LGBT Veterans: Financial Redress

Baroness Smith of Newnham Excerpts
Thursday 21st March 2024

(1 week, 1 day ago)

Lords Chamber
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Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, nobody can do anything other than agree with my noble friend. The progress we are making is as we set out after we received the review and considered it in December. Since that time, 26 of the 49 recommendations are now complete, eight remain to be completed by the Ministry of Defence, 12 remain to be completed by the NHS and three remain to be completed by the Office for Veterans’ Affairs, which is all about the very important memorial issue. The door has opened to the extremely important webpage “LGBT veterans: support and next steps” on GOV.UK—I will repeat this as often as I can. We have now had over 2,000 contacts, which have so far resulted in 415 applications to date for restorative measures, including financial measures.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, there is something of a pattern here. When His Majesty’s Government pledged to make recompense to the war widows, there was an assumption that something would happen, but we heard a few weeks ago that some of the war widows were no longer eligible for the money they thought they were going to receive. We are now hearing that His Majesty’s Government are spending time creating a scheme for LGBT veterans. That is clearly welcome, but, as we have heard from both sides of the Chamber, there is an urgency about this, because some of the veterans have terminal illnesses. They and their families need to know that they are going to be recompensed sooner rather than later. Can His Majesty’s Government make a commitment to come back not just with another Statement but with the scheme that is needed?

Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, I am fully aware of the war widows issue and we are addressing that at the same time. It is very important that all these things get finished off as quickly as we possibly can. As far as the content is concerned, I have given a commitment that I will return before the Summer Recess. That will not be another Statement; it will contain what the process is going to be.

Single Source Contract (Amendment) Regulations 2024

Baroness Smith of Newnham Excerpts
Tuesday 19th March 2024

(1 week, 3 days ago)

Grand Committee
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I hope that noble Lords will join me in supporting these draft regulations, which I commend to the Committee.
Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, I am grateful to the Minister for introducing this statutory instrument and explaining very clearly the purposes of the regulations being proposed.

Unlike so many of the statutory instruments linked to defence, this is quite a weighty document. Some of the amendments are relatively straightforward, although one wonders why nobody scrutinising the 2014 Act spotted the difference between percentages and percentage points. The Minister and I can be exonerated because I joined your Lordships’ House only in October 2014 so I was not party to any scrutiny at that point. I suspect that the Minister was not in the House at that time either and I am sure that the noble Lord, Lord Tunnicliffe, bears no responsibility. However, we clearly always find things that have been omitted. We have already heard that another slight error was found even when these regulations were being laid; that makes it clear how important it is that we scrutinise things properly.

First, what sort of reporting is envisaged for the single source procurements that are being talked about? The Explanatory Memorandum makes reference to

“reports to the Secretary of State”

but is there any scope for parliamentary scrutiny of the procurements that will be in place?

A second major item that I want to ask about is the substitution of Regulation 3, on the meaning of “defence purposes”, with Regulation 4, on the meaning of “defence purposes” and “substantially for defence purposes”. Something that puzzles and worries me somewhat is this statement:

“‘Defence purposes’ means the purposes of defence (whether or not of the United Kingdom), or related purposes”.


Can the Minister explain to the Committee how extensive that can be? Does it relate to the procurement of defence capabilities that we would then export as part of our defence industrial strategy and defence exports? Should we be concerned about aspects of this that could be linked to the export of arms to regimes about which Parliament might have some reservations, for example? Some clarity on that would be most welcome.

The general points that the Minister outlined on flexibility, speed and clarification in the light of the users of single source contracts are sensible, but I wonder whether we could hear more about the extent of the changes; they are to bring in not just “defence purposes” but “substantially for defence purposes”, which can mean 30% or more of a contract. What is that likely to mean for the number of contracts that might be brought within the purview of these regulations and the scale of the value that we would be looking at? Will a significant change arise from the Procurement Act?

On primary contracts and subcontractors, the changes to profitability and moving things to the cost line make a lot of sense, but could we understand a bit more about how the decisions on what should be dealt with at market rate are determined? If we look at market rates and the defence supply chain, where is the competition? Are we looking internationally? Are we looking to comparators—for example, if we buy a widget, are we looking at what it costs in Germany, the United States and South Korea—or are we looking at a wider civilian market? All these things, almost by definition, are not outlined in the regulations but it would be useful for the Grand Committee to have sight of them.

Lord Tunnicliffe Portrait Lord Tunnicliffe (Lab)
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I rise with a heavy burden because I was the party spokesman in 2014 when this document was created. If you think that this document is a problem, you should compare it to the Yellow Book that preceded it. I thank the Minister for presenting this instrument, but I must confess that I am not going to say anything terribly new. He has touched on the issues already; in a sense, all I am going to do is ask for a few comments on the converse of the goodness, where we are raising problems. I am also responsible because I was a founding director of DE&S, which managed this. It is an old friend; it requires old glasses as well.

The Government recently made a Statement in which, at long last, they admitted to a number of problems in defence procurement and set out some rather vague ambitions to fix them. Although these regulations are not relevant to the whole of defence procurement—just those contracts that are awarded to a single supplier without competition—there are, as the Minister said, 575 single sources adding up to a total spend of around £90 billion. These are sizeable chunks, and it is important that they are taken in the wider context. We know that there are times when single source contracts work well, particularly for more traditional procurements such as ships, aircraft carriers and submarines. However, for less traditional contracts, such as in the digital sphere, they are less effective; in this case, I expect that the respective difficulties in establishing precise timeframes, specifications and knock-on effects are a big reason for that, but I would welcome the Minister’s further thoughts.

I will not spend too long reflecting on last week’s Statement but, as the noble Lord, Lord Coaker, said in his response, it is important that we get defence procurement right not just for the sake of being careful with taxpayers’ money—although that is of course important—but because of the message that it sends to the world in terms of our sovereignty, economy and obligations to our allies. This may sound slightly ridiculous in the context of a single statutory instrument but it is an important principle.

I turn to the specific details of these regulations. As the Minister explained, they amend the Defence Reform Act 2014 and the Single Source Contract Regulations from the same year, which, in combination, provide the rules for these single source contracts to ensure a fair agreement between the taxpayer and the supplier. This instrument intends to increase the flexibility of these contracts so that more can be done without compromising that fair agreement. So far, so good.

