Oral Answers to Questions
Stuart Andrew Excerpts(5 years, 1 month ago)
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John Spellar (Warley) (Lab)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
The UK defence industry is globally competitive and creates and contributes to jobs across the United Kingdom. I am confident that it will continue to thrive in the future. The Government are seeking the best possible deal for UK industry after exit. We support European collaboration on capability development and are promoting the invaluable contribution of UK industry.
John Spellar
That was a standard complacent reply from the Minister. Ministers are still hanging on to the mythology that EU regulations prevent them from supporting British industry, most recently with the fleet solid support ships. Of course, no one else in the EU holds on to that view or, indeed, behaves like that. However, as leaving the EU looms, will the Minister now show some decisiveness and backbone, instruct his officials to scrap the old discredited dogma and start putting British industry first?
Stuart Andrew
I say to the right hon. Gentleman that we are trying to make our defence industry the most competitive in the world so that we win those international competitions. It would not be right for me to comment on the decisions taken by other countries on FSS, to which the right hon. Gentleman referred, but I note that the EU Commission has publicly questioned the legality of applying article 346 to the procurement of support ships by other member states, so I am glad that we have behaved properly.
David T. C. Davies (Monmouth) (Con)
Stuart Andrew
My hon. Friend makes a valid point. Of course our commitment to EU security, European security and working with our NATO colleagues will continue after we have left the EU. That is why we are working on ambitious future arrangements. People know that they can rely on the armed forces of the United Kingdom.
Ruth Smeeth (Stoke-on-Trent North) (Lab)
The Minister knows that I am a huge advocate of the combat air strategy, and had the first debate on that in the Chamber. Given that we are about to leave the EU and Team Tempest is so far showing impressive signs of movement, when will we discuss a replacement for the Hawk so that we have a full package and a training aircraft, and can secure the jobs at Brough?
Stuart Andrew
The hon. Lady is right about the future combat air strategy. We are in negotiations and discussions with other partner nations. When it comes to the issues around Hawk, we have done an enormous amount of work to try to get more orders for the Brough site. I recognise how important that is. I have visited Kuwait myself to try to get that order over the line. It is still a work in progress, but I hope that we will be successful.
Bob Blackman (Harrow East) (Con)
Stuart Andrew
My hon. Friend is right to raise that. I went to see some of the small and medium-sized businesses that are working with our armed forces on some of the projects that have been funded through that, plus the innovation fund—the £800 million over 10 years that is encouraging as many businesses as possible, many of which have probably never worked with defence in the past, to come forward with their ideas.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
Today, we saw the ceremony for confirming the move of the EU anti-piracy taskforce from Northwood to a new location near Cadiz. All around us, we are hearing about the consequences of Brexit not only on the defence industry but on our security relationships. Despite there being a rather uncommon consensus in the House about the importance of those relationships, we have heard precious little from the Department. Not only our closest allies, but the defence industry, serving personnel and policy makers need clarity on the UK’s grand strategy. Will the Minister stop hedging their bets and tell us about the defence and security relationship that the Government want with the EU?
Stuart Andrew
Part of the negotiations with the EU has heavily focused on our future relationship and the collaboration we want with EU nations. However, at the end of the day, the cornerstone of our defence is NATO, and those relationships, and our bilateral relationships with many other countries, will form the way that we do defence in the future.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
As the Conservative party plays political games and the Cabinet seeks to oust the Prime Minister, the huge uncertainty for our defence industry continues. The Prime Minister’s Brexit deal has been rejected twice, so will the Minister accept that the Government must now do the responsible thing and work across the House to build a consensus for a better deal? Instead of treating this House with yet more disdain, will he confirm that the Government will work with MPs from across the House to determine the course of action?
Stuart Andrew
I gently say to the hon. Gentleman that this is defence questions. The Prime Minister will be making a statement shortly. Perhaps that question would be best put to her.
Huw Merriman (Bexhill and Battle) (Con)
Melanie Onn (Great Grimsby) (Lab)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
The Ministry of Defence’s first priority is always to guarantee that the UK is able to meet its national security obligations, which include ensuring that our air defence radar systems can operate effectively. The Ministry is supportive of the offshore wind sector deal, and we remain keen to work closely across Government and with the industry to support this.
Melanie Onn
Over half the new offshore wind sites that the Government have announced they will build will affect aviation radar systems. The Under-Secretary of State for Defence, the right hon. Member for Bournemouth East (Mr Ellwood), responded to a written question of mine on 20 February, saying that the solution is
“challenging and requires upgraded or new technologies, which are not currently part of the equipment programme.”
Does that not simply mean that the Government’s ability to deliver on that sector deal is going to be hampered?
Stuart Andrew
The hon. Lady raises an important point because the scale and size of the proposed wind farms are significant. I have been speaking to officials about how we might use the innovation fund, for example, to work closely with the industry to find a solution to this problem.
Neil Parish (Tiverton and Honiton) (Con)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
In 2017, the UK won defence orders worth £9 billion, making us the second largest global defence exporter. We work actively with the Department for International Trade to support industry, and recent successes include the export of the Type 26 to Canada and Australia, and the US Department of Defence awarding a further £500 million-worth of support work for the F-35 programme in north Wales.
Neil Parish
Supacat, the leading specialist in the design and development of high-mobility defence vehicles, is located in my constituency. If it wins a contract in Denmark, it has to offset 60% of that work in Denmark with supplying those vehicles to the Danish Government, yet that is not something that we do here. Will the Minister meet Supacat to discuss what more could be done to ensure that we secure high-skilled defence jobs in this country when defence contracts are lost to foreign companies?
Stuart Andrew
Of course I would be more than happy to meet my hon. Friend and the company in his constituency. The UK and many of our closest international defence partners do not use offset because it can distort the market and lead to reduced value for money, but we look at alternative ways to encourage more inward investment. That is why we are working closely with Boeing and Lockheed Martin, and we are aiming for 60% of the Boxer programme to be undertaken in the UK.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
Stuart Andrew
It was a pleasure to see the hon. Gentleman in Glasgow. That was a great event and I was happy to be there. He will know that we are trying to make UK industry as competitive as possible. That is why we are putting this out to international competition; it is not described as a warship. That said, I am delighted that there is a team UK, a consortium of UK shipbuilders, bidding into that competition. There will also be lots of opportunities for the supply chain, which has benefited from other competitions that went international, such as that for the military afloat reach and sustainability—MARS—ships.
