Oral Answers to Questions

Baroness Stuart of Edgbaston Excerpts

Monday 3rd February 2014 Commons Chamber

[Dr Murrison]

I think that many of us will go on a voyage of exploration as we explore our family histories during the four-year period. I know that my hon. Friend has long-standing Sussex ancestry. May I take this opportunity to congratulate his daughter, who I understand has just joined the Army Reserve?

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

I am sure that Ministers will join me in congratulating the shadow Secretary of State for Defence on winning the Opposition Front Bencher of the year award last week. On world war one, I want to make sure that Ministers recognise, not just this year but over the whole period, the contribution that women made to the efforts.

[Dr Murrison]

I absolutely agree with the hon. Lady, as she would expect. There will be opportunities throughout the four-year period to commemorate not just fighting soldiers, but the population at large and women in particular. It is important to note that this was the first total war that we experienced. It would therefore be bizarre if we did not commemorate the contribution of the whole population, rather than simply commemorating our troops, important though they were.

IT Systems (Army Recruitment)

Baroness Stuart of Edgbaston Excerpts

Tuesday 14th January 2014 Commons Chamber

[Mr Hammond]

As was mentioned by the shadow Secretary of State, just before Christmas I published the trajectory of recruiting targets for the reserves that we will have to meet to deliver on our commitment of 30,000 trained reservists by 2018. I have given the House a commitment that we will publish the out-turn figures on a quarterly basis. Aside from the numbers, anyone who looks at the Army recruiting website will start to see measurable, noticeable improvements by the end of this month, as some of the interim solutions start to take effect.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

The Secretary of State still seems confident that these are initial difficulties that can be overcome. I am not so convinced. I think that they are systemic problems. These problems shed light on his decision to reduce the regular Army before the reservists are fully tested. Now that he knows about the problems, will he say in his own terms at what stage he will say that these are no longer initial problems and that we need to review the situation properly because there is a systemic failure in his approach?

[Mr Hammond]

To interpret the hon. Lady’s question, I am clear that the problems with the ICT platform are not initial difficulties. We have made a clear decision that the Atlas platform is not fit for this purpose and have asked Capita to develop a dedicated platform for Army recruitment.

However, I think that the hon. Lady is probably referring to the wider challenge of recruiting the necessary reserve numbers. She is right to say that there are two components to that. There is the technical challenge of processing recruits through the pipeline. I have admitted to the House on a number of occasions that the system is very clunky, which is partly but not exclusively because of problems with the ICT platform. There is also the wider challenge, in the face of societal change and public attitudes, of encouraging people to want to join the Army Reserve and encouraging employers to want to support employees in joining the Army Reserve. It is very early days, but the signs are encouraging. I have no doubt that I will continue to report to the House as the evidence becomes more readily available over the course of the year.

Oral Answers to Questions

Baroness Stuart of Edgbaston Excerpts

Monday 16th December 2013 Commons Chamber

[Mr Dunne]

I am very confident of the food supply chain for mince pies, having visited the factory supplying our troops in Helmand earlier today.

The national security risk assessment rates the short to medium-term disruption to essential resources including food as a tier 3 risk. The UK currently enjoys a high degree of food security in terms of access, availability, resilience and variety of food supply. The main role for the MOD in securing international food supply chains and other critical resources is, in co-ordination with others, to police international sea lanes, which supply the vast majority of imports to the UK of food and other essential resources.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

In the scenario planning assessing the security of the supply chain, has the Minister considered the possibility of the Suez canal being closed? What provision has he made for such a scenario?

Defence Reform Bill

Baroness Stuart of Edgbaston Excerpts

Wednesday 20th November 2013 Commons Chamber

[Mr Brazier]

I am grateful to my hon. Friend for her kind words. My essential point is that Parliament recognised, when the Territorial and Reserve Forces Act 1907 was put through, that reservist recruitment would never work if it were simply run by the Regular Army. It does not work. There is no reserve army anywhere in the world that is effectively run by its regular counterpart. We need a strong independent body. This new clause, which my right hon. Friend the Secretary of State has generously said he will accept, will put the body that used to do this job very effectively into a powerful position as inspectors.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

For the record, it is not just a question of the mess that it all was; it is a question of the mess that it still is. My understanding is that the new clause will help to put the mess right.

