Philip Dunne
Main Page: Philip Dunne (Conservative - Ludlow)Department Debates - View all Philip Dunne's debates with the Ministry of Defence
(8 years, 5 months ago)
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Nick Smith (Blaenau Gwent) (Lab)
1. What steps he is taking to ensure that the UK defence industry benefits from his Department’s procurement decisions.
The Minister for Defence Procurement (Mr Philip Dunne)
The strategic defence and security review will shortly set out for the hon. Gentleman and the House how we will invest more in bigger and stronger defence for Britain. The British defence industry plays a vital role in delivering more planes, ships, armoured vehicles and battle-winning capabilities for our armed forces. We are looking at how we can drive greater innovation into defence procurement, maximise the use of small and medium-sized enterprises, and ensure that investment decisions contribute to a more dynamic and productive economy.
Nick Smith
The important Ajax armoured vehicle programme for the Army has been in the pipeline for years, yet it will use Swedish, not British, steel. We are told that our specialist steelmakers are up to the task, so when did the Government ask British firms whether they could produce the steel?
Mr Dunne
As with all major defence equipment programmes, the contractors determine the materials, which includes sourcing steel on the basis of competitive cost, time and quality. In 2010, no UK steel manufacturer was able to meet the prime contractor’s requirements, so no UK bids to supply steel for the Ajax programme were forthcoming. I can confirm for the hon. Gentleman, who takes a great deal of interest in this matter because the Ajax vehicles, after the 100th vehicle, will be assembled in Merthyr Tydfil, next to his constituency, that some 2,700 tonnes of steel—about 30% of the total requirement —remains open to competition, and that a competition is under way to supply sets of training armour that is open to applications from UK firms.
Sir Gerald Howarth (Aldershot) (Con)
A number of colleagues and I visited our magnificent new aircraft carriers in Rosyth last week. It was therefore with some interest that we learned this morning that the Government apparently intend to order a large number of joint strike fighters to equip not only those aircraft carriers, but the Royal Air Force. Will my hon. Friend confirm the truth about that substantial increase in our fighting capability?
John Woodcock (Barrow and Furness) (Lab/Co-op)
It was excellent to welcome the Minister to Barrow-in-Furness again last week and make another show of the bipartisan support across the House for renewing the UK’s nuclear deterrent submarines. Is there still a prospect of having the maingate vote before Christmas?
Mr Dunne
I am grateful to the hon. Gentleman for reminding the House that on Thursday last week, I accompanied him to his constituency to recognise the signature of the contract for the fifth Astute boat, Anson. It was good to be able to thank many of his constituents who have been involved in its construction. With regard to the investment decision for Successor, I think that that subject will come up shortly.
Angela Smith (Penistone and Stocksbridge) (Lab)
Of course, it is true that the defence industry can no longer source its requirements from the UK steel industry in many instances because of a loss of capability. Will the Minister work with colleagues in the Department for Business, Innovation and Skills, the defence industry and steel producers to put in place a long-term plan to ensure that UK steel develops the capability to meet the needs of the defence industry?
Mr Dunne
The Ministry of Defence is participating in the working group that was established last month by my right hon. Friend the Minister for the Cabinet Office and Paymaster General. Although steel is clearly a significant and important component in much defence manufacturing, the steel involved in all our current major programmes represented less than 1.5% of the steel manufactured in this country in 2013. Relatively speaking, although defence is important, it is a small contributor to the total steel output of this country.
Maria Eagle (Garston and Halewood) (Lab)
We are a maritime nation, so I welcome the newspaper reports—we will see whether they are true shortly—that the Prime Minister is to reverse his own decision and procure maritime patrol aircraft that are able, among other things, to defend our submarine fleet. One of the most visible signs of the botched 2010 strategic defence and security review was the photographs of our Nimrods being cut up into pieces, which we all saw in the newspapers at the time. When will the first of the new Boeing P-8s enter service?
