Ministry of Defence (Procurement)

Nick Smith Excerpts

Wednesday 19th October 2011 Westminster Hall

[Jeremy Corbyn (Islington North) (Lab)]

I am sorry that I was not present at the start of the debate and I will be brief because other colleagues wish to speak. I want to introduce a wider issue of defence procurement and I hope that the Minister will respond to my contribution. The issue concerns the large amounts of money that are being spent in advance of a parliamentary decision on the replacement of Britain’s nuclear weapon system. The Minister is smiling but I am not sure why—perhaps it is out of desperation at the amount of money flowing out of his Department and into the hands of contractors as we speak.

I would like the Minister to answer a number of questions about the costs of replacing our nuclear weapon system. The main gate decision on the Trident replacement is not due before the House until 2016. Out-turn prices were estimated in the initial gate report to be £25 billion for the replacement of the submarine, and costs for the successor system, including the warhead and infrastructure development, were between £30 billion and £32 billion. So far, £900 million has been spent on planning and replacement, and £3 billion is due to be spent on detailed design before 2016. The rest will be spent after the main gate decision in 2016.

A number of serious questions must be raised. This is not a discussion on foreign policy and we are not debating nuclear negotiations. Nevertheless, when we are faced with a massive deficit, and people in every community in the country are being told to make savings, why is the Ministry of Defence calmly ploughing ahead to get rid of £100 billion of public money on a nuclear missile system that many of us believe to be illegal, unnecessary and dangerous? All the money being spent is going into the pockets of various contractors around the world and not being put to any socially useful purpose.

Whatever choice is reached in 2016, major elements of the vessels will already have been ordered before Parliament has had a chance to debate the issue. That includes £380 million spent on the first submarine, £145 million on the second and £6 million on the third —those are the submarine costs alone. I hope that the MOD will be more open about what that expenditure is for and why it is necessary to make it ahead of any parliamentary decision. I was told by a Minister in another debate that such actions are the normal way of doing things in the Ministry of Defence, and that it does things on a sort of custom and practice basis. If it is custom and practice for the MOD to spend such sums of money without parliamentary approval, I suggest that that custom and practice needs to stop. There should be specific parliamentary approval for each element of expenditure, but that has not happened in this case.

Further spending is taking place at Atomic Weapons Establishment Aldermaston and Burghfield, and the full cost of project Pegasus—the proposed new facility for manufacturing enriched uranium components for nuclear warheads and reactor fuel for nuclear-powered submarines—was priced at £747 million when it received initial approval in 2007. I would be grateful if the Minister confirmed whether that figure is correct. If it is not, will he give the Chamber an accurate figure and state how much more money is expected to be spent on project Pegasus at AWE Aldermaston and Burghfield?

The relationship between the MOD and defence contractors is interesting. Poachers who join the side of the gamekeeper are obviously extraordinarily welcome, and the hon. Member for Sittingbourne and Sheppey (Gordon Henderson) brought a particular expertise to the debate. He seemed, however, to underline an issue that needs questioning concerning the close relationship between the MOD, defence contractors and the defence industry, and the large amounts of money being spent. Parliament exists to control what the Government do. MPs exist to represent their constituents and hold the Executive to account, and there are serious questions about the decision-making process surrounding the replacement of Trident, the purpose of Trident, and the vast expenses that are being undertaken without any parliamentary approval.

[Nick Smith (Blaenau Gwent) (Lab)]

I congratulate the hon. Member for Sittingbourne and Sheppey (Gordon Henderson) on securing this debate and I want to pick up the point about contracts and transparency in Government expenditure. The strategic defence and security review will lead to the renegotiation of many contracts, and that may lead to some savings or perhaps to an increase in costs. So far, the MOD has failed to provide the Public Accounts Committee, the parliamentary body that looks at value for money in defence spending—

[Mr Jim Hood (in the Chair)]

Order. Interventions should not be speeches. I ask the hon. Gentleman to be brief.

[Nick Smith]

Thank you, Mr Hood. Does my hon. Friend agree that transparency is vital in cases such as that under discussion, so that Parliament can scrutinise expensive defence procurement issues?