[Mr Brazier]

I am not sure that I heard the last few words of the hon. Lady’s intervention; would she mind repeating it, as I could not quite hear?

[Ms Stuart]

I was suggesting that the purpose of the new clause, which I sponsored, was to put the mess right.

[Mr Brazier]

A whole string of changes affecting the recruiting group are already taking place, and I am sure that the Secretary of State will address some of them. The key point—I am really grateful for the hon. Lady’s support in signing my new clause and in raising questions in the Select Committee and so forth—is that we would not have lost 18 months if people had listened to the RFCAs, to which all this was painfully obvious 18 months ago, instead of having some regular officers arrogantly cracking on without talking to the units or the RFCAs.

Oral Answers to Questions

Baroness Stuart of Edgbaston Excerpts

Monday 4th November 2013 Commons Chamber

[Anna Soubry]

I absolutely agree with my hon. Friend. That is why the new employment model that we are developing will deliver an offer to regular service personnel that supports domestic stability by reducing the frequency of moves and supports partners’ employment. We know that issues such as those two points often concern members of our armed forces and lead to a lot of dissatisfaction.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

Often the problem is the availability of housing. Will the Minister update the House on what discussions have been had with local authorities in general and Birmingham city council in particular about the provision of extra housing?

Armed Forces Parliamentary Scheme

Baroness Stuart of Edgbaston Excerpts

Wednesday 11th September 2013 Westminster Hall

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

Given that the office of the hon. Member for New Forest East (Dr Lewis) is on the same corridor as mine, I think it would be wise for me to share the time with him, in the interest of long-term relationships.

It was an honour to be asked to be a trustee of the new scheme, and I am happy to serve on the trust, together with the hon. Member for North Wiltshire (Mr Gray). There have been many tributes to Sir Neil Thorne today, and as I was sitting here I thought that as a former MP he will know that we all merely leave footprints on the sand of life and the waves wash them off. With some people, however, it takes longer before the prints are erased, and with Sir Neil I think it will take a pretty long time before what he has achieved so far, and what he will continue to achieve as life president of the scheme, is erased, and he should be proud of that. I do not think that the British are very good at saying, “I think I’ve done well,” but if anyone is allowed to say it, Sir Neil is.

The scheme is significant, but I want to make another point that has not come up so far. My first contact with the forces was a difficult one. I was the Health Minister who closed down the military hospitals, and I was not terribly popular at the time. One of the arguments used was, “You just don’t understand the forces,” which was valid, but the reason for the closures was that the royal colleges were saying that it was no longer possible to carry out the medical training in the way it needed to be done, and the NHS needed to make a contribution. Some 14 years on, the Royal Centre for Defence Medicine is in my constituency, and we are in the reverse position of the NHS having to learn from the medical services provided there. That interaction is important.

I then served on the Select Committee on Foreign Affairs for eight years, and on the Select Committee on Defence, but visits as part of the scheme have a very different flavour from the ones we do for Select Committee or ministerial work—the relationships are different. They key thing about the scheme—I was with the Navy—is that it affords the enormous and rare luxury of suddenly being able to spend four or five days thinking about only one subject. It also provides contact with people from the captain to the cooks on board, who really say what they think, and even though they are not our voters we feel that we had better listen to them and take note. It is the nature of that exchange that is so important.

I want to make brief reference to sponsorship and transparency. In the modern world, such a scheme must be absolutely transparent. Just like my fellow member of the Defence Committee, my hon. Friend the Member for Merthyr Tydfil and Rhymney (Mr Havard), I do not think anyone has ever tried to say, “This is what we think you should be doing. This is a kind of sponsorship”—that might, of course, be just be a reflection of how insignificant we really are. This is a terrible admission: up until the point of the discussions on the scheme I had no idea that it was not just the Ministry of Defence that was picking the bill up. I had absolutely no idea that sponsorship was involved. I think that that was one of those rare occasions when ignorance is a sign of success.

It was right and proper to put the scheme on this new footing, and I am grateful to the Minister for helping to set that up. As a trustee, I will have much more involvement, so I ought to leave most of the time left to my fellow MP, the hon. Member for New Forest East.

