Stuart Andrew
Main Page: Stuart Andrew (Conservative - Daventry)Department Debates - View all Stuart Andrew's debates with the Ministry of Defence
(5 years, 6 months ago)
Commons ChamberCompetition remains the cornerstone of defence procurement policy, except where other strategic considerations need to be taken into account—for example, national security, operational advantage and freedom of action.
I thank the Minister for his visit to defence companies in my constituency and for his helpful and inclusive approach when he visits. Does he agree that the ability of those companies in my constituency and of British companies in general will be greatly damaged by a hard Brexit?
I am grateful for the hon. Gentleman’s kind comments. It was a pleasure to meet a number of businesses in his constituency. We have been engaging a lot with the small and medium-sized enterprise supply chain. In fact, on 9 May, I held a roundtable with small businesses in north Wales, and they felt very optimistic about the future. Through our equipment plan, we are actively engaging with the supply chain to ensure that the opportunities in each of our projects will maximise the input that they can have.
I welcome the Secretary of State to her place. It is a pleasure to see such an amazing woman on the Front Bench, standing up for defence.
Last Thursday, myself and colleagues from across the House on the all-party parliamentary group on shipbuilding and ship repair launched our report on the national shipbuilding strategy. We have real concerns that competition, particularly for naval shipbuilding, is based on a model that does not include the economic benefits to the UK being recycled back in when we spend UK taxpayers’ money. Can the Minister give me an assurance that the Ministry is looking at that and will work with the Treasury to change our model, so that we can get the best value and ensure that our shipbuilding pipeline lasts in the UK?
I thank my hon. Friend for her question. She will be aware that Sir John Parker is currently doing a review of his initial report. International competition is also about encouraging UK industry and UK shipyards to be as competitive as possible, so that they can not only maximise the opportunities that UK defence offers, but take advantage of competition around the globe, too.
The Minister said that this is to make UK yards more efficient, but what they need is throughput of work. His Department has chosen to put the contract for the fleet solid support vessel into international competition. What weight was given in that decision to his Government’s prosperity agenda, our sovereign capability and the need to protect UK shipbuilding?
That is precisely why the Type 26s, Type 31s and aircraft carriers were built in the UK, so that we could maintain that capability here in the United Kingdom. The right hon. Gentleman might be aware of the speech that the Secretary of State recently made, and part of what she is doing is a review into the MARS—military afloat reach and sustainability—tankers, to ensure that we look at the exact experiences with that and take lessons from it.
Does my hon. Friend agree that the involvement of small and medium-sized enterprises in defence procurement is essential in promoting innovation in the sector?
My right hon. Friend is right. One of the things I have noticed in this role and as I go around the country is that innovation really exists in the SME sector. We have to ensure that more SMEs feel they can do business with the Ministry of Defence, so that we can take advantage of that for our armed forces.
The Government’s procurement process for military equipment is a shambles, and nowhere is that better seen than in the way it is handling the procurement of the Type 31e frigates. Having started, then stopped, then restarted the procurement process for the Type 31s last year and imposed a totally unrealistic price ceiling of £250 million per frigate, will the Minister confirm that he has now effectively removed that financial ceiling?
I do not actually recognise the hon. Gentleman’s interpretation of the competition. This is a challenging competition for the very reason that we want to ensure that UK industry is competitive—not just in the UK, but around the globe. We have taken a pragmatic approach to change the parameters to ensure consistency with all other competitions that have been happening. This is a challenge to industry, but we want it to be competitive. That was the whole point of the national shipbuilding strategy.
It is clearly important that we provide appropriate protection for sensitive research with defence or security applications, whether conducted in our universities or in industry. That is why we work closely with other Government Departments, agencies and international partners to ensure suitably robust arrangements which keep pace with developments in technology and the wider global context.
Recent media reports have highlighted increasing concerns about scientists linked to the People’s Liberation Army working in UK universities on research relevant to the development of sensitive military technologies. Does the Minister share that concern? Is he working with universities to mitigate the risk of financial dependency on, or the sharing of sensitive technologies with, China? Will clearer guidance be developed on academic areas deemed relevant to national security?
