Oral Answers to Questions
Philip Dunne Excerpts(9 years, 4 months ago)
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Mr Adam Holloway (Gravesham) (Con)
6. What progress his Department has made on delivering the defence equipment plan.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
Under this Government, the Ministry of Defence was one of the first Departments to publish a long-term plan: our 10-year equipment plan. The third annual iteration of the equipment plan will be published shortly. I expect it to show that, in the vital area of defence equipment, we have a plan and that we are delivering against it in each domain. New investment committed last year includes: three offshore patrol vessels, four new F-35s, and 589 new Scout armoured vehicles under the largest land equipment contract the British Army has seen for 30 years.
Mr Holloway
What changes have been made to the way the plan is being delivered?
Mr Dunne
As my hon. Friend will recall, the previous Labour Administration had no plan and compounded one procurement incompetence with another. Consequently, the wrong equipment was often delivered, years late and billions over budget. By contrast, since balancing the defence budget and establishing an equipment plan, where there was chaos now there is competence; where there were cost overruns now there are cost savings; and where equipment deliveries were years late now they are on time, or, in far fewer cases, a few months behind.
Angus Robertson (Moray) (SNP)
In recent weeks, maritime patrol aircraft have been seen in the skies above Moray, operating from RAF Lossiemouth and plugging a capability cap, because the RAF has precisely no maritime patrol aircraft. All of our neighbours have them: the Irish air corps, the Royal Danish air force and the Royal Norwegian air force. In the plan the Minister has just mentioned, when can we expect to have maritime patrol aircraft?
Mr Dunne
As the hon. Gentleman knows full well, there was a recognised capability gap when maritime aircraft were taken out of service in SDSR 2010. The Government, as with previous Governments, operate in conjunction with our allies around the world. We provide aircraft to Baltic patrol and transport lift aircraft to the French. On occasion, our allies provide us with maritime patrol aircraft.
Alison Seabeck (Plymouth, Moor View) (Lab)
I was glad to hear the Minister’s answer to the question regarding Russian submarines infiltrating our waters.
Why, after the major equipment programme has been let, are his Department and UK Trade & Investment still scurrying around trying to hold the manufacturer to a pre-contract offer of safeguarding or creating 10,000 jobs in the UK? We now know that the Scout programme he mentioned will be built in Spain, Germany and the Netherlands, and that the core jobs in the UK are fewer than 400. That has happened on his watch. Why was the economic case for bringing the work to the UK not done before the contract was finalised? The Secretary of State spent all that time trumpeting what seemed to be a huge success when, in fact, it is not.
Mr Dunne
As the hon. Lady may recall, the original proposed contract, which was considered under her Administration, was for more than double the number of vehicles for which we have contracted. Consequently, the number of people potentially employed is significantly lower. However, the contract for the Scout vehicle, at £3.5 billion, is the largest contract that the British Army has received, and involves some 160 companies, predominantly in the UK. It will sustain 1,400 jobs in the UK, and we are currently actively exploring the opportunity for the onshore assembly of vehicles, from 101 to 589.
Douglas Carswell (Clacton) (UKIP)
7. What his policy is on the creation of a national defence medal.
Sir Oliver Heald (North East Hertfordshire) (Con)
13. What recent investment he has made in (a) cyber-security and (b) unmanned aerial vehicles for the armed forces.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
In addition to the sums identified by my right hon. Friend the Armed Forces Minister, in July of last year the Prime Minister announced a further investment in equipment for our armed forces, which included £75 million specifically for cyber-defence. The total recent investment in unmanned aerial vehicles for the armed forces in the current year is £233.5 million.
Sir Oliver Heald
On unmanned aerial vehicles, will my hon. Friend provide more information about the Watchkeeper tactical remotely piloted air system and when it will be available to our British Army units?