[Jeremy Corbyn]

Absolutely. Parliament must scrutinise such expenditure. One of the greatest weaknesses of the British parliamentary system relates to its ability to scrutinise expenditure. We do not traditionally do line-by-line budget voting in this country, and although the Public Accounts Committee does a good job, it can look into only one theme or area of expenditure at a time. Perhaps we need tougher scrutiny, particularly where the Ministry of Defence is concerned and given the levels of expenditure being discussed.

I have two final points. Some colleagues present today represent constituencies that have embarked—or are likely to embark—on the manufacture and development of submarines and nuclear warheads, and some represent constituencies that have a big defence interest. I do not have a big defence interest in my constituency but I understand what the position of my colleagues may be. However, there are enormous skills in the defence industry in this country. We make planes, ships and all kinds of things very well, and we have a highly skilled work force. How much better would it be to have a longer-term trajectory for using those skills to make other things such as socially useful products that will develop, sustain and support people, rather than weapons of war or, in the case of nuclear weapons and submarines, weapons of mass destruction that can only kill large numbers of civilians?

Concerns have been raised that the cost of the Trident replacement programme puts significant stresses on the rest of the Ministry of Defence budget. I hear complaints from many people throughout the armed services that they are experiencing various shortages at present. All hon. Members in the Chamber will be able to relate to that. None of those shortages will be met while we continue with the massive expenditure on nuclear weapons and the preparation for replacing the submarines and missiles.

A document entitled “Looking into the Black Hole” by the Royal United Services Institute states:

“The largest, and politically most difficult, procurement programme over the next two decades will be the construction of a successor to the Trident nuclear deterrent submarines. The MoD is due to spend £7 billion over the decade to 2020 on the initial concept, design and development phases of this project, equivalent to around 11 per cent of the new equipment budget over the decade from 2011/12 to 2020/21. But the bulk of spending on the successor submarines, total costs of which are projected at £25 billion, is due to occur during the decade after 2020/21. The Main Gate decision, which gives permission for the Demonstration and Manufacture phase to begin, is due to be made in 2016. If this schedule remains, spending on the successor programme will rise sharply, probably reaching a peak of around 30 per cent of the new equipment budget by 2021/22 or 2022/23, when the first-of-class begins production. It is likely to remain close to this level until after the planned delivery of the first submarine”.

We are on a trajectory to spend a great deal of money before Parliament has even made the decision. I could write now the speech for the Secretary of State, whoever it will be, in 2016—“We’ve spent so much, done so much and made such preparations. Let’s spend another £60 billion on this project.” Why can we not have that debate, discussion and decision now, rather than leaving it for another five years, until 2016, when all this money will have been spent?

--- Later in debate ---

[John Woodcock]

Yes, that is quite possibly true, and I may say something about the fundamental importance of this debate for Opposition Members later.

I want to talk about the successor deterrent in the context of procurement and the critical issue of sovereign capability. Defence procurement is different from so much Government procurement in other Departments, because of the importance of Britain retaining capability in certain key strategic areas. Submarine capability must remain one of those, and British submarines defending British shores must continue to be built in Britain. It is a happy fact that the only place in Britain that can build them is in my constituency, and what an incredible engineering feat is achieved there.

It is important that procurement is undertaken in the most effective way. Gaps in construction could spell disaster for our capability to build submarines. Hon. Members will think back to the early 1990s, when the previous Conservative Government left a gap between finishing the Vanguard class submarines and starting the Astute class submarines. Ministers say—I welcome this, and we need to hold them to it—that they have learned from those mistakes and from the experience of how difficult it was to restart our capability in Barrow. In fact, the problems and cost overruns experienced with the new Astute class submarines came in large part from the fact that the people building them were learning their craft anew.