Mr Dunne
The hon. Lady may recall that the programme she refers to, which was commissioned by the previous Labour Government, was more than £1 billion over-budget. It was reduced in scale by that Government to nine aircraft—more than half what was originally procured—and the prototype aircraft that was produced had more defects than any previous aircraft in production. We were not sure whether it would ever fly. That was the right decision to take at the time, and now it is the right decision —if the Prime Minister is about to announce it—to have a replacement capability. We will have to hear when that will be available.
Maria Eagle
The UK has been without that vital capability for four years as a result of the 2010 decision—right or wrong—to which the Minister refers. Today we read that Britain had to call on our French and Canadian allies to provide aircraft to search for a Russian submarine off our shores. Can the Minister at least give the House a definite date by which we will again have our own maritime patrol aircraft?
Douglas Chapman (Dunfermline and West Fife) (SNP)
2. What his policy is on the role of the UK in the security of the Arctic and High North.
Kelvin Hopkins (Luton North) (Lab)
10. What his policy is on ensuring the use of UK-produced steel in items procured by his Department.
The Minister for Defence Procurement (Mr Philip Dunne)
Steel is sourced by our contractors from a range of UK and international suppliers, reflecting the need to ensure a competitive price and delivery at the required time and quality. UK suppliers have provided significant quantities of steel for major defence equipment procurement programmes, whenever they have been able to meet specified standards. Our new Government guidelines, published last month, will help UK steel suppliers to compete effectively with international suppliers for major projects, including those in defence.
Grahame M. Morris
The Minister will be aware that Swedish steel was used in the construction of offshore patrol craft and also in Scout armoured vehicles. Many in the steel community feel that that is a betrayal. Does he, like me, feel that British-produced steel should be specified in defence procurement contracts in order to protect steel, a strategically important industry?
Mr Dunne
I am sure the hon. Gentleman will agree that the steel that is specified needs to be the steel that can do the job. We are open-minded about who can supply that, but we are adopting the new Government guidelines. For the offshore patrol vessels, some 20% of the requirement—about 775 tonnes—was sourced through UK steel mills.
Kelvin Hopkins
Public procurement policies should seek to assist British industry, especially steel. It is clear that other countries support their own industries in that way. Why not Britain?
Michael Fabricant (Lichfield) (Con)
You can bet your bottom dollar, Mr Speaker—or rather, your bottom euro—that European countries will not be abiding by European Union law as far as procurement is concerned. Can my hon. Friend confirm—I am sure he can—that we will do all we can to procure British steel, providing it is of the right quality?
Toby Perkins (Chesterfield) (Lab)
No one who has listened to the Minister’s answers today would have any confidence that he was going to take any serious steps to ensure that British steel was used in the purchase of the line of Type 26 frigates, which we expect to hear about shortly. Can he say a little more about what serious steps he will take, to justify the answer he has just given to the hon. Member for Lichfield (Michael Fabricant)? Let us support the British steel industry through this very important Government contract.
Mr Dunne
The hon. Gentleman is right to point to the Type 26 procurement programme as the next major platform where there will be a significant steel component. We are determined, as a Government who are keen to support our steel industry, that defence contractors will have the opportunity to source that steel from the UK, and we will do as much as we can to help them in that endeavour.
Jim Shannon (Strangford) (DUP)
5. What steps his Department is taking to monitor the effects of the Lariam form of mefloquine on service personnel who have taken that drug.
Seema Kennedy (South Ribble) (Con)
11. What steps he is taking to increase the proportion of his Department’s procurement expenditure which goes to small and medium-sized enterprises.
The Minister for Defence Procurement (Mr Philip Dunne)
We expect small businesses to take an increasing share of our increasing defence budget, as they provide a vital source of innovation and flexibility in meeting defence and security requirements. In October, we announced a new target to increase the proportion of Ministry of Defence procurement spent with SMEs to 25% by the end of this Parliament. That target is 10% higher than the one that was set during the last Parliament.
Pauline Latham
What role are SMEs playing in the Trident replacement programme—for example, in the Rolls-Royce propulsion supply chain?