The regulations achieve this in three ways. The first relates to pricing. Currently, there is a bottom-up formula. Reasonably simply, you determine the costs, add a profit margin and there is your price. These regulations allow for a contract to be priced in relation to market rates instead. This is where things get a bit more complicated, with seven new pricing mechanisms. This will certainly bring additional flexibility, but it is hard to see a situation where it does not come by trading off the simplicity of the previous system.

I ask the Minister: how exactly will the Government quantify this trade-off, when there is a loss of simplicity, which is in itself a rather abstract concept? How can the Government be sure that it is beneficial? This was raised during the consultation, to which the Government’s answer was that additional clarity and further explanation of how this will work in practice will follow in guidance. That is not ideal either for the suppliers that are responding to the consultation or for those of us contributing to this debate and attempting to scrutinise this instrument. What is the Government’s plan if, in practice, these new mechanisms do not work as intended? I understand that this dilemma has been shared with the industry and will be published in a few weeks, but perhaps the Minister will take this opportunity to set out a bit more detail and even share any feedback received from those with whom it has been shared.

I have fewer concerns about the other two ways in which flexibility is increased. Allowing contracts to be split up into different components so that they can benefit from different profit rates may again reduce simplicity, but it certainly seems to make sense. Have the Government made any assessment of the negative impact of not allowing this in the past 10 years? Would this apply only to bottom-up pricing or to the new mechanisms too? Could different components be priced entirely differently? Can the Minister assure the Committee that the pricing is the full extent of how components are split? I ask these questions on a similar basis to my previous concerns that every layer of additional complexity could undermine the benefits of additional flexibility. To check against this, what steps are the Government taking to ensure that, in practice, the mechanisms work as they hoped?

The third key change is widening the definition to qualify under the 2014 Act. As I see it, this has the potential of making quite substantial differences to the significance of this instrument. Even a reasonably small adjustment in the number of contracts could be worth many millions. Given the variability of how well single sourcing contracts work, which this instrument may improve through additional flexibility, our biggest concern, which the instrument does not necessarily address, is that widening this scope could draw in contracts that have no benefit being processed in this way. Have the Government considered this? Have they made any assessment of the qualitative widening in this way and, if they accept it, are other steps being taken to prevent it, or is it also an accepted trade-off?

Finally, and more generally, it is not long at all until these regulations come into effect on 1 April. When they were considered in the other place just under two weeks ago, the Minister for Defence Procurement said that the guidance will be published in four weeks. I put it to the Minister that that is after the implementation date. Whether that is correct or otherwise, if a movement on the contract needed to be made, nothing has been taken away from the old regime, so I am sure that this would not be a critical issue, but it raises a wider question. Consultations on these changes began in 2019 and a lot has happened since then. After all that time and all that has happened, it is not exactly reassuring for things to be pushed so close to the wire. Will the Minister comment on that and perhaps reassure us that this SI will work as planned?

From what I hear, the regime that we are talking about has been a great success. It is a vast improvement on what happened before 2014, and therefore my comments are not meant to be unsupportive. To be even more supportive, I shall be entirely content with a longish letter.

Red Sea Telecommunication Cables

Baroness Smith of Newnham Excerpts
Thursday 14th March 2024

(2 weeks, 1 day ago)

Lords Chamber
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Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, I will cut to the chase. We take all this extremely seriously, but it is important to contextualise the risk. The most likely cause by far of damage to subsea cables comes from accidental damage by industrial fishing and shipping and from underwater geological events. That is not to say that undersea cables are not prone to attack but it is extremely rare, and the commercial organisations can divert very quickly to alternative routes. Having said that, the Ministry of Defence has capabilities to monitor the seabed and has invested in a multi-role ocean surveillance programme which enhances our joint intelligence surveillance and reconnaissance capability. We work collegiately with allies, including NATO, to ensure that subsea infrastructure is resilient.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, one issue is clearly the cutting of cables. The other is cyberattacks on undersea cables. What is the MoD’s position on that, and do we have adequate resilience?

Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, the question of resilience is one of ongoing technological change. However, through maritime domain awareness, which is a critical part of our maritime defence and is more specifically about the UK’s national waters rather than international waters, we collect an enormous amount of data to provide accurate information through surveillance software, coastal radars, aviation operations, space-based reconnaissance and government vessels. We get an enormous amount of data. Resilience is something which we consistently and constantly work on.

Military National Service

Baroness Smith of Newnham Excerpts
Thursday 7th March 2024

(3 weeks, 1 day ago)

Lords Chamber
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Earl of Minto Portrait The Earl of Minto (Con)
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I cannot disagree with the noble Lord, but we have to rely on the fact that all three forces have a global reputation and are professional, highly trained and the envy of many. To dilute them with unwilling recruits, to a certain degree, can lead only to a slight dilution of that reputation.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, on these Benches I will not call for military service to be reintroduced, but we are hearing from across the Chamber that this country and His Majesty’s Government need to prepare for a different security context from the one we have enjoyed for the last 30 years. Can the Minister tell the House what plans His Majesty’s Government are making to reinforce the services, including increasing the numbers of reserves and making sure our that recruitment deficit is overcome?

Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, the way we address the threat is a constantly changing situation. Whether through procurement or through individual members of the forces, there is a constant ratio of training, retraining and readdressing the threat. I really believe that we have the right quality of forces in place. We know that we do not have as many as we had planned, and there are some prevalent recruitment issues. Encouragingly, applications have been well up in the last few months. We had more than 10,000 applications for regular soldiers in January; there were 53,000 applications in the period from June 2021 to 2022 and just shy of 70,000 from June 2022 to 2023.

Defence Acquisition Reform

Baroness Smith of Newnham Excerpts
Thursday 7th March 2024

(3 weeks, 1 day ago)

Lords Chamber
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Lord Coaker Portrait Lord Coaker (Lab)
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My Lords, I thank the noble Earl for coming to the House to respond to these questions and the necessary scrutiny, on a repeat of the Statement from another place. It is welcome that the Government are finally beginning to acknowledge what we on these Benches and many others, including the National Audit Office, the Public Accounts Committee and the Defence Committee, have been saying for a long time—that defence procurement is not working.