Given the constraints of sovereign capability and the fact that only one place in Britain will retain the skills to build submarines, it is critical that the Government do whatever it takes to ensure that the taxpayer gets value for money and that the country’s security is upheld. Conservative Members were hot on that in opposition, when they repeatedly pointed out the cost to taxpayers of delaying important procurement projects and of shifting timetables to the right. It therefore greatly concerned me that when they took office, they delayed the proposed in-service date for the successor deterrent submarines from 2024 to 2028, which necessitated a re-baselining of the Astute class submarines at an increased per boat cost to taxpayers and created the need for a costly refit of the Vanguard class submarines. In an answer to me on 8 November 2010, at column 5, the former Defence Secretary, the right hon. Member for North Somerset (Dr Fox), put the cost between £1.2 billion and £1.4 billion, which is the cost of refuelling alone aside from any other cost incurred in keeping the submarines going.

Apart from the increased cost, the changed in-service date has potentially stretched the safe life of the current Vanguard class submarine to its limit. Experts in the Navy, Barrow shipyard and the Government say that with the increased cost of the refit they think they can keep the Vanguard class submarines in service for the projected time, but their life will be stretched to the limit, and any further delay could compromise safety and radically increase the cost. I hope that the Minister will comment on that. It is important that we keep the project to time, but it has slipped in the past, and if it slips further, given that he has increased the risk to the project, what will happen?

I hope that the Minister will make it clear whether the new Defence Secretary intends to look at the issue afresh, and, if so, what that is likely to entail. Will he ring-fence the budget for Trident from the defence main budget, which has already been mentioned in the debate? Will he make clear the overall extra cost to the taxpayer from the political deal between the coalition factions, which the hon. Member for New Forest East has expanded on at length? That deal subjugated what was in the best interest of British taxpayers on procurement and the defence of the realm to political expediency in this Parliament.

[Nick Smith]

I take my hon. Friend’s point about timing, which is perfectly made, but the alteration to requirements is also important. In the strategic defence and security review the Government, as we have seen, changed their mind about what planes would travel on the new aircraft carrier, which has pumped up the cost by billions.

[John Woodcock]

My hon. Friend has extended my point. Because of the limitations that have necessarily been put on defence procurement for very good reasons, Ministers have an increased responsibility to make the right decisions. The hon. Member for Sittingbourne and Sheppey (Gordon Henderson), whom I congratulate on obtaining the debate, expanded at length on other areas of difficulty, and I hope that the Minister will deal with those points, particularly the most important issue of all for our defence—the ultimate deterrent that the UK maintains.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

I join the hon. Member for Plymouth, Moor View (Alison Seabeck) in welcoming you to the Chair, Mr Hood. I am grateful for the opportunity to serve under your excellent chairmanship. We have been on various defence expeditions together and have enjoyed them greatly, and it is good to be here today.

I agree with what the hon. Lady said about the paucity of defence debates, and of defence procurement debates in particular. I commented on that fact about two or three weeks ago in the Department, and since then there have been two Adjournment debates, so we sometimes get what we wish for. Let us hope that there are more such debates, because it is very good for hon. Members to discuss these issues.

I congratulate my hon. Friend the Member for Sittingbourne and Sheppey (Gordon Henderson) on securing this important debate, which, according to my script, relates to a number of interesting and pertinent issues. I will go further in saying that there is a bewildering range of interesting and pertinent issues that cover everything from the price of beer in messes to the nuclear deterrent. The underlying philosophy behind defence procurement is underneath all that. I may not be able to do justice to all the remarks that have been made during this debate, but I will do my best.

Reflecting on what my hon. Friend the Member for Gosport (Caroline Dinenage) said in her contribution, I pay tribute to all those who serve in our armed forces. Their courage and bravery enable the Government to fulfil their first and primary duty of providing security for our country. That duty remains ever more challenging given the complex nature of the threats that we face in the 21st century. Although, procurement—or acquisition as it is called these days—is an important part of that, it is simply a means to the end of helping those brave men and women serve their country, as they are doing right now as we speak, in two theatres.

The hon. Member for Blaenau Gwent (Nick Smith) mentioned the strategic defence and security review, which sets out a coherent path to delivering adaptable and flexible armed forces. It is crucial that we put in place the right technologies, skills and industrial capability to deliver that outcome. I do not recognise his description of the lack of scrutiny of MOD contracts. If anything, we suffer from an excess of scrutiny. The Public Accounts Committee and the National Audit Office do an excellent job. We will soon have the next NAO report on major projects to consider, too.

