Oral Answers to Questions

John Bercow Excerpts

Monday 13th December 2010 Commons Chamber

[Nick Harvey]

I detect that my hon. Friend has a greater familiarity with the history than I do; suffice to say that whatever the history, it is now understood by Defence Estates. It has now been concluded that the site can be disposed of, and the accounts and views of former owners, among others, are being considered. When disposing of such defence assets, it is essential that competence and experience in dealing with historic buildings be taken into account. Any idea that the site had any significant commercial value has, I think, passed.

[Mr Speaker]

It is always a pleasure to listen to the hon. Member for Banbury (Tony Baldry), but may I gently say that we must now make a bit of progress?

[Mr Peter Bone (Wellingborough) (Con)]

5. What proportion of the NATO international security assistance force is provided by the UK.

--- Later in debate ---

[Peter Luff]

Cancellation costs are a very complex area. The contract for the aircraft carriers was related to the programme of work, agreed by the previous Government under the so-called terms of business agreement, to sustain the ability to design and integrate complex warships in the UK. Over the next few years, the QE class is providing that work load, with a Type 26 global combat ship taking over later in the decade. If we were to cancel the contracts for the QE class under TOBA we would need to provide replacement work, which would come at a cost, compounding the inevitable costs of cancelling the QE class ships, one of which is already well under construction. This brings us to the position so clearly outlined by the Prime Minister in the SDSR announcement. I would not point the finger of blame so much at BAE Systems as at my predecessor, who acquiesced in the delay of the carrier contract, which led to £767 million of increased costs in the last financial year alone, and a total of £1.56 billion over the life of the programme, making his peerage just about the most expensive in British political history.

[Mr Speaker]

May we have shorter answers from now on, please, and not long statements?

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

As the Minister knows, the best way of obtaining value for money for the “cats and traps” is to fit them during the construction of both Queen Elizabeth and Prince of Wales. Can he update us on the progress made by his civil servants in discussing the issue with Babcock, and will he also tell us when he will report to the House on the final decision?

--- Later in debate ---

[Peter Luff]

I hear howls of protest from those on the Opposition Front Bench, but over the weekend I heard the shadow Secretary of State fessing up to major failures in procurement. I strongly agree with my hon. Friend.

I am happy to tell you, Mr Speaker, that I cannot comply with your request for short answers and do justice to my hon. Friend’s question because we have a range of measures in place to achieve precisely that outcome, including stronger controls over the entry for new projects in the equipment programme; a formal project start-up process that considers requirement risk, technical viability risk, affordability and deliverability; improving key skills; working closely with the NAO; and reaffirming our commitment to regular defence reviews. All that will achieve exactly the outcome that she so rightly desires.

[Mr Speaker]

We are most grateful.

[Mark Lancaster]

Historically, one of the fundamental problems with procurement has been a disconnect between Ministers, civil servants, uniformed personnel and the defence industry. How do we intend to address that problem in the future?

--- Later in debate ---

[Several hon. Members]

rose—

[Mr Speaker]

Order. As usual, demand has exceeded the time available, and we must now move on.