(7 years, 2 months ago)
Commons ChamberMy hon. Friend is right. As I have said several times now, procurement programmes have overrun in time and in budget too often. We have to get a proper grip on that with a much more commercial approach to the delivery of such projects. We have now put that in place for the delivery of the Dreadnought and Astute-class submarines through the new Submarine Delivery Authority. We have also put it in place with BAE Systems for the delivery of the Type 26 ships, where we have a pain-share/gain-share arrangement by which the company must bear the cost if it runs behind schedule or over budget. We will do the same for the Type 31 ships, for which we will have a commercial delivery set-up to ensure that the taxpayers’ interests are properly protected.
The Times reports today that the new Type 31e frigate will cost about a third of the Type 26 frigate, so will the Secretary of State provide a little more detail than he has to date about the difference in capability between the two frigates?
The Type 31e frigate will be about half the size of the Type 26, but we hope that it can be produced for around a third of the cost. If we can produce these ships for that particular price, that is the prize that will enable us in the end to expand the size of the Royal Navy. The challenge that we are laying down to British industry is whether, for the first time, it can meet a particular price per ship. The difference is essentially in the weight and in the duties that the ship will carry out.
(9 years, 4 months ago)
Commons ChamberThis is an allied effort, and we are certainly encouraging the other Gulf countries to do more, but we too face an enemy in ISIL and we too need to do more. That is why we are stepping up our training effort and taking on a huge burden in the intelligence and surveillance missions. It is also why, so far, we have conducted a very large number of strikes.
Plaid Cymru MPs opposed the bombing of Daesh in Iraq, as it was inevitable that operations would have to be extended into Syria, drawing the UK into an intractable civil war. In the light of the proliferation of Daesh and its affiliates throughout the middle east and north Africa, will the Secretary of State concede that the rationale of current UK foreign policy could lead to UK involvement in a war without end across the whole region?
The hon. Gentleman needs to reflect on what would have happened last summer, when ISIL was within a few miles of the gates of Baghdad, if countries in the region and those outside it—such as the United States and eventually ourselves, after our vote—had not intervened. What would have happened if Iraq had shattered into pieces? What would the effect have been on the overall stability of the region and, indeed, on the economic prosperity of this country?
(11 years, 9 months ago)
Commons ChamberMy hon. Friend puts it very well. Royal Mail, like any business, needs capital to be sustainable over the long term in order to continue to improve its efficiency, to invest, to innovate, and to seize the opportunities presented by new markets, not least those arising from online retailing. It should not have to compete for scarce public capital against other services such as schools and hospitals.
What measures will the Minister put in place to ensure that Royal Mail is not taken over by a private equity firm following privatisation?
No decision has yet been taken on the timing and size of any share sale. The key is to ensure that a big, successful company is no longer denied access to the capital markets.