Norman Lamb (North Norfolk) (LD)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
When defence equipment becomes surplus to requirements, the Defence Equipment Sales Authority disposes of it using compliant contractors or by direct sale to other Governments. Contractors who process or dispose of sensitive defence equipment are subject to a strict ongoing security assurance programme.
Norman Lamb
The Minister will be aware of the serious allegations relating to the transportation and storage of defence technology from Leonardo by Used Equipment Surplus and Storage Ltd—UES&S—in my constituency. Ministry of Defence police visited my constituents and told them that prosecutions were likely to follow and that they would receive a copy of the investigation report. My constituents are still waiting. Every request I have made for a meeting with Ministers has been turned down for more than a year. Will the Minister meet me and will he give me a copy of the report, because there are serious concerns that there is a cover-up going on here?
Stuart Andrew
I can tell the right hon. Gentleman that there have been inspections at those premises and that nothing was seen to be of concern. However, I understand the issues that the situation is causing his constituents, so I would be more than happy to meet with him and them.
Mr Laurence Robertson (Tewkesbury) (Con)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
The Ministry of Defence spent £18.9 billion with UK industry in 2017-18, directly supporting 115,000 jobs across the country.
Mr Robertson
I thank the Minister for that response. He will be aware that Dowty Propellers, one of the world’s largest propeller manufacturers, had an unfortunate fire in my constituency four years ago. Owned by an American company, GE Aviation, it could have rebuilt the factory anywhere, but it has chosen to build it in my constituency, thereby securing 350 jobs. I thank the Government for their contribution through the digital propulsion scheme, which will contribute to the success of the company.
Stuart Andrew
I congratulate my hon. Friend on his work in this area and welcome the fact that GE Aviation’s investment is creating this new propeller facility. It will form part of the defence industry’s massive contribution to the south-west and provides the jobs on which many people rely.
Wes Streeting (Ilford North) (Lab)
Wayne David (Caerphilly) (Lab)
Normally it takes three years to train an RAF pilot. Will the Minister explain why it is now taking up to seven years?
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
We accept there have been issues with this contract, but we are working very closely with industry to try to resolve it and to make sure there are the training facilities needed for the people who want to take up that career.
Wayne David
That is a very interesting response, but is it not the case that there is this problem because there are shortages of planes and instructors, and that things are so bad that the MOD is paying a private contractor for phantom courses that never take place? On current estimates, it will take another 20 years before the RAF has enough pilots, so how does the Minister propose to remedy this totally unacceptable situation?
Stuart Andrew
As I said a moment ago, I recently met industry and spoke to, for example, the chief executive of BAE Systems. I want those industries to work together to come up with a solution, which is the challenge we are giving them.
Sir Desmond Swayne (New Forest West) (Con)
Anna Turley (Redcar) (Lab/Co-op)
Stuart Andrew
The hon. Lady is absolutely right, and that is exactly what we are doing. I was very pleased to host an SME forum in Belfast, and the next one will be in Wales. We have officials all over the country engaging with SMEs, because we recognise the massive contribution they can make to the defence needs of this country.
Andrea Jenkyns (Morley and Outwood) (Con)
Defence Procurement: Boeing E-7
Stuart Andrew Excerpts(5 years, 1 month ago)
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The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
I am pleased to inform the House today that a $1.98 billion contract to deliver five E-7 airborne early warning and control aircraft has been signed with Boeing Defence UK.
The E-7 will replace the current E-3D Sentry airborne warning and control aircraft fleet, providing UK armed forces with a highly effective, world-leading capability that has already been proven on operations with the Royal Australian Air Force. A thorough investment approvals process has taken place, with the contract concluded after a period of intensive negotiation with Boeing. The E-7 not only represents value for money for the UK taxpayer, it also provides the optimum surveillance solution to allow UK armed forces to monitor and manage airspace on deployments and provide early warning of threats. The E-7 is in operation with one of our key allies and this UK procurement will increase opportunities for interoperability and collaboration. It is also a vital element of the UK’s continued 25% airborne early warning and control contribution to NATO, which will benefit from a greatly enhanced UK capability.
The E-7 contract will also bring significant prosperity benefits to this country, building on Boeing’s current commitment to maximising investment in the UK. Modification work to transform the base Boeing 737 aircraft into the E-7 will be carried out in the UK, sustaining several hundred highly skilled jobs at Marshall Aerospace and Defence in Cambridge. In addition, there are also expected to be significant future opportunities for the UK supply chain in through-life support and training for these UK aircraft and their crews.
Boeing will begin work immediately, with the first of our aircraft expected in 2023.
As part of the plan for a managed transition to E-7, it has been decided to reduce the existing E-3D fleet from six to four aircraft by removing the two long-term unserviceable assets from the active fleet. Doing this now will enable the Sentry force to focus resources on providing better availability from the remaining four aircraft, to better assure the future Sentry fleet output, including our commitments to the NATO airborne early warning and control force and the provision of NATO assurance measures missions.
[HCWS1437]
Draft Defence and Security Public Contracts (Amendment) (EU Exit) Regulations 2019
Stuart Andrew Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
I beg to move,
That the Committee has considered the draft Defence and Security Public Contracts (Amendment) (EU Exit) Regulations 2019.
It is a pleasure to serve under your chairmanship, Mr Evans. A responsible Government plan for all eventualities. As part of the preparations to leave the European Union, it is essential that we ensure that our legislation governing defence and security procurement functions properly beyond exit day in a no-deal scenario. It is the first duty of a Government to keep their citizens safe and the country secure. As part of that, the Government need to be able to procure the critical equipment and capabilities they need smoothly and with confidence.
In the event of no deal, these amending regulations will provide procurers and suppliers with legal continuity and certainty, giving them the stability they need to conduct business after 29 March. Clearly, the amendments reflect the UK’s new status outside the EU in a no-deal scenario, but the framework and principles underlying the defence and security procurement regime remain otherwise unchanged. That is in accordance with the powers given to amend retained EU law in the EU (Withdrawal) Act 2018. The Act does not allow major policy changes or the introduction of new legal frameworks beyond those changes to fix deficiencies to ensure that the law continues to function properly and changes to remove any reciprocal obligations that are no longer appropriate from exit day.
Brexit will offer us real opportunities, including reform of our defence and security procurement regulations. In the near term, however, the regulations ensure that the UK’s defence and security procurements continue to function smoothly in a no-deal scenario, but with that all-important autonomy from the European Union.
To protect the UK’s essential security interests, the regulations will maintain the effect of article 346 of the treaty on the functioning of the European Union by writing its substance into the existing regulations. The regulations already make clear that they can be trumped by article 346. Article 346 enables us to disapply the defence and security procurement rules where necessary to protect essential national security interests.
