Oral Answers to Questions

Debate between Nia Griffith and Michael Fallon

Monday 23rd October 2017 Commons Chamber

[Sir Michael Fallon]

On the latter point, I have referred to the purpose of the capabilities review, which is simply to make sure that the equipment programme that we set out in 2015 is on track and is spending our money in the best possible way to deal with the threats, which have intensified since then. On the first point, about finance, the defence budget was £34 billion when I became Defence Secretary. It is £36 billion today and it will reach £40 billion by 2020.

[Nia Griffith (Llanelli) (Lab)]

We have heard that a Tory rebellion is growing over next month’s Budget, with half the Cabinet determined to sack the Chancellor because they are convinced that they can do a better job themselves. There is even speculation that the loyal Defence Secretary might be about to launch his own offensive on No. 11.

On a more serious matter, most of the Tory manifesto has already bitten the dust, so I was pleased that the Secretary of State seemed to be very confident about the commitment to a 0.5% year-on-year increase in defence spending. Will he give us a categorical assurance that there will be no fiddling of the figures, as we have seen with the NATO commitment on spending 2% of GDP?

[Sir Michael Fallon]

I am not sure whether the hon. Lady’s first point was a reference to speculation or scaremongering, but it is good to hear from her after she was gagged at the Labour party conference and not given any kind of speaking slot.

I can reassure the hon. Lady that our manifesto commitment to increasing the defence budget by at least 0.5% ahead of inflation is an absolute commitment and that we will stand by it. As for what is classified as 2% spending for the purposes of the NATO return, that is entirely a matter for NATO to decide.

[Nia Griffith]

The reality is that the Government’s chaotic mismanagement has led to gaping holes in the MOD’s budget. As we have heard, there is real concern about cuts to our amphibious capabilities. Will the Secretary of State say categorically that there will be absolutely no cuts to the Royal Marines?

[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.

National Shipbuilding Strategy

Debate between Nia Griffith and Michael Fallon

Wednesday 6th September 2017 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

I thank the Secretary of State for his statement, and for advance sight of it.

I welcome the fact that this strategy has finally been published—we all want a secure future for this country’s world-class shipbuilding industry, and this represents a step in the right direction—but may I ask the Secretary of State why on earth it has taken so long? He announced this strategy more than two years ago, and Sir John Parker’s report to inform it was out last November. We were told we would finally see the strategy in the spring, and back in May the defence procurement Minister, the hon. Member for West Worcestershire (Harriett Baldwin), said that it was ready, so why have the shipbuilding industry and its workers been kept waiting for so long?

The strategy repeats the Government’s stated aim of bringing the Type 31e frigates into service from 2023. As that is just six years away, will the Secretary of State set out more detail of the timetable? When will the contract be put out to tender, and when does he hope to announce the successful bidder? What discussion has he had with the industry about whether the £250 million cap for the Type 31e is achievable? We know that the defence budget is already under considerable strain, so what contingency is in place in case costs overrun?

The Government’s commitment to a shipbuilding strategy must be complemented by a comprehensive industrial strategy. We need more than warm words, so may I ask the Secretary of State how he intends to maximise opportunities for the UK supply chain? Will he, when determining best value, commit to giving weight to the positive impact on local economies and employment opportunities in awarding contracts?

The news that only 50% of the steel in the Type 26s is UK sourced is disappointing. How do the Government intend to improve on that for future contracts?

The strategy rightly focuses on the export opportunities for UK shipbuilding, and orders from overseas will be important in ensuring steady work for shipyards across the UK. Given the fierce global competition, what strategies will the Secretary of State implement to secure orders from foreign buyers?

We must ensure that uncertainty surrounding Brexit does not dissuade companies from operating here, or our allies from wanting to buy British. What active steps are the Secretary of State and his ministerial colleagues taking to facilitate the best possible operating conditions so that British and European defence companies are not deterred from investing here?

As well as investing in our naval fleet, we must invest in the men and women who serve in our Royal Navy. We know that there is a crisis in recruitment and retention across the three forces, with the Navy currently under strength and the Government on course to miss their target on personnel numbers. Will the Secretary of State set out specific steps to ensure that that sorry situation does not continue?

[Sir Michael Fallon]

I am grateful to the hon. Lady—I think that that was a welcome for the strategy, even though she had some detailed questions. Let me try to answer the, I think, seven of them.

First, Sir John Parker did report at the end of last November and we initially hoped to publish the strategy in early summer. The hon. Lady asked why it had been delayed. I think I recall a general election around that time—she may recall it, too. There was therefore necessarily a delay. We have now introduced the strategy—I wish it had been a few months earlier.

Secondly, the hon. Lady asked when we intend to start placing the orders. We will run the competition at pace next year. We hope to place the order by the end of next year and start the building programme in 2019.

The hon. Lady asked about contingency. The problem with naval procurement under successive Governments for many years has been cost overruns. The frigates will be procured in a completely different way. We are setting a price per ship and challenging the yards to come up with the right bids to match that price. It is a reasonable price and it is now up to industry to meet it.