[Nick Smith]

I made that remark because an NAO report mentioned the weakness of the Government’s feedback on that particular topic.

[Peter Luff]

It does not feel like that from this side of the fence. I look forward to the conclusions of the PAC on the forthcoming NAO report.

I accept that we need to be clear about how we plan to acquire and support our equipment for the armed forces, which is a point that my hon. Friend the Member for Gosport mentioned. The support costs are typically about two thirds of the total acquisition cost, with one third being the initial acquisition. We also need to be clear about how we invest in technology to sustain the skills of the defence industry, which is something that the hon. Member for Islington North (Jeremy Corbyn) raised. That was about the only thing that I agreed with in his speech.

The scale of what we spend is huge; the total spend for the whole range of procurements in the financial year 2009-10 was £20.6 billion. It is right that hon. Members should be concerned about how we spend that money. It is also right that we should say that much of that is spent very well, very wisely and very effectively by skilled and talented people. It is inevitable that we concentrate on the problems, because that is the nature of Parliament and holding the Government to account is what we do. None the less, I pay tribute to all those who do their jobs remarkably well, whether they are in the armed services, the civil service, the MOD Abbey Wood or the organisation Defence Equipment and Support. They all do a great job serving our nation.

It is true that we face some difficult decisions. I will not score any partisan points by talking about our economic inheritance, and especially the inheritance for Defence Ministers, from the previous Government. In a characteristically thoughtful and articulate speech, my hon. Friend the Member for New Forest East (Dr Lewis) spoke about the need for fixed points in programmes for decisions. As he said, such a measure is important given the long period over which such decisions are felt. As I am frequently reminded, the last captain of the aircraft carriers that we are currently building is probably not even born yet, which puts into context the length of time we have.

I think that I can give the hon. Member for Plymouth, Moor View the assurance that she sought about the 10-year equipment programme. As I understand it, we now have a groundbreaking deal with the Treasury, which enables us to plan with much greater certainty the future of defence equipment and support in general.

I also want to pick up something that my hon. Friend the Member for New Forest East said about the previous Secretary of State, my right hon. Friend the Member for North Somerset (Dr Fox). The MOD is now set on a path of real recovery, real hope and real confidence thanks to his excellent work. It now falls to the ministerial team to continue that work as a tribute to his sterling leadership as Secretary of State.

I will concentrate my remarks on the speech of my hon. Friend the Member for Sittingbourne and Sheppey, because I owe him that courtesy. If I cannot deal with everyone else’s comments, I apologise and will write to them. I will not comment on individual cases, but I reassure my hon. Friend that the support that we give to SMEs has a high priority in my portfolio. I pay tribute to Vector Aerospace, which is one of the few companies that have been named in this debate. It is an outstanding example of a medium-sized company.

We are making a few changes that should help the SMEs considerably. We are reducing the threshold at which the MOD advertises contract opportunities and have created the new defence suppliers forum, which meets regularly under my chairmanship, to discuss how SMEs can make a better contribution to defence and how we can help them achieve that. We are learning a lot from that group’s work. We are launching a new Government-wide contracts finder that offers a free-to-access one-stop shop of public sector opportunities over £10,000. There will be more in the White Paper, the publication of which I too look forward to very much indeed. I cannot say too much about its contents but it will include a definition of value for money—something that many Members have mentioned—and talk more about outsourcing. Although there is already extensive outsourcing in defence—more extensive that many people realise—I agree that there is scope for more. The White Paper will also address the framework agreement on technical services and through-life costing, which is essential.

I am happy to reassure the hon. Member for Plymouth, Moor View that our relationship with BIS is excellent and that there is nothing between us. I know that she would expect me to say that, but it happens to be true as well.

The White Paper will also define sovereignty requirements. I do not foresee any change in the definition that was published in the Green Paper last year.