Mr Dunne
I am pleased to be able to tell my hon. and learned Friend that the Watchkeeper achieved its first initial operating capability last summer and was deployed with the Royal Artillery to Afghanistan between August and October last year. It immediately demonstrated its excellent, and potentially game-changing, tactical capability over Helmand. We expect Watchkeeper to be at full operating capability in April 2016.
Steve McCabe (Birmingham, Selly Oak) (Lab)
As well as investing in unmanned aerial vehicles, is the Department responding to reports that al-Qaeda in the Arabian Peninsula is developing counter-measures designed to diminish the effectiveness of these drones in current operations?
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
This is the first opportunity I have had to put on record at the Dispatch Box how pleased the UK is with the decision by the United States air force to base its first two F-35 squadrons at RAF Lakenheath, which is adjacent to Mildenhall. We think that a number of jobs will transfer from Mildenhall to Lakenheath. The base closure at Mildenhall is regrettable, but it will not happen for a number of years. We in the Ministry of Defence will engage with the working group being led by my right hon. Friend the Minister for Business and Enterprise, and we will be looking to see whether there is a future military use for the facility; if not, we will work to find an alternative.
Angela Smith (Penistone and Stocksbridge) (Lab)
T9. According to recent reports in The Times, Ministers are presiding over not only a stalling reserves recruitment programme but a crisis in recruitment to the regular forces. Can any of the Ministers reassure the House that the targets for recruitment to the regular Army forces will be met this year?
Mark Menzies (Fylde) (Con)
T7. May I put on record my thanks to the Minister for the Armed Forces for his visit to BAE systems in Warton and Salmesbury aerodromes, which are key employers in Lancashire? Will he update the House on defence export prospects for the Hawk trainer aircraft, as its production line has recently opened in my Fylde constituency?
Mr Dunne
As my hon. Friend knows, BAE systems is pursuing a number of significant export prospects for the Hawk, with active support from the Ministry of Defence and UK Trade and Investment Defence and Security Organisation. As international air forces modernise their front-line aircraft, we anticipate that there will be significant further interest in the next generation of Hawk aircraft, the Hawk T2, which is already in service to train our Typhoon pilots and will do so for the F-35 pilots in due course.
Jeremy Corbyn (Islington North) (Lab)
Next month, the Government will be hosting a meeting of the five declared nuclear weapons states ahead of the non-proliferation treaty review in May. Will the Minister tell the House what he intends to achieve from that meeting, whether there will be an agreed position put and whether the P5 will adhere to the basic principles of the non-proliferation treaty and take steps towards nuclear disarmament?
Defence Support Group
Philip Dunne Excerpts(9 years, 4 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
I am pleased to announce the successful sale of the Defence Support Group (DSG) land business to Babcock for £140 million. As part of the transaction, a 10-year contract (with options to extend to 15 years) worth some £900 million has been agreed for the delivery of DSG services and the transformation of the Army’s vehicle maintenance, repair and storage. The contract covers the DSG’s fleet management and engineering support services and will generate savings to the Army of around £500 million over the 10- year period - a saving of over a third. This contract has the potential to grow to around £2 billion as a broader scope of services under the DSG sale contract are optimised, subject to value for money, as part of the planned programme.
Babcock has more than 15 years’ experience of working closely with the Army in vehicle support work, standing it in good stead to partner successfully with the Army and transform the DSG land business. The company will also use its expertise in engineering and fleet management to build on the work that the DSG’s highly skilled work force currently carry out and progressively to transform the business to provide end-to-end support and equipment availability to the Army.
Babcock has committed to develop the DSG land business, putting it in a strong position for the future. Furthermore, Babcock has already identified commercial work from elsewhere in the Babcock Group that it will bring into the DSG. This will not only grow the DSG land business but will also exploit economies of scale to reduce overheads, thus improving the cost effectiveness of the services provided to the Army.
Ownership by Babcock will therefore put the DSG land business on a sustainable long-term footing and ensure the Army retains access to the DSG’s equipment support services.
