The Economy

Debate between Michael Fallon and Tom Tugendhat

Thursday 24th October 2019 Commons Chamber

[Sir Michael Fallon (Sevenoaks) (Con)]

I remind the House of the interests recorded in my entry in the Register of Members’ Financial Interests.

In supporting the excellent Queen’s Speech, I wish to touch briefly on just three areas: expenditure, the new borrowing framework, and what more we can do to make our capitalism inclusive.

On expenditure, the new money for the NHS and for schools is extremely welcome. With regard to the NHS, I hope it will help to relieve the pressure on our general practitioners, to get more resources into mental health and to start to fill the gap between health and social care. I hope it can do all that without involving us in yet another bureaucratic reorganisation, at any level.

The extra money for schools is particularly welcome in Kent. At long last, it addresses the inequality of funding between some of our shires and the metropolitan areas. It will mean more for primary schools in my constituency, which have been historically underfunded. As that money comes through, I hope the Secretary of State for Education will also look into how we can better protect the main schools block, which authorities such as Kent are currently having to raid to cope with the increasing demands for special needs provision.

Having welcomed the extra expenditure, given that the previous fiscal framework is clearly under some stress, I also welcome the Chancellor’s ambition to set out in his Budget a new fiscal framework for the future. I hope the framework will be clear and credible for the markets, and I also hope he will avoid some of the fudgeable targets and fuzzy definitions and classifications that we saw in the later years of Gordon Brown’s chancellorship.

I hope that, as Conservatives, we will continue to look at how we defend and refresh our capitalism and make it more inclusive for all our country. Back in the 1980s, we developed popular capitalism: 11 million people in this country held shares and had a stake in the privatised industries. Thirty years on, too many of those private industries are too poorly regulated, and we have seen share ownership in decline. Let me give an example of two of those industries.

The first industry is rail. Last year, we Members of Parliament—my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) was with me—had to intervene in the timetable chaos and persuade one rail operator that shared a line with another to pick up passengers who had been stranded by that other operator. Both rail operators were subsidiaries of the same group, so why did Members of Parliament have to intervene? Where was the rail regulator to sort it out? I welcome the proposals in the Queen’s Speech to look again at the structure of the industry and ensure that it is more accountable and better regulated.

The second industry is water. Thames Water has been privatised for 30 years. It pays hundreds of millions over to its shareholders and to its parent company, yet it is behind on its leakage targets and behind other water companies on the installation of smarter meters. Because it is behind, it is bleeding the chalk streams around London, including the River Darent, with the extraction of water that it needs to top up its supplies in the centre of London.

[Tom Tugendhat]

My right hon. Friend has been an example in helping to bring together the various companies to realise their duties. Does he agree that there are also good examples? Greggs has done an enormous amount by pushing share ownership to employees and has massively improved the equity stake that individuals have in the product of their own labour.

[Sir Michael Fallon]

I certainly understand that, and my hon. Friend takes me to the point with which I wish to conclude, which is what more we can do to encourage share ownership. Some of the employee share schemes we have—I have written to the Chancellor on this—are still very complicated. The qualifying periods are still very long and do not reflect the mobility of the modern workforce. I am afraid some of the lower-paid staff simply cannot afford to participate in them. I hope that when it comes to his Budget, the Chancellor will keep looking at how we can do more to promote employee share ownership in particular, by reducing the qualifying periods and giving people a real incentive to save.

Oral Answers to Questions

Debate between Michael Fallon and Tom Tugendhat

Monday 23rd October 2017 Commons Chamber

[Sir Michael Fallon]

The Royal Marines are part of the Royal Navy. With the latest Astute submarine, Audacious, launching back in the spring, the steel cut in July on HMS Glasgow, the first of our new frigates, the sailing of HMS Queen Elizabeth, and the naming of HMS Prince of Wales, HMS Forth and HMS Medway, nobody should be in any doubt that this year has seen the Royal Navy growing in power and numbers.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

We hear discussion of defence budgets, but would it not be worth our also focusing on what the armed forces achieve for the United Kingdom? Through their soft influence, ships visits and training establishments, are they not fundamentally part of our foreign policy and integrated defence?

