Defence Industry and Shipbuilding

Debate between Wayne David and Guto Bebb

Wednesday 11th July 2018 Commons Chamber

[Guto Bebb]

I am sorry, but I have to make some progress.

What we are highlighting is that across the Chamber we want to see a successful British shipbuilding sector, and we categorically want to see the conclusion of Sir John Parker’s report implemented. He said clearly in recommendation 21 that he wanted to see the opportunity for British shipyards to compete for the fleet solid support ships contract. That is categorically the position of the Ministry of Defence. We want to see a competitive bid from British shipyards. It can be a competitive single bid or a block build option, but we want to see that bid forthcoming. We want that bid to win because that bid is the best, the most cost-effective, the one that offers value to the taxpayer and the one that shows that the confidence we have in our shipbuilding sector is justified and will be maintained.

[Wayne David]

Will the Minister give way?

[Guto Bebb]

I will, as a final point of courtesy, allow my fellow Welshman to intervene.

[Wayne David]

I thank my fellow Welshman for giving way. Does he think it is fair that we could be in a situation with the FSS ships where British companies will be competing with heavily subsidised companies from abroad? Is that a level playing field?

[Guto Bebb]

No, of course it is not, which is why every single tenderer in this process will be subject to the same procurement rules and the same European rules that exist at this point in time, to ensure that we have a level playing field. The hon. Gentleman should understand the importance of ensuring that we have a level playing field. The way to ensure such a level playing field is not to insist on only UK companies being able to bid for what is not a warship.

The strategy has been adopted in full and was consulted on widely. The Ministry of Defence has decided that we have to adopt the strategy and implement it, and we are confident that we will see the success of this strategy and, more importantly, a very successful future for our shipbuilding sector. I look forward to bids coming in for the fleet solid support ships from British yards with the confidence that seems to be lacking from Opposition Members.

Question put and agreed to.

Resolved,

That this House recognises the important contribution of the defence industry to the UK; calls on the Government to support the UK defence industry by taking into account the economic and employment benefits to the UK when awarding contracts and to publish a full, overarching defence industrial strategy; and further calls on the Government to make the competition for the Fleet Solid Support ships contract a UK-only competition to maximise the return on that contract.

Oral Answers to Questions

Debate between Wayne David and Guto Bebb

Monday 9th July 2018 Commons Chamber

[Guto Bebb]

First, I extend my thanks to the workers of the Rosyth yard for their fantastic work on our carriers. Secondly, the report that has been produced about the contribution of defence to the prosperity of the UK is important, but I return to the point I made earlier: we have adopted all the recommendations of the shipbuilding strategy, and we are already seeing the results.

[Wayne David (Caerphilly) (Lab)]

We on the Opposition Benches join the Secretary of State in offering our deep condolences to the family of Dawn Sturgess and express our full support for the police as they investigate this appalling incident.

This morning, the hon. Member for Ludlow (Mr Dunne) published an important review titled “Growing the contribution of defence to UK prosperity”. The review was commissioned by the Secretary of State for Defence. It cites the new Type 31e frigate as an example of how the MOD has started to take the prosperity of the British economy into account in procurement. If that can be done with the new frigates, why on earth can it not be done for the fleet solid support ships?

[Guto Bebb]

I thank the hon. Gentleman for his question but, once again, I refer him back to the shipbuilding strategy, which was endorsed on a cross-party basis. The key thing is that the Type 31e is a frigate and, as such, is designated as a warship. The fleet solid support ships are not designated as warships. We are very clearly following through the shipbuilding strategy, which we think will clearly improve the productivity of our yards and contribute to UK prosperity. The hon. Gentleman should do likewise.

Oral Answers to Questions

Debate between Wayne David and Guto Bebb

Monday 11th June 2018 Commons Chamber

[Guto Bebb]

I could not agree more.

[Wayne David (Caerphilly) (Lab)]

“Not affordable”, “not realistic”, “not complete”, “unbalanced” and “unmanageable”—those are some of the politer things that have been said about the Government’s equipment plan. The comments have been made not by the Government’s political opponents, but by the Public Accounts Committee and the National Audit Office. Not since the end of the second world war have there been such devastating criticisms of a Government defence programme.

This £20.8 billion black hole in the MOD’s equipment plan has arisen due to this Government’s shameful incompetence. How do they intend to get out of this mess, and can we look forward to extra resources from the modernising defence programme?

[Guto Bebb]

I would say, at the risk of repeating myself, that the National Audit Office and the Public Accounts Committee do important work for this House, but I should highlight the fact—I have said this once but I will say it again—that the figures quoted in the NAO report were a worst-case scenario. It looked at every single project hitting the worst-case scenario and at no efficiencies whatsoever being created within the programme. We are considering all these issues as part of our modernising defence programme, but I genuinely say to the hon. Gentleman that he should read the report with a bit more care and understand it.