The Statement referred to the narrative of the acquisition system being dogged by major programmes and, while certain programmes have indeed been over budget and over time, the issues go much wider. Some 46 of 52 major projects have been either late or over budget under this Government. It is a systemic problem. In the past 14 years, £15 billion of taxpayers’ money has gone to waste, £5 billion in this Parliament. Report after report from the NAO and the committees that I have mentioned have been critical.

This is not just about the wasted money, as important as that is. Continuous failure in MoD procurement sends a message to the world, to both our allies and our adversaries. Good defence procurement can strengthen our sovereignty; make our country more secure; provide economic growth by creating and supporting jobs; and ensure that our troops can fulfil their roles and fight, while allowing us to fulfil the obligations that we have to our NATO allies. As we would all agree, it is therefore a top priority.

The changes are right and welcome and we agree with the reasons for the reforms set out by the Minister. Indeed, there is not too much in the Statement that you can disagree with, but the real concerns with the Government’s approach stem from the lack of action to tackle the bigger issues, which is a disappointment and a missed opportunity.

The Government’s policy for acquisition reform, as set out in the Command Paper refresh and the Statement, do not address the waste and poor value for money that have plagued the Government’s mismanagement. Without addressing the waste of taxpayer money at the scale that I have set out, it is difficult to see how the reform as set out by the Government will fix the problem. How will the Government ensure that these reforms offer value for money and stop the waste that we have seen? What steps are they taking to address the underlying systemic issues that have contributed to the delays and mismanagement that the Minister has acknowledged in the Statement, which have led to these projects being late and over budget? It certainly does not appear that they would have prevented the issues with some of the major programmes mentioned in the Statement, such as Ajax or Morpheus, or others that were not mentioned, such as the E-7 Wedgetails. Is that analysis wrong and, if so, why?

We are under no illusions that the problems can always be eliminated entirely—as the Statement says, these are incredibly complex programmes and procurements—but they should not be on the scale that we have seen. Does that not mean that there is real scope to improve in this situation? How will these reforms ensure proper accountability to prevent further delays and mismanagement of these vital defence contracts, those that we have now and those we will have in future? A fundamental question that the Government need to answer is how the report will make the difference that we all want, and why it will be successful when so many other reports have failed.

We believe that we should create a new strategic leadership in procurement. If we form the next Government, we will establish a fully fledged national armaments director, responsible to the strategic centre for ensuring that we have the capabilities needed to execute the defence plans and operations demanded by the new era. We envisage core delivery tasks that currently do not seem to be vested properly anywhere in the system; they should have sufficient authority or accountability to carry these out effectively. This leadership includes alignment of defence procurement across all five domains to cut waste and duplication, securing NATO standardisation, collaboration with allies, driving export campaigns and delivering a new industrial strategy. What is the Government’s view of a new director such as this to drive the change that we all want? Which of the things that I have said does the noble Earl disagree with? They are a sensible plan for driving forward change.

We have to do better. Report after report promises action on the problems in defence procurement and promises that there will be improvement as we move forward. Yet our procurement process is dogged with failure and delay, which means that our troops and Armed Forces do not have the equipment that they rightly should. The fundamental question that the noble Earl needs to answer is this: why will this report be different from the reports that have gone before it?

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, “over-complex, over-budget and over-time” is how major programmes of defence procurement have been characterised not just by the opposition, our enemies or even our allies but by the Minister for Defence Procurement in giving this Statement in the other place. Defence procurement has, over years, been riddled with problems, as the noble Lord, Lord Coaker, pointed out. While this Statement is very welcome, there is a question about whether it goes far enough or thinks about the wider pattern of defence procurement.

I read the Statement as it was produced and put into the Printed Paper Office last week. It said, “Check against delivery”. I read it, and there were various points where I thought, “Surely no Minister actually said this”. I went back and looked at Hansard to see what the Minister for Defence Procurement said in the other place and, indeed, some of the slightly strange comments were made in the House of Commons. I will therefore ask a few very specific questions.

What we have as the fifth aspect of the new approach to procurement is:

“Fifthly, we will pursue spiral development by default”.


Other noble Lords might know what spiral development is, but I am afraid that I do not. The Statement did not give me much clarity on it, nor does the document that was produced to go alongside it, so I hope the Minister can explain a little more what spiral development means.

Even more, however, I would like to know what is meant by the next line:

“seeking 60% to 80% of the possible, rather than striving for perfection”.

I realise that there have been concerns about the fact that we have looked for exquisite solutions and platforms that are so highly specified that they become ever more complicated, with the timeline for procurement shifting ever further to the right. However, “60% of the possible” raises a lot of questions. Does it mean that only 60% of our ammunition is going to work, or that only 60% of our trials of Trident will work? Given that we seem to have had a couple of problems with Trident recently, I very much hope that the Minister can explain what this means. There is nothing in the Statement or the document that explains clearly that we do not want to spend so long over-specifying things that we never deliver the platforms or equipment that our Armed Forces need. Do we think that we need to specify less? What do the Government mean?

The Statement talks about learning the lessons of experience, which is clearly very welcome. We do not want another Ajax. Learning from that experience is highly welcome and I am sure the Minister would be very grateful not to have to face the situation that his predecessor, the noble Baroness, Lady Goldie, did, of repeatedly coming to your Lordships’ House and having to answer questions about Ajax for which, frankly, there were not any good answers.

Do the Government think that just learning the lessons of the recent past is enough? Will that deliver, at pace, as we say we need, the defence equipment that the United Kingdom needs in an era of unprecedented challenges? Will the noble Earl, in his response, tell the House how far this procurement model will really help us deliver beyond what we have been seeing and help ensure that, if we are sticking at 2% of GDP on defence expenditure, which seems to be the case from the Budget, that we are actually going to be equipped at the level we need to be to face the challenges that we and our allies are facing, and send the messages that we need to be sending to Russia, China, Iran and other countries, some of which we certainly would not think of even as collaborators in international relations?