All DSG staff in scope of the sale will become Babcock employees on 1 April 2015. They will transfer under Transfer of Undertakings (Protection of Employment) (TUPE) regulations, which protect their terms and conditions on transfer. The new Fair Deal also ensures continued membership of civil service pension schemes for those eligible. The Ministry of Defence (MOD), with the support of Babcock, will conduct a TUPE consultation with the DSG workforce and the DSG trade unions. The first consultation meeting with the national and local DSG trade union representatives, Babcock, DSG management and the MOD is taking place tomorrow.
DSG estate will not be sold but will be retained in MOD ownership and leased or licensed to Babcock. Babcock will lead a business improvement programme over several years which is aimed at optimising the output performance of the business. Detailed plans will not be known until Babcock has had a chance to understand the business fully and completed its review. Until then, MOD is providing as much detail as it can as part of the TUPE consultation process. No MOD sites will be closed on sale. We are confident Babcock will provide an open and professional approach to these activities.
As I announced on 19 November, DSG’s air business, the electronics and components business unit, will be retained in MOD from 1 April 2015 as the Defence Electronics and Components Agency (DECA), a new MOD trading agency.
I will make a separate announcement in due course regarding the competition that the MOD is also running for the transformation of the MOD’S logistics commodities and services organisation, which shares sites with DSG at Ashchurch and Donnington.
Oral Answers to Questions
Philip Dunne Excerpts(9 years, 5 months ago)
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Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)
10. When (a) HMS Queen Elizabeth and (b) HMS Prince of Wales will set out to sea under their own power for the first time.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
In September the Prime Minister announced that he would bring both carriers into service so that we always have one carrier available 100% of the time. Final equipment installation and system commissioning plans are being developed for both the aircraft carriers, so we expect HMS Queen Elizabeth to proceed to sea under her own power for the first time in 2017 and HMS Prince of Wales to do so in 2019.
Dr Julian Lewis (New Forest East) (Con)
When the carriers are happily operational there will still be one other gap at sea, which will be in marine patrol aircraft. Can the Minister share with the House any moves as to how that gap is going to be filled?
Mrs Mary Glindon (North Tyneside) (Lab)
12. What progress he has made on meeting the objectives of the Army 2020 programme; and if he will make a statement.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
The Government were concerned to look at any export licences that had been granted and undertook an initial review in August. We launched another review earlier this month and when it is available we will respond to the hon. Lady.
John Glen (Salisbury) (Con)
T6. I sincerely welcome the Government’s recent decision to grant pensions to forces widows who remarry. However, there are still 126 divorced spouses, including one of my constituents, who are denied access to their anticipated pensions due to an administrative error by an agency of the Ministry of Defence. In the light of the recent decision, will the Minister reconsider these cases and see what can be done across government to put this right?
Bob Blackman (Harrow East) (Con)
T7. My hon. Friend recently signed an £800 million contract for the development of a state-of-the-art radar system for the Eurofighter Typhoon. What are the implications of that decision for the protection of our skies and for British jobs?
Mr Dunne
The contract signed last week in Edinburgh is a major step forward in developing radar capability for the Eurofighter Typhoon. It will increase operational effectiveness by simultaneously tracking air and ground targets at range. It also represents a significant investment in the UK defence industry, sustaining jobs in BAE Systems in Lancashire and in the whole radar supply chain, including some 500 jobs in Scotland, half of which are for highly skilled engineers, which would not have happened in the same way had Scotland voted to leave the United Kingdom.
Barry Gardiner (Brent North) (Lab)
The construction costs for the second aircraft carrier have been identified within the MOD equipment budget. However, Government Front Benchers have been reluctant to identify the operational costs. As well as having a second carrier, would it not be a good idea to be able to put it into operation? Will they take this opportunity to clarify the position?
