Oral Answers to Questions

Philip Dunne Excerpts

Monday 20th October 2014 Commons Chamber

[Neil Parish (Tiverton and Honiton) (Con)]

15. What assessment he has made of the effect of the maritime support delivery framework on employment at UK naval bases.

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

The maritime support delivery framework contracts are an excellent example of the contribution that the Ministry of Defence makes to sustaining the long-term economic health of the nation's three main naval bases. The contracts total £3.2 billion of spending by the Royal Navy over five years with BAE Systems and Babcock, and will sustain about 7,500 jobs, up to 4,000 of them at Devonport and more than 2,000 at Portsmouth, and about 1,500 at Clyde.

[David Morris]

Can my hon. Friend confirm that there is actual funding in the project, that it is sustainable, and that, unlike the Labour party, we will not leave a black hole in military defence?

[Mr Dunne]

Yes, I can certainly assure my hon. Friend that these contracts are an integral part of the Department’s innovative 10-year forward equipment plan. Not only are they in the plan, but they represent far better value for money for the taxpayer than the previous support arrangements by securing more than £350 million of savings. As my right hon. Friend the Defence Secretary said last month, the last Government left a terrible legacy of waste and mismanagement in the form of a £38 billion black hole in defence, which this Government have eliminated through our long-term plan for defence and improving the efficacy of defence procurement.

[Neil Parish]

Will the Minister join me in praising the work done by civilian contractors throughout the country, and, in particular, that done by Babcock at Devonport naval base in helping to repair and manage the Royal Navy’s warships and submarines, which play a key part in protecting our vital national interests?

[Mr Dunne]

My hon. Friend is right to welcome the stability that these contracts provide for the communities that support the Royal Navy’s three main operating bases. That includes an investment of nearly £2 billion in support activity at the largest base—the one at Plymouth Devonport, to which he referred and which is near his constituency—until 2020.

[Stephen Pound (Ealing North) (Lab)]

On the subject of the Royal Navy—still, without doubt, the finest navy in the world—may I ask the Minister how he and his colleagues will be commemorating, and even celebrating, Trafalgar day?

[Mr Dunne]

As the hon. Gentleman knows, Trafalgar day is the source of a great deal of commemoration and celebration throughout the Royal Navy at all its bases, and Ministers are invited to events all over the country in support of those activities.

[Mr Iain McKenzie (Inverclyde) (Lab)]

I am sure that the Minister would like small and medium-sized enterprises to benefit from these contracts as much as large companies. What is he doing to make it easier for SMEs to get into the supply chain?

[Mr Dunne]

As I have told the House during nearly every session of defence questions, securing greater penetration of the MOD’s contracting base by SMEs is an important priority for the Ministry and for me. On Tuesday next week I shall chair the latest SME forum to discuss that very subject.

[Steve Rotheram (Liverpool, Walton) (Lab)]

2. What progress his Department has made on the next strategic defence and security review; and if he will make a statement.

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[Mark Menzies (Fylde) (Con)]

8. What steps the Government are taking to support the export of Typhoon and Hawk aircraft.

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

This Government are proud to prioritise economic growth, and this Ministry is proud to support the role of responsible defence exports in contributing to the nation’s economic recovery. The Ministry of Defence is supporting export campaigns for Typhoon and Hawk aircraft, and my right hon. Friend the Secretary of State, other ministerial colleagues and I are actively engaged with senior military officers and the UK Trade & Investment Defence & Security Organisation in seeking to broaden and deepen the family of user nations among our allies and partners.

[Mark Menzies]

The Minister might be aware that there have recently been announced new job losses in management positions at BAE Systems in Warton in my constituency. Given that the Typhoon is playing such an important role in our defence exports, what progress are the Government making with Typhoons for the Malaysian air force, in the light of Malaysia’s recent election to the UN Security Council?

[Mr Dunne]

Clearly, as my hon. Friend knows, given his proximity to the Warton facility, export growth is important for sustaining jobs in Lancashire. The Typhoon is competing vigorously in a number of export campaigns, including the Royal Malaysian air force’s multi-role combat aircraft requirement. The Government are actively supporting the BAE Systems bid to win the competition and the company has discussed various options to meet the needs of the Malaysian Government. I visited Malaysia earlier this year to support those efforts, and today six RAF Typhoon aircraft from 3(F) Squadron are flying in Malaysia as part of Exercise Bersama Lima.