Mr Dunne
The Successor submarine programme will be one of the Department’s largest projects, and we expect about 850 suppliers across the UK to be involved. They will employ thousands of people in what is a very high-skilled domain, using cutting-edge technology. That will include the supply chain for Rolls-Royce nuclear propulsion systems based at Raynesway. Many of those companies will be SMEs, and I am sure that many of them will be from my hon. Friend’s constituency in Derby.
Seema Kennedy
Will the Minister explain how the many small businesses in the defence supply chain in Lancashire can gain access to the £70 million innovation investment fund that the Secretary of State announced last month?
Mr Dunne
I pay tribute to the workforce in Lancashire, especially in view of the work that they will do in contributing to every single one of the F-35s. That is the largest defence procurement programme on the globe. Further particulars about the innovation fund will be announced in due course, and some may even be announced in the next hour.
Phil Wilson (Sedgefield) (Lab)
What difference would the renewal of Trident make to the defence supply chain?
Mr Dunne
As I have just indicated to my hon. Friend the Member for South Ribble (Seema Kennedy), the Successor submarine programme will be the largest UK procurement of military capability for decades to come. That will filter through; I have referred to the 850 suppliers that we think will be participating, but the number may be greater than that. It will be an enormous programme that will last for many years and sustain thousands of jobs across the breadth of the country.
Paul Scully (Sutton and Cheam) (Con)
12. What plans he has to strengthen the armed forces covenant.
John Glen (Salisbury) (Con)
T2. Will the Minister advise the House on how central innovation is to the work of the MOD? Will he take this opportunity to spell out the role he sees the Defence Science and Technology Laboratory at Porton Down playing in the future strategy of defence in the UK?
The Minister for Defence Procurement (Mr Philip Dunne)
We fully recognise the importance of innovation, and DSTL does vital work with industry and academia in leading science and technology initiatives to provide capability advantages for our armed forces. We expect it to continue to do so, including through the support it gives the university technical college and the proposed Porton Down science park in my hon. Friend’s constituency.
Carol Monaghan (Glasgow North West) (SNP)
T4. Médecins sans Frontières has reported that one of its hospitals in Damascus was hit in an aerial attack on Thursday, further increasing the number of civilian casualties from air strikes in Syria. In the light of Friday’s UN resolution on Syria, will the Secretary of State detail the additional measures that will be taken to provide safe passage and resettlement for civilian refugees should the UK vote to participate in air strikes?
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
T9. Lockheed Martin submitted a bid for the new maritime patrol aircraft contract. With the proposed C130 multi-mission aircraft costing around 40% of Boeing’s, which also would have seen 80% of the project carried out by a UK workforce, will the Minister please enlighten the House about the process that was undertaken to award that contract ultimately to a costlier alternative that is not supporting British jobs?
Mr Dunne
Again, this is another occasion on which I have to tell the hon. Lady that she will have to wait for a few moments to be enlightened by the Prime Minister. What I can say is that, in the event that an MPA were to be procured as part of the P-8 programme, some billion dollars’ worth of the programme is supplied by British companies.
Stephen Hammond (Wimbledon) (Con)
T8. At a time when it is clear that our nuclear defence is key, will the Minister update us on the progress that the MOD is making in delivering our nuclear-powered Astute submarines?
Mr Dunne
Yes, as I have already said, I was delighted last Thursday to announce, in Barrow, the £1.3 billion contract to complete the build of the fifth Astute-class submarine. We will save money for the taxpayer and deliver the submarine ahead of the schedule of the previous one, and we are on track.
Dan Jarvis (Barnsley Central) (Lab)
I agree with the Defence Secretary that ISIL poses a very direct threat to the UK, but does he agree that, if the Government are to take military action against Syria, that action should be framed within a wider strategy? Military action can serve as only one strand of that wider campaign. The Government will also need to leverage the political, diplomatic, economic and cultural tools that they have at their disposal.