Earl of Minto Portrait The Minister of State, Ministry of Defence (The Earl of Minto) (Con)
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My Lords I thank the noble Lord, Lord Coaker, and the noble Baroness, Lady Smith, for their questions and their very well-made points. The whole point of this paper is to look forward, not to the past. I think there is a full acceptance on all sides of the House that we can agree on the need to reform our acquisition processes, because they are rooted in the past, not in the current; and of course they ought to be rooted in the future.

As mentioned by my honourable friend the Minister for Defence Procurement in the other place,

“the long-standing weaknesses … are well known”.—[Official Report, Commons, 28/2/24; col. 354.]

They include highly exquisite requirements—“exquisite” is his word—constrained export opportunities, vulnerable supply chains, personnel wary of speaking up when problems emerge, not to mention the overprogramming and unintended competitiveness between different parts of the organisation for finite funding. All these have to be addressed if we are going to move forwards.

I draw all noble Lords’ attention, if they have not already been made aware of it, to the publication placed in the Libraries of both Houses last week, Integrated Procurement Model: Driving Pace in the Delivery of Military Capability. Within that document, noble Lords will find the five core principles through which we will deliver acquisition reform. For the benefit of the House, these are as follows—some have already been mentioned.

A coherent, joined-up approach across the defence portfolio to break down the silo nature of procurement.

New checks and balances to challenge assumptions. Taking expert advice from the outset of projects, not half way through, when it is either too late or no longer appropriate.

Prioritising exportability. Far too much of what we have done has been tailor-made. We work in a global market now, where there are skills and abilities outside our shores, sitting with our allies, where we should not only take advantage of their industrial capability but also the sales opportunity that it presents to us.

Empowering industrial innovation through greater transparency and common endeavour. Transparency is so important in this ability to be honest about the situation as things progress. We need to be able to have the honesty to challenge each other the whole way through the process, to make certain that we do not disappear down blind alleys and that things are produced to time and to budget, when they ought to be, and that everybody feels open enough and relaxed enough to be able to challenge some of these issues.

Then there is the whole question of continuous improvement, or spiral development. Spiral development is a new term for me as well. I come from the private sector, where it is called “test and refine”. The principle is very simple. There is a point when you know that what you are doing is capable of achieving the aim. It is not perfect, but you test it, you use it, you learn and you refine it. You can also refine it for other customers as well: you have the base model, it works well, you can test it and then start to develop it in various different directions, to do various different things that you might want, but also what any potential customer might want. It does make perfect sense, I must admit.

Before turning to the questions quite rightly raised, and some of the challenges, I will look at the way procurement has been taking place. Let us be in no doubt, these are extremely complex pieces of technology and equipment, and they do take a long time to bring to fruition—particularly some of the larger ships and aircraft, as I am sure noble Lords are fully aware. It is a long gestation process, where checks and balances need to be inserted at the right place. But it appears to me, looking from the outside, that the process is well overdue an update, and that it needs to be much nimbler, quicker, more open, more collaborative, more informed, more technologically advanced, more digitally enhanced—you name it. There is such opportunity here.

Will it work? Well, it has certainly made a good start. I will mention just a few things about where we have got to. We already have some initiatives under way, and they are starting to improve things. We are starting to drive pace; risk and complexity are being looked at; senior responsible owners and their teams are much more focused; the strategic alignment is getting better; and the capacity and capability of the professionals involved and the SROs is improving. Psychological safety—this idea of being open and honest with each other and having a non-blame culture, which I do not think we have had in the past—pan-defence category management and financial savings: all these things come down to capability having to be holistic. To have an effective operation and delivery across organisational boundaries, you have to have a holistic view.

I will now address some of the questions. The question of value for money, as raised by the noble Lord, Lord Coaker, which I am sure everybody is aware of, is a question of budgeting and taking a sensible approach, being up front about the budget and making certain that the opportunities and contingencies within the budget are transparent. That is very much the case.

On the question of underlying mismanagement, there are various plans in place within the organisations to ensure greater accountability, less project management and more specific accountability for specific parts of work, which makes the whole ownership that much easier and more driven on a private sector opportunity basis.

I think I have addressed the questions of analysis and accountability in speaking on the empowering of individuals. Will this work? Like everything, it is never going to work from day one, but it is a real move in the right direction. It is the current way that large industrial organisations work now, and the ability to insert SMEs in the process the whole way along is absolutely critical. If one thinks about technology and digital in particular, it is often SMEs that come up with the good ideas. They need to be inserted within the business and supported right the way through so that—I hardly dare say this—the primes do not gobble them up and sometimes destroy their nimbleness. So, this is the right thing to do. The question of co-operation with NATO and other allies is, equally, extremely well made.

The noble Baroness mentioned spiral development. It is a strange concept to be described like that, but I completely understand that it is “test and refine”. You get to a certain level, which is 60% to 80% of where you want to end up; you feel confident enough that you can actually put it out into the live environment, in the clear knowledge that you are going to get it back to make it better once it has been used and other people have seen its breadth of opportunity.

On the question of overcomplication, it is a difficult matter. We are dealing with very complicated machinery and skills, and everything we have learned in the past couple of years suggests that things do not need to be overcomplicated; they just need to work, and we need to be able to produce them at pace and in volume.

On Ajax, the Sheldon review has addressed this, I hope. Without making silly jokes about it being back on the road, the lessons really have been learned on Ajax—luckily, it is a thing from the past. We do learn from the lessons of the past, and procurement, if it is properly addressed, is about learning from experience, or enhancing and living with the concept of change. I hope that the challenges that we have seen have been addressed by what I think is a an extremely sensible and practical way forward for the very complicated and broad-ranging challenge of military procurement for a nation state. We could not take it more seriously; I certainly undertake to keep noble Lords fully up to date with all progress as we start to introduce some of the main milestones that will come up within the next two to three years.

Situation in the Red Sea

Baroness Smith of Newnham Excerpts
Thursday 29th February 2024

(4 weeks, 1 day ago)

Lords Chamber
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Baroness Anderson of Stoke-on-Trent Portrait Baroness Anderson of Stoke-on-Trent (Lab)
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My Lords, I remind your Lordships’ House of my interests in the register, specifically my roles with the Royal Navy. I thank the Government for their Statement and want to make it clear—as my friend, the right honourable John Healey, did in the other place—that His Majesty’s Opposition accept that the weekend’s airstrikes were legal, limited and targeted to minimise the risk of civilian casualties. Before we move on to the substantive part of the Statement, I pay tribute to the total professionalism of all forces personnel involved in the operations, currently numbering in excess of 2,500. As ever, military deployments do not come without risk; I thank those serving and their families for the personal sacrifices that they make every day to keep us safe.

