Defence Capability

Wayne David Excerpts

Thursday 19th October 2017 Westminster Hall

[Wayne David (Caerphilly) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bone.

This is an important debate, and I congratulate the hon. Member for Yeovil (Mr Fysh) on securing it. It comes at a very appropriate time, as has been mentioned, because the Ministry of Defence, the Cabinet Office, the Treasury and other Government Departments are currently conducting a review of national security capabilities. My first question to the Minister, echoing what others have asked, is about whether he can indicate when that report will be published and what exactly its terms of reference will be. As I understand it, the strategic defence and security review will be, to use the Secretary of State for Defence’s phrase, “refreshed”. Will the Minister confirm that that will dovetail into the review of national security capabilities?

We know that a review is necessary because the Ministry of Defence is facing enormous problems. The SDSR 2015 is built on the premise that there will be sufficient efficiency savings, but as we all know those savings have not been identified. I know that the MOD was hoping for savings in the defence estate, but very little has come from that direction and, of course, there is the deprecation of the pound following the decision on Brexit. In fact, the Royal United Services Institute recently warned that there will be “substantial financial implications” for defence as a result of the weakening pound. In August, RUSI warned that the MOD faces extra costs of up to £700 million a year in the wake of the Brexit vote and the pound’s fall against the dollar. The National Audit Office recently pointed out that there is

“little room for unplanned cost growth”

and has expressed concern about the current defence equipment plan’s vulnerability to foreign exchange rates.

The problem is that approximately £18.6 billion is going to the United States in dollars. Rather than placing an emphasis on developing our own industrial defence capacity—our sovereign capacity—the Government are buying a whole raft of new equipment from the US for the Navy and the RAF: the F-35s, nine P-8 Poseidon maritime patrol aircrafts and 50 Apache attack helicopters, all from the United States of America.

[Bob Stewart]

We buy equipment and weapons from the United States because they are better than the equipment and weapons we can produce here, and those of us here all want our armed forces to have the best. That is the reason we do it: we do not have a choice if we want to help our armed forces.

--- Later in debate ---

[Wayne David]

That highlights the short-term thinking of the present Government. What we really need is an industrial defence strategy that invests in the skills and capabilities of our own indigenous industries, so that when choices have to be made we can choose, quite rightly, to have our own capability enacted and not bought off-the-shelf from abroad.

The Government regularly come out with their platitudes that defence expenditure increases every year, but let me be clear that the MOD faces a financial crisis. We are told by the MOD’s permanent secretary that over the next 10 years the MOD will have, in his words, to seek out and secure £20 billion of efficiency savings. He says that notwithstanding increased budgets,

“our ambitious equipment program will not be affordable without”

those efficiency savings. I do not believe it is realistic or, indeed, honest to talk about that level of efficiency savings. I note the comments by Sir George Zambellas, the admiral and former head of the Royal Navy, who recently said to the press:

“There is a suggestion that there’s lots more efficiencies to be made. There are not. I’ve been helping deliver efficiencies for my 37 years in the navy. We have reached the bottom of the efficiency barrel and we all know that, because the Navy is so hollowed out. It hasn’t got enough missiles and spares. It’s very short of the integrated support that is needed as a single service.”

Those are damning comments by someone who does not have a political axe to grind, but takes an objective view of the very real crisis that the Navy, in particular, faces.

Indeed, it is clear that the MOD is already involved in planning for a fresh round of deep and crude cuts. As we have all seen, there have been reports in the press that the Royal Marines may be cut by 1,000 from their present 6,500. Earlier this year there was confirmation that Plymouth’s 42 Commando, one of the last specialist Royal Marines fighting units, was withdrawn from frontline service. The amphibious fleet may face decommissioning, with HMS Albion and HMS Bulwark both potentially becoming part of history—I refer Members to the excellent early-day motion 391 in the name of my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard). I ask the Minister to listen not only to what I am saying, but to what all Members have said this afternoon about how important it is to maintain that amphibious capability, and I urge him to give a commitment today that those two ships will not be considered ripe for cutting.

This is all occurring, as I said, at a time of crisis. The Navy personnel stands at 2% under establishment. There is a particular problem in the Navy with skilled personnel and engineers. The RAF is 5% under strength, and we had the very bad news last week that nearly 2,000 skilled, well-paid jobs will be lost with BAE Systems. One of the reasons it has given for those redundancies and the cutback in capacity that has taken place, is the slowdown in production of the Hawk aircraft. I would reiterate what was asked for this week and ask the Government to bring forward an order for nine new Hawk aircraft for the Red Arrows. As well as the crises in the Navy and the RAF, we are seeing a crisis in the Army, which is 5% understrength. I remind hon. Members—

[Mr Peter Bone (in the Chair)]

Order. I am sorry to interrupt the shadow Minister, but I am afraid I cannot let him speak for longer than the Minister will be able to, so I hope he is about to finish.

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[Wayne David]

I am about to wind up. I remind Members that the Conservative manifesto for the 2015 election said that the Army would not fall below 82,000 people. It has: the latest figures show that the Army is down to 76,680, which speaks for itself. There is a very real crisis.

In conclusion, I ask the Minister for an honest statement about the real problems that our armed forces face today. Can we have a commitment that the short-term—

[Mr Peter Bone (in the Chair)]

Order. I am not having this—the hon. Gentleman must sit down.

