UK Sovereign Capability

Philip Hollobone Excerpts

Tuesday 20th November 2018 Westminster Hall

[Several hon. Members rose—]

[Mr Philip Hollobone (in the Chair)]

The debate can last until 5.30 pm, and I am obliged to call the first of the Front-Bench spokespeople at 5.7 pm. The guidelines limits are five minutes for the Scottish National party, five minutes for Her Majesty’s Opposition and 10 minutes for the Minister. We will then have time at the end for Mr Sweeney to sum up the debate. Two Members are seeking to catch my eye, and there has to be a time limit of six minutes and 30 seconds each. I first call Kevan Jones.

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[Mr Sweeney]

Will my hon. Friend give way?

[Mr Philip Hollobone (in the Chair)]

Order. I cannot stop the hon. Gentleman intervening, but, including his summary at the end, he will have had 26 minutes of a 60-minute debate. I have to call the Front Benchers at 5.7 pm.

[Luke Pollard]

My hon. Friend the Member for Glasgow North East is very enthusiastic, Mr Hollobone, and I know that he will make a speedy reply in his two minutes at the end.

We must support the trade unions. I am a proud GMB member, and it is important that its “Making It” campaign is heard loud and clear, not only by Labour Members but by Conservatives. Building the RFAs in UK shipyards is good for British business. It is good for those regions’ economies, the cities in which the shipyards are based, the supply chain and, perhaps most importantly of all, the Exchequer. Why are we exporting that money? If we do not invest in our shipyards, what happened to Appledore will happen again. Appledore is not in my constituency, but workers that came from it are working in Devonport now because Appledore ran out of orders. Without orders, shipyards cannot stay open, which means they cannot hire new apprentices and support the local supply chain. Ultimately, we lose that capability.

We need to talk louder about sovereign defence capability, because we need to preserve it. We need a discrete strategy to preserve our sovereign defence capability. I encourage the new Minister, for whom I have high hopes, to ensure sovereign defence capability runs like a golden thread through all the procurement decisions he and his Department take. It needs to be there if we are to secure jobs and our future capabilities.

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[Wayne David (Caerphilly) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I offer my warmest congratulations to my hon. Friend the Member for Glasgow North East (Mr Sweeney) on securing such an important debate.

The defence industry is vital to the British economy, with a planned spend of £180 billion in the almost 10 years leading to 2026-27. That is a huge opportunity for the country’s economy, but one that has been lost because the Government have clearly rejected—despite their recent rhetoric—the idea of developing a sovereign capability for this country. Sadly, as we have heard this afternoon, the Government are increasingly buying kit off the shelf, principally from the United States of America. That is one reason why the Ministry of Defence has a deficit of £14.8 billion, according to the National Audit Office. Many MOD contracts are given without competition or openness, according to the single-source process, as my right hon. Friend the Member for North Durham (Mr Jones) made clear. The mechanised infantry vehicle contract was recently given to the Boxer without any competition or openness, and it seems that the AWACS replacement will go the same way.

Where there is competition, we see international tenders, as my right hon. Friend the Member for Warley (John Spellar) highlighted with the example of fleet solid support ships. We will be up against tenders from state-subsidised shipyards throughout the world, particularly in Korea, so it is not a level playing field. We could be ensuring that British industry and shipyards benefit from the investment coming from those contracts, but what do we see? Recently there was the announcement that Babcock was going to close Appledore shipyard in Devon, at a loss of nearly 200 skilled jobs. That shipyard has been open since 1885 and has the proud record of producing 350 vessels, but this Government are allowing it to be shut through inactivity. As the right hon. Member for Birkenhead (Frank Field) knows full well, nearly 300 workers at Cammell Laird are going to lose their jobs on the Mersey. There has also been a process of casualisation of the workforce, which will drive costs down but erode both employment and the skills of the workforce.

As the debate has demonstrated, we clearly need a sovereign industrial strategy for the defence industry. We need an industry that ensures a drumbeat of orders and provides jobs in all sectors of the defence economy, and as has been mentioned, we need to make particularly sure that our shipyards are fully provided with work and sufficient investment. We also need to think ahead and invest in technology as well as the skills of workers, and to be mindful of this country’s capacity to export, which sadly the Government are not.

I firmly believe that the shipyards and their workers should be at the very heart of this country’s industrial strategy. I believe that opportunities would present themselves if the Government decided, through the exercise of their political will, to bring forward a Type 31e frigate programme. If they decided, even at this late stage, to withdraw the international tender in order to ensure that the fleet solid support ships were built in British shipyards, there would be marvellous opportunities. That requires not just political will but an overarching perspective that looks beyond the short-term costs of the Ministry of Defence and instead at a holistic industrial strategy for the country, of which our industrial defence capability should be a central part.

In short, we need a Government who put the national interest first and do not look at pounds, shillings and pence in the short term, but have a long-term perspective that places British workers at the heart of an industrial strategy.

[Mr Philip Hollobone (in the Chair)]

Order. If the Minister could conclude his remarks no later than 5.27 pm, that would allow Mr Sweeney time to sum up. I call the Minister.