Defence Industry and Shipbuilding

Debate between Paul Sweeney and Guto Bebb

Wednesday 11th July 2018 Commons Chamber

[Guto Bebb]

I remind the hon. Gentleman of the comment by my hon. Friend the Member for Torbay: we won the contest to build OPVs for the Irish navy. Again, that seems to be ignored. I find it very odd that Members who claim to speak up for shipyard workers throughout the United Kingdom seem to dismiss our success in ensuring that we had that contract delivered for the Irish navy.

[Mr Sweeney]

rose—

[Guto Bebb]

I need to make some progress because I must cover some of the points that were touched on.

From a defence perspective, we are trying to put a coherent plan in place to ensure that we have a competitive UK defence industry that can compete with the best. The way to do that is not to be scared of competition but to embrace competition. We have a shipbuilding strategy that says very clearly that we will understand the need for a national sovereign capability when it comes to building our warships. We need to make sure that we can measure our shipbuilding industry against the best in the world. The way to do that is not to go down the route of a protectionist “Britain first” policy but to invest in the capability that we have in our shipyards. That is why we invested £6.3 billion in Rosyth when we saw the fantastic build quality in the completion of the Queen Elizabeth class. That is why we are investing £3.7 billion in the first three Type 26’s in Glasgow. That is why we are showing a degree of confidence in our shipbuilding sector that Opposition Members need to share.

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[Mr Sweeney]

rose—

[Guto Bebb]

No, I will not give way any further at this point.

The key thing that Opposition Members need to be aware of is that in addition to developing a shipbuilding strategy, we are ensuring that we are looking at the future of our combat air. That shows that this Government are taking a coherent approach across the board. We recognise fully in the Ministry of Defence the importance of defence in terms of the contribution that it can make to the prosperity of the United Kingdom. I welcome the contribution made by my hon. Friend the Member for Ludlow (Mr Dunne) in his report on the prosperity agenda, which has been welcomed by Members in all parts of the House. This Government and this Ministry of Defence intend to make sure that the lessons and the ideas put forward in that report get full consideration.

Many Opposition Members have rightly argued that in our procurement processes we should be thinking very carefully as to the means by which we can ensure a contribution to the economic wellbeing not only of the United Kingdom but of localities within the United Kingdom.

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[Guto Bebb]

The hon. Gentleman makes a very important point, which has been a significant part of the discussion and is certainly being looked at closely in terms of the modernising defence programme. I welcome that sensible contribution.

[Mr Sweeney]

Will the Minister give way?

[Guto Bebb]

I am sorry, but I have to make some progress.

What we are highlighting is that across the Chamber we want to see a successful British shipbuilding sector, and we categorically want to see the conclusion of Sir John Parker’s report implemented. He said clearly in recommendation 21 that he wanted to see the opportunity for British shipyards to compete for the fleet solid support ships contract. That is categorically the position of the Ministry of Defence. We want to see a competitive bid from British shipyards. It can be a competitive single bid or a block build option, but we want to see that bid forthcoming. We want that bid to win because that bid is the best, the most cost-effective, the one that offers value to the taxpayer and the one that shows that the confidence we have in our shipbuilding sector is justified and will be maintained.

Galileo Programme

Debate between Paul Sweeney and Guto Bebb

Thursday 14th June 2018 Commons Chamber

[Guto Bebb]

First, I pay tribute to the workers at GCHQ, many of whom are my hon. Friend’s constituents. I visited GCHQ last Thursday, and he is right to highlight the contribution that people there make to security not just in the United Kingdom, but across Europe and on a global basis. I entirely agree with my hon. Friend—I think the Prime Minister should raise this issue and highlight once more that we do not consider a threat to our security and that of Europe part and parcel of our negotiations to withdraw from the European Union.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

The UK’s space industry is world class and world leading, and a good example of that is Clyde Space in Glasgow, which is a world-leading manufacturer of cube satellites. The CEO of Airbus, Tom Enders, has called on Britain and the European Commission urgently to find a solution to this issue for the safety of the entire region. What reassurance can the Minister give to industry stakeholders that this issue will be resolved so that they do not move elsewhere, especially bearing in mind the huge time constraints on the procurement process for Galileo?