Research from the British Chambers of Commerce this week showed that 55% of UK exporters have now been impacted by the disruption of shipping to the Red Sea. Among UK firms more broadly, 37% have seen the effects of Houthi strikes, with manufacturers, retailers and wholesalers more likely to be affected. This is having a direct impact on our economy and cannot be tolerated. The Houthis are threatening international trade and maritime security, and are putting civilian and military lives in serious danger. We accept that the military action over the weekend was justified and necessary but, as the shadow Secretary of State asked in the other place, was it effective?

Deterrence does not feature in the weekend’s eight-nation joint statement in support of the strikes, and the Defence Secretary said on Monday that the Houthi intent remains undiminished, so can the Minister clarify exactly what our specific objectives are for this UK action? Is it deterrence or are we seeking to degrade Houthi capabilities? If it is both, as I hope it is, what will success look like? How successful have the four missions that we have been party to been in achieving these objectives?

Of course, the Labour Party continues to back the Royal Navy’s role in the defence of shipping from all nations through Operation Prosperity Guardian. Although we are a key partner in Operation Prosperity Guardian, we are now not the only ones seeking to secure freedom of navigation in the Red Sea and to tackle the Houthi threat. Can the Minister update your Lordships’ House on the current co-ordination efforts with our allies?

The EU has launched Operation Aspides with similar objectives to Operation Prosperity Guardian. How is the US-led task force co-ordinating with Operation Aspides and what plans are there for combined action? The Saudi-led intervention into the Yemeni civil war against the Houthis began nine years ago, almost to the day. Can the Minister update your Lordships’ House on the current discussions with the Saudis and the intersection between these efforts and the recent airstrikes? Military action against the Houthis must be reinforced by a diplomatic drive in the region aimed at stopping the flow of Iranian weapons, cutting off Houthi finances and settling the civil war in Yemen. A limited update was shared in the other place about these diplomatic efforts. What additional information can the Minister give us about these efforts, specifically the diplomatic plan accompanying the strikes to manage escalation risks? Can he inform your Lordships’ House what other partners and allies we are engaging with to stop the escalation of these Iranian-backed Houthi strikes?

There is no excuse for the current attacks by the Houthi rebels on international maritime activity. There is an onus on us to protect freedom of navigation, which is why we support the efforts of the UK Government and, as always, thank our service personnel for their bravery, professionalism and dedication.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, I, too, pay tribute to His Majesty’s Armed Forces for always acting very effectively and professionally. Like the noble Baroness, Lady Anderson, we on these Benches support the limited strikes that we have seen so far. It is clearly right that, in line with the UN Convention on the Law of the Sea, the United Kingdom supports rights of navigation—in particular the right of innocent passage, which is enshrined in Article 17.

That said, can the Minister tell the House at what point His Majesty’s Government would feel it appropriate to come to this Chamber or, more likely, the other place to talk more fully about engagement in the Red Sea and attacks on Houthi targets? There are questions about parliamentary scrutiny of military intervention. For limited strikes, it is clearly right that the Government say, “This happened two nights ago”, but at what point does the number of limited strikes cumulatively become something that Parliament really should be addressing and able to scrutinise more fully?

Beyond that, as the noble Baroness, Lady Anderson, pointed out, what we are seeing from the Houthis is action that is impacting on trade and navigability. It impacts not only the United Kingdom or our conventional western allies; these attacks are affecting global trade. There have been attacks on Chinese-registered companies’ ships and on crews from India, Sri Lanka and Syria. Although we clearly need to be talking with our conventional partners and allies, what discussions are we also having with China, India and other countries about more global ways of tackling this situation? In defending the Red Sea and keeping it open for trade, we are not only acting for the West but looking more globally. Is there scope within the United Nations to be talking much more broadly with a variety of countries that are, perhaps, not our normal partners and which even the noble Lord, Lord Cameron, may not yet have reached in his travels around the world in his first 100 days as Foreign Secretary? There may be opportunities that we could think about.

It is clearly welcome that the attacks so far appear to have been targeted, precise and proportionate. They have taken out Houthi targets, Houthi drone bases and so on but, as the noble Baroness, Lady Anderson, asked, what is the Government’s intent? Is it to degrade the Houthi capabilities, which is clearly welcome, or is it to deter? If it is trying to degrade, which the Government are saying has been successful, is that going to be a long-term degradation or are the Houthis simply going to look to their Iranian backers for further military support? In other words, can the Minister tell the House to what extent these limited attacks will remain limited and to what extent we are going to be able to work with partners to try to ensure that the reckless and opportunistic Houthi attacks stop? What is the endgame for the Government? Is it to ensure that there is full deterrence of the Houthis?

Earl of Minto Portrait The Minister of State, Ministry of Defence (The Earl of Minto) (Con)
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My Lords, let me start by making it absolutely clear that the Houthi attacks on ships in the Red Sea and the Gulf of Aden are illegal and intolerable. Their reckless and dangerous actions threaten freedom of navigation and global trade, let alone the risk to innocent lives. That is why the UK, alongside the United States and with the support of our international partners, has carried out additional strikes on Houthi targets in Yemen in line with international law and in self-defence.

We continue to take action that is necessary, limited, legal and proportionate in terms of self-defence, freedom of navigation and protecting lives. Our aim remains to disrupt and degrade Houthi capabilities to put an end to this persistent threat, and we will not hesitate to take further appropriate action to deliver this purpose.

I turn to the specific questions raised by the noble Baronesses, which I hope will go a long way to explaining this. First, on behalf of the Government, I continue to appreciate the support from all Benches in the House; it is extremely valuable and very helpful in reaching these decisions, and, of course, we appreciate the immense professionalism of all the Armed Forces and their support who are involved in this continuing and extremely tricky situation.