Through the amendments, control over our procurement is returned to the United Kingdom. For example, the Secretary of State for Defence will take the power previously held by the European Commission to modernise, although not broaden, the 1958 list of warlike stores that falls under article 346(1)(b). All notices for defence and security procurement opportunities will in the future be published on a new UK e-notification system. Business continuity meanwhile is assured through the transitional provisions. There will be no defence procurement cliff edge.
Competition remains the cornerstone of defence procurement policy, ensuring that we equip our armed forces with the right capability at the right price. Currently, we allow bids from suppliers outside the EU, although the existing regulations provide the legal right of market access required by EU law only for suppliers based in the EU. Any restrictions on, for example, bidding on national security grounds are made clear from the outset of any procurement. The regulations provide a legal right of market access for suppliers based in the UK and Gibraltar that currently enjoy rights under the EU defence and security directive. After exit day, suppliers in the EU will lose their legal right of market access, but we will still allow them to bid on the same basis as suppliers outside the EU. That reflects the UK’s new status as a third country outside the EU.
Mr Robert Goodwill (Scarborough and Whitby) (Con)
Much EU environmental legislation, such as for vehicle emissions, has an exemption for military use. After we Brexit, will that situation change under any of the provisions in the regulations?
Stuart Andrew
Nothing in this order, which purely transfers our procurement regulations, does that. We can look at a whole raft of matters once we have properly left. We will obviously consider the point that my right hon. Friend raises, but that would be under further consultation, and legislation would then have to come through the House.
Nigel Mills (Amber Valley) (Con)
To take the Minister back to what he was saying about allowing companies based in the EU to have access to our defence procurement, is that a reciprocal requirement? If any part of the EU refused to allow our defence companies access to their markets, could we refuse companies in their countries access to ours?
Stuart Andrew
As it stands at the moment, these regulations would come into force should we leave without a deal. British companies would not have a legal right of access to those European competitions. Having said that, a minimal number of contracts have been won by UK companies through that legal right, compared with the number of exports that our industry secures. I have a lot of faith in the British defence industry and believe that it will be successful in terms of all the other international competitions that will take place.
Although the amending regulations mainly relate to exiting the EU in a no-deal scenario, they also make some updates and corrections to the Defence and Security Public Contracts Regulations 2011. These will come into force before exit day, regardless of whether there is no deal. Through the amending regulations, the Government will ensure that UK defence and security procurement continues to function properly and appropriately, with solid legal foundations underpinning it. This instrument would give procurers and suppliers the confidence and continuity in procurement that they would need in the case of a no-deal scenario, and I commend the regulations to the Committee.
Stuart Andrew
I am grateful to all hon. Members who have spoken. As they will be acutely aware, delivering the deal we have negotiated with the EU remains the Government’s top priority. However, these amending regulations will provide for continuity and legal certainty in this important area in the event of no deal. It is prudent to plan to ensure that we have some certainty. The hon. Members for Caerphilly and for Glenrothes said this was bad planning. The whole point of the draft regulations is to ensure that we are prepared for every eventuality. I question whether they are massively significant, given that we have tried to replicate as much of the current regulations as possible so the industry knows where it stands and can have confidence that not too much has been changed.
The hon. Member for Caerphilly mentioned concern about the effect of UK businesses not having a legal right to bid when other EU member states procure. I am sure the Committee will be interested to know that between 2011 and 2015, UK defence exports totalled £40.2 billion and contracts from the EU to British companies under the current EU directive were €168 million. That is a significant difference, but regardless of the changes made by the draft regulations, British businesses will still be able to bid. Given the world-class industry and technology we have in this country, I am sure that many of those businesses will be successful.
The hon. Gentleman also mentioned single-source procurement. That is often done either because we need the equipment quickly or because we need the proven capability that is on offer. AWACS was mentioned. I have said on a number of occasions that the capability that is being offered works and is proven. The Australians are using it. Some of our armed forces personnel are out there at the moment learning about the equipment. The hon. Gentleman mentioned the Airbus and Saab alternative, but they have not even put it on the plane yet. We know from experience that when it comes to this sort of equipment, we can spend years and years trying to prove a capability that does not work and ends up costing us billions.
Stuart Andrew
Those planes are ready at the moment. Some of them are ready for us at the moment. They are on the production line. That will not be an issue at all. As I said, we are still going through a lot of the assessments, but the point is that the Airbus alternative has not even been proven. This is a capability that we need. I agree completely with the hon. Member for Glenrothes that we need to give our armed forces equipment that they can rely on and depend on. This is a classic example of why we have do that.
Wayne David
I hear what the Minister is saying, and he may have a case, but would it not have been far better simply to have an open procurement competition under which every competitor could set out what it had to offer and everybody could see which was best?
Stuart Andrew
It would have taken them some time to prove the capability. The point is that we do not have the time. The E-3 system is not really up to standard, and we need to replace it. That is why, as I say, we look at these situations very carefully.
I am glad that my right hon. Friend the Member for Scarborough and Whitby talked about the Boxer. It is a proven capability, and he is absolutely right that we negotiated for 60% of the supply chain to come from this country. The hon. Member for Caerphilly said that BAE Systems had been taken over by Rheinmetall. This is a joint venture; it is something we should be really pleased about.
Stuart Andrew
We are seeing investment in this country, and I am surprised that the hon. Gentleman is not welcoming the fact that jobs will be sustained in Telford, and more jobs will be created, because of this joint venture. It is disappointing that Labour Front Benchers are not welcoming this investment in the British defence industry and the jobs it will secure.
Regarding article 346, the whole point is that we have transferred the wording, because in this instance we want that continuity to take place. It also allows us to exempt the need to go into international competition, should there be a national reason why we have to keep that capability within this country. The hon. Gentleman said that we have not gone into the changes in depth, but, as I said in my opening comments, those are for future discussion. Once we have left, we want to have a look at the opportunities available to reform our defence procurement systems.
Finally, the hon. Member for Glenrothes said that the 1958 list will be transferred to the Secretary of State. It is not fair to say that the Secretary of State will not be held to account. There will be many opportunities to hold him to account, including questions in the House and Select Committee hearings, but the most important point is that any changes that the Secretary of State might suggest to the 1958 list would have to go through this House as an SI, and would therefore need the approval of both Houses. It is not fair to say that he can make such changes on a whim. I hope I have answered all of the specific questions, and clarified the implications of the amended legislation.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Defence and Security Public Contracts (Amendment) (EU Exit) Regulations 2019.