[Sir Michael Fallon]

Absolutely, and smart and soft power are as important to us as hard power, which is why it is the Government’s ambition to continue to grow the defence budget, and the power and impact of our forces.

Oral Answers to Questions

Debate between Michael Fallon and Tom Tugendhat

Monday 10th July 2017 Commons Chamber

[The Secretary of State for Defence (Sir Michael Fallon)]

The United Kingdom is supporting NATO’s enhanced Forward Presence, which is designed to defend our allies and deter our adversaries. About 800 UK personnel based on armoured infantry form the core of our battlegroup in Estonia. In Poland, a British reconnaissance squadron is part of the US-led battlegroup. Both deployments are defensive but combat-capable.

[Tom Tugendhat]

I am sure that my right hon. Friend welcomed, as I did, the congressional vote that renewed the United States’ commitment to article 5. Will my right hon. Friend say a little about Britain’s commitment to it, particularly in relation to units such as the Estonian armed forces, alongside whom I—and many other Members—had the privilege to serve in, for instance, Afghanistan?

[Sir Michael Fallon]

It is good that both Congress and, now, the President have committed themselves to article 5, the most important principle of NATO. In Washington on Friday, Secretary Mattis and I agreed to continue our work together to modernise NATO and give it more focus on counter-terrorism and hybrid warfare. As my hon. Friend has said, one of the reasons that our contribution to the enhanced Forward Presence is based in Estonia is indeed our good experience of working with Estonian forces in Helmand, Afghanistan.

Trident: Test Firing

Debate between Michael Fallon and Tom Tugendhat

Monday 23rd January 2017 Commons Chamber

[Sir Michael Fallon]

Let me reassure the hon. Lady, who follows these matters extremely closely and is on the Defence Committee, that there is absolutely no doubt about the effectiveness of our deterrent. Again, had the Government any doubts about the continuing capability or effectiveness of the deterrent, we would not have brought the motion before the House last July.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

Would my right hon. Friend agree not only that the Prime Minister was absolutely right not to discuss this issue on national television but that a 98% success rate in testing for a weapons system is phenomenal? Once it has been tested, all boats that go out are fully operational and 100% capable, and that is something for which we should pay huge tribute to Her Majesty’s Royal Navy and the sailors who serve on those boats.

[Sir Michael Fallon]

My hon. Friend is right to draw attention to the importance of these tests and to hint at the complexity of them and of the systems and sub-systems that are involved in maintaining the Trident deterrent. It is to the credit of the crew of HMS Vengeance that they were able to complete these tests last June, and they now take their place again in the operational cycle.

Yemen

Debate between Michael Fallon and Tom Tugendhat

Monday 19th December 2016 Commons Chamber

[Sir Michael Fallon]

I have seen no evidence that the dropping of this particular munition has resulted in any civilian casualties. On the contrary, this was a munition that, from all accounts, had not in fact exploded—probably because of its obsolescence; it was a very old weapon. However, if the hon. Lady has evidence that any civilians have been killed or injured, we would very much like to see it.

As I have made clear, the investigation has taken a while. We have continued to press the Saudis on the fact that when something such as this is alleged, they need to be as transparent as possible, get on with the investigation and reassure their allies by simply publishing the findings, and, if something went wrong, then admitting it went wrong and putting it right. That is not what happens when we consider the Russian bombing of completely innocent civilians in Aleppo.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

I welcome my right hon. Friend’s statement to the House today. Will he say a few words on the regional situation that has led to this conflict? Clearly, the Iranian invasion in Yemen is causing many of the issues. While he is talking about the regional situation, will he join me in offering condolences to the family of Russia’s ambassador to Turkey, Ambassador Karlov, who was tragically murdered today? Does he agree that, just because we condemn Russian violence in Aleppo, that does not mean we support other violence against Russia in other parts of the world?

