Defence Industry and Shipbuilding

Simon Hoare Excerpts

Wednesday 11th July 2018 Commons Chamber

[Stewart Malcolm McDonald]

My hon. Friend makes an important point that I am sure he will expand on later. [Interruption.] The Minister is most unkind. I sat and listened to him for 40 minutes and here I am being heckled as though he had taken five minutes. In fact, I am trying to remove parts of my speech to allow other colleagues to get in.

I want to come to some of the broken promises that the Conservatives have made with regard to shipbuilding in Scotland. Let us cast our minds back four years, when they were desperate—desperate—to buy off Scottish shipbuilding in the face of a potential vote for Scottish independence. They promised 14 Type 26 frigates to be built on the Clyde: a state-of-the-art, world-class frigate factory, which, amazingly, the previous Defence Secretary used to stand at the Dispatch Box and insist was there. My hon. Friend the Member for Glasgow South West was getting phone calls from journalists in Glasgow asking if they could go to see it. Indeed, I believe that a Labour Member—the hon. Member for Glasgow North East (Mr Sweeney)—actually took part in the design of the frigate factory. We were utterly sold out again by the Conservatives.

The current Chancellor, who at that time was the Defence Secretary, repeatedly told people in Scotland that staying in the UK was necessary to secure the future of shipbuilding in Scotland, but that promise was slashed. The guarantee of 14 Type 26 frigates was cut to eight, but we were promised five Type 31e’s to make up for the shortfall in numbers. Shipbuilders in Scotland—and indeed, I suspect, across the UK after this debate finishes—will not be trusting the Tories any time soon.

Finally, I want to read out a quote from the assistant general secretary—

[Simon Hoare (North Dorset) (Con)]

Will the hon. Gentleman give way?

[Stewart Malcolm McDonald]

No, because I have said I am going to allow other colleagues to get in.

The assistant general secretary of Unite, Mr Steve Turner, has said, and he is spot on:

“It would be a travesty if UK government ministers handed the economic windfall that building the new Fleet Solid Support ships brings to another country. The skills, knowledge and capability to design and build complex warships would be hollowed out and the clock turned back to the 1990s when the UK’s shipbuilding was on its knees. By 2020 25 per cent of spending on the UK’s defence equipment will be benefiting factories overseas rather than here in the UK. This is taxpayer money that can and should be spent here in the UK to the benefit of our economy. The government needs to back UK defence workers and our manufacturing industries by guaranteeing Royal Navy ships”.

If 25% of defence equipment spending being spent elsewhere around the world is this Government’s idea of a global Britain, then, frankly, count me out.

--- Later in debate ---

[Kevin Foster (Torbay) (Con)]

Thank you, Mr Deputy Speaker—it makes quite a change to be called early in a debate. It is a pleasure to follow the hon. Member for Glasgow South (Stewart Malcolm McDonald).

Some people will be wondering, “Why is the MP for Torbay rushing to speak in a shipbuilding debate? Surely the south-west is just about tourists, fishing, farmers and a few other bits.” Well, I know that the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) will be talking about the huge importance of the Devonport naval base. If we look at the figures from the House of Commons Library on employees in shipbuilding in 2016, we see that there are 12,000 in the south-west—even more than in Scotland or the north-west, which we might traditionally associate this industry with.

It is wonderful to note the new-found enthusiasm of the leader of the Labour party for the defence industry in the UK. I will leave those comments there, because I would rather we had a more positive debate, but it is certainly a contrast with some of the views he has expressed over the last three decades.

[Simon Hoare]

Will my hon. Friend give way?

[Kevin Foster]

I will not, because I am conscious that there is quite a queue of Members wishing to speak. While this is an Opposition day debate, there are many Members with significant constituency interests who would like to speak.

In terms of the investment, it is welcome to see the new carriers coming into the fleet and the new Dreadnought-class submarines already under construction, which will hopefully be refitted in Devonport in the years to come, when they have entered the main service of the fleet. It is good to hear about other investment projects. We are seeing our Royal Navy become more competent and capable, with even more of a global reach. It is welcome to see that we are back in the South China seas, looking seriously at the British national interest out in the Pacific region.

While I have some sympathy with one or two parts of the motion, which I will come to, we have to think coherently about what we are saying. If we keep saying that these contracts—contracts that are not internationally recognised as something that should be national only—should be UK-only, we start to go down the path of the nonsense arguments that have been used in the steel industry in the United States. Donald Trump has used a nonsense argument about national security to put tariffs on Canadian and European steel. Let us be quite candid: Canada and the UK are some of the strongest allies of the United States. We share the most sensitive intelligence with one another, so it is an absolute nonsense to suggest that there is a national security angle to who sells steel from this country to the United States. That is where I part company with some of the Labour party’s arguments.

The part of the motion on procurement criteria is perfectly reasonable, and I will come to that, but if we keep saying that certain contracts must be UK-only, we begin a trend of protectionism. We cannot on the one hand rightly say that Donald Trump is talking absolute nonsense about steel, but on the other adopt a policy like that ourselves, potentially against foreign—