Defence Spending in Scotland
Stuart Andrew Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
It is a pleasure to serve under your chairmanship, Ms Ryan. I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing the debate. I do not know whether something about him means that the whole Chamber leaves when he has his debates—perhaps they should all have stayed to listen to his contribution—but I am glad that he is rightly standing up for his constituents and his constituency. I will come on to some of the specific points he made in more detail in a moment, but I will first provide some context for defence spending in Scotland.
Last year’s report on the contribution of defence to UK prosperity, which was produced by my right hon. Friend the Member for Ludlow (Mr Dunne), showed that defence benefits every single part of the United Kingdom. The sector has annual turnover of £22 billion and supports some 260,000 jobs. Scotland very much shares in that national success, benefiting directly from every pound that is spent on defence. To illustrate the point, it is worth looking at two of the key areas where defence spending in Scotland is concentrated. The first element relates to our spending with industry in Scotland. Last year, as the hon. Member for Glasgow South West said, that spending amounted to £1.65 billion, supporting 10,000 jobs. That is equivalent to £300 per capita, which is above the UK average. I know that he was complaining about some other regions, but I represent Yorkshire, and Scotland is doing a heck of a lot better than Yorkshire on defence spending.
We cannot talk about the defence industry in Scotland without recognising, as the hon. Gentleman did, the incredible expertise of the Scottish shipbuilding sector. With a history dating back more than 150 years, it has long been the envy of the world, and it remains a global leader. In the past few years, Scotland has played a major part in the building, assembly and successful delivery of HMS Queen Elizabeth, the most powerful surface vessel in British history, as we all know.
The MOD has already placed a £3.7 billion contract to build the first three state-of-the-art Type 26 global combat ships on the Clyde, in the place—I can now confirm—where all eight will eventually be built. The first of those City-class frigates has been named HMS Glasgow, which I am sure the hon. Gentleman is delighted about, and the last will be HMS Edinburgh, again recognising Scotland’s contribution. Coupled with our order for five offshore patrol vessels, that work will sustain some 4,000 jobs in the Scottish shipyards and throughout the supply chain until the 2030s.
Chris Stephens
I am grateful to the Minister for confirming that all eight of the Type 26 ships will be built in Glasgow. He might get representations from his colleagues in Scotland to name the other ships after different areas of Scotland, but I will leave that to them. Will the Minister kindly update us on the Type 31 frigates? He knows that there is interest in those being built in Glasgow and other places in Scotland.
Stuart Andrew
I was going to come to that, but I will touch on it now. The Type 31e is subject to an open competition at the moment, as the hon. Gentleman knows, so I cannot go into too many details, other than to say that we have three bidders in the competition, which is an exciting and challenging one as we try to change how we procure our frigates. I look forward to seeing the competition progress.
As I was saying, the fact that we have been able to secure those jobs in the Scottish shipyards, with work into the 2030s, is something that no other industry in the United Kingdom can boast or be assured of, so it is not surprising that many MOD prime contractors have sites in Scotland, including Babcock, BAE Systems, Rolls-Royce, Leonardo, Thales, Raytheon and QinetiQ. That goes to prove that the defence industry in Scotland is about more than just shipbuilding, as the hon. Gentleman rightly pointed out.
In the land sector, beneath the prime contract level, many companies across Scotland have provided high-technology sub-systems to the Army’s critical warfighting platforms, which include Challenger 2 main battle tanks, Warrior infantry fighting vehicles, Foxhound patrol vehicles and the new Ajax reconnaissance fleet. Such on-board technology ranges from world-beating, 24-hour, all-weather sensors and sighting systems to the integrational design of complex battlefield communication equipment.
Looking forward, the land sector also holds much near-term potential for the Army’s exciting fighting vehicle modernisation programmes. Scottish companies are already bidding competitively in the Challenger 2 life extension programme, the mechanised infantry vehicle programme and the multi-role vehicle protected programme package 2—that’s a bit of a mouthful! For example, as the hon. Member for Glasgow South West said, Thales—a company that I have visited on many occasions, even in the short time that I have been in my role—has a site in his constituency and is one of two finalists, bidding with its Bushmaster vehicle. Thales is also tendering for a range of smaller electro-optical sub-system upgrades for the existing armoured fleet to contribute to the British Army’s warfighting edge. I repeat, however, that the competition is open, so I cannot comment other than to say that I have heard him.
We should also not forget that small and medium-sized enterprises throughout the supply chain in Scotland benefit from our investment. I have really enjoyed seeing the innovation there is among SMEs not just in Scotland but right across the country. Innovative smaller companies such as Denchi Power in the town of Thurso in Caithness provide much of the essential very high capacity advanced battery and charging technology for the British Army’s combat radio systems. In the past financial year, our Defence Science and Technology Laboratory alone invested £4.84 million in research and development contracts with Scottish suppliers.
The second main element of our defence spending consists of investments in critical defence assets, stretching far beyond our submarine and RAF bases. Few are aware that Scotland has some 50 defence sites, including Benbecula in the Outer Hebrides, Buchan in Aberdeenshire and Saxa Vord in Shetland. Those are the locations of our military radars, which provide critical long-range coverage of the northern approaches to the UK and neighbouring NATO nations. As the threats from the likes of Russia rise, so too does the significance of those sites.
The hon. Member for Glasgow South West mentioned fleet solid support ships, an issue I have had to deal with on many occasions in this role. Those ships’ primary role is to replenish naval vessels with bulk stores. They are non-combative naval auxiliary support ships, which are manned by civilian Royal Fleet Auxiliary crews and fitted with weapons systems purely for self-defence, so they cannot be designated as warships. I will probably continue to have long correspondence about that with the members of the Defence Committee, and I look forward to replying to their letter.
The relationship between defence and Scotland is mutually beneficial. Scotland is as integral to the United Kingdom’s security as the rest of the United Kingdom is to Scotland’s. Yes, the UK depends on the deep commitment of our Scottish personnel and benefits enormously from the unparalleled expertise of the industries based there, but Scotland also benefits from being part of the United Kingdom as a whole. It benefits from the UK’s broad spectrum of capabilities, it benefits from the sheer scale of defence spending by the UK, which can call on the fifth biggest defence budget in the world, and it benefits from the influence the UK is able to wield on the world stage to make a genuine difference.
Douglas Ross
Will the Minister confirm that another benefit of Scotland being part of the United Kingdom is that, when the SNP made Scotland the highest taxed part of the United Kingdom, the UK Government and his Department were able to mitigate that Nat tax for our armed forces personnel?
