Oral Answers to Questions

Stephen Hepburn Excerpts

Monday 18th February 2019 Commons Chamber

[Mark Lancaster]

My hon. Friend is absolutely right, and he is also absolutely right to cite his constituency company as a fine example of how we can continue to compete on the world stage.

[Mr Stephen Hepburn (Jarrow) (Lab)]

First, may I thank you, Mr Speaker, for your kind words about our former colleague Paul Flynn, who was a great comrade over the years?

Following on from the question asked by my right hon. Friend the Member for North Durham (Mr Jones), why does the Minister not defer any action until after 29 March, when we will not be under EU procurement rules and we can award this ship—a £1 billion British taxpayers’ order—to a British shipyard?

[Mark Lancaster]

The hon. Gentleman seems to have a crystal ball—I simply do not—to see exactly what the situation will be post 29 March.

Oral Answers to Questions

Stephen Hepburn Excerpts

Monday 26th November 2018 Commons Chamber

[Mr Stephen Hepburn (Jarrow) (Lab)]

T6. Even at this late stage, will the Minister commit himself to withdrawing the lucrative international tender for the fleet solid support ships, which will not only cost the British taxpayer millions, but cost British jobs as well?

[Stuart Andrew]

The national shipbuilding strategy is there so that we do everything we can to make sure that we have an industry that is competitive not just in this country, but across the globe, and that is exactly what we are trying to do. By getting the fleet solid support ships through international competition, we can secure a good price for the British taxpayer, too.

Oral Answers to Questions

Stephen Hepburn Excerpts

Monday 9th July 2018 Commons Chamber

[Mr Ellwood]

I have visited Brize Norton—I was trying to weave that into the end of my answer to the hon. Member for Easington (Grahame Morris)—and with the future accommodation model, we are trying to provide greater opportunity for those who want to live on the base, rent accommodation or, indeed, live outside and get on the housing ladder. I hope that that will lead to greater retention and recruitment.

[Mr Stephen Hepburn (Jarrow) (Lab)]

I acknowledge Ministers’ work to retain knowledge and skill in the ranks of our defence forces; it is just a pity that they do not apply the same effort to our defence industry, instead of giving a billion-pound taxpayers’ order to improve skills and jobs in Germany, Italy and the Netherlands.

[Mr Ellwood]

As I said, the art of war is changing, and we need to diversify, which means recruiting a wider range of skillsets. Not everybody can come up through the ranks with all the capabilities that we need. We need to be cleverer at inviting people in at a higher rank, which is part of our enterprise approach to bringing in skillsets from civilian street at a much higher level.

Oral Answers to Questions

Stephen Hepburn Excerpts

Monday 5th March 2018 Commons Chamber

[Mr Speaker]

Order. I am sure the House will want to join me in welcoming the visit of a delegation of distinguished Canadian parliamentarians here in the House today: our very good friends from Canada—thank you—who are accompanied by, among others, the hon. Member for Brigg and Goole (Andrew Percy).

[Mr Stephen Hepburn (Jarrow) (Lab)]

I am dealing with the sad case of a young man in my constituency who was injured out of the Army, but did not get the treatment he needed. Apparently he slipped through the net because of his junior rank. Will the Minister review his systems to make sure that this does not happen in future?

[Mr Ellwood]

The hon. Gentleman is very pertinent in what he says. We should have a robust system that can ensure that no person is left behind in any way. I would be more than happy to speak to him afterwards to see what more can be done to help that individual.

In the light of who our guests are, may I say thank you to the Canadians? We held a “Five Eyes” conference on mental health and veterans issues last year, where we compared notes from the “Five Eyes” community to improve all our contributions and better support for our armed forces personnel and veterans.

Shipbuilding Strategy

Stephen Hepburn Excerpts

Tuesday 23rd January 2018 Westminster Hall

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

I beg to move,

That this House has considered the National Shipbuilding Strategy.

It is a pleasure to see you in the Chair, Ms McDonagh, and good to see many experienced hands from defence debates assembling for yet another one. It is also a pleasure to welcome the Minister to his place and to the wonderful world of defence procurement.

I declare two interests. First, I introduce this debate not only as the Member of Parliament for Plymouth, Sutton and Devonport—Plymouth is a proud military city in uncertain times because of the possibility of defence cuts—but as a vice-chair of the all-party parliamentary group on shipbuilding and ship repair. It is good to see so many members of that small but illustrious group—a band of brothers and our sister from Berwick-upon-Tweed—in their places today. Secondly, as a proud GMB and Unite member, I have had the input of those unions into the debate, for which I am grateful. The combined skills and experience of shipbuilders, engineers and master craftsmen and women contribute hugely to the debate, and it is in defence of those jobs and skills and that industry that many of us are here today.