I thank Mr Speaker and the Lord Speaker, as well as the parliamentary authorities, for realising that the scheme is one like any other, and for accommodating and facilitating it: the scheme is an extension of parliamentary activity in a different framework. The knowledge gained is fundamental. We should remember that Parliament came about because of the defence of the realm and how taxes were raised for it. We have forgotten that in many ways, but we should be brought back to remembering our primary function.

We should not just see the forces when they come back as injured soldiers—a real danger is that there is a public relationship with our armed forces only when they become victims—but be proud of what they do, understanding what they do and what a difficult job they have juggling politicians and the real world. The scheme facilitates, and I firmly believe will continue to facilitate, that learning.

Oral Answers to Questions

Baroness Stuart of Edgbaston Excerpts

Monday 2nd September 2013 Commons Chamber

[Mr Hammond]

My hon. Friend is absolutely right. Our relationship with the United States is central to our defence and security, and I am confident that, whatever happened last week, the depth, strength and history of that relationship mean that it is a resilient one. The Prime Minister has spoken to the President since last Thursday, and I am confident that as a result of that conversation the relationship between the United States and the United Kingdom will continue, and will remain strong and resilient.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

Given that the security situation in Syria is likely to deteriorate or certainly change, will the Secretary of State tell the House why last Thursday’s vote, whereby in essence the House did not agree to two motions, should not be revisited in future?

[Mr Hammond]

As the Prime Minister, the Chancellor of the Exchequer and the Foreign Secretary have already made clear, this is a democracy. Parliament has spoken, and we take it that Parliament has spoken very clearly. We cannot keep coming back to Parliament with the same question. I think that the circumstances would have to change very significantly before Parliament wanted to look again at this issue.

Defence Reform Bill

Baroness Stuart of Edgbaston Excerpts

Tuesday 16th July 2013 Commons Chamber

[Mr Hammond]

I am grateful to my hon. Friend, who will have thought very carefully about these matters. Of course, this goes to the heart of the deliberations that we have been having. We are confident that we can put in place a model that will protect intellectual property—an issue to which I shall return.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

On a similar theme, what have been the discussions with the United States about the transfer of classified information in this context?

[Mr Hammond]

I shall talk about confidential information later in my speech. DE&S has access to certain confidential information at the moment. The arrangements will provide for the GoCo to have access to that confidential information under a regime that retains its confidentiality and ensures that it will be maintained. If the hon. Lady will bear with me, I shall address that very shortly.

If, at the end of the evaluation process that I have described, a GoCo is assessed to be the best value-for-money option, a private sector partner will be appointed to manage DE&S on behalf of the Secretary of State. As I said, this will be a radical change, but not quite as radical as some have suggested. The GoCo will always act as the Secretary of State’s agent. All contracts entered into will continue to be in the Secretary of State’s name, and strategic governance will be provided by a governance function that will remain within the MOD. The GoCo’s customers will be the front-line commands and the MOD itself; it will work to their agenda and their priorities. I can therefore assure the House that this is absolutely not about handing over billions of pounds of taxpayers’ money to a private company and leaving it to decide what kit to buy for our armed forces.

The commercial competition is under way, and we expect it to be completed by spring next year. In parallel, we are developing a robust public sector comparator, which we call DE&S-plus, that will explore how far it is possible to go in reforming the organisation, making the maximum use of freedoms and flexibilities that we can negotiate within the public sector. If, at the end of this process, the GoCo model is indeed the chosen option, legislation needs to be in place so that we can move quickly to sign a contract with the successful bidder once a final decision is made.

[Ms Stuart]

The Secretary of State might address this point later, but how does he envisage that the GoCo will be accountable to Parliament? Would it appear in front of the Public Accounts Committee or the Defence Committee?

[Mr Hammond]

The Secretary of State will remain accountable to Parliament, but we expect that the GoCo will have an accounting officer, probably its chief executive officer, who will therefore be liable to be called before the Public Accounts Committee.