Stuart Andrew
My hon. Friend makes a very important point, which my hon. Friend the Member for Angus (Kirstene Hair), who is sitting next to him, raised at Scottish questions just a few weeks ago. Of course, we will have to analyse the latest situation. If we need to make that mitigation, we will do so. The fact is that armed forces are sent where they are needed—they do not choose where they live—so we will step in where necessary to ensure that they are not disadvantaged.
As the dangers to the United Kingdom increase, it is even more vital that Scotland remains a pivotal part of UK defence. That is why we are upping our defence spending there. When it comes to the military footprint in Scotland, force levels will continue to grow. A further 550 military personnel and their families will be based in Moray by 2024. Significantly, numbers on Her Majesty’s Naval Base Clyde will also increase, to 8,200, while the base benefits from further investment of £1.2 billion over the next decade. HMNB Clyde will also become the base port for all the Royal Navy’s submarines, including its fleet of attack submarines, and the UK’s submarine centre of excellence. That is only fitting, since by the 2030s it will welcome four next-generation Dreadnought-class nuclear deterrent submarines too.
Meanwhile, this year, RAF Lossiemouth, which is in the constituency of my hon. Friend the Member for Moray (Douglas Ross), will welcome its fourth Typhoon squadron, making Scotland home to half of the RAF’s Typhoon force. Thanks to its close proximity to the north Atlantic, where enemy submarines are most likely to operate, Lossiemouth will also be a base for our nine P-8A maritime patrol aircraft, with a £132 million operational support and training facility being built to support them. That will create a further 200 jobs and, once fully operational, bring some 550 additional RAF personnel on site. I know my hon. Friend has been a good advocate of that.
Since becoming Minister for Defence Procurement, I have been pleased to observe the truly unique relationship with Scotland at first hand, and I am determined to do everything in my power to ensure that it continues to go from strength to strength.
Stuart Andrew
I am coming to my last paragraph, but I can see that the hon. Gentleman wants to intervene, so I will give way.
Chris Stephens
I thank the Minister for a lot of what he has said, but I thought he would expand a bit more on the fleet solid support ships. Given the comments he rightly made about Scotland’s contribution to the Ministry of Defence, can he justify the fact that those ships might be built somewhere else in the world, rather than in Scotland or, indeed, anywhere else in the UK?
Stuart Andrew
I will happily answer that question. The whole point of the national shipbuilding strategy is to make our shipyards as competitive as possible. For far too long, our shipyards have depended too often on defence for their work. The whole point of the strategy is to try to make them as competitive as possible and to challenge them. The Type 31e frigate competition that the hon. Gentleman mentioned is one such challenge to industry to consider how it can become more competitive, so it can go out to the wider world and start winning competitions. That is why I am really pleased that there is a bid from the UK as part of the fleet solid support competition. We will see whether it is successful, but the point is that we want our shipyards to be competitive. That is the way to secure their future now and in the long term.
Next year, Scotland will be home to all the Royal Navy’s submarines at HMNB Clyde, to one of the British Army’s seven adaptable force brigades and to one of three RAF fast jet main operating bases. That is a mighty testament to a relationship that works—a relationship that makes Britain a global force for good. That is why I believe passionately that Scotland should remain an integral part of this United Kingdom, so we can all work for the good defence of our country and around the globe.
Question put and agreed to.
National Shipbuilding Strategy
Stuart Andrew Excerpts(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
As stated in the National Shipbuilding Strategy, Sir John Parker has agreed to review the progress that has been made on implementation. I am pleased to announce that Sir John has begun the review process and will report to the Secretary of State for Defence by the summer.
[HCWS1246]
Oral Answers to Questions
Stuart Andrew Excerpts(5 years, 3 months ago)
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Henry Smith (Crawley) (Con)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
The Ministry of Defence rapidly deployed counter-unmanned air systems capability in support of Sussex police and the Metropolitan police, both at Gatwick and at Heathrow. We are working with colleagues in the Department for Transport and across the Government, and will continue to do so.
Henry Smith
I would like to convey the sincere thanks of the Gatwick management to the Ministry of Defence for its swift action last month during the drone incursion, and I can confirm that they have now bought a very similar system for future use. May I have an assurance that the MOD remains on standby to assist civilian airfields in these situations?
Stuart Andrew
I join my hon. Friend in thanking the RAF for its work. It worked incredibly quickly to get to both Gatwick and Heathrow. Of course, our armed forces are always ready to respond, should they need to, but it should be said that responsibility for drone activity at civilian airports lies with the airport operators.
John Spellar (Warley) (Lab)
I have today received a parliamentary answer revealing that no Transport Minister visited Gatwick during the drone crisis. Can the hon. Gentleman tell us what contingency plans his own Department had for dealing with drones at airports? Will he also tell us on what date the Transport Department—or, indeed, the Cabinet Office—asked the MOD for help and support during the crisis? How did his Department respond, and when?
Mr Speaker
I say to the right hon. Gentleman in good spirit that he is uniquely talented in delivering an oral question as though it were of the written variety.
Stuart Andrew
I was pleased to go to Heathrow myself just last week—[Hon. Members: “Gatwick.”] I know, but I personally went to Heathrow last week. We responded to the request that we received from Sussex police on 20 December and we have been working with colleagues across the Government, and with the Department for Transport, to ensure that we have all the availability that is needed, and that the airports have the proper advice that they require so that they can get the systems they need to ensure that they can protect their own runways.
Several hon. Members rose—
Dr Julian Lewis (New Forest East) (Con)
The Ministry of Defence is evidently well prepared to respond very quickly to drone threats, once it is asked for assistance, but can the Minister explain the policy whereby installations are not already in place and a crisis has to arise before that assistance is deployed to the airports?
Stuart Andrew
As I was saying, the protection of airports is in fact an issue for those airports. I know that the Department for Transport is working with airfields across the country to ensure that they have the protections they need. The response by the MOD was incredibly swift, and I pay tribute to it for that.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Is it not time that this Government took drones seriously? The fact is that drone technology is advancing very quickly. This is going to be the way in which we wage wars, and the Americans, the Chinese and the Russians are all investing in the technology. Even in our airports, drones present a great danger that we should address immediately.
Stuart Andrew
We are taking this very seriously. The Ministry of Defence has been working on this over the past couple of years, and we are of course working with our allies to ensure that we have the very best technology to protect our armed forces and keep this country safe.
Bob Stewart (Beckenham) (Con)
Does the military actually have radar that is capable of identifying something that is, say, 50 cm across?