I will now specifically address the remarks of my hon. Friend the Member for Sittingbourne and Sheppey. I note that he worked for GEC Marconi, where he apparently ran rings around our officials. That issue is why Bernard Gray is working at present on the new matériel strategy. One of the principal purposes of that strategy is to ensure that we have the skills in place in Defence Equipment and Support to make sure that these procurement decisions are taken well and that the contracts are well negotiated. My hon. Friend has made a powerful point, and that work is ongoing. I hope that submissions to Ministers will come before the end of the year. And watch this space, because I agree that it is important that we do procurement and acquisition well, which has not always been the case. In the spirit of consensus, I think that the Opposition’s document on acquisition is not at all bad. In my view, all it lacked was an apology, but that is another matter for another day.

Turning to Canada, I am pleased that my hon. Friend and other hon. Members obviously had such an interesting visit to the British Army training unit Suffield—BATUS—over the summer with the armed forces parliamentary scheme. That is a great scheme, which works very well under Sir Neil Thorne’s excellent leadership. I have benefited from it twice with the Royal Navy— I am a “postgraduate” according to the scheme’s definitions. Today has shown how valuable the scheme is in enabling Members to speak with authority about the armed services and to challenge Ministers on things that they find. It is what the scheme is there for, and we need to make even better use of it than we do already.

I slightly disagree with my hon. Friend’s emphasis and what I think was the spirit of his remarks when it comes to Canada. Led by my right hon. and hon. Friends in the Foreign and Commonwealth Office, Her Majesty’s Government are looking to develop even closer ties with Canada, as well as with other Commonwealth countries. A joint declaration of closer working between the UK and Canada has been drawn up by the FCO for signature by the two Prime Ministers, with a desire to seek

“greater interoperability between our defence forces and deepen co-operation on procurement and capabilities, to be enabled in part by a Memorandum of Understanding - MoU - on Defence Materiel Cooperation”,

and so on and so on and so on. The document was signed on 22 September by the two Prime Ministers, and it symbolises the very close relationship that we enjoy with the Canadians.

I will now talk about BATUS in more detail. As my hon. Friend the Member for Sittingbourne and Sheppey reminded us, it was set up in Canada in 1972. The location was chosen for its ability to provide the large-scale manoeuvre exercises that at the time—the middle of the cold war—were seen as being critical to meeting the UK’s operational and tactical requirements. BATUS provides 2,690 sq km of rolling, semi-arid prairie, delivering training on a scale that is unparalleled by anything available in the UK and enabling more than 11,000 troops to be trained each year. I want to place on record our real gratitude to the Canadians, who have been our utterly reliable allies in providing this world-class training location since 1972, which allows us to train in a way that is just not possible in the UK. The training at BATUS has been essential for the preparation of our troops for operational deployments, and we owe the Canadians a great debt for the part that they have played in enabling the training to happen.

Oral Answers to Questions

Nick Smith Excerpts

Monday 10th October 2011 Commons Chamber

[Dr Fox]

I think it is unreasonable for my hon. Friend to expect an apology from the Opposition as they do not yet understand what they did. They are still deficit deniers who not only fail to recognise what they did to the MOD budget, but do not yet understand what they did to the broader British economy.

[Nick Smith (Blaenau Gwent) (Lab)]

Levene recommended strengthening financial and performance management to ensure affordability and accountability. However, the National Audit Office rated the MOD’s response to the major projects report as weak, and criticised the Department for not submitting the multi-million pound costs for contract cancellations. When will Parliament receive the necessary details to be able to scrutinise these big ticket decisions?

[Dr Fox]

The Department will be fully audited on its equipment programme, and let me tell the hon. Gentleman one of the big differences we have made. The Defence Board is the primary decision-making body of the MOD, and we inherited a board that had 24 members and was not chaired by the Secretary of State, which in my view was an utterly absurd position to be in. We now have a Defence Board of nine, chaired by the Secretary of State and with far more vertical management structures, accountability and responsibility.

Oral Answers to Questions

Nick Smith Excerpts

Monday 4th July 2011 Commons Chamber

[Nick Harvey]

I can confirm that we have received no such requests.

[Nick Smith (Blaenau Gwent) (Lab)]

Does the Minister recognise that new threats to the UK following the Arab spring make the national security strategy out of date? Will he update the strategy in the light of those recent events?