I am sure that the Minister’s new officials have brought him up to speed, but it might be useful if I recapped briefly why shipbuilding and this debate are so important at the moment. First, though, every hon. Member, on both sides of the Chamber, wishes him and the new Secretary of State for Defence well in their battle with the Treasury to secure more funding.

The UK spends too little on defence, and that has consequences for what the Ministry of Defence can spend on shipbuilding, ship repair and ship procurement, capabilities and weapons systems. The excellent report by the Select Committee on Defence, “Shifting the goalposts? Defence expenditure and the 2% pledge”, shows that the last Labour Government spent on average 2.5% of GDP on defence, and the figure did not fall below 2.3%. Many hon. Members, on both sides of the House, would like a return to that level of spending.

With defence inflation running at a greater level than consumer prices index inflation, the extra bit that the Treasury affords defence is being eaten away as the real-terms value of defence procurement is put under more pressure. I think I speak for most hon. Members when I say that we strongly oppose, on a cross-party basis, cuts to our amphibious ships based in Devonport, in the constituency that I represent, and plans to merge the Royal Marines, but that should be taken as a given in this debate.

That is the backdrop, but the military context is important as well. We live in very uncertain times. Russia is expanding her horizons, has invaded European countries and has largely got away with it. China has ambitions across the Pacific. And the Royal Navy’s ability to command the waves is severely constrained by a shortage of manpower, a privatised recruitment system that is not delivering, and ships tied up because of faults, personnel shortages and a lack of resources. There is a focus on the carriers and continuous at sea deterrence, but the rest of the Royal Navy is suffering, and my argument is that this House will not stand for it.

The national shipbuilding strategy was much delayed, but was at least a good start. It accepted in full Sir John Parker’s recommendations, so I am not sure why it took so long to be produced. Defence aerospace is not as fortunate as shipbuilding, because at least we have a strategy. Britain is good at shipbuilding, and the many warships on sea trials, in dock being built and being planned are testament to our naval heritage and the up-to-date skills of a superb workforce right across the UK. I hope that today’s debate will illustrate to the new Minister and his officials not that that plan is wrong per se, but that with scrutiny we can make it more robust and more valuable to industry and our armed forces.

I want to highlight two principal areas in asking for revisions to the document. One is the procurement of the Royal Fleet Auxiliary’s vessels, especially the new fleet solid support ships, and the other is the configuration, capabilities, roles and realities of the proposed Type 31e frigate. As I said, the first issue is the new RFA solid support ships. The proposed three ship orders, with the vessels coming in at 40,000 tonnes apiece, would match the 120,000-tonne construction contract for the new carriers so ably delivered by British workers across the UK and assembled in Scotland.

I personally favour a restricted tender for the ships, so that only UK shipyards could build them, as they will be carrying arms, munitions and supplies, but I concede that international competition is the most likely option that the Minister will choose for them. In such circumstances, not only must the UK industry be encouraged to submit a bid and not actively discouraged by the MOD, but we must ensure that the procurement does what the procurement for the MARS—military afloat reach and sustainability—tankers did not: it must truly value the social, employment and economic impact of the work for shipbuilding and supply chain communities right across the country.

[Mr Stephen Hepburn (Jarrow) (Lab)]

I am sure that my hon. Friend is aware that shipbuilding industries throughout the world are very heavily subsidised, in one way or another, by their Government. That does not happen in this country. Does my hon. Friend think that we could get a better, more level playing field if the Government addressed their mind to that?

[Luke Pollard]

I thank my hon. Friend for that intervention; I agree with him. In fact, our hon. Friend the Member for Glasgow North East (Mr Sweeney) has raised the concern that state aid from the South Korean Government was potentially part of the consideration of the value of the MARS tankers contract, which went to South Korea. That £452 million contract was potentially subsidised by the South Korean Government, who are building skills and employment in Daewoo shipyards in that country. Excluding a little bit of final outfitting in the UK, those jobs have been outsourced and offshored.

