us today about the Type 26 programme and the Type 31 programme, about the ships being built on the Clyde as promised, and on the affordability of the shipbuilding strategy that the Government will hopefully soon present. Finally, I hope that by the end of the debate we shall know with certainty when the overdue shipbuilding strategy will be published.

Type 26 Frigates: Clyde

Debate between Martin Docherty-Hughes and Steven Paterson

Tuesday 18th October 2016 Westminster Hall

[Martin Docherty-Hughes]

The last time I looked we were discussing the construction of naval vessels, not the basing of weapons of mass destruction. Nevertheless, I am delighted that the Conservative party wants to engage in a strategic look at shipbuilding, because Conservative Members were recently in this very Chamber talking about rebuilding the royal yacht Britannia. While they are away and on into the distance with their pith helmets, the rest of us are left behind with the catastrophe that is Brexit, which I will pick up on later. They can go on to the distance in Britannia.

The capability gap is felt most keenly in Scotland. The northern third of this island, with a coastline longer than that of France and direct access to both the North sea and the Icelandic gap, is left dangerously under-defended at a time when Russian Federation incursions into our territorial waters are beginning to reach cold war levels. The perfect example came in January 2014, when the Russian carrier the Admiral Kuznetsov “took shelter” in the Moray firth. It took the United Kingdom’s fleet ready escort 24 hours to reach the carrier group before it went on its way—although not before dumping its waste in the firth.

The House may have read the recent reports of the Kuznetsov’s imminent return to the waters of the North sea. The carrier group left the port of Severomorsk on Sunday and is expected to make its way towards assisting Russia’s continuing destruction of Aleppo via the North sea and English channel.

[Steven Paterson (Stirling) (SNP)]

A headline in the Norwegian press this week says: “Russia’s biggest warships steam along coast of Norway towards Syria”, just as my hon. Friend has described. The related article says:

“Norway has a frigate, Coast Guard vessels and Orion surveillance aircrafts that have all followed the Russian navy group since it sailed out from the Kola Peninsula into the Barents Sea on Saturday.”

Does he agree that that is a substantial contribution from Norway, and one that the UK would struggle to match?

[Martin Docherty-Hughes]

I certainly do agree with my hon. Friend. That small northern European nation seems far more capable of defending its territorial waters and meetings its obligations to NATO than the United Kingdom.

Amazingly, despite long-standing knowledge of the Kuznetsov’s deployment, and it coming as NATO’s largest annual exercise is taking place in Scotland, the Government have been able to rustle up only one Type 23 frigate and one Type 45 destroyer to escort the carrier group through the UK’s exclusive economic zone, meaning that were the group to split, there would be no way of keeping tabs on the largest ships in the Russian navy. Quite simply, the ageing Type 23 fleet cannot keep pace with the growing number of tasks put forward for it. The understandable challenges of dealing with a 35-year-old platform have led to worrying gaps in the Royal Navy’s most basic capabilities, whether that is the designated fleet ready escort being neither a frigate nor a destroyer, or the frequent and worrying absence of a UK vessel from the NATO standing maritime group in the north Atlantic.

The Government’s contention that a smaller fleet can be justified by increasing versatility can be met only by proceeding with the Type 26 programme. These are highly capable, versatile, multi-mission warships that would give the Royal Navy the capabilities it needs. Talk about the United Kingdom offering NATO a world-class anti-submarine warfare capability sounds hollow when we do not invest in the primary platform to undertake that, and when investment in other platforms—whether that is the carriers or the Poseidon P-8 maritime patrol aircraft—is called into question because a fundamental part of their support network has been put at risk.

When the Minister responds to the debate, I hope to hear a real commitment to a timetable for cutting steel on the ships, as well as their expected in-service dates.

West Highland Way

Debate between Martin Docherty-Hughes and Steven Paterson

Wednesday 16th March 2016 Westminster Hall

[Steven Paterson]

I agree with the sentiments my hon. Friend has just expressed. In the interests of promoting health and wellbeing generally, these kinds of walk are fantastic. We should look at linking them up with others, to encourage this as a pastime and a hobby.

My constituency of Stirling is home to a large section of the West Highland Way—indeed, the most spectacular and beautiful section. Tourism is crucial to the livelihoods of many individuals and families in my constituency. In my maiden speech in the House of Commons, I said that I wanted to promote the tourist industry both locally and nationally. I look forward to meeting with industry stakeholders from many of these attractions in the coming months and years, fulfilling the role I have in this place, and I encourage my hon. Friends to consider spending some time over the summer recess in Stirling, to enjoy the wonderful tourist experience to be had there.