Stuart Andrew
I obviously cannot go into the details of the capability that we have—I do not think that that would be sensible for the security of our country—but, having visited the system that is in place at Heathrow, I can say that it is incredibly effective.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
The recent drone intrusions at Gatwick and Heathrow were highly embarrassing and created great inconvenience for thousands of passengers but, more importantly, they presented a real and significant security risk. We are all indebted to the armed forces personnel who worked to tackle those intrusions, but we clearly need a long-term solution to this growing challenge. Will the Minister tell us why it is taking the Government so long to bring forward regulations to introduce a wider exclusion zone around airports and ensure the safety of UK airspace?
Stuart Andrew
We take this matter incredibly seriously, and it is important to get things absolutely right because there are all sorts of implications for the aspects of security that we will need to introduce. We are working across Government, and the MOD is providing its advice and expertise to ensure that we get proper legislation in place to make the response effective.
Karen Lee (Lincoln) (Lab)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
The Ministry of Defence regularly monitors the performance of all its contractors, including for outsourced services. That is carried out through the robust monitoring of contract performance indicators, with action being taken as appropriate when standards are not met.
Karen Lee
Capita, which receives millions of pounds through MOD contracts, has consistently missed its recruitment and savings targets, yet it was handed a £500 million fire and rescue contract last year despite receiving a dire financial risk assessment. Following the Carillion fiasco, will the Minister recognise that this Government’s ideological commitment to outsourcing has caused needless precarity for MOD workers in my Lincoln constituency and across the UK?
Stuart Andrew
In the wake of Carillion’s collapse, the Prime Minister commissioned a review of outsourcing, with which the MOD has engaged, that seeks to improve the public service outcomes and value for money of Government outsourcing. However, I gently point out to the hon. Lady that outsourcing also happened under the previous Labour Government.
Douglas Chapman (Dunfermline and West Fife) (SNP)
The Minister will be aware that Members have offered scathing reviews of the Government’s no-deal Brexit outsourcing procurement decisions across portfolios. What no-deal outsourcing contracts has the MOD issued? Will the Minister ensure that there is a comprehensive review of procurement processes before he joins the Secretary of State for Transport in thrusting his Department into a Brexit procurement fiasco?
Stuart Andrew
We work closely with all the companies to which we outsource, ensuring that we monitor their work and that they meet the standards that are expected of them. If they do not meet those standards, we will take the necessary action, and we have done so.
Nia Griffith (Llanelli) (Lab)
The Defence Fire Safety Regulator’s leaked report highlighted a catalogue of failures to manage fire safety in single-living accommodation. It appears that the estates contract that was outsourced to CarillionAmey does not include the inspection and maintenance of fire doors and fire escapes, which is a shocking omission that puts servicemen and women in an unacceptable situation. Will the Minister agree to carry out an immediate review of fire safety across all MOD sites and to implement the report’s recommendations in full? Will he also agree to halt the outsourcing of the defence fire and rescue service to Capita, which seems grossly irresponsible in the circumstances?
Stuart Andrew
The Ministry of Defence takes the safety of its people and the findings of the report extremely seriously. We are committed to addressing the shortfalls identified in the report. We have already taken action on some of the recommendations, and we will continue to ensure that we implement the report’s other recommendations.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Lyn Brown (West Ham) (Lab)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
Some £92 million has been allocated from the Treasury EU exit fund to the engineering, development and design phase of a UK global navigation satellite system, which is currently under way. The UK Space Agency is leading the work, with the full support of the Ministry of Defence.
Lyn Brown
And yet the reality is that £1.2 billion of UK investment in the Galileo system may now have been wasted because of this Government’s failed negotiation. This Government now want us to spend billions more on a delayed, diplomatically divisive and sketchy system just to cover up for their failure. How much more does the Minister expect the women and men of our armed forces to suffer as a result of lower investment in them because of this Government’s botched Brexit negotiations?
Stuart Andrew
Galileo is an issue because our armed forces need to know that we have absolute faith in their secure systems. The EU decided not to allow us to have that information, which is why we are coming out. However, we are working across Government to look into the alternatives, which is why the Prime Minister has put the funding in place.
James Gray (North Wiltshire) (Con)
What will the proposed UK system provide to our armed forces that the American global positioning system does not?
Stuart Andrew
It will obviously replicate very much what the US system has, but it will also ensure that we have additional capability should we need it. It is really important that our armed forces have all the equipment they need and that they have systems such as GPS so that we can put them in a safe environment when they are defending our country.
Wayne David (Caerphilly) (Lab)
We understand that because of the Government’s failure to negotiate our continued involvement in Galileo they are exploring other options to build their own global satellite navigation system, possibly in co-operation with the United States of America. We know that that will cost the country up to £5 billion, but can the Secretary of State or his Minister tell us how many British companies have lost out on important Galileo contracts as a result of the Government’s failure?
Stuart Andrew
We have in this country an exciting space industry that is working incredibly hard and is part of the 18-month engineering, development and design study that is expected to conclude in 2020. I am looking forward to seeing the results of that study, because I am sure that the great British industry that we have will provide us with the system that we need.
Andrew Bridgen (North West Leicestershire) (Con)
Type 31e Frigate
Stuart Andrew Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
I am pleased to inform the House that the Ministry of Defence (MOD) has taken a major step forward in the competition to build five Type 31e frigates.
On 10 December 2018 the MOD awarded three contracts for the competitive design phase. The contracts have been awarded to consortia led by BAE Systems, Babcock and Atlas Elektronik UK and are valued at up to £5 million each.
The competitive design phase is the first stage of the design process which will allow suppliers to demonstrate how they can deliver the Royal Navy’s threshold capability by the target date and within budget. These contracts will fund industry to prepare detailed proposals for the design and build of the five Type 31e frigates.
Concurrent with the award of the competitive design phase contracts, the MOD has issued to each consortium an invitation to negotiate for the single design and build contract that we intend to place by the end of 2019. Conducting the competitive design phase in parallel with the design and build contract negotiations will allow the award of the design and build contract earlier than would be normally be the case in a major procurement.
It remains our intention to seek a firm price contract for five ships, less an amount of Government furnished equipment, for £1.25 billion, giving an average price of £250 million per ship. We want the first ship in 2023, with all five ships delivered by the end of 2028. The Government remain committed to a surface fleet of at least 19 frigates and destroyers.
This contractual milestone is a tangible and positive result of the national shipbuilding strategy published in September 2017. The strategy sets out how the Government intend to work with industry to develop a strong and globally competitive UK shipbuilding and marine engineering sector. The Type 31e procurement is seeking to maximise the UK prosperity and export potential, without compromising on cost and time.
