Defence Aerospace Industrial Strategy

Wayne David Excerpts

Thursday 16th November 2017 Commons Chamber

[Wayne David (Caerphilly) (Lab)]

I congratulate my hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth) on her opening speech. The debate has been important because of the significance of the defence aerospace industry to this country and to our nation’s defence. I wish to make two points. The second is about the need for a well-thought-out industrial strategy for the sector. First, though, I wish to address the particular problem that is being experienced with BAE Systems.

As my hon. Friend the Member for Preston (Mr Hendrick) said, in October, BAE Systems announced that up to 1,400 jobs were to be lost in its military aerospace business over the next three years. It has said that the cuts will be implemented by 1 January and will affect managers as well as production line workers. At its aerospace bases at Warton and Samlesbury in Lancashire, where parts for the Eurofighter Typhoon are made and assembled, there will be 750 job losses. In BAE’s other aerospace base in Brough in east Yorkshire, there will be a near halving of its workforce to 500. That is all the more difficult to bear because 500 jobs were previously lost at that site four years ago.

Those job losses will have a devastating impact on the individuals affected and their families. It will also hit those communities that have a long tradition of providing workers for the aerospace industry. Moreover, many of these jobs are highly specialised and extremely skilled. Once those skills have been lost to the industry, it will be enormously difficult to replace them, as my hon. Friend the Member for North Durham (Mr Jones) quite accurately said.

A few days ago, my hon. Friend the shadow Defence Secretary and other Opposition Members wrote to the new Secretary of State for Defence. The letter made several important points and called on the Government to take action in a number of areas. It refers to the fact that the Hawk advanced jet trainer is currently in use by 18 countries across the world. It is therefore vital that the UK does its utmost to promote the Hawk aircraft as a good option for other nations as well. Can the Minister tell me what steps the Government are taking to promote the Hawk advanced jet trainer abroad?

As we all know, the Hawk is the aircraft of the iconic Red Arrows. In a few years’ time, the Red Arrows will need to renew their Hawks. It makes good sense for the Government to bring forward orders for the new Hawk T2s, so that there can be continuity of manufacture. The Minister for defence procurement will know that there is a precedent for that. The Government have brought forward orders for offshore patrol vessels to fill gaps and to support shipyards and workers. If the Government can do it once, they can do it twice.

There is also the statement of intent with Qatar for the purchase of 24 Typhoons and six Hawk aircraft, which was signed earlier in the year. We want to see that statement of intent firmed up as quickly as is humanly possible. The contract is tremendously important and I would appreciate it if the Minister could update us on any progress that has been made.

The problems that BAE Systems faces at the moment serve to highlight the more general problem of a lack of a defence aerospace industrial strategy. We welcome the fact that—even though rather belatedly—the Government have produced a national shipbuilding strategy, as my hon. Friend the Member for Stoke-on-Trent North mentioned. We argue that a strategy should also be produced for the defence aerospace industry. I pay tribute to my hon. Friend the Member for Gedling (Vernon Coaker) for the way in which he put his case.

Such a strategy should contain a number of elements. For example, there should be: full engagement with industry so that it can develop a more strategic approach to technological development and address the present and future needs of the armed forces; a long-term commitment by the Government to development by the aerospace sector with an emphasis on exports; a long-term perspective to give confidence and certainty, which in turn will encourage business investment; and a perpetual encouragement for industry to develop new, innovative approaches and technologies. That would require Government to allow industry the necessary “room” to develop more blue-sky thinking.

If we look at Britain’s national interest, we can see that it cannot be right for us to be buying so many of our capabilities off the shelf from our American allies, as my hon. Friend the Member for Barrow and Furness (John Woodcock) so correctly argued. In place of short-termism and going for a quick fix, the Government should see things in the long term and value the economic contribution that the defence industry makes to the British economy and to the nation’s balance of payments.

Let us not forget that defence manufacturers in general, and the aerospace sector in particular, pay corporation tax and employee national insurance, and they have subcontractors and suppliers. In this context, it has been suggested—as the Chair of the Defence Committee mentioned—that there ought to be a Government commitment to at least an examination of the development of a next generation of combat aircraft. It has been suggested that such an aircraft will enter service in the 2030s and replace the Typhoon class aircraft. What is the Government’s position on that?

We have had a good debate on an important subject. There can be no doubt that it is vital that Britain has a vibrant defence aerospace sector. We have a workforce of which we can be proud and an industry that is full of enthusiasm and commitment. We now need a Government policy that is up to the challenges we face.