Mr Dunne
I am pleased that the hon. Gentleman has given me the opportunity to explain once again to the House that it is this Government who have decided to make both carriers operational, unlike the previous Government, who were going to leave the second one tied up. The Ministry of Defence is now conducting a detailed analysis to develop how best to utilise the capability, including man power and aircraft numbers, which will become clear as part of the strategic defence and security review 2015.
Mr John Baron (Basildon and Billericay) (Con)
T8. In addition to Army Reserve numbers going backwards over the past 18 months, recent answers to written parliamentary questions show that there has been no improvement in the age profile of the existing Territorial Army/Reserve, with the average age of the infantryman stuck at 35 and the average age of senior non-commissioned officers and junior officers in the 40s. Why are the Government not tackling that?
Angus Robertson (Moray) (SNP)
In the 2010 SDSR the UK Government committed to reducing the number of launch tubes from 12 to eight. A recent opinion poll issued by the US navy states that the American firm General Dynamics will build 12 Trident missile launch tubes for a successor UK submarine, something that has not yet been approved by this Parliament. Is that true? If so, why has the House not been informed, and why do we need to learn about it from US navy press releases?
Martin Horwood (Cheltenham) (LD)
With 1,000 people killed since the Minsk accord in Ukraine, with up to 1 million displaced and with NATO countries such as Lithuania looking as though they might be prepared to be more deeply involved, can we be told what the latest news is from the European monitoring team on the state of the ceasefire and the risk of escalation involving NATO countries?
Defence Support Group
Philip Dunne Excerpts(9 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
I informed the House on 31 March that the Ministry of Defence (MOD) was launching the sale of the Defence Support Group’s land business. Following a strong competition, I am pleased to announce that Babcock Land Ltd has been selected as the preferred bidder. I will make a further statement to the House with final details of the transaction in the new year, after a contract has been signed.
I also informed the House in March that the MOD would be retaining the Defence Support Group’s air business, the Electronics and Components Business Unit (ECBU). I am pleased to announce that ECBU will become the Defence Electronics and Components Agency (DECA), a new MOD Trading Agency, from 1 April 2015.
DECA will continue to provide support to a diverse range of electronic, avionic and mechanical equipment for both fixed wing and rotary platforms. This will include the provision of a specialist avionics obsolescence management capability. DECA’s Trading Agency model, based on an executive agency, will allow it to continue trading with the MOD and industry customers in a similar way to how the ECBU currently operates within the Defence Support Group.
Defence Equipment and Support
Philip Dunne Excerpts(9 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
In my statement of 14 May 2014, Official Report, column 24WS, I outlined plans for the Defence Equipment and Support organisation (DE&S) to procure a set of specific private sector skills through contracts for managed service providers (MSPs). We made good progress on this work over the course of the summer and I can confirm that on 3 November, we made formal offers of contract to three companies. I am announcing this development today, in anticipation of a final contract award. In line with standard commercial practice, the offer of contracts triggered a stand-still period which will last for at least 10 calendar days. Subject to the successful conclusion of this period, we expect contract signature to take place on 17 November.
The MSPs are being brought in to help DE&S with its transformation programme. Unlike the approach being followed under the last year’s competition for a Government-owned contractor-operated (GoCo) entity, we are not placing contracts with the MSPs to run the DE&S business. What we need is an injection of highly specialised advice to support some specific areas of the business. The MSPs will be working alongside the DE&S work force to achieve aligned transformation goals.
The project delivery MSP contracts have an initial term of three and a half years, with the option of two one-year extensions. They will be awarded in four lots covering each of the four DE&S domains. The commercial approach was designed to allow a maximum of two of the four lots to be won by any one company, and following a rigorous competitive process, we have offered the land and joint enabler domain contracts to CH2M Hill, and the air and fleet domain contracts to Bechtel.
The project delivery MSPs will be required to provide high-quality advice in the fields of project management and project controls over a defined period. They will support DE&S in driving the necessary organisational, behavioural and cultural change designed to establish enduring improvements in project delivery approach, systems and outcomes across the organisation in support of the equipment and support plans.