Type 26 Frigates: Base-Porting

Debate between Wayne David and Guto Bebb

Wednesday 6th June 2018 Westminster Hall

[Guto Bebb]

My hon. Friend tempts me to offer an answer now, but I am sure he understands that it would be remiss of me to make such a commitment now, especially as we are still awaiting the completion of the Modernising Defence Programme. However, I stress again that we are looking at the issues seriously, including training, force generation and cost. We will certainly make an announcement before the end of the year. I anticipate that we might be able to make announcements before then, although I would not want my hon. Friend to come away thinking that the intention is to have an early decision. We are trying to ensure that we make a decision based on the facts of the situation, and I assure my hon. Friend that the support that Plymouth is showing for the campaign is being taken on board. Plymouth’s capability and the capacity as a naval base is also understood by the Ministry of Defence. I hope that gives some reassurance, if not the exact dates that he was looking for.

[Wayne David (Caerphilly) (Lab)]

Has the Minister given any consideration at all, on a slightly longer time scale, to where the new Type 31s may be based?

[Guto Bebb]

Ultimately, we are looking very carefully at the rebasing; the fact of the matter is that we are building an enhanced Royal Navy. We will have more surface ships in the Royal Navy than we have had for a long time. We have seen the Royal Navy grow for the first time in a long time. All these decisions are under review. That is why it is important to understand that the decision on the Type 26 is not being taken in isolation. We are making decisions in the context of a growing Royal Navy. I suspect that every Member who has spoken in this debate would welcome the fact that the Royal Navy is growing. The reason for that growth is the new challenges that we face and the demand that we respond to them, and some of those were articulated by the hon. Member for Plymouth, Sutton and Devonport.

We are aware of the long-standing support offered to the Royal Navy by Plymouth and the Devonport base since 1691. There is a 300-year history. It is very difficult to visit Plymouth without being moved by the contribution that the city has made to the prosperity and the protection of this country over 300 years. Clearly, the size of the estate is unique. It is the largest base of its kind in Europe, stretching over 940 acres, and has more than 100 listed buildings and 3.5 miles of waterfront. This is a base that has been providing support for our Royal Navy for a very long time. That history is clear from visiting the city of Plymouth.

The Government’s commitment is clear: to enhance the Royal Navy—the surface fleet and the submarine fleet. It is important to understand the context of this debate, which is the growth in the Royal Navy. We are committed to building our eight anti-submarine warfare Type 26 frigates. The hon. Gentleman’s support for our export campaigns in Australia and Canada is appreciated. We have run a fantastic campaign in Australia and we are running a fantastic campaign in Canada. The capability of the platforms that we are building, with the support of our fantastic shipbuilders on the Clyde, is something that we take very seriously. It is great to see this unified approach to highlighting the capability of the Type 26.

The contract to build the Type 26 was awarded in June 2017. We have already cut steel and are building the first blocks on HMS Glasgow, which is very good news. Some people have claimed that it is nothing more than a paper ship; any hon. Members who have been to the Clyde will be able to say quite categorically that that is not the case. The work is being undertaken and the quality of the work is excellent.

The hon. Member for Plymouth, Sutton and Devonport highlighted the long-term commitment to shipbuilding on the Clyde that that order represents in his comments about the apprenticeships opportunities. The last of the apprentices who will be involved in the Type 26 programme have not yet been born. The Type 26 programme shows our commitment to long-term shipbuilding. I make no apology about the fact that we are also looking at the Type 31e. It is a case of identifying our capability need and what the Navy needs. The Type 31e is welcome from a procurement point of view. It is a general-purpose frigate being built to a cost limit, but it is also a new way of doing procurement.

When I travel around the world in my role—when the parliamentary arithmetic allows such travel to occur—I find it fascinating to see how closely defence departments in other countries are watching our Type 31 procurement. The capability and the cost of the Type 26 are recognised and have been recognised in the debate. Not many countries have the capability or the financial power to purchase such a high level of capability as the Type 26, but they are interested in what we are trying to achieve with the Type 31. The combined effort is showing a degree of confidence in our shipbuilding strategy, but it is also showing a confidence in our Royal Navy.

It is important to highlight that the Type 23 frigates have been and remain a significant part of the activities in Devonport. The decision to base the eight anti-submarine Type 23s in Devonport was correct. That decision has resulted in more coherence in our basing. I share the hon. Gentleman’s admiration for the crews of the Type 23; I have also flown on to Argyll and have enjoyed Thursday war games with the crew. The professionalism and the commitment of the crew was something to behold.

I take exception to the comments that the hon. Member for Plymouth, Sutton and Devonport made about defence cuts. We have to acknowledge this issue on a cross-party basis, and it needs to be very carefully articulated, because it contributes to a false impression of what is happening in defence. The Government are committed to increasing defence spending. We have a protected budget of £37 billion. That budget is increasing by half a per cent above inflation year in year out for the lifetime of this Parliament. That commitment needs to be understood.

We talk about cuts, but it is important to put that in context. We are increasing defence spending. The challenge is to manage that increased spending. When we casually use the word “cuts”, we are sending a message—often a false message—that is a reassurance to our opponents and that causes distress and concern for some of the people working in our armed forces. I understand the context in which the comment was made, but I want to put it on record that we are expanding and extending our defence capabilities and are spending more on defence. My own equipment budget is £180 billion over the next 10 years, which by any stretch of the imagination is a significant budget. That includes a £63 billion commitment to enhancing the Royal Navy. I am sure that most Members will acknowledge that that is a significant commitment.

