Defence Industry and Shipbuilding

Philip Dunne Excerpts

Wednesday 11th July 2018 Commons Chamber

[Mr Philip Dunne (Ludlow) (Con)]

I am listening very attentively to what the hon. Lady is saying. I am sure she will be aware that in March this year HM Treasury published, after a seven year review, a new definition of managing public money, which specifically allows, under UK procurement rules, for the concept of social value to be taken into account. She is therefore asking the Government to do something they have already decided to.

[Nia Griffith]

I thank the hon. Gentleman for his intervention and I congratulate him on his excellent report, which he presented on Monday. I note that in it he recommends that UK prosperity should be taken into account in all major procurement decisions. I welcome that statement.

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[Nia Griffith]

Yes, indeed; as my hon. Friend says, the Government have a poor track record. It is a great shame that so many opportunities have been wasted.

[Mr Dunne]

I cannot allow that to stand. I was in post when the P-8 Poseidon contract was placed, and an integral part of the relationship with Boeing was an understanding, now being fulfilled through contracts, that it would make a significant investment in RAF Lossiemouth. As a result, £400 million is now going into that base, in part to support and maintain those aircraft and other aircraft operated by our allies. Those aircraft will be coming here to the UK to be maintained and serviced. That means UK jobs and UK investment.

[Nia Griffith]

It is incumbent on the Government, though, to look again and strain every muscle to get the very best work-share agreements wherever they exist.

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[Mr Ellwood]

There was a UK bid.

[Mr Dunne]

May I help my right hon. Friend?

[Mr Ellwood]

I would like to move on, so I am going to make some progress and perhaps invite the Minister responsible for procurement, who will be concluding the debate, to go into the detail of the bid. If Labour is taking a position of only taking British offers and not looking abroad, it is not taking taxpayer value for money into consideration.

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[Mr Ellwood]

The Parker report is about our approach to shipbuilding, and it has led to our shipbuilding strategy and our defence industrial strategy.

[Mr Dunne]

rose—

[Mr Ellwood]

If I can make some progress, I may actually be able to answer the question.

[Mr Dunne]

Will the Minister give way?

[Mr Ellwood]

I am glad that there is nothing happening later.

[Mr Dunne]

My right hon. Friend has been generous about my report, which was published on Monday, and I am grateful for the other comments about the report by Members on both sides of the House. On page 53 of the report, I refer to the fleet solid support ship and make the point that the fact that we are currently a member of the European Union means that we are precluded from taking advantage of the article 346 exemption to require that ship to be built in the UK. One of my recommendations is that we should take advantage of the opportunity of Brexit to consider the opportunity, after we leave the EU on 29 March 2019, to build UK content into our own procurement rules, which might allow us to change the position, but we cannot do that today.

[John Spellar]

Not true.