[Guto Bebb]

The hon. Gentleman will be pleased to know that the Government argued strongly that UK companies should not be excluded from the current round of contracts offered through the Galileo project. We have met industry partners and representatives on an ongoing basis. I have done that as well in my role as the Minister responsible for defence procurement. I assure the hon. Gentleman that we will continue to engage fully with this UK industry because we know how important the industry is for our future prosperity. We want to give confidence to that sector of our economy that there is a strong future for it in the United Kingdom. We have the technology and skills, and we will need to reassure the industry that the Government are fully committed to ensuring that we have the capability we need from the Galileo system in a UK context, if that is what has to happen. I stress, however, that our preference would be to have a reasonable response to our very fair request to the European Commission.

Shipbuilding Strategy

Debate between Paul Sweeney and Guto Bebb

Tuesday 23rd January 2018 Westminster Hall

[Guto Bebb]

The value of the strategy is in ensuring that we have a British-owned design. The whole strategy is building on the manner in which the aircraft carriers were built successfully—the block-building capacity. That is the strategy we have undertaken, and it will pay dividends.

The third element is exports.

[Mr Sweeney]

Will the Minister give way?

[Guto Bebb]

I cannot, I am afraid; I only have three minutes left. We identified that the export market is crucial. Having the export market allows us to look at cost controls and the ability to create savings within the programme. It also allows the United Kingdom to show once again that we have the ability to design and deliver ships internationally. For the MOD, the whole effort in identifying the support for the shipbuilding strategy is about building capacity and ensuring we are in a position to target other markets. I hope that Members will join the Ministry of Defence and the Government in ensuring that the advantages of the Type 26 are made known to potential customers in all parts of the world.

The other issue I want to touch on is a key success for the strategy, which is the partnership approach. To return to Sir John Parker’s original point, the strategy hinges on the strength of the partnership between the Government and the sector. It is about our collective ability not simply to improve productivity and develop the product that the international market wants to buy, but to continue to develop the skills and the talent to keep the industry firing on all cylinders. That is exactly what Members have been asking for, it is absolutely what I want to contribute in my role in the Ministry of Defence, and it is the purpose of the shipbuilding strategy. Where we need to refine or take on board the advice and guidance given to us by colleagues, we will do that, because the aim of the strategy is to ensure that we leave the shipbuilding sector in a better place than we found it. I am confident we can do that, but we need support from all parts of the House.

I hope we are building on firm foundations. We are looking to move to the future with a strategy that is not starting from scratch, but builds on our strengths and reputation, while identifying that we have to rectify the fact that we have not sold a warship in 40 years. We have to be confident that what we have to offer is cutting edge. It is about working with the industry, which has a reputation to live up to and has contributed so much in so many parts of the United Kingdom. We need to ensure that the industry is capable of producing ships of value to the UK and the Navy while competing internationally and making a cutting-edge contribution at the world level.

Members have touched on the economic contribution that the strategy can make. I am very aware of that. Ipsos MORI has conducted research that highlights what we need to do. It is available on the Department for Business, Energy and Industrial Strategy website. I am aware that I need to allow the hon. Member for Plymouth, Sutton and Devonport time to sum up the debate, so I will finish. I genuinely believe that we are moving forward constructively. As a Minister, I want to work with Members to ensure that the strategy delivers for the United Kingdom and our Navy.

Oral Answers to Questions

Debate between Paul Sweeney and Guto Bebb

Monday 15th January 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Defence (Guto Bebb)]

The national shipbuilding strategy made it clear that, as non-warships, the fleet solid support ships will be subject to international competition. There are clear cost and value-for-money advantages from maximising competition, which remains the cornerstone of defence procurement. UK companies are welcome to participate in the competition.

[Mr Sweeney]

Daewoo, of South Korea, which is currently building the Tide class tankers for the Royal Fleet Auxiliary, has benefited from unfair state aid assistance from the South Korean Government. Will the Minister give assurances that for the next batch of fleet solid support ships, any shipyard worldwide that is benefiting from unfair state aid will be excluded from the competition? Even better, will he make a commitment that UK shipbuilders will be able to bid for that on that basis?

[Guto Bebb]

I thank the hon. Gentleman for his question. The point I made in my initial answer is very clear: we believe that competition is a good thing. That means fair competition, so we will be more than happy to look into the details of his comments. However, we do believe that competition on this issue is the best way forward.