Over recent months, my colleague Bruce Crawford— the Member of the Scottish Parliament for Stirling—representatives of Stirling Council and I have been pushing hard to increase and expand broadband coverage in the rural part of the constituency where the West Highland Way is, with some success. I am confident that that work will go on. I very much welcome the First Minister’s announcement on Saturday that superfast broadband for businesses will be completed in 100% of premises in Scotland. That is a fantastic promise and I look forward to working on it.

During my research for this debate, I spoke to various organisations to determine the actual reach of the West Highland Way in terms of its value to the Scottish economy. Loch Lomond and the Trossachs national park authority informed me that the impact on the rural economy along the route is most likely significantly underrated. Its conservative estimates are of a direct spend contributing £28 million to the Scottish economy. On top of that, there is additional indirect spending and an even greater economic impact through attracting people to Scotland to stay longer than the time they spend tackling the West Highland Way.

It is also worth noting that the national park authority’s estimates show that more than 2,000 jobs in the national park area depend directly on tourism, which in itself demonstrates the economic importance of the sector to areas such as the west of my constituency. The John Muir economic impact survey estimated that more than £12 million was contributed by walkers who complete the route, and millions more were contributed by the many thousands of visitors who enjoy walking smaller sections of the way.

The West Highland Way brings people to Scotland to experience one of the best walks in the world, but it also allows them to experience Scottish hospitality and some of our excellent local restaurants, hotels, B and Bs and pubs. Along the route, walkers will find many fine local businesses where they can relax after a hard day’s walking and enjoy some of Scotland’s celebrated food and drink. For example, the Oak Tree Inn in Balmaha on the shores of Loch Lomond is a family-owned business established in 1997, and I stayed there during my walk in 2010. It has 70 employees and numerous awards to its name—most recently, it was named Scotland’s best independent pub in 2015. The Oak Tree Inn is a fine example of a local business that benefits from the passing trade brought to it by the West Highland Way and is an important local employer within its small rural community. From my personal experience in 2010, other places such as the Beech Tree Inn in Dumgoyne and the Crianlarich Hotel offer fantastic pit stops along the route, although I managed to avoid the temptation to visit the Glengoyne distillery—excellent as its produce is.

I hope that, through this debate, we can focus minds at all levels of Government and throughout the various businesses and organisations with an interest on the further development of the West Highland Way as a resource for the people of Scotland and as a draw for tourism.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

Does my hon. Friend agree that while the West Highland Way does not criss-cross the entire nation of Scotland, it has a profound impact on the social and economic wellbeing of our country? Given that the West Highland Way headquarters are based in my own constituency, in Balloch, I am sure he understands that the economic impact is far reaching, across the whole of Scotland.

[Steven Paterson]

I accept that, and I congratulate my hon. Friend on his ingenuity in getting his own nearby constituency into the debate—well done indeed.

With the sentiment being to expand and develop the West Highland Way and sustain it for the future, I have a few ideas to put on the table for other Members’ consideration. First, I am pleased that control of air passenger duty is being devolved and that the Scottish Government are consulting on their plan to halve the rate and remove the tax altogether in time. It is a tourist tax, and we can really benefit from that policy. However, perhaps there are other measures to support the tourism industry, such as reducing the rate of VAT that accommodation providers have to pay. I appreciate that it is unsurprising that the businesses I have spoken to are in favour of the idea—what business would not like to pay less tax? However, there are serious arguments as to why the unique challenges faced by the tourism sector, and in particular accommodation providers, make a strong case for a targeted solution.

Accommodation providers tell me that they can be fully booked in the high season, but that the low demand in winter months makes for a hard time for them. Many businesses are basically hanging on in the winter months and, if any go under, the effects are felt much further than on that individual business. Some of our competitor countries in Europe support their tourism companies and accommodation providers in that way. One accommodation provider told me that a reduction in VAT from 20% to 15% would undoubtedly allow him to expand his business more rapidly and to employ more staff. By coincidence, however, we are debating this matter just hours after the Government’s Budget statement, so I will leave the issue of VAT rates there for today, but I hope we can consider it in the future.

In summing up, I have some questions for the Government. How do the UK Government contribute to efforts to promote the tourism industry in Scotland in general, and the West Highland Way in particular, in conjunction with the Scottish Government and other stakeholders? Is there an opportunity to do more? What links are being made with European institutions to encourage those tourism opportunities? Is there an opportunity for further marketing and promotion of the West Highland Way with the Scottish Government and other stakeholders, alongside the promotion of other walking routes and sport in general, as alluded to by my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown)? Finally, may I extend an invitation to all right hon. and hon. colleagues to join me on a parliamentary delegation to walk the West Highland Way this summer? I will be taking names at the end of the debate.