Shipbuilding on the Clyde

John Bercow Excerpts

Monday 25th April 2016 Commons Chamber

[The Minister for Defence Procurement (Mr Philip Dunne)]

Before I answer the hon. Lady’s question, I am sure that the whole House will join me in offering our sincere condolences to the family and friends of Captain David Seath, who tragically died after collapsing during the London marathon on Sunday. This was of course not an operational casualty, but given the interest that many hon. Members take in raising funds for charity through the marathon, as do many members of our armed forces, I thought that it was appropriate to start my response in that way. Our thoughts are with his family and friends at this difficult time.

I welcome the opportunity to outline our plans for building complex warships. The Type 26 global combat ship programme is central to those plans. The strategic defence and security review restated this Government’s commitment to the Type 26 global combat ship programme. The ships are critical for the Royal Navy, and we are going ahead with eight anti-submarine warfare Type 26 global combat ships. The SDSR also made it clear that build work on Type 26 would be preceded by the construction of two additional offshore patrol vessels and that we would launch a concept study and then design and build a new class of lighter, flexible, general purpose frigates. The construction of the additional offshore patrol vessels will provide valuable capability for the Royal Navy and, crucially, will provide continuity of shipbuilding workload at the shipyards on the Clyde before construction of the Type 26 begins.

Nothing has changed since the publication of the SDSR, and over the next decade, we will spend around £8 billion on Royal Navy surface warships. We continue to progress the Type 26 global combat ship programme, and we announced last month the award of a contract with BAE Systems valued at £472 million to extend the Type 26 demonstration phase to June 2017. That will enable us to continue to work with industry to develop an optimised schedule for the Type 26 and OPV programme to reflect the outcome of the SDSR, to mature further the detailed ship design ahead of the start of manufacture, to invest in shore testing facilities and to extend our investment in the wider supply chain in parallel with the continuing re-baselining work.

Overall, the SDSR achieved a positive and balanced outcome, growing the defence budget in real terms for the first time in six years, delivering on our commitment to spend at least 2% of GDP on defence and, in the maritime sector, setting the trajectory for expansion of the Royal Navy’s frigate fleet. That growth in numbers will be achieved through the introduction of a more affordable light general purpose frigate—GPFF. The GPFF reflects a shift in the Navy’s focus and posture to delivering the strategic defence outputs of continuous at-sea deterrence and continuous carrier capability with our unique high-end warships: six Type 45 destroyers and eight Type 26 frigates. A large range of other naval tasks will be undertaken by the GPFF.

To deliver the SDSR, we must improve and develop our national shipbuilding capability to become more efficient, sustainable and competitive internationally. To that end, we announced the intent to have a national shipbuilding strategy, and I am delighted that Sir John Parker, a pre-eminent engineer and foremost authority in naval shipbuilding, has started work as the independent chair of that project. I look forward to receiving his recommendations, which will address, among other things, the best approach to the GPFF build.

I understand the strong interest in the timing of the award of the contract to build the T26 global combat ship, and I also understand that reports of delays create anxiety, but let me assure the shipyard workers on the Clyde that this Government remain absolutely committed to the Type 26 programme and to assembling the ships on the Clyde, and that we are working closely with BAE Systems to take the Type 26 programme forward, ensuring that it is progressed on a sustainable and stable footing.

More broadly for Scotland, our commitment to the successor programme will sustain 6,800 military and civilian jobs there, rising to 8,200 by 2022. As the programme progresses, an additional 270 personnel will be based at Her Majesty’s naval base Clyde. Extending the Typhoon until at least 2040, and upgrading it with the active electronically scanned array radar, will benefit RAF Lossiemouth and continue to benefit Selex ES in Edinburgh. Our new maritime patrol aircraft will be based at RAF Lossiemouth, which is ideally placed for the most common maritime patrol areas and is currently used as a maritime patrol aircraft operating base by our NATO allies. This will also lead to significant investment, and our current estimate is for some 200 extra jobs in Scotland.[Official Report, 3 May 2016, Vol. 609, c. 1MC.]

[Mr Speaker]

Order. I am most grateful to the Minister for his words, but I gently point out that he took more than twice his allotted time. I felt that he had germane information to impart, so I let it go on this occasion, but I cannot do so on a subsequent occasion; there are rules in this place and they must be observed. In recognition of how long it took the Minister, the hon. Lady now has slightly longer, if she wishes to take it.

[Emily Thornberry]

Thank you, Mr Speaker. May I, on behalf of the Opposition, also extend our condolences to the family of Captain David Seath?