I thank my hon. Friend for raising this very important issue. I can confirm that we work very closely with universities to inform them of the risk posed by military-civilian research fusion. Universities are subject to the UK’s strategic export controls, as is everyone else in the UK, and should consult the Department for International Trade before engaging in any relationships focusing on technology that could have a military application. Further guidance is available on the gov.uk website.
The 2015 strategic defence and security review introduced a new national security objective to promote UK prosperity. We subsequently published strategies for shipbuilding and combat air, and refreshed our defence industrial policy with a new emphasis on supporting growth and competitiveness. On 14 March, we provided an update to Parliament on our ambitious defence prosperity programme.
Last week, the Secretary of State described our Type 26 frigates as the envy of the world. They are powered by the most capable and quietest electric drive motors, which are designed and made by GE in Rugby. Is the Minister as delighted as I am at today’s news that the Ministry of Defence is bringing forward orders for the motors for the second batch of those vessels, which will enable this vital facility to remain here in the UK?
May I first praise my hon. Friend for the work he has done to fight for the factory in his constituency? I could not walk down a corridor without bumping into him and him lobbying hard. That was why I made sure that I met GE. I am pleased to inform him that this morning GE announced to its staff that it has reached an agreement with the Ministry of Defence that will enable the company to continue its work in his constituency. I also pay tribute to my officials, who have worked incredibly hard on this matter to ensure that the machines continue in Rugby.
Delivery of the Tempest programme, as driven by BAE Systems in Warton, is essential to managing the future military air requirements of the United Kingdom. Can the Minister confirm continued Government support for the combat air strategy, as outlined by the Prime Minister at Farnborough?
My hon. Friend secured a debate just last week on this very issue and is obviously fighting very hard for his constituents who work at BAE Systems. The Government continue to deliver the combat air strategy which, as he says, was launched at Farnborough last year. That is a big piece of work, which is looking at the future air combat system technology initiative. The Government will continue to look at all innovative technologies that will need to be available, while we explore a broad range of options to deliver capability.
The cross-party report on shipbuilding recommended that the new Royal Fleet Auxiliary ships are built in British shipyards—that is absolutely vital and enjoys cross-party support. Has the Minister read the report, and will he meet the officers of the all-party group to take forward our recommendations?
I would be more than happy to meet the hon. Gentleman and others who have shown an interest in this. As I said, my right hon. Friend the Secretary of State is currently conducting a review into the MARS—military afloat reach and sustainability—tankers to see how we can learn from that and maximise the opportunities that will exist for the supply chain in the UK.
In recent days, we have heard of foreign shipbuilders pulling out of the bidding process for the fleet solid support ships. If the Government are being true to the national shipbuilding strategy, will the Minister accept that time is of the essence for not only the support ships but the bidding process for the Type 31 frigates? I know of a yard that has the skills, experience, talent and infrastructure to build those ships for the UK—we are good to go in Rosyth, so, for the sake of jobs and the industry, will the Minister start signing the contracts?
The hon. Gentleman mentions the Type 31. Of course, that is a UK-only competition and we will wait for the results later this year. On the fleet solid support ships, I am pleased that a UK consortium is in there. I can confirm that Fincantieri has withdrawn from the competition, but I am not going to comment on any other entrants, because it is purely speculation at this stage.
I can absolutely confirm that, hence why we put an “e” on the end—to show that this is a ship we want to export. We want to show what UK industry can do and the capability it can provide to other nations. I am sure the Type 31 will follow the success of the Type 26.
As the right hon. Gentleman will know, following the issues involving Galileo the Government announced that £95 million would be spent on exploring exactly what our future options and capabilities might be, and that work is still ongoing.
The Under-Secretary of State for Defence, my right hon. Friend the Member for Bournemouth East (Mr Ellwood), was good enough to meet representatives of Rock2Recovery, which specialises in providing mental health coaching for veterans and current service personnel. How does he intend to use that solution as part of any future treatment?