[Nick Harvey]

The national security strategy anticipated a variety of threats from different parts of the globe throughout its 10-year time frame. It proposed that we should have flexible and adaptable forces that are capable of responding to different scenarios in different ways at different times. The momentum of activity following the uprisings in north Africa and the middle east has called us into action, but that action has so far shown to be perfectly manageable within the arrangement that the strategic defence and security review laid down. No reason has been provided at this stage for anybody to contemplate a different arrangement.

Defence Reform

Nick Smith Excerpts

Monday 27th June 2011 Commons Chamber

[Mr Speaker]

The Secretary of State should not be quite so hard on himself.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Secretary of State tell us more about how these reforms will deter future cyber-attacks?

[Dr Fox]

I was keen to discuss at length with Lord Levene how to create a structure within defence that could offer careers to those who might be attracted to the intellectual, if you like, side of defence—electronic warfare and so on—but who might not want to become commandos. We need to create a pillar inside defence that can grow as the nature of conflict changes. We want to create that expertise and attract those young minds who have a different view of what the electronic and cyberspaces look like and who are interested in a defence career. It is essential that we change how defence does business in order to reflect the genuine threats out there. As we develop that expertise, so we will have a greater ability to deter the sorts of attacks to which the hon. Gentleman referred.

Libya

Nick Smith Excerpts

Tuesday 24th May 2011 Commons Chamber

[Nick Harvey]

I say again that this is simply an option that is being considered, and the detail of how exactly these things would be organised has not yet been worked up. It is not the intention that the helicopters would land. The intention is that they would be deployed, if at all, from naval assets, most probably from HMS Ocean, but that is the sort of detail that is being worked through at present as the option is worked up and considered. It certainly should not be inferred that there is any intention to use helicopters in order to land ground troops and take off in a different direction.

[Nick Smith (Blaenau Gwent) (Lab)]

I endorse the Minister’s emphasis on saving civilian lives. Can he update us on whether the Libyan electricity and water infrastructure has been damaged by bombing in recent weeks?

Nuclear Deterrent

Nick Smith Excerpts

Wednesday 18th May 2011 Commons Chamber

[Dr Fox]

I entirely agree with my hon. Friend. I wonder how many in the House predicted the Arab spring, or what was going to happen in Libya. We have little ability to predict what is happening in the strategic security environment and as long as the threat remains there and, in particular, as long as nuclear proliferation continues in states such as North Korea and Iran, the Government simply will not gamble with the future security of generations of British people.

[Nick Smith (Blaenau Gwent) (Lab)]

May I press the Secretary of State on his decision to introduce a study to assist the Liberal Democrats in making the case for alternatives? What will really be the extra cost of this new study?

[Dr Fox]

I repeat the answer I have already given to this question. I have already said that the costs are contained within departmental budgets. The study will be led by Cabinet Office officials, there is more than sufficient expertise on this subject, believe me, inside the Ministry of Defence, and ministerial oversight will be provided by my hon. Friend the Minister for the Armed Forces.

Oral Answers to Questions

Nick Smith Excerpts

Monday 16th May 2011 Commons Chamber

[Nick Harvey]

I am happy to correct what I said in that TV interview. I had thought that from the context it was clear that I was talking about flying in combat operations. The 2003 date was the last time that we had flown Harriers off carriers in combat operations. Of course, the right hon. Gentleman is right to say that Harriers continued literally to fly off carriers after that. Indeed, the nation watched the valedictory flights off Ark Royal back in December, as he said. I apologise for any confusion that my remarks may have caused.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Minister give an assessment of the financial cost of the conflict in Libya so far? Does he recognise reports which state that if the conflict lasts six months, the cost could reach £1 billion?

[Peter Luff]

I do not think it will get to that. This is necessarily a complex subject, and I cannot give a straightforward answer. There are costs that would be incurred anyhow by the armed forces operating in Libya. There are additional costs that are specific to the campaign. We would also have to establish the precise value of the assets deployed or used in the campaign. All I can say to the hon. Gentleman is that the House will be informed in the usual way of the precise costs in the winter supplementary estimates.