The human resources MSP contract has an initial term of three years with the option of two one-year extensions. It is a single lot and has been awarded to PricewaterhouseCoopers. This MSP will be required to help DE&S establish a bespoke and business-relevant HR function and deliver the required HR transformation. It will support DE&S to attract, develop, manage and retain high-performing individuals through a new performance management, incentivisation and career management system.
The competition for the third MSP, which will cover finance, management information and information technology is planned to begin in the next few months. Sequencing the procurements in this manner will ensure maximum coherence across all three MSPs, and will allow the assessment and application of early lessons identified through the first MSP contracts.
The House will recall that when DE&S became a bespoke trading entity on 1 April this year, it secured a range of freedoms, agreed by HM Treasury and the Cabinet Office, to allow DE&S to manage its work force better. This included the ability to pay 25 members of staff at a rate higher than the senior salary cap; and flexibility around how DE&S recruits, rewards and manages its staff to optimise its business needs. The MSPs are not party to these freedoms, and are being brought in to the business as external contractors, procured via standard commercial practices.
The offer of these contracts represents an important milestone in the transformation of DE&S. We are moving ahead at pace, and this development underlines our firm intent both to build on recent project successes and deliver genuine and sustainable improvement to defence acquisition. Once contracts are signed, the MSPs will play an important role in this, working with DE&S to deliver the substantial change programme, which is itself designed to deliver improved value for money for taxpayers, and the best possible support for the armed forces.
Military Air Traffic Management
Philip Dunne Excerpts(9 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
I am pleased to announce the successful contract award worth £1.5 billion (ex VAT) to (AQUILA) Air Traffic Management Services to deliver the air traffic management (ATM) sustainment and replacement programme known as Marshall. The programme will last 22 years and covers the operation of more than 60 Ministry of Defence sites in the UK and overseas, including in Cyprus, Gibraltar, Falkland Islands and Ascension Islands.
This programme combines approximately 70 Ministry of Defence contracts into one and is expected to generate £1 billion savings when compared with the contracts it replaces. It will bring the Ministry of Defence up to date with the latest advances in civil ATM technology, improving reliability and streamlining the support chain.
The Ministry of Defence has a legal obligation as an air navigation service provider to ensure the safe operation of aircraft. The Marshall programme will fulfil this obligation by providing a sustainable military airfield ATM capability that will enable air vehicles to operate safely and effectively with tactical freedom, in all weather conditions and in any environment, within the UK areas of responsibility, including permanent overseas airfields, and in support of UK and coalition expeditionary forces worldwide. In addition it will enable compliance with forthcoming changes to ATM regulations.
The contractor will supply, maintain and install new and updated ATM equipment. There will be a £400 million investment in very advanced surveillance radars to equip Ministry of Defence airfields and ranges with sophisticated and robust ATM equipment, including navigation aids and radios.
The contractor will also train maintainers and operators and deliver the service at a high level of availability. The full service will be provided during and after an initial six-year transition period beginning on 1 April 2015, when the service provider will assume responsibility for the provision of the military air traffic management service in its current state. During the transition period the service provider will progressively remove old ATM equipment and replace it with new equipment.
Pensions (Contingent Liabilities)
Philip Dunne Excerpts(9 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
I am pleased to inform the House that I am today laying a departmental minute to advise that the Ministry of Defence has received approval from Her Majesty’s Treasury (HMT) to recognise a new class of contingent liability associated with the provision of pensions to staff compulsorily transferred from the public sector under new fair deal arrangements.
As part of the naval base operating centre transformation programme, and after a competitive procurement process, approval was given to outsource provision of reception centre services at Her Majesty’s naval base Devonport to Babcock International Group. The contract was awarded on 1 September 2014 and will lead to the transfer of 20 assigned civilian posts under the Transfer of Undertakings (Protection of Employment) legislation on 1 December 2014.