[Sir Michael Fallon]

I am sure the House will join my hon. Friend and me in condemning the murder of the Russian ambassador to Turkey—a shocking act involving a diplomat, who should otherwise, of course, enjoy proper protection, and whose murder does not bring any conflict in the middle east closer to resolution. There are, however, too many states in the middle east that are acting beyond their borders—such as Iran, clearly involved behind the scenes in Yemen in prolonging a conflict that only perpetuates the suffering of the Yemeni people.

Counter-ISIL Coalition Strategy

Debate between Michael Fallon and Tom Tugendhat

Monday 20th July 2015 Commons Chamber

[Tom Tugendhat (Tonbridge and Malling) (Con)]

Does the Secretary of State recognise that the call for inaction, in the face of such evil as is being seen on the streets of Raqqa and other areas of northern Syria today, is to opt out of protecting our friends and allies? Having served alongside Jordanians, Lebanese and Iraqis in recent conflicts, may I urge him to redouble his efforts to support our friends and allies who require such assistance at times like this?

[Michael Fallon]

This 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.

Britain and International Security

Debate between Michael Fallon and Tom Tugendhat

Thursday 2nd July 2015 Commons Chamber

[Michael Fallon]

We face a number of threats—that is obvious to everybody. We cannot choose between them. They are out there, and this year, because we are conducting our strategic defence and security review, which I will come to in a moment, we are able to look at them in the round. That is the answer to the right hon. Gentleman’s question.

As far as NATO’s immediate assurance measures are concerned, our Typhoons are protecting Baltic airspace and will be back next year to continue their mission for the third year running. Our warships have been patrolling the Baltic sea, and our ground troops have exercised this year alongside their counterparts in Poland, Lithuania, Latvia and Romania. We are also doubling spending on the training of Ukrainian forces to about £6 million and providing additional training tasks in medical evacuation, winter survival and reconnaissance skills. We have already trained about 650 members of the Ukrainian armed forces, and by this autumn we expect to have trained nearly 1,000. We have increased our contribution to NATO’s new very high readiness joint taskforce, and we will augment it with 1,000 troops each year into the next decade. At the same time, we have been playing a leading role in helping to address the migrant issue, with HMS Bulwark rescuing literally thousands from the Mediterranean.

We are not just tackling the symptoms of instability; we are working on its causes, too. We plan to deploy some 130 military personnel to Nigeria between now and the end of September. They will assist the new Government in a range of tasks, including training those Nigerian units deploying on counter-Boko Haram operations. That is a significant increase on the numbers previously deployed. We are continuing to mentor the next generation of Afghan army officers, and we are supporting the people of Sierra Leone in their struggle against the scourge of Ebola and bringing humanitarian help to those affected by the Nepalese earthquake.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

My right hon. Friend has mentioned a number of operations on which I had the honour to serve. Although he is identifying military options for these problems, he will be more than aware that most of them do not really have a military solution. For example, in Nigeria, where we are helping against Boko Haram, the fundamental problem is the huge corruption in the Nigerian armed forces and the destructive element in the Nigerian Government. What can we possibly do with our Foreign Office colleagues to address the real problem rather than just the military fix?

[Michael Fallon]

I welcome my hon. Friend and parliamentary neighbour to his place in this House. He brings a wealth of experience from the armed forces and, indeed, the Ministry of Defence to debates such as this one. His question allows me to emphasise the importance of the work of other Departments. These cannot just be military solutions.

The work of the Department for International Development is extremely important and I have always seen development and defence as two sides of the same coin. The money we can spend up-front on capacity building helps to avoid a bigger financial outlay downstream. That money and the work by DFID and the Foreign Office can help prevent crises and conflicts. By strengthening countries in Africa, we can do more to discourage people from leaving them, and because today’s aid budget is much better focused, with fewer countries receiving it, it has greater impact.

We are spending some £60 million on supporting millions of people who have been displaced by ISIL/Daesh, and we have pledged £900 million to answer the specific humanitarian crisis in Syria—the biggest ever UK response to any crisis anywhere.