[Mr Robin Walker (Worcester) (Con)]

9. What assessment he has made of the contribution of armed forces community covenants to the reserves and cadet forces.

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[Richard Graham (Gloucester) (Con)]

10. What the next steps are for the commissioning of Type 26 frigates.

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

The Type 26 global combat ship is the next major investment for the Royal Navy, following the new destroyers, the new aircraft carriers and, more recently, the offshore patrol vessels. The programme is still in its assessment phase. We want to learn the lessons from previous multi-billion pound contracts to ensure proper value for the Navy and the taxpayer, so we are currently working with BAE Systems to gain greater granularity for the programme, for example in relation to detailed ship design, the supply chain and the contracting structure.

[Richard Graham]

I welcome the Minister’s confirmation of an imminent decision on the Type 26 frigates. In an uncertain world, I believe that they have an important contribution to make on the high seas. Does he agree that Type 26 frigates named after cities would reinforce the Royal Navy’s community links? Should those on the ship naming committee recognise that, does he believe that they will weigh carefully the 360-year history with the city of Gloucester through the 11 previous Fighting Gs?

[Mr Dunne]

As for every new class of Royal Navy warship, the naming of the Type 26 frigates will follow a theme. My hon. Friend will not be surprised to know that he is not alone in seeking to advance the cause of UK cities. He is also not the first to make such strong representations in favour of Gloucester, the city he so forcefully represents. I will ask the Ships’ Names and Badges Committee to note his interest in attempting to revive the name HMS Gloucester, given its impressive heritage.

[Sir Peter Luff (Mid Worcestershire) (Con)]

Names matter, but so do numbers. Can the Minister assure us that at least 13 of these fine ships will be built for the Royal Navy?

[Mr Dunne]

I thank my hon. Friend for that question. He is well aware that the strategic defence and security review 2010 is looking at the number of ships for the Royal Navy, to include up to 19 destroyers and frigates.

[Sir Nick Harvey (North Devon) (LD)]

The Minister said that we will learn lessons from previous programmes. Can he assure me that the mistakes of the Type 45, which set out wishing to be an international project with a big export market, but ended up as a magnificent but very expensive ship, will not be repeated? Will the Type 26 be kept affordable in the global market?

[Mr Dunne]

This is part of the rigorous work that we are doing at the moment to ensure that the Type 26 design is modular to allow for regular upgrading as systems improvements take place over the decades to come. As my hon. Friend knows from his work in the Ministry of Defence, we have had a number of engagements with other international navies to see whether they might be interested. While it is likely that the interest will be more in systems than in platforms, we are taking that work forward continuously.

[Mr Dominic Raab (Esher and Walton) (Con)]

14. What steps he is taking to reduce the number of legal claims against his Department.

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[Caroline Nokes (Romsey and Southampton North) (Con)]

18. What progress his Department has made in upgrading helicopter fleets across the armed forces.

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

This has so far been a stand-out year in rolling out more than £11 billion of our investment programme in helicopter capability. During this year alone we have already achieved, within time and budget, initial operating capability for the Merlin Mk 2, which we brought in four months ahead of schedule, and the Army Wildcat. We also expect that initial operating milestone for the Puma Mk 2 and the Navy Wildcat next year. We have also achieved the in-service date for the Chinook Mk 6 and taken delivery of six of the 14 new helicopters.

[Caroline Nokes]

I thank the Minister for that response. He will be aware of the importance of Middle Wallop, the Army Air Corps and the school of Army aviation. Given that the training for the Army Wildcat is conducted at Yeovilton, what reassurance can the Minister give on the future of Middle Wallop in Army 2020?

[Mr Dunne]

Middle Wallop, as my hon. Friend has just told the House, is the home of the Army Air Corps school of Army aviation. It will continue to play an important part in preparing our helicopter crews of the future, including the Apache conversion to type training for Army pilots and ground crew.

[Mr John Whittingdale (Maldon) (Con)]

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

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[Alison Seabeck (Plymouth, Moor View) (Lab)]

The reported bonus package allowable under new Treasury rules for the new chief executive officer of Defence Equipment and Support would certainly embarrass a banker. In the interests of openness and accuracy, will the Minister confirm exactly how many freedoms and flexibilities there will be? Importantly, have the proposed managed service providers been told about them, and if so, please will he make them available to Members of the House and the shadow defence team?

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

The hon. Lady is referring to the recent advertisement for the new chief executive of DE&S. I think that she and the whole House will agree that for one of the largest procurement programmes in Government—£14.5 billion a year out of a £164 billion programme—we need to get the best person for the job, who needs to be adequately rewarded. I will leave it at that, because the recruitment process is in progress. As far as the MSPs are concerned, the freedom allows us to recruit 25 people within DE&S at in excess of the Prime Minister’s salary.