The effect on commerce goes without saying. As the noble Baroness, Lady Anderson, pointed out, it is really starting to have an impact on European markets and, by definition, it must be having an impact on the manufacturing and supply bases in the Far East that ship towards Europe. On the point made by the noble Baroness, Lady Smith, about China and its silence so far on this entire issue, one can only hope that the diplomatic efforts in that direction, when tinged with a little bit of economic reality, may have a slightly more impressive effect.

As for the actual effect of the specific attacks that we have undertaken, it may be helpful to run through exactly what we are trying to do, and to delineate these specific attacks in relation to a more general approach. These carefully targeted sites—and they really are carefully targeted—are attacking deeply buried weapons storage, launch sites, ground-control systems and radars, which are the four things that will stop these attacks. The intention to deter and degrade is absolutely present, and Prosperity Guardian is all about deterrence. These three things are intricately linked. In the attack last weekend, we hit three buildings, destroyed five drones that were ready to be launched, and, as far as we are aware, no civilian casualties were caused. To date, we have had four strikes on seven facilities and 40 targets. The information is that all four have been successful in support of Prosperity Guardian and our American, and other, allies—it is the Americans, of course, who are leading.

The noble Baroness, Lady Anderson, quite rightly raises the question of Aspides, which is the EU stepping up to the plate, to some extent. To put a scale on that, it consists of four frigates and a single aerial asset. It is a defensive maritime security operation, and it will protect commercial shipping from attacks at sea or by air, but it will not involve itself in strikes on land. It started on 19 February 2024, it is based in Greece and it has an Italian force commander. It provides a valuable defensive role, but we do not see it being involved in any degrading or deterring.

On the question of the conversations with wider allies and other countries in the area, the whole purpose of the diplomatic effort is to put pressure on Iran, to try to stop the supply of weaponry to its acolytes. By taking military action—which is a final resort—as well as the diplomatic effort, we are doing all we can to restrict weapons and finance. It is consistent with our whole approach; it is appropriate and backed up with force.

My final point goes back to the question of global trade and the point that was well made by the noble Baroness, Lady Smith, that it is not just the allied shipping that is under attack. The idea that the Houthis are attacking only ships that are proving to be in support of something going on in Gaza is completely spurious. They attack whatever they like, including, as I am sure your Lordships are fully aware, the one ship that brings aid to Yemen, to support the UK and international partners. So that claim is just complete nonsense.

Finally, I will respond to the question of when these individual strikes become something more of a sustained campaign. It is a very difficult question to answer and it is not an easy one to grasp, because we do not quite know what level of effect these strikes are having on the overall capability of the Houthis. These are limited and deliberate strikes in direct response to the Houthi attacks on commercial shipping, our Navy and coalition ships in the region. There is no doubt that we have degraded the Houthi capability and we will continue to urge the Houthis, and those who enable them, to stop the illegal and unacceptable attacks on UK commercial and military vessels, and on those of our partners in the Red Sea and the wider region. Beyond that, it is very difficult to see how a broadening of this action may evolve.

Ukraine

Baroness Smith of Newnham Excerpts
Wednesday 28th February 2024

(1 month ago)

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Lord Coaker Portrait Lord Coaker (Lab)
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My Lords, marking the second anniversary of Russia’s illegal invasion of Ukraine gives us another chance to reaffirm our support for Ukraine and its people—people who, in the defence not only of their freedom but of our freedom and our democracy, have suffered so much. So many have been killed and wounded. Cities, towns and villages have been ruined or destroyed.

Yet, in the face of that, Ukraine has stood tall, firm and resolute. Once again, all of us salute Ukraine’s courage and bravery. As a country, we are united in our support and our determination to see this through with them. We have seen this in military support, but also in Ukrainians welcomed into our homes, donations of assistance to Ukraine and continuing rallies on many of our streets, marking that sense of solidarity.

Can the noble Earl tell us whether the Government’s recent welcome announcement of further support for Ukraine will ensure that the ammunition shortfalls that the Ukrainian armed forces face will be speedily replenished? Do we have the stocks to do this quickly, and can we do all we can to ensure that such shortages are not experienced again? In part, this needs a boost to Britain’s industrial production. The Government have announced plans to enable this uplift in capacity to take place with respect to armaments. What progress has been made with respect to this, and what timeline do the Government expect in order for that increased capacity to be available to meet the ever-increasing need?

The chief of the Armed Forces said this week that addressing this shortage of ammunition could take months until the West agrees further steps to support Kyiv. What are these further steps, and what progress has been made to achieve them? Ukraine has had to withdraw at times, not because of a lack of desire to fight but because of a lack of ammunition. This cannot be allowed to happen again. I know the Government will agree with that, but we simply cannot read again in our papers that military withdrawal has had to take place because of the lack of necessary ammunition, let alone equipment.

Alongside raising the amount of ammunition supplied and the speed of supply, we need to maintain the diplomatic effort to maintain our unity. Can the noble Earl comment on President Macron’s calls for troops in Ukraine, which appeared to come from absolutely nowhere?

One of Putin’s mistaken beliefs was that the West would be weak in the face of his aggression. Is it therefore not significant to note again that the opposite has happened, with the very welcome strengthening of NATO? Finland is now a member and the last obstacles have been cleared for Sweden. Can the noble Earl outline the Government’s view of what Ukraine’s path to NATO membership is? Do the Government have a view on how they expect this to happen?

The Government have made many announcements, including the recent one about 200 Brimstone missiles. Can we expect a full military aid action plan? Is there to be an implementation plan for the welcome UK-Ukraine security arrangement and agreement?

Alongside equipment, the training of personnel is also crucial. We have trained up to 60,000 individuals so far, which is a great feat on our part. Can the Minister update us on the latest news regarding Operation Interflex, which is our main training effort?

The morale of the Ukrainian people has been immense, and we must do all we can alongside our military support to maintain that morale. What thought have the Government given to this aspect of the war? In other words, what thought have they given to maintaining civilian morale in the face of the aggression and hardships that we all understand?