[Guto Bebb]

At the risk of repeating myself, I think the message has been heard loud and clear from the three Members from Plymouth and from other Members. The Ministry of Defence has heard that message. We have to put things in order, because we have to do things in the context of the Modernising Defence Programme, but I assure my hon. Friend and other colleagues that the message about the importance of this decision for Devonport has been understood.

[Wayne David]

Will the Minister give way?

[Guto Bebb]

For the final time, I will.

[Wayne David]

I thank the Minister for his generosity. He talks about cuts, but I would argue that the position is not quite as he painted. Can I infer from what he has said that HMS Albion and HMS Bulwark are now safe?

[Guto Bebb]

The hon. Gentleman should be aware that HMS Albion and HMS Bulwark are safe until 2033 and 2034, which is the current situation. Those are the decommissioning dates for both vessels.

The situation in Plymouth and Devonport is still a significant success story. I acknowledge that there are challenges, but the activities taking place there—the flag officer sea training, Royal Marines Tamar and the commitment for the new oil jetty that has been built at Thanckes—are commitments and expenditure that highlight the fact that there is a very positive future for the base at Devonport. That positive future is not because we owe anything other than the right decision for the people of Plymouth, but that right decision will reflect the history of service and support that has been offered to the Ministry of Defence and the Royal Navy by the people of Plymouth and the people involved in the bases in Plymouth. We should be very proud of the fact that it is a key component of our defence infrastructure. The continued added investment made by the Ministry of Defence highlights the fact that there is a bright future for the base in Devonport.

I will close by thanking all hon. Members who have contributed to what has been a constructive debate. It is important to put everything into the context of a growing Royal Navy, for the first time in decades—we all welcome that. The context is an enhanced and increasing defence budget, but one that is still challenged, for the reasons that the hon. Member for Plymouth, Sutton and Devonport highlighted, such as the changing threat environment.

I stress to all hon. Members, especially the three hon. Members representing the city of Plymouth, that we have heard the message very clearly. That message will be conveyed back to the Department. I look forward to the result of the Modernising Defence Programme and, in due course, a decision being made on the basing of the Type 26 frigates, which are a world-class capability.

Question put and agreed to.

Shipbuilding Strategy

Debate between Wayne David and Guto Bebb

Tuesday 23rd January 2018 Westminster Hall

[Wayne David]

That is precisely the concern with including the arbitrary figure of £250 million. I hope that the Minister will be able to dispel those concerns and clarify the situation.

Secondly, the national shipbuilding strategy correctly states that there is a potential export market for light frigates—the Type 31e. Much of that is for the purchase of a light frigate designed for construction in the market, not by means of traditional production. How is the Government’s exporting enthusiasm for that going? How many orders have they received? How many do they now think are likely? That key question was also raised by my hon. Friend the Member for Plymouth, Sutton and Devonport.

My third point is that, sadly, less than half the steel in the new Type 26s will be British. That is a crying shame, and I hope the Government will ensure that as the shipbuilding strategy develops, it is increasingly seen as an integral part of industrial strategy in this country, and that there will be complementarity with other parts of British industry.

My fourth question is about delays to the Type 26 programme. There is a great deal of concern among the workforce. Apprentices have been laid off and have had to find training elsewhere. Can the Minister say anything about that?

We are all proud to have seen the launch of the Queen Elizabeth carrier, which was formally commissioned into the fleet in December. We now look forward to the launch of the Prince of Wales carrier. The construction and fitting of both vessels has taken a great deal of commitment and dedication from a well-skilled workforce.

It is important to ensure that those skills are not lost but continually put to good use, which is why we should focus on fleet solid support ships. The contract for three new FSS ships will be subject to international competition. The decision is due in early 2020. I am concerned that that stipulation may put off domestic competitors, as the hon. Member for Glasgow South West suggested. That follows the awarding of a contract for four tankers under the military afloat reach and sustainability—MARS—project to Daewoo, a South Korean company that is widely believed to have been given a tremendous amount of state aid that made its bidding far more attractive than it should have been.

We hope that those ships will be built in Britain because that would secure the maintenance of the skills that have been built up in the industry, and support local economies. It would also help to enhance the national shipbuilding strategy’s domestic capability and to make real the renaissance in shipbuilding that Sir John Parker refers to in his report.

On sovereign capability, I ask the Minister to comment on the report that appeared in yesterday’s Western Mail. It suggested that the Ministry of Defence will award a contract for mechanised infantry vehicles to the Germans without any competition. I give the Minister the opportunity to deny that story.

[The Parliamentary Under-Secretary of State for Defence (Guto Bebb)]

Will the hon. Gentleman give way?

[Wayne David]

I will give the Minister plenty of time to respond.

Finally, I hope that the Government will demonstrate a real commitment to the Royal Navy and naval shipbuilding. This country has a proud maritime history—it had the largest and strongest Navy in the world at one time. That time is a long way behind us, but the challenge now is to ensure that our Navy can successfully meet the new threats and dangers that our country faces.