I hope that the eventual winner—or winners—of the tender programme will be encouraged to show us how it proposes to involve its local supply chains, and certainly the British steel content it can provide. Not all specialist steels for shipbuilding are made in this country, but we certainly encourage the use of British steel. We now have the means to do that through the procurement policy, which enables us specifically to consider that factor when weighing up the different tenders.

The hon. Lady asked about exports. It is a sad fact that we have not exported a new warship from this country under any Government since the 1970s. The new frigate is specifically designed to be exportable—a ship that other navies want to use. We already have an intensive export campaign for the Type 26 frigate. I have been championing its case in Australia, which is about to purchase an anti-submarine frigate, and also in Canada. I assure her that the Type 31e will be designed for export and we will put the full weight of Government behind that campaign.

The hon. Lady asked what we are doing to secure British defence companies’ continued participation in the European market after Brexit. We will shortly publish how we see the future of foreign policy and of defence and security policy in the new partnership that we want with the European Union. That will include our view of future participation in European defence programmes and funding.

Finally, the hon. Lady asked about manning in the Royal Navy. It is currently over 97% manned. We are spending a great deal of money on recruitment marketing and improving retention in the Royal Navy. We have spent some £40 million a year on recruitment marketing for the Royal Navy. She will have noticed that unemployment in this country is the lowest for 40 years. The Royal Navy, like many other large organisations, has to compete with other sectors of the economy, but I assure her that we will ensure that it does so. She will recall from the strategic defence review of two years ago that we are increasing the number of personnel in the Royal Navy by 400 sailors to man the additional ships.

Oral Answers to Questions

Debate between Nia Griffith and Michael Fallon

Monday 10th July 2017 Commons Chamber

[Sir Michael Fallon]

That is not the view of the Armed Forces Pay Review Body. As I have just indicated to the House, the pay review body believes that its settlement, recommended last year, does maintain pay comparability with the civilian sector. Some 8,000 people joined the armed forces in the last 12 months, but when the pay review body comes to make its recommendation for next year, it will of course look specifically at the evidence on recruitment and retention—and it does that in a way that some other review bodies are not able to do.

[Nia Griffith (Llanelli) (Lab)]

After losing her majority at the general election, the Prime Minister has now signalled that she is prepared to work across the House with other parties on areas of agreement. In that spirit, I make a constructive offer. The Government have just introduced the Armed Forces (Flexible Working) Bill in the other place. If the Government agree to amend the Bill to include a real-terms pay rise for our armed forces personnel, they can count on Labour’s support, so will they agree to work with us to give our armed forces the pay award they deserve?

[Sir Michael Fallon]

We all want to see our armed forces properly remunerated for the service they give us, but it is also incumbent on the hon. Lady to make it very clear how any increase she favours would be properly paid for. That is something she has not done and her party has not done—it certainly did not do it at the last election. The pay review body system is beyond party politics in this House. It is an independent pay review body that looks at comparability with the civilian sector, looks at the issue of retention and recruitment and makes its recommendation, which last year we accepted in full.

[Nia Griffith]

On the contrary, our manifesto was fully funded, and the Government know that. They know how to raise taxes if they need them. The fact is that the Armed Forces Pay Review Body is severely constrained by the overall 1% cap on public sector pay that the Government have imposed. If the Government will not legislate for a pay rise, will the Secretary of State at least allow the pay review body to carry out a mid-year review and report on what our armed forces should be receiving if the cap were not in place?

[Sir Michael Fallon]

I am staggered that the hon. Lady thinks her manifesto was fully costed or, indeed, fully funded. There were billions in that manifesto that were due to be borrowed and paid for by future generations. We have implemented the pay review body’s recommendation in full for this financial year and, for next year, evidence is already being acquired by the pay review body. I will give my evidence to the pay review body later in the year, and we will see what it recommends.

--- Later in debate ---

[Sir Michael Fallon]

The Queen Elizabeth is designed to operate the F-35B Lightning II aircraft. One hundred and twenty British pilots and aircrew are training on the first 10 of these aircraft in the United States ahead of their arrival in the UK next year. The carrier will also operate Royal Navy Merlin helicopters, specifically those based in my hon. Friend’s constituency at Royal Naval Air Station Culdrose.

[Nia Griffith (Llanelli) (Lab)]

We welcome the fact that Iraqi forces, backed by the coalition air strikes, have managed to retake Mosul, with only a small section of the city still under Daesh control. This has been a challenging and complex operation, and we pay tribute to the personnel who have played a part in it, including our forces working on Operation Shader. We know that the battle against Daesh and its evil ideology is far from over, so will the Secretary of State update the House on what further support our armed forces will be providing as Iraq’s ground troops advance westwards towards Tal Afar?

[Sir Michael Fallon]

It is good to be able to agree with the hon. Lady about something today, and I join her in paying tribute to our services—the RAF, which has carried out more than 1,400 strikes in just under three years; the Army, which has helped to train more than 50,000 Iraqi and peshmerga troops;, and the Royal Navy, which has helped to guard the American and French carriers when they have been striking from the Gulf. The military campaign is not over with the fall of Mosul. There remain other towns—Tal Afar, Hawija, in Nineveh province—and there are remnants of Daesh coalescing around the Middle Euphrates river valley, so there is still more work to be done, but there are 4 million fewer people living under Daesh rule since this House gave us permission to engage in this campaign.