The award of the competitive design phase contracts is a testament to the MOD’S positive engagement with industry and the commitment to move the programme forward.
[HCWS1161]
Oral Answers to Questions
Stuart Andrew Excerpts(5 years, 5 months ago)
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Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
The Ministry of Defence spent nearly £1.6 billion with businesses in Scotland in 2016-17, supporting 10,500 jobs. I am personally delighted to see work progressing on the Type 26 on the Clyde, on the aircraft carriers at Rosyth and, of course, on the preparations for the new Dreadnought-class submarines at Faslane.
Hugh Gaffney
Scotland is one part of the UK that could benefit from the contract for the fleet solid support ships being awarded to a UK bidder. Research by the GMB union has found that, if the fleet solid support contract were placed with UK shipyards, it could create and secure up to 6,500 vital jobs—as has just been mentioned, the aircraft carriers at Rosyth are nearing completion. Is the Minister comfortable with the fact that his Department is following a plan that could undermine the creation of so many much-needed jobs like those at Rosyth?
Stuart Andrew
As I have said on many occasions, the fleet solid support ships are not classed as warships. There is no compelling national security reason to consider UK shipbuilding capacity as part of that procurement, but we are working very closely with industry, because we want it to become very competitive so that it not only attempts to win those contracts but is more successful with other contracts from around the world.
Stephen Kerr (Stirling) (Con)
The SNP continues to sow uncertainty and create business risk by threatening a second independence referendum in Scotland. Will the Minister confirm to the House that such talk will not deter the Ministry of Defence from placing orders with Scottish companies?
Stuart Andrew
My hon. Friend is absolutely right. In the short time I have been in this role, I have spent a considerable amount of time in Scotland. I have been pleased to see the extent of the work and the fantastic achievement of the defence industry there, and long will that continue as far as we are concerned and are in charge of the MOD.
Carol Monaghan (Glasgow North West) (SNP)
France classifies fleet solid support ships as “military”. Can the Minister explain why the UK does not?
Mary Glindon (North Tyneside) (Lab)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
The MOD regularly monitors the performance of all its contractors, including outsourced services. That is carried out through the robust monitoring of contract performance indicators and taking action as appropriate where standards are not met.
Mary Glindon
Despite the fact that Capita has failed to fulfil its contract for Army recruitment, letting down both the Army and the taxpayer, the Government are now tendering to outsource veterans’ services as well. Does the Minister consider that the Government should be directly consulting and rewarding our veterans rather than multinational defence contractors who have proved time and again that they are incapable of delivering?
Stuart Andrew
I recognise there have been challenges in the Capita contract, but we are working closely with Capita on an improvement plan. We will always ensure that we do everything we can to support our veterans, and I know the Under-Secretary of State for Defence, my right hon. Friend the Member for Bournemouth East (Mr Ellwood) will be working day in, day out to support that.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
The Government’s ideological obsession with outsourcing MOD contracts to the private sector has led to appalling service for personnel and families, poor value for money for the taxpayer and a worsening of terms and conditions for MOD workers. Many of the private companies that hoover up these services are in a fragile state of affairs financially. Will the Minister therefore tell the House what possible justification the Department has for privatising veterans’ services, given that this contract is currently being delivered perfectly well in-house?
Stuart Andrew
We will always ensure that we get the very best for the people who have served in the armed forces and that we get value for money for the taxpayer, too. That is the responsible thing the Government should do.
Nigel Huddleston (Mid Worcestershire) (Con)
Andrew Rosindell (Romford) (Con)
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
The UK remains unconditionally committed to European security by playing a leading role in NATO and maintaining our strong transatlantic links. The UK will retain sovereign control over its armed forces. The agreement simply allows us to work together when we think that is in our best interests. That will only be as a third-party relationship, respecting the UK’s sovereignty and the EU’s autonomy.
Mr Stephen Hepburn (Jarrow) (Lab)
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.
Andrea Jenkyns (Morley and Outwood) (Con)
The Poppy Appeal raised £49.2 million in 2017. Will the Minister take this opportunity to thank the hard-working poppy sellers up and down the country, including the incredible Gale Wood at the Morley branch in my constituency?
Dan Carden (Liverpool, Walton) (Lab)
Stuart Andrew
Obviously, it is disappointing to see that there is industrial action, and we are also concerned about job losses. This is why we were pleased to announce that £619 million contract as part of a number of ongoing contracts that we have been giving to UK shipyards around the country.
Mark Pritchard (The Wrekin) (Con)
The Secretary of State will be aware of the case of Gus Hales who has been on hunger strike outside Combat Stress in my constituency. What more can the Ministry of Defence do to work with Combat Stress to get Gus the help that he so badly needs?
Stuart Andrew
Excuse me a moment; I will try to answer the hon. Gentleman’s question—[Interruption.]
Mr Speaker
It might not happen again, so I must advise the Minister that the Chief Whip is sitting underneath him and looking up at him.
Stuart Andrew
As I have said before, we now have a national shipbuilding strategy that is ensuring that our shipbuilding industry knows exactly what the MOD will be building over the next 30 years so that it can plan accordingly and be competitive in the world market. Surely, we should be welcoming that.
Dr Julian Lewis (New Forest East) (Con)
May I give the Minister a second chance to answer the question that he could not hear earlier about veterans being given the opportunity to revisit the battlefields on which they have fought?
Contingent Liability
Stuart Andrew Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
I am today laying a departmental minute to advise that the Ministry of Defence (MOD) has received approval from Her Majesty’s Treasury (HMT) to recognise a revised contingent liability associated with an Apache integrated operational support contract amendment.
The departmental minute describes the revised contingent liability that the MOD will hold as a result of signing a contract amendment to the Apache integrated operational support contract. This amendment extends the support to the Apache helicopter fleet from 2019 until 2024 and covers the third and final pricing period for the contract. Due to the Apache AH-64E coming into service in 2024 and the need to manage obsolescence issues on the current Mk1 helicopter to ensure a smooth transition for pilots and engineers, the out of service date for the Apache Mk1 has been advanced to 2024. This amendment revises the support contract accordingly.
The maximum contingent liability against the MOD for damage at Government premises caused by contractor’s staff is estimated at £18,750,000 and the MOD has an additional exposure value of £2,000,000 for use of the indemnity condition 15, ammunition and explosives.
The contingent liability will remain for the duration of the contract to 2024.