[Fiona Bruce (Congleton) (Con)]

T2. To return to cadet forces, the excellent Sandbach school in my constituency has run a popular combined cadet force since 1948. The head teacher, Sarah Burns, has told me that the leadership and life skills it develops are particularly positive for the most disadvantaged pupils who attend. It is a vital part of community life, but proposed funding changes threaten its future. May I add my voice to those urging the Minister to review these plans?

[Mr Iain McKenzie (Inverclyde) (Lab)]

T7. I welcome the contract awarded for maritime support at HM Naval Base Clyde. Will the Minister give more detail about how many apprenticeships will be created through the contract?

[Mr Dunne]

I can give the hon. Gentleman a little extra detail, but I may not satisfy him completely. The contract values by location are £1.98 billion at Devonport, £600 million at Portsmouth and £632 million at the Clyde, which breaks down to £2.6 billion for Babcock and £600 million for BAE Systems. Of course, both those companies are intimately engaged in the defence apprenticeship programme.

[Andrew Bridgen (North West Leicestershire) (Con)]

T3. In May, I joined North West Leicestershire district council in signing up to the armed forces community covenant. Will the Minister update the House on how many councils have now signed up to the covenant, and what assessment her Department has made of the resulting benefits to members of the armed forces and their families?

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[Mr Dunne]

The hon. Gentleman will be well aware that the DSG bids are being evaluated. I will not be in a position to enlighten the House further until the evaluation has been completed.

[Dr Julian Huppert (Cambridge) (LD)]

T5. I listened with interest to the Minister’s responses to my hon. Friend the Member for Cheltenham (Martin Horwood) about Ebola. I welcome his commitment to providing further resources, if they are needed. Given how quickly the situation can change with Ebola, how frequently will he review the need for more personnel? Has he considered training more people to deal with Ebola before they go into the field?

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[John Woodcock (Barrow and Furness) (Lab/Co-op)]

What will the Government do to help unblock the long-stalled deal with the Indian Government for the innovative Barrow-designed and built M777, and when will the Army start using that superb piece of kit?

[Mr Dunne]

The hon. Gentleman is a doughty champion and I pay credit to him for his work in helping BAE Systems to conclude its contract with the Indian Government. My right hon. Friend the Secretary of State is due to visit India between now and Christmas. We are in active discussions in support of the US efforts—the contract is being placed through BAE Systems Inc.—to secure the order.

[Neil Carmichael (Stroud) (Con)]

T10. What steps is the Secretary of State taking to ensure that Iraqi forces can conduct a ground war against ISIL?

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I welcome Thursday’s statement from the Under-Secretary of State for Defence, the hon. Member for Ludlow (Mr Dunne), about the submarine dismantling project. Will the Minister confirm that as far as he is concerned we are still on course for early dismantling, and will he meet me before the end of the year to discuss further the future of Rosyth?

[Mr Dunne]

I am grateful for the hon. Gentleman’s support for the consultation, which will take some time. We are arranging consultation exercises in public in each location proposed on the shortlist—of which his constituency is one—and I would be happy to meet him before Christmas as part of those efforts.

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[Jack Lopresti (Filton and Bradley Stoke) (Con)]

Does my right hon. Friend agree that to maintain our essential Apache helicopter capability a procurement decision for the upgrade must be made soon?

[Mr Dunne]

My hon. Friend is aware that the Ministry is considering a number of options to sustain the attack helicopter capability. We have not yet made a final decision on procurement strategy, but we expect to do so soon. Our existing fleet is due to remain in service until 2025, and in January this year we announced a £500 million package of support to keep the aircraft flying until 2019.

[Huw Irranca-Davies (Ogmore) (Lab)]

When awarding defence procurement contracts, large or small, what levers do Ministers have to ensure that supply chain economic multipliers are maximised, particularly in areas such as south Wales that give so much in other ways to our armed forces?

[Mr Dunne]

As my right hon. Friend the Defence Secretary told the House in answer to an earlier question, the contract to award the Scout armoured vehicle is the largest single contract that has been placed under this Government since 2010, or to the British Army for 30 years. The Ministry’s job is to get the best deal with the prime contractor, and it is down to the prime contractor to secure the best supply chain.

[Michael Ellis (Northampton North) (Con)]

There is an unsatisfactory anomaly whereby war widows can keep their pensions if they remarried before 1973 or after 2005, but not in between. That is an unhappy and unsatisfactory anomaly for war widows, so will the Secretary of State or the Minister look at it?