Armed Forces Covenant

Nick Smith Excerpts

Monday 16th May 2011 Commons Chamber

[Dr Fox]

I agree with my hon. Friend, who, of course, has considerable experience in this area. First, I would echo the point made by the hon. Member for Midlothian (Mr Hamilton) about mental health care being one aspect of long-term care. The Government have given a high priority to that, because the invisible wounds of war are just as damaging as those that we can see. I do not put the blame on any one particular Government, but as a society we have been too slow to recognise that. We are increasingly recognising it now, however. Secondly, medical care will improve in certain areas. Prosthetics, for instance, have come a long way. Individuals are having to be reassessed in the NHS, given the new capabilities that prosthetics may bring and the new lease of life that they may give to individuals, including those with long-term injuries relating to service in the armed forces.

[Nick Smith (Blaenau Gwent) (Lab)]

Armed forces pensioners are disappointed that the Government have introduced CPI instead of RPI in relation to pension increases. Will the Secretary of State seek to include long-term housing costs as part of the pensioner deal for war widows and badly injured service personnel?

[Dr Fox]

As I have already said, changes in respect of RPI and CPI apply across the public sector. Many of us would like not to have to make such changes at all—we have no desire to do so—but we were forced to make them because of the financial situation that we inherited. I understand the sincerity of the hon. Gentleman’s point, but it does not matter how much Opposition Members mean it, because there is no money to do the things that they want. Do they propose that we raise more taxes or borrow more money to fill the hole? If the Labour party is serious, it will fulfil what it was asked to do by its own leadership, which is not to make any spending pledges whatsoever, unless agreed by the party’s leadership. So I ask, is the reversal of the CPI/RPI change now Labour policy?

Oral Answers to Questions

Nick Smith Excerpts

Monday 14th March 2011 Commons Chamber

[Dr Fox]

We work very closely with DFID on all those issues. As my hon. Friend correctly implies, if we are to have a sustainable legacy in Afghanistan, it cannot simply involve the strength of the armed forces or the police; there must also be strong governance and a strong infrastructure.

[Nick Smith (Blaenau Gwent) (Lab)]

T9. Given the consideration in recent weeks of no-fly zones over Libya, do the Government still intend to make 170 trainee pilots redundant?

[Dr Fox]

The number of trainee pilots is designed to mirror the number of airframes that we intend to be able to fly in future. That was set out in the SDSR. As I remind hon. Members on every occasion, one of the reasons that we are having to make reductions in the budget is the £158 billion deficit left behind by the Labour Government, on which the interest payments alone are greater than next year’s defence, Foreign Office and aid budgets put together.

Armed Forces (Redundancies)

Nick Smith Excerpts

Wednesday 2nd March 2011 Commons Chamber

[Dr Fox]

It is always worth pointing out to those who wish to have a career in the armed forces that there is a bright future for them. Under Future Force 2020, not only will Britain have the fourth biggest defence budget in the world, but the RAF will see the number of Typhoons grow and the introduction of the new joint strike fighter, and we will also upgrade our lift capability through the introduction of the A400M. I would certainly encourage anyone who wants to continue with their careers to do so, but I also warn Opposition Members that playing politics with redundancies or other issues that have a clear impact on morale is extremely dangerous.

[Nick Smith (Blaenau Gwent) (Lab)]

Yesterday the Secretary of State tabled a statement outlining his plans for members of the armed forces and their redundancies. He told the House that nobody preparing to deploy in Afghanistan, serving in Afghanistan or recently returned from Afghanistan would be made redundant. Within minutes the media were reporting that this was not the case. He seems to be dodging the issue today, so will he now repeat that exact pledge on the Floor of the House?

[Dr Fox]

I will say it for the third time in the House, although I should say to the hon. Gentleman that I can only explain it to him; I cannot understand it for him. At the point where any compulsory redundancies are made—that will be some time later in the year, as I have made clear in the timetable already set out by the armed forces—no one serving in Afghanistan in receipt of the operational allowance, no one preparing to go there, nobody on post-deployment leave and nobody who is recovering will be made compulsorily redundant.