Oral Answers to Questions

Philip Dunne Excerpts

Monday 14th January 2013 Commons Chamber

[Gavin Williamson (South Staffordshire) (Con)]

4. What support he has given to the promotion of British defence exports.

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

Under this Government, there has been a sea change in both attitude and activity in support of responsible defence exports. There has been a concerted effort by senior ministerial colleagues, from the Prime Minister downwards, to support British defence exports by promoting proven British equipment. The announcement just before Christmas of the sale of 12 Typhoon and 8 Hawk aircraft to Oman is a good example.

[Gavin Williamson]

Often when we talk about defence exports, we mean big deals by large companies, but as my hon. Friend will know from when he visited Oldbury UK in my constituency, many small and medium-sized businesses are involved in the defence sector. What additional support and encouragement is he giving to small and medium-sized enterprises to consider exporting more?

[Mr Dunne]

I was pleased that my hon. Friend was able to accompany me on my visit to the firm in his constituency to which he referred. I have been appointed the SME champion in the Ministry of Defence. Where possible I am seeking to raise the emphasis on procurement —both direct and through our prime contractors—towards SMEs, given the source of innovation that they so often provide. The next SME forum, which I shall be chairing shortly, will focus its activities on how we can improve export prospects for SMEs.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Notwithstanding the Minister’s answer that he is an SME champion in the MOD, does he not see it as incompatible with his Government’s default position to buy off the shelf rather than seek greater exports from British industry? Will he commit to giving extra effort and support to UK sovereign companies?

[Mr Dunne]

As the hon. Gentleman will appreciate, some larger procurements within the MOD cannot, by definition, be directed towards SMEs—the contract size is such that if it were awarded, the company would cease to be an SME. That said, the White Paper published in February last year made a specific pledge towards open procurement and to encourage the purchase of matériel through competitive process. That is the best way to maintain a fit industrial base in this country that is capable of exporting and winning orders through competition. Alongside that was a commitment to increase the proportion of goods purchased from SMEs.

[George Eustice (Camborne and Redruth) (Con)]

5. What recent progress he has made on improving the interoperability of UK and French expeditionary forces.

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[Glyn Davies (Montgomeryshire) (Con)]

14. What estimate he has made of the number of people employed in Scotland as part of the defence industrial base.

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

There are over 15,000 military and civilian personnel employed in Scotland, including at the largest single site employer in Scotland, Her Majesty’s Naval Base Clyde. There are hundreds of contracts with defence companies operating in Scotland, but the Ministry of Defence no longer compiles employment statistics by region within the supply chain, as such information does not directly support either policy making or operations.

[Glyn Davies]

Does the Minister share my opinion that, from the perspective of the strength of our defence industrial base, from the perspective of job creation and retention and from the perspective of the effective defence of our nation, it is crucial that Scotland remains an integral part of the United Kingdom?

[Mr Dunne]

I entirely endorse my hon. Friend and neighbour’s view that maintaining Scotland within the United Kingdom will be the best way to maintain defence jobs in Scotland, to maintain a powerful industrial base in engineering and high-technology jobs and to provide Scotland with the best defence capability. The Scottish Government have yet to provide any answers on how they will provide such capability for defence and security in the unlikely event of an independent Scotland.

[Angus Robertson (Moray) (SNP)]

Last week, the UK Government published a paper about Faslane, which was widely reported together with incorrect job projections. Will the Minister dissociate the UK Government and the Better Together campaign from double counting and fabrication on such a serious issue?

[Mr Dunne]

The hon. Gentleman has clearly been reading information that is simply not emerging from the Ministry of Defence. The base at Faslane is the largest employment site in Scotland, with some 6,700 military and civilian jobs projected to increase by around 8,200 by 2022 as the Royal Navy moves all its submarines there. Those are the numbers.[Official Report, 16 January 2013, Vol. 556, c. 6MC.]

[Mr Edward Leigh (Gainsborough) (Con)]

18. Every new procurement Minister promises the House to get a grip on MOD procurement and the costs arising from our defence industrial base. In the light of the latest National Audit Office report that the cost of the MOD’s major projects has risen by a staggering £6.6 billion and is 39 years delayed, what action is the Minister taking?

[Mr Speaker]

With reference to Scotland, I think.

[Mr Dunne]

My hon. Friend asks what is being done to improve procurement in the MOD. I assure him that it is the top priority for the current year, at least for this procurement Minister. As I said earlier, we do not differentiate between Scotland and the rest of the United Kingdom when it comes to procurement.

In my view, the most interesting fact to emerge from the report from the National Audit Office was the improving trend in procurement. A reduction was forecast in the delivery costs of 13 of the 16 projects to which it referred, and 70% of the projected overspend relating to the remaining three related to increased fuel costs up to 2035 over which the MOD had no control whatsoever.

[Mr William Bain (Glasgow North East) (Lab)]

Has the Minister had an opportunity to consider last week’s report from the Scottish Affairs Committee, which states that a further 1,500 jobs at Her Majesty’s Naval Base Clyde could be lost by 2022 if Scotland became a separate state, and that 8,200 jobs relied directly on Scotland’s remaining part of the United Kingdom?

[Mr Dunne]

I was in Afghanistan with my right hon. Friend—[Interruption.]

[Mr Speaker]

Order. I apologise for interrupting the Minister, but I must remind the hon. Member for Moray (Angus Robertson) that he is the leader of his party and a very senior parliamentarian. It ill behoves him—and it is beneath his dignity—to yap across the community like an undisciplined puppy. He must conduct himself with decorum. That is what we expect of him. We look up to him, and we want to continue to do so.

[Mr Dunne]

I was about to explain to the hon. Member for Glasgow North East (Mr Bain) that unfortunately, as I was in Afghanistan with my right hon. Friend the Minister for the Armed Forces last week, I have not had an opportunity to read the report from the Scottish Affairs Committee, to which I gave evidence before Christmas. However, I look forward to reading it, and will certainly look out for the interesting statistic that the hon. Gentleman has revealed.

[Mel Stride (Central Devon) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[Peter Luff (Mid Worcestershire) (Con)]

For the third time of asking at three successive Defence questions, may I ask the Minister when we can expect the publication of the very important but long-delayed audited defence equipment plan?

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

Shortly.

[Mr Speaker]

The preservation of his good humour on the part of the hon. Member for Mid Worcestershire (Peter Luff) is remarkable in the circumstances.