Further contingent liabilities for intellectual property rights (IPR) in software, third party IPR, aircraft flight and taxiing, aviation products, and protection against excessive profit and loss fall within MOD and Defence Equipment & Support delegations.
[HCWS1107]
UK Sovereign Capability
Stuart Andrew Excerpts(5 years, 5 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Parliamentary Under-Secretary of State for Defence (Stuart Andrew)
Thank you very much, Mr Hollobone; it is a pleasure to serve under your chairmanship. I too offer my congratulations to the hon. Member for Glasgow North East (Mr Sweeney) for securing this important debate. I know that this is a matter close to his heart and an issue of great importance to him. I was somewhat depressed, however, by the fact that he said he will be 30 in January, given that I will be 47 next weekend, but there you go.
The right hon. Member for North Durham (Mr Jones) wondered how long I would be in post, and I am afraid that is one question on which I am not prepared even to speculate. I hope that I have proved, in the few months I have been in the role, that I am prepared to listen to all arguments—I will agree with some and disagree with others—and will take the time to absorb all the information. That is why I have spent a lot of time going around the country to listen to industry, the people working within it, and of course, the armed forces, to whom we are trying to supply important equipment. As the Minister, I am clearly responsible for procuring that equipment to ensure that we get the best value for our armed forces. It is also important to maintain the relationship with the UK industry and to promote exports and prosperity. Those issues are close to my heart. The debate has been informed by a clear recognition of the importance of the UK industry to our national security.
The debate has also given us an opportunity to remind ourselves of the extensive work that has already taken place to foster innovations and a competitive defence sector. The UK defence industry, working alongside our armed forces, plays a crucial role in delivering UK national security objectives. It is crucial to protect our people, project our influence around the world and promote national prosperity.
Every day since I took office, it has been a privilege to see the difference that the UK defence industry makes, whether that be the people, the equipment being provided, the training, the support, the infrastructure or the technology. Those elements are all there to help our nation’s defence. I think we are all proud to have a world-leading defence sector. The figures speak for themselves: in 2017 alone its turnover was £22 billion, with £9 billion of exports, and it supports over 140,000 jobs.
The report by my hon. Friend the Member for Ludlow (Mr Dunne) showed that defence plays an important part in our economy. It is crucial to strong manufacturing technology and has a broad footprint in every corner of the United Kingdom. As a customer, we are always aware of the need to get the right capability for our armed forces, while ensuring value for money for the taxpayer. The key to that is a thriving and globally competitive defence sector that is an important part of a wider industrial base.
Helping that industry to grow and compete in a global market is a key objective of the defence industrial policy refresh that was published last year. The three strands to our approach are, first, to improve the way defence delivers wider economic and international value and national security objectives; secondly, to help industry be internationally competitive, innovative and secure; and thirdly, to ensure that it is easier to do business with the Ministry of Defence, which is an issue I have heard about particularly from small and medium-sized businesses.
We are committed to maximising value for the UK by taking into account potential economic impacts, strategic international interests and national security objectives. In the defence industrial policy refresh, we committed to a more systematic approach to considering prosperity and international and industrial security and ensuring that we are early in developing high-value business cases. Earlier, more holistic decisions will improve how we inform choices for military requirements and ensure that the acquisition strategy and commercial engagement support a full range of desired outcomes.
Hon. Members made a number of points; I will try to go through them all, but I suspect I will run out of time. If I do, I commit to write to each Member with an answer. First, I note the comment of the right hon. Member for Birkenhead (Frank Field) about the merchant contract that was secured. If we can make our shipyards as competitive as possible across the globe, they will be more likely to secure more of those contracts. That is precisely why we have the national shipbuilding strategy. The hon. Member for Glasgow North West (Carol Monaghan) mentioned in an intervention that we had let down some shipyards. I want to emphasise that we have committed to 20 years’-worth of work for those shipyards. We are in the first batch of the three frigates, costing around £3.7 billion. The commitment to the remaining ones is there; we want to follow a process so that we learn from the first three and get the advantage of a better ship and better value for the taxpayer.
The hon. Member for Plymouth, Sutton and Devonport (Luke Pollard), whose constituency I was pleased to visit, talked about the Type 26s. Hopefully America is listening. I had the privilege of being in America recently, where we tried to push the point he made. We need to push wherever we have the opportunities. We should recognise the successes we have had with Australia and Canada. There is still a bit of time to go, but we are working hard on that. I hope industry will be given the confidence to look for contracts all over the globe, so that we can provide security.
The hon. Member for Glasgow North West asked for reassurance about state aid. The response that my predecessor gave her stands for the future contracts—I hope that reassures her. My hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), who has left her place, mentioned tax and prosperity. We have to take into account the recently refreshed Treasury Green Book guidelines as part of our procurement process. The forward plan is exactly what the national shipbuilding strategy is about; it sets out the 30-year forecast of what the Royal Navy’s requirements will be, so we can give the industry the greater clarity it needs.
Appledore shipyard was an issue that arrived on my desk fairly early on. We engaged with Babcock and looked at all sorts of possibilities and options, but the timescales for the Type 31e and the FSS build would not have sustained the jobs at Appledore—or Cammell Laird, in fact.
Wayne David
The Minister mentioned the Type 31e. Let us not forget that the Government deliberately delayed the programme and put it out to tender again, having withdrawn the initial programme.
Stuart Andrew
There were issues with the start of the procurement process. We have reset that, and I reassure the hon. Gentleman that we are sticking to delivery of the first one by the end of 2023. We have made that commitment; this is an ambitious project, and we are determined and working incredibly hard to ensure that we catch up any time that may have been lost. Each time I have updates, I get more optimistic about how we are progressing.
Many Members have talked about the FSS. It is not quite true to say that the Norwegians are building theirs—they are not, actually. They are being put out to international competition and are being built in South Korea. Australia and New Zealand have taken the same approach as us. We have been clear that a warship is as characterised in the national shipbuilding strategy.
Stuart Andrew
It is not a warship by definition, for the simple reason that the definition is based on the UK’s requirement to retain the ability to design, build and integrate frigates, destroyers and aircraft carriers for reasons of national security, ensuring that the complex nature of the construct is an important part of it from the very beginning. We will continue to have this argument—unions are coming to meet me very soon to discuss it.
I congratulate the hon. Member for Glasgow North East again on securing the debate. I will constantly review this matter and take it on board, but the Ministry of Defence has made a decision. I assure him that we are doing everything we can to ensure that our industry, whether in maritime, on land or in the air, is there to compete on the global stage, to secure the jobs we need and the expertise we have in the UK.