I am grateful for the opportunity to raise this matter in an urgent question, although I am deeply disappointed that the Minister had to be dragged to the House this afternoon to explain what on earth has been going on with the Government so far. The Secretary of State cannot be seen for dust. After three days of considerable uncertainty over the future of British shipbuilding, during which the Government have remained completely silent, the Secretary of State has, unfortunately, failed to clear the air. This is about a commitment to our Royal Navy and the national defence of the UK.

As a maritime nation, it is bad enough that our Navy has had its surface fleet cut by a sixth since this Government came into office. We have been promised that at least 13 new frigates will be built, but if the timetable for delivering the new frigates has slipped, the Government’s promise to maintain the Navy’s fleet at its current size is put at risk. Can the Minister answer a simple question: will construction begin this year, in line with previous commitments? He claims that the orders for the new frigates will proceed as set out in the SDSR, but it says nothing about the timetable—and the timetable is vital. The unions are now being told that this could be delayed by up to a year. Is he saying that that is not the case? Does he also deny the claims made by unions that the start of Type 26 construction has already been delayed?

The issue is not just about the Type 26 frigates. Over the past two years, the Government have repeatedly promised that all 13 of the Navy’s new frigates would be built on the Clyde—not only the eight Type 26s, but “at least” five lighter frigates announced in the SDSR as well. Can we have confirmation that that is still true today? What about the budget? There are rumours that the next two offshore patrol vessels will now come out of the same budget as the frigates, meaning that the overall budget is almost certain to fall—is that right? Has nothing changed, as the Minister says? If that is right, why has BAE Systems not denied press reports that there will be redundancies at the shipyards? If that is not the case, why are the unions being told that there will be redundancies? This is a matter of national importance for the United Kingdom. The future of hundreds of people in Glasgow hang on the Minister’s words this afternoon. Will he please answer my questions about delay, as this is a very important matter?

The Government say that they are publishing a shipbuilding strategy later this year. We have been waiting 16 months, and we are now told that a chair has been appointed. That is good, but will we get the shipbuilding strategy this year, because, frankly, at the moment, it looks like a shambles? This is not the time for weasel words such as “optimised schedules”. We need clear-cut assurances from the Government that they will honour the commitments that they have made both to local communities and to our national defences. If they do not honour those commitments, this will be yet another Tory betrayal of Scotland, which the SNP will not be able to fix. Only a British Labour Government will be in a position to safeguard the future of Glasgow’s shipbuilding industry.

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[Mr Dunne]

The hon. Gentleman is a doughty champion of English shipbuilding capability in his constituency, which is across the border from Scotland. I do not have a figure for him—he asked what would happen with the Type 26 programme in Scotland—but our intent is to build the ships on the Clyde, in Scotland, so I do not foresee any direct change from the position we were in last year. As far as his comment on independence is concerned, he is absolutely right that there would have been an enormous reduction in the jobs in Scotland had the Scottish people decided to follow Scottish National party advice and vote for an independent Scotland. [Interruption.]

[Mr Speaker]

Order. Some people need to calm down. Mr Blackford, you are an extraordinary individual; you do become very excitable. I prefer your cerebral side. If you feel you can find it before the afternoon is out, the House would be greatly obliged to you. I call Tom Pursglove.

[Tom Pursglove (Corby) (Con)]

Following on from the question from the hon. Member for Hartlepool (Mr Wright)—

[Carol Monaghan (Glasgow North West) (SNP)]

On a point of order, Mr Speaker—

[Mr Speaker]

Order. We can come to points of order later. I say to Carol Monaghan that I do not know what has exercised her, but we cannot deal with the matter now. We will have points of order afterwards, when I will happily hear her. [Interruption.] There is a certain amount of gesticulation going on. Members on the Labour Benches and the SNP Benches should calm down. I will come to the point of order at the appropriate time if it is still germane. Now, we must all unite in hearing Mr Tom Pursglove.

[Tom Pursglove]

Thank you, Mr Speaker. Following on from the question from the hon. Member for Hartlepool, has any specific assessment been made of the impact of any delays in the programme, particularly on the British steel industry?

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[Several hon. Members rose—]

[Mr Speaker]

Order. After a little time to simmer down, I hope that the hon. Member for Ross, Skye and Lochaber (Ian Blackford) has now acquired the poise, gravitas and serenity to which he should aspire.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

Thank you, Mr Speaker, but perhaps, like the workers on the Clyde, we on the Scottish National party Benches are beginning gently to simmer. I reflect on the Minister’s words: he said that the demonstration phase is now going to continue to June 2017. Is the cat not now out of the bag—he is putting back the construction process? Why does he not give a guarantee to the workforce that their jobs are safe? We can all now reflect on what Better Together meant—duping the people of Scotland once again.

[Carol Monaghan]

On a point of order, Mr Speaker.

[Mr Speaker]

Points of order come after statements, and there are a number of statements. That is the way in which we deal with these matters, and that is how it will be handled today.