The shocking death of Alexei Navalny shows the sort of regime that we are dealing with. Success for Ukraine is our success, and it is crucial to the future of freedom and democracy in Europe. The resolve of the Ukrainian people is immense, and they should know the strength of our resolve and that of our friends to stand with them. It is a task we will not shirk, and they should hear that message again.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, from these Benches, I echo the words of the noble Lord, Lord Coaker. We stand here today supporting our Ukrainian friends. Across the Chamber and across the country, we give our support to Ukraine. It is unwavering, and it needs to remain so, because Ukraine’s war is our war. If we flinch, that only gives succour to Vladimir Putin, so it is absolutely right that we all stand up and say that we support His Majesty’s Government in the aid that they have been giving to Ukraine. The aim of this evening is perhaps to ask a few questions about what further support can be given; our own defence capabilities, to ensure that we have the ammunition we are seeking to give and are backfilling appropriately; the defence industrial base, perhaps; and what assessment His Majesty’s Government have made of the ammunition support that Russia is getting from North Korea and Iran.

First, it is very clear that there is a concern about a lack of ammunition. President Zelensky has said that we must be very careful not to have an artificial deficit in ammunition. Can the Minister tell the House what preparations His Majesty’s Government are making to ensure that we can supply or help supply Ukraine not just this week and next week but for the months and years to come? What discussions are His Majesty’s Government having with other Governments in Europe and in NATO about their support? There have been problems about the pledges of ammunition being delivered from other European countries. We are all in a similar situation, and we are all trying to procure weapons from the same industrial base, even if we have our own defence industries. What co-operation do we have, and what discussions are we having? Are we ensuring that, collectively, we can provide Ukraine with what is needed?

I think there is a real issue. The Secretary of State, making the Statement in the other place last week, talked about the new UK drone strategy. Obviously, drone warfare is one of the issues that has come to the fore in recent years. In Ukraine, but also in the Middle East, particularly the Red Sea, we have seen drones that appear to come from Iran. Could we hear what assessment His Majesty’s Government have made about the potential of Iranian drone warfare? Do we have any sense of the numbers?

Beyond that—I realise that sanctions probably fall in the remit of the FCDO; certainly, Minister Mitchell talked about sanctions in his Statement today—one of the issues about sanctions is that they ought to be stopping Russia being able to export oil and gas in the way that it has been doing. Are His Majesty’s Government satisfied that the existing sanctions are working sufficiently well? In particular, if the rumours are true that among the other countries buying oil now is India, which is one of our Commonwealth partners, what discussions are His Majesty’s Government having to try to persuade India and other Commonwealth partners that have not necessarily bought into the same level of commitment to Ukraine as we have? What are His Majesty’s Government doing to try to persuade them to support the sanctions?

Earl of Minto Portrait The Minister of State, Ministry of Defence (The Earl of Minto) (Con)
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My Lords, let me start by restating that the UK’s commitment to Ukraine remains absolute, unequivocal and unwavering. Putin’s appalling, illegal and unprovoked attack on the Ukrainian people must be repeatedly condemned by all sides. The Government are extremely grateful for the exceptional level of support across all Benches throughout the last two years.

The UK has been and remains at the very forefront of international efforts to end Russia’s war. With that support, Ukraine has retaken over half the land occupied by Russia, pushed the Black Sea fleet eastwards out of Crimea and opened up grain export routes that do not depend on Russia. Ukraine has made significant progress—not consistently, but with enormous effort and huge fortitude—in repelling an extremely focused and aggressive invader. As we know, it is the second anniversary and, as those in the know have said for a long time, this will be a long war. A lot of the questions that have been asked are about the ability of the West to support and maintain the pressure and ability of the Ukrainian people to mount a continuous defence of their country.

I will take some of the questions that have been raised. On the question of replenishment and available stocks, the Government, not only here but also in Europe and NATO, are moving at speed to attempt to invest in industrial strategy that will up the rate of production. In this country, we have done a number of deals, both through the International Fund for Ukraine and also with some of our armament suppliers, to increase that rate. One of the most commonly mentioned ones is the 155mm artillery ammunition, where the actual rate has been increased by a factor of eight.

That is not to say for one minute that we are able to supply—and I do not think one would expect a country of our size to be able to supply—the full necessity, but in working with our partners, both in NATO and the EU, there is no doubt that the rate of supply will increase again, hopefully to the level of fire rate, which will allow the Ukrainians to hold their ground and ultimately push back. It is not an instant solution and, as I am sure noble Lords will be aware, there are some details that I am not at liberty to discuss, but we are doing everything we can to improve our own stocks and availability and restrict the Russian Federation from obtaining materials.

Some of the further steps we are taking, particularly when getting other countries involved and stepping up to the mark, are, as you would expect, through diplomatic channels. That is extremely important, because when it comes down to it, winning on the battlefield is one thing, but it is diplomacy that really wins the day in the end. That is consistent with all the different issues we are facing now: we restrict the weapons, we concentrate on diplomacy, we restrict the flow of money and we continue to supply all that we possibly can.

On drones, the noble Baroness is absolutely right. The whole concept of warfare has changed significantly. As part of the £2.5 billion that we are gifting to Ukraine in 2024-25, £200 million is going to go to drone technology and will produce an enormous quantity of drones. The challenge with Iranian drones is that, although of course we will do whatever we can to restrict some of the key components, there are malign forces that are only too happy to supply those key parts which are so hard to get hold of.

On sanctions, we have introduced a sanction level that has never been produced before against a sovereign state. With our international partners, it is a major level of sanctions. Some 1,900 individuals and entities have been sanctioned, 1,700 of those since the start of the invasion. They include 29 banks, which is 90% of the Russian sector, and 131 oligarchs, which is £147 billion. The fall in Russian trade to the UK is now 99.7%. The sanctions are working, and we know that Putin is having trouble coping with them—in fact, he admits to it. How those seized assets should be applied, either for rebuilding Ukraine or for humanitarian aid, is an issue which is under constant discussion.

The question on NATO is an extremely good one. The primacy of NATO in this whole enterprise is paramount. The accession of Finland and the final acceptance of Sweden—I understand there is going to be a signing next week, which is great news—shows the Russian Federation the determination that NATO has. I cannot imagine what President Macron thinks he is doing suggesting that NATO troops become involved; I rather hope it is a question of translation at some point, because it is just extraordinary.