Contracts to build ships for the Royal Navy and Royal Fleet Auxiliary should be onshored. The ships should be home grown, British designed and British made, using British steel and British technologies, and preserving Britain’s sovereign defence capabilities to design, build and equip complex and important ships for our own use and for export. The MOD could give its friends in the Treasury the good news that between 34% and 36% of the contract value would be flowing back into its coffers in tax and national insurance—bad news potentially for Kim Dong-yeon, the South Korean Finance Minister, but good news for our Chancellor of the Exchequer, who I am sure is following this debate closely and with avid interest. He is, after all, a big fan of the armed forces.

If UK shipyards build elements of the ships, it could help to fill gaps in the order books of yards right across the UK and contribute to what I believe should sit alongside the shipbuilding strategy: a clear running order of contracts over the next 30 years for the Royal Navy and RFA; a pipeline of work; a reason to invest in world-class design and production facilities, not just on the Clyde, but in reanimated yards such as Appledore in north Devon and those of Harland and Wolff and Cammell Laird. Ipsos MORI research commissioned by the Department for Business, Energy and Industrial Strategy found that 100 shipyard jobs lead to an additional 32 jobs in the manufacturing sector within a 60-km area, so there is a multiplier effect from investment in UK shipbuilding.

Oral Answers to Questions

Stephen Hepburn Excerpts

Monday 15th January 2018 Commons Chamber

[Gavin Williamson]

My hon. Friend makes an important point about exploiting the “Five Eyes” relationship in terms of defence exports. I have raised that with my Australian and Canadian counterparts. We need to create a platform that uses not just British products, but Canadian and Australian products, to encourage them to purchase the platform.

[Mr Stephen Hepburn (Jarrow) (Lab)]

In any defence contract, what conditions do the Government put in to ensure the use of British labour, new apprenticeships and British components?

[Gavin Williamson]

The Ministry of Defence has created 20,000 apprenticeship places in the past few years. Everything we do in our negotiations with firms, both UK based and international, aims to bring as much work content as possible into the United Kingdom.

National Shipbuilding Strategy

Stephen Hepburn Excerpts

Wednesday 6th September 2017 Commons Chamber

[Sir Michael Fallon]

I will certainly bear that in mind, although if my hon. Friend has waited since 1746, perhaps he can wait a little longer. By the way, I am still waiting for any expression of gratitude—I know that does not come easily to those on the Scottish nationalist Benches—for choosing the name HMS Glasgow for the very first of these anti-submarine frigates, paying tribute to the previous holders of that name and also the role that Glasgow played in the last two world wars. I will, of course, bear my hon. Friend’s suggestion in mind.

[Mr Stephen Hepburn (Jarrow) (Lab)]

I welcome today’s statement, not least because it gives an opportunity to A&P Tyne in my constituency, which did fantastic work on the aircraft carrier. I am sure that A&P will be considered for further work, but will the Secretary of State assure me that that will be the case? Also, why does he not insist that British steel and components are used whenever possible, in order to create jobs and fly the flag for Britain? Is he looking at the loopholes and caveats, and is he going to put in any incentives to maximise the amount of British labour and apprenticeships involved in this excellent opportunity?

[Sir Michael Fallon]

I am grateful for the hon. Gentleman’s welcome. A&P has already made a contribution to the construction of the carrier and it is contributing to the construction of the Astute class submarines. I very much hope that it will be involved in the competition. This is an opportunity for the Tyne, which was previously shut out when the monopoly was granted in favour of BAE Systems in Scotland, so this is good news for Tyneside and the other English yards. So far as steel is concerned, we want to see greater use of British steel when possible, but we must also be alive to the need to achieve best value for the taxpayer.

National Shipbuilding Strategy

Stephen Hepburn Excerpts

Wednesday 8th February 2017 Westminster Hall

[Douglas Chapman]

Of course. That just makes the point that while the Government sit back, dither and try to work out what the strategy might be, we have great examples of other countries—small countries—that are able to export their own products into the markets that they want to serve.

Quite simply, we have been waiting for the future surface combatant, be it the Type 26 or the Type 31, since 1994. Sir John’s report may seek a “sea change” in naval procurement, but the fact is that we had a defence industry strategy in 2005, a 15-year terms of business agreement signed by BAE Systems in 2009 and a consolidated shipbuilding plan for the Clyde, with support from the Government and the trade unions, in 2013. How on earth has it taken the Government so long to get to a strategy? Why do they still not have one by 2017? Surely that is a damning indictment of their competence to run the country. Again, I plead with the Minister: let us get on with it.