This transfer of undertaking will be implemented under new fair deal arrangements, which will generate future contingent liabilities for pension costs. HMT approval was granted on 8 August 2014 and I am advising Parliament of the approval of contingent liability for pension costs associated with such transfers under new fair deal arrangements.
Oral Answers to Questions
Philip Dunne Excerpts(9 years, 6 months ago)
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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 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.
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.
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?
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.
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.
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?
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?
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.
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?
Submarine Dismantling Project
Philip Dunne Excerpts(9 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
I am announcing today that the Ministry of Defence’s submarine dismantling project (SDP) has published the final shortlist of candidate sites for the storage of intermediate-level radioactive waste removed from nuclear-powered submarines after they have left naval service and been defuelled. The storage will be for an interim period until the UK’s geological disposal facility is available some time after 2040. I am also announcing that public consultation on the storage sites will begin on 14 November 2014.
The provisional shortlist I announced on 13 February 2014, Official Report, column 70WS, was as follows: the atomic weapons establishment sites at Aldermaston and Burghfield in Berkshire, which are owned by the MOD and run by AWE plc; Sellafield in Cumbria and Chapelcross in Dumfriesshire, which are owned by the Nuclear Decommissioning Authority; and Capenhurst in Cheshire, which is run by Capenhurst Nuclear Services.
We have now completed a period of pre-engagement with local authorities, elected representatives and established site stakeholder groups around each of the shortlisted sites. This provided these groups with an early opportunity to understand and comment on the criteria that should be considered during the main assessment of shortlisted sites. It is also helping to shape plans for the formal public consultation that we will carry out before any decisions are made.
The assessment process considers:
Whole life costs for each site.
Operational effectiveness of the site.
A strategic environmental assessment (SEA).
The project schedule proposed by the site owner.
Other contributory factors such as anticipated public opinion, policy and planningin each area.
Today we have published the final shortlist of sites. This is unchanged from the provisional list. Our analysis has not presented any grounds for discounting any of the sites at this stage.
This final shortlist will be taken forward as the basis for detailed assessment including public consultation, which will be carried out locally around each candidate site, as well as nationally.
Public consultation will begin on 14 November 2014 and end on 20 February 2015. This will take the form of public meetings and engagement alongside a wealth of information being put into the public domain to aid stakeholders’ understanding of the project.
Further information on the SDP can be found at:
https://www.gov.uk/government/publications/submarine-dismantling-project-interim-storage-of-intermediate-level-radioactive-waste
Government Pipeline and Storage System
Philip Dunne Excerpts(9 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
In 2013, the Ministry of Defence (MOD) included provisions in the Energy Act to enable sale of the Government pipeline and storage system (GPSS). During passage of the Bill, Government Ministers were clear that a final decision to sell the system had not been taken and was subject to further work to confirm the case for sale.
Given these assurances it is appropriate for me to provide an update to the House. Work on the sale was carried out in parallel with the legislative process and has extended into this year. MOD and its advisers have paid particular attention to assessing the investment required to meet the stringent safety and environmental standards introduced in the wake of the 2005 Buncefield accident as well as identifying the risks and opportunities for the business in the civilian downstream oil sector. It remains the case that commercial customers account for the majority of the GPSS throughput. MOD undertook market testing earlier this year and considers there to be a significant level of interest in purchasing the GPSS.
We have concluded that sale of the GPSS would allow Government to transfer the financial risks of operating in the downstream oil market to the private sector, while still preserving the GPSS’s military capability and ensuring that national resilience is not compromised.
The Department will now begin the sale process by inviting expressions of interest. The sale will be publicised in the press and through the defence contracts bulletin. MOD intends to complete the sale in the current financial year. The GPSS clauses contained within the Energy Act will be enacted by a commencement order before sale completion.
The Oil and Pipelines Agency which manages the GPSS on MOD’s behalf is today writing to key suppliers and customers informing them of the sale process.