[The Parliamentary Under-Secretary of State for Defence (Mr Tobias Ellwood)]

I am grateful for the opportunity to speak today, Mr Bone. It is a real pleasure to be able to draw some thoughts and conclusions together on this important, interesting and timely debate. Like others, I pay tribute to my hon. Friend the Member for Yeovil (Mr Fysh), who has shown passion and a detailed understanding not only of what is going on his constituency, but of the wider picture of the defence capability. I congratulate him on bringing this debate to the fore. Looking around the Chamber, I recognise that there is an officers’ mess worth of experience, commitment and understanding of what the armed forces has done and is doing, and of where we want to go. It is a pleasure to respond to this debate.

I give hon. Members the apologies of the Procurement Minister—the Under-Secretary of State for Defence, my hon. Friend the Member for West Worcestershire (Harriett Baldwin)—who would otherwise be here. However, I take a personal interest in these matters, so I grabbed the opportunity to share some insight about what is going on. This has been a wide-ranging discussion and as I have said, if I am not able to answer some questions, I simply will not be, but I will write to hon. Members, as I have before.

All hon. Members, including my hon. Friend the Member for Yeovil, began by paying tribute to our brave and professional armed forces. As a former Regular Army officer, and indeed, a reservist, I stand with all in paying tribute to those who, when there are so many opportunities in the world today, choose to wear a uniform, to step forward and be counted, to stand and defend our country and to do the things we see, whether that is in the Caribbean or in the floods, or by going into harm’s way. We think about what it means to be British, what Britain is and what our reputation is, and that is shown in the professionalism that our armed forces display.

As a nation, we have an aspiration and the ability to shape the world around us and to play a role on the international stage, and that comes about because of what our armed forces can do. We are recognised as the world’s leading soft power because our professional armed forces are respected and revered not just by our allies, but by our adversaries. We follow a transparent agenda and in a changing, challenging world, leadership is needed on the international stage. I think we can all agree that we want our armed forces to continue to play that role in shaping this very challenging world.

We need to face some big questions, many of which have been raised today. I join right hon. and hon. Members in recognising the important economic value of our industrial base—not just in defence and aerospace, but in a wider context—in the economics of this country. However, we face a fiscal reality and my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) made the situation clear, taking us back in time to the legacy fiscal issues that we have inherited, which are still very real today. My hon. Friend the Member for Yeovil touched on the important wider duty of care that we have to our armed forces. I include the whole family—the partners, the wives, the husbands, the children, the cadets and the reserves. It is important that we look after them not only when they are in uniform, but further afield, when they finally move back into civilian life as our respected veterans.

Before I come on to the national security capability review, which is the core of our discussion, I will respond to a couple of points. The hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) spoke about the importance of the Type 31e. It is a simple design that is intended to have bespoke changes put on to it. It is designed for export. That is why it seems simplistic compared with the Type 26, the frigates, the destroyers and so on.

I am grateful to the Chair of the Defence Committee, my right hon. Friend the Member for New Forest East (Dr Lewis), who made the future of HMS Albion and HMS Bulwark clear. We should not forget the amphibious capabilities in the Bay class, as was illustrated in our response to the recent hurricanes in the Caribbean.

My hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti) spoke about our commitment to 2%, which I can confirm. I am pleased that other nations are catching up with us to meet that important commitment. We want that to continue and, as many hon. Members have said, we are increasing our budget by 0.5% above inflation. That is very important to recognise.

My hon. Friend the Member for Aldershot (Leo Docherty) spoke about the importance of our footprint across the world. There is not only HMS Juffair, which I am pleased that hon. Members were able to see; we have a footprint right across the Gulf and in other places, including in a transitional or temporary mode. We are operating in and have exercises in 20 locations from Nigeria to the Balkans, to further afield in Poland with a resurgent Russia, to the Caribbean and not least, to the skies of Iraq and Afghanistan.

The right hon. Member for Twickenham (Sir Vince Cable) asked important questions about helicopters. If I may, I will ask the Procurement Minister to write to him in more detail.

My right hon. Friend the Member for West Dorset (Sir Oliver Letwin) spoke about the number of platforms, and I agree with him. We have more than a dozen different helicopter platforms, if we count them all up, which is too many given all the procurement lines, software upgrades and training packages. That needs to be simplified.

On the national security capability review, we need to step back and remind ourselves that the SDSR 2015 was the blueprint for our security—for meeting terrorism, the growth of terrorism and extremism, state-based aggression and cyber, and responding to those who undermine the rules of international order—but there have been changes. We have had five terrorist attacks in this country, a resurgent Russia, the activities of North Korea and cyber-attacks on our health service, on companies and on Parliament itself. That is why the capability review is required. As I said, there has been much speculation, but the details will come through in the new year. I am sure that Parliament will be involved in the usual manner, including through the Select Committee.

The review will be Cabinet-led and have 12 strands, of which the defence aspect is simply one part. It is important, however, to recognise that any armed forces must adapt to and evolve with the times. We need to understand what the right balance of scale, readiness and reach is, and what our enablers to provide that support are. Where do we place those assets, not only so they are ready to be used but as a deterrent?

I will leave a minute for my hon. Friend the Member for Yeovil to conclude, but I am sure that we can all join in saying that we are very proud of our—

[Wayne David]

Before the Minister sits down—

[Mr Ellwood]

I will not give way to the hon. Gentleman. He took far too much time—

[Wayne David]

Answer some questions then.

[Mr Ellwood]

I will not give way to the hon. Gentleman. I have made that clear—

[Wayne David]

Answer some questions.

[Mr Peter Bone (in the Chair)]

Order. The hon. Member for Caerphilly (Wayne David) is not in my good books at the moment. Yelling from a sedentary position is not acceptable.