My second question for the Minister is about ensuring that when HMS Queen Elizabeth enters service, it will do so with a carrier group worthy of a next-generation Navy. Those carriers—the largest ships ever built for the Royal Navy—are being built on time and on budget in my constituency by the superb workforce in Rosyth. It would be a great disappointment to those workers, those men and women—

[Mr Stephen Hepburn (Jarrow) (Lab)]

I congratulate the hon. Gentleman on securing this debate on a very important issue. He mentions the aircraft carriers. Let me respectfully advise the Minister that shipbuilding and ship repairs are still very much alive on the Tyne and that my local yard, A&P Tyne, has played a key role in getting those ships on time, within budget and with excellent quality. In the light of John Parker’s report, which identified that commercial yards have a great role to play in supporting traditional naval yards in providing the MOD’s requirements, I ask the Minister to ensure that when any lucrative contracts come forward in the future, commercial yards such as A&P are taken into consideration, bearing in mind their record.

[Douglas Chapman]

I thank the hon. Gentleman. That is a bit of a non-question for me, but I am sure the Minister will be happy to add it to her extensive list of questions already put.

The ships in Rosyth are the biggest that the Royal Navy has ever built, and various people have been involved in building them from day one and bringing the parts from all areas of the UK to Rosyth, but we must ensure that when those ships sail down the Forth, they are adequately protected. At the moment, I struggle to see how that battle group will fit together.

As I said, although 2017 may be the year of the Navy, 2023 will be far more significant, because in 2023 we will know whether the strategy has done what it set out to do in the first place. By 2023, the initial tranche of 24 F-35Bs should be in place to fly operations from the carriers, and the first Type 26 should be entering service to replace HMS Argyll, which will be the first Type 23 to leave service.

The Defence Committee highlighted the question of the carrier group in our November report and I hope we will press the Minister further on it, but quite simply the Government are running out of time to uphold their end of the bargain. Quite honestly, I am not holding my breath.

I expect many right hon. and hon. Members will talk today about the state of the Navy, but going over some of the history again might be worthwhile. At the time of the infamous Nott report, the Royal Navy had 60 frigates and destroyers, and even by the end of the Falklands conflict, it still had 50. In the 1998 strategic defence review, long after the cold war had ended, a floor of 32 ships was constructed. However, the Government now crow about their commitment to 19 frigates and destroyers.

Even as we move to an era of fewer and more powerful ships, 19 is still too low a number and has seen the UK fail in many of its commitments to its allies. I am not alone in finding it unacceptable that the UK has often been unable to provide a ship for NATO’s standing maritime groups; that we had to miss the recent anniversary celebrations of the New Zealand navy because a suitable ship was not available; and that offshore patrol vessels are having to fill in on tasks relating to the fleet ready escort and the Royal Navy’s presence in the Caribbean.

Oral Answers to Questions

Stephen Hepburn Excerpts

Monday 23rd November 2015 Commons Chamber

[Mark Lancaster]

The Government are determined to honour the commitments made by the armed forces covenant to ensure fair treatment of veterans and their families in need of social housing. That is why this Government changed the laws so that seriously injured serving personnel and veterans with urgent housing needs must always be a high priority for social housing. It is, however, for local authorities to make judgments about the competing housing priorities in their areas, but if my hon. Friend writes to me with the details of this case, I will of course raise it with my Department for Communities and Local Government colleagues.

[Mr Stephen Hepburn (Jarrow) (Lab)]

Ten thousand of our homeless are military veterans, as are 10% of our prison population. How is the covenant tackling this problem?

[Mark Lancaster]

The hon. Gentleman will be aware of the £40 million invested in the veterans accommodation fund. I work very closely with a number of charities to ensure that we address this issue. He can see for himself at the Beacon home in Catterick, for example, or the Mike Jackson House in Aldershot, if he wishes to visit, and I would encourage him to do so.

Oral Answers to Questions

Stephen Hepburn Excerpts

Monday 20th February 2012 Commons Chamber

[Mr Philip Hammond]

Clearly, strong statements of support from any of our allies are always helpful, but the realistic situation, which we have long recognised in this country, is that the defence of the Falkland Islands is a task for which the UK must be prepared and capable of undertaking alone if necessary. We hope that we will have support from others, but that cannot be our planning scenario.

[Mr Stephen Hepburn (Jarrow) (Lab)]

T6. What is the current position concerning the aircraft carrier project? Has there been any change in strategy as far as the design and build are concerned?

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

I think I can give a very short answer to that question: no.