Oral Answers to Questions

Oliver Colvile Excerpts

Monday 14th November 2011 Commons Chamber

[Mr Hammond]

The right hon. Gentleman is overstating the case. The Government have been very clear that taking the tough decisions that have had to be taken to clear up the fantasy defence procurement programme we were left will leave us with some limitations in capability in the short to medium term. That is to be regretted, but it was necessary to put our defences on a stable and secure basis in the long term.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

3. What the timetable is for the next terms of business agreement.

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

The terms of business agreements are unique to the maritime sector and reflect our collaborative work with industry to transform the surface ship build and support, and submarine support, areas. The Department has separate TOBAs with BAE Systems Surface Ships and Babcock Marine, both of which are performing well and currently delivering savings in excess of their targeted benefits. These are 15-year agreements and we have not decided whether or how they will be replaced.

[Oliver Colvile]

I presume that, under those conditions, the Secretary of State has not had an opportunity to speak to any of the defence industries.

[Peter Luff]

We have not yet had any discussions with industry about how these arrangements will be carried forward in future—in some 14 years’ time. However, the TOBAs are performing very well and delivering savings in excess of their expected benefits. I promise my hon. Friend that we will talk very carefully to all those involved, including Plymouth city council and him, about any future arrangements when the time comes, but that is not quite yet, I fear.