We continue to train a very high number of personnel —in fact, we trained an additional 10,000 in the past few months. One challenge that we have with training, and we have about a dozen allies who help us with it, is that we are not certain how many people are still coming out of Ukraine wishing to be trained. I am sure that noble Lords will know that the Ukrainian Government are looking at the conscription age to try to boost the numbers going into their forces. However, despite some of the setbacks, morale remains remarkably high. More than 80% of Ukrainians are determined to regain all territory. President Zelensky still has an extraordinarily high approval rating. Even the change of commanders, which is fairly normal in war, because after a couple of years people get tired and there needs to be some new thinking, has been well accepted.

The death of Navalny is a clear indication of the sort of people we are dealing with. They will stop at absolutely nothing. It is just another example of the complete lack of any form of moral compass that is being faced.

My final point is that the approach we are taking with some of our allies and some of the Commonwealth about buying oil and gas from Russia is one of diplomacy. The challenge is that, as I understand it, they know they are not necessarily doing the right thing but the Russians are charging a price that they almost cannot resist. That is a real diplomatic challenge and it is something that we need to concentrate on with enormous application and force.

Before taking Back-Bench questions, I will just say that I concur entirely with the noble Lord, Lord Coaker, that, as the second anniversary of Russia’s invasion passes, we must all recognise that Putin simply must not be allowed to prevail, at whatever cost it takes.

Iran: Military Power

Baroness Smith of Newnham Excerpts
Tuesday 20th February 2024

(1 month, 1 week ago)

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Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, surely the point is that the United States is a democracy. Iran is not.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, in answering the initial Question of the noble Lord, Lord Browne of Ladyton, the Minister rightly pointed out that we have sanctions against Iran. But does he believe those sanctions are working, given that the chief commander of the Iranian Revolutionary Guard pointed out last week that Iran now has unparalleled naval capabilities and the ability to deal with military things from afar?

Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, this is an extremely good point. We can go only so far with sanctions, due to all the reasons that your Lordships are fully aware of and the fact that Iran has its allies, which are not remotely interested in stopping—and in fact are encouraging—its proliferation. We sanctioned the IRGC in its entirety. We have sanctioned more than 400 Iranian individuals and organisations to do with weapons proliferation, regional conflicts, human rights violations, and terrorism. Since October 2022, we have sanctioned a further 56 IRGC-related organisations and officials. So we are taking as much action as we can.

Royal Navy: Drone Attacks in the Red Sea

Baroness Smith of Newnham Excerpts
Monday 5th February 2024

(1 month, 3 weeks ago)

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Earl of Minto Portrait The Earl of Minto (Con)
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I thank the noble and gallant Lord for his question; that is a very good point. When firing an expensive missile at a cheap drone, you are not protecting the missile; you are protecting half a billion pounds-worth of equipment behind you—that is certainly worth it. As your Lordships know, we have invested a large amount of money in drone and missile technologies, and we will incorporate that in all future designs.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, the Minister said that he does not want to comment on the Statement that is about to arrive, so I will take him in a slightly different direction. To what extent have His Majesty’s Government assessed the requirements for the Navy in the light of the drone strike on 16 December? Given the very worrying concerns raised by the report of the Defence Committee in the other place, Ready for War?, which points out the difficulties with the Type 26 delays and the power improvement project for the Type 45s, we were very fortunate that HMS “Diamond” is in the region and seaworthy. What assessment are His Majesty’s Government carrying out about making urgent reforms to the Navy to ensure that we are as protected as we need to be?

Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, the First Sea Lord and his team are fully aware of the situation and are keeping as many ships at sea as we can at any one time. There is obviously a maintenance programme that must be adhered to and upgrading programmes that follow the latest technology. All the learnings from this latest situation in the Red Sea are being built in as rapidly as possible to all future plans.

Afghan Relocations: Special Forces

Baroness Smith of Newnham Excerpts
Monday 5th February 2024

(1 month, 3 weeks ago)

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Earl of Minto Portrait The Minister of State, Ministry of Defence (The Earl of Minto) (Con)
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My Lords, your Lordships will remember from when we went through this issue the last time that it is not easy. I do not accept that we have made a nonsense of it. What we are trying to do is get it right. Some inconsistencies came up during the process that needed addressing, which is what we are trying to do. The information was held by the Afghan national Government. It was not held by us. Your Lordships will remember that we had 142,000 applications, of which 95,000 were original. We needed to get to the truth of it. As a result, we are looking again at all the refusals, which is the right thing to do.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, these Benches welcome the Government’s change of heart and their agreement to look again at the applications of the Triples. There has been a real problem with ARAP and ACRS. People have not been able to make appeals.

Can the Minister reassure the House that His Majesty’s Government understand the urgency of dealing with these appeals immediately? While 12 weeks is absolutely the longest that it should take, ideally it should be much sooner. Can he tell us what Minister Heappey in the other place meant by saying that a new safe route is by the ACRS? The SNP had asked how we could have new safe routes. The fact that you have been granted ARAP does not mean that you can get out of hiding in Afghanistan to the United Kingdom. What will the Government do to enable people to get here safely?

Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, I assure all noble Lords that we are in very close contact with the highest level of the Government in Pakistan. They are being extremely co-operative on the situation. Regarding the 12-week timeframe, we would like to get this sorted out as soon as possible. It has gone on for a very long period, but please keep in context the 142,000 applications. It has not been easy, and it is important that we get the safe routes correct so that people can get out of Afghanistan. Once they are in Pakistan and get the letter, we can get them out. We got another 2,900 people out fairly recently. It is a challenge, but we are getting there.

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Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, I recall a very similar question the last time we raised this, and I think I said at the time that there is flexibility and that it is important that we get it right. That is the indication that I will give.

Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, if nobody else wants to come in, perhaps I may press the noble Earl further to answer my original question and those of the noble Lord, Lord Browne, and the noble Baroness, Lady Chakrabarti. If somebody is entitled to ARAP, and if they make it to the United Kingdom by some circuitous route that would otherwise be deemed illegal, does that mean that they will be eligible to remain even though, in every other circumstance, they would be deemed to have come through an illegal route and potentially be sent to Rwanda?

Earl of Minto Portrait The Earl of Minto (Con)
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My Lords, that is something I am not 100% clear on. I will not say one way or the other, but I will find out and write.