Part 1 of the Bill sets out the provisions and safeguards necessary to underpin the operation of a GoCo. The most important element of almost any organisation is its people, and the smooth transfer of the DE&S work force to the GoCo operating company will be vital to its future success. The Bill confirms that the initial transfer of civil servants would be covered by the TUPE regulations. By virtue of being a contractor-operated entity, the GoCo would have considerable freedoms, particularly relating to its ability to recruit and reward its staff at market rates—freedoms that are not usually available to public sector bodies. The Bill confirms that in its activities on behalf of the Secretary of State it will enjoy certain statutory immunities and exemptions that are currently enjoyed by the Crown—for example, in relation to the Health and Safety at Work etc. Act 1974 and the Nuclear Installations Act 1965.

In addition to those freedoms, we also need to put in place a number of safeguards to protect Government and taxpayer interests. Therefore, the Bill provides the Secretary of State with the power to create a scheme to transfer the business to another contractor or, in extremis, back to the MOD, should that prove necessary. The Bill also provides for the Ministry of Defence police to have clear jurisdiction to investigate any offences that may relate to defence work carried out by contractors. It also makes provision to allow the Secretary of State to disclose information that he has received in confidence to a contractor, and to authorise the use of intellectual property. Clause 7 and schedule 2 put in place appropriate safeguards to prevent the unauthorised use or disclosure of confidential information by either the GoCo or its employees.

I am determined to drive a step change in the way in which the MOD carries out its defence procurement business, and to do so rapidly. The gradual erosion of skills and capability in the organisation over recent years cannot be allowed to continue if we are to ensure the MOD’s ability to deliver equipment to the front line. The measures in part 1 of the Bill will allow us to make the transition to a GoCo at the conclusion of the commercial competition, subject, of course, to the bids representing value for money for the taxpayer.

Part 2 relates to single-source procurement. Open competition remains the best way of ensuring value for taxpayers’ money. However, sometimes there is only a single provider of a capability we require, such as nuclear propulsion units. Sometimes the need to maintain critical national industrial capabilities or sovereign control of the intellectual property in equipment programmes requires us to place contracts with UK companies without a competitive process. European Union public procurement regulations specifically allow this for military equipment.

This so-called single-source procurement typically accounts for about 45%—about £6 billion a year—of the total that the MOD spends on Defence Equipment and Support, and it is likely to remain at that level for at least the next decade or so. Clearly, in the absence of the disciplines of the marketplace there needs to be a set of rules governing single-source procurement in order to ensure proper protection for the taxpayers’ interest.

The MOD currently uses a framework for single-source procurement that has remained largely unchanged for the past 45 years—the so-called yellow book. Under this system, which is voluntary, the profit that contractors can earn is fixed, but there are few if any incentives for them to reduce costs. Clearly, this does not serve the best interests of the taxpayer and neither does it help industry to maintain a competitive focus that will allow it to succeed in export markets. It is therefore in the interests of both the MOD customer and its industrial suppliers to create a framework with incentives for efficient and competitive behaviour.

In 2011 the Government commissioned Lord Currie of Marylebone to undertake an independent review of the yellow book. He recommended a new framework based on transparency, with much stronger supplier efficiency incentives and underpinned by more robust governance arrangements. Based on his recommendations and following extensive consultations with our major single-source suppliers, we have developed a framework that will be introduced through regulations provided for in part 2 of the Bill. At its core is the principle that industry gets a fair profit in exchange for providing the MOD with transparency on costs and the protections we need to ensure value for money. It will align the MOD and industry by allowing additional profit to be earned through delivery of defined efficiencies, sharing the benefits between industry and the taxpayer. A statutory basis for the regime will ensure widespread coverage across our single-source supply base and allow application of the regime throughout the single-source supply chain.

To police the new framework we will create a small, arm’s length body, to be known as the single source regulations office, with approximately 30 staff. Its role will be to keep the statutory framework under review and to monitor adherence to it. It will replace an existing non-departmental public body that has little power other than to oversee a voluntary framework that can be amended only by consensus. The existing regime has failed to evolve to reflect changing circumstances, largely because either party can block any change that it regards as contrary to its own interests.

The single source regulations office will ensure that we do not have to wait another 45 years to update the regime. It will be a source of expert advice to the Secretary of State and it will also act as expert adjudicator in disputes between the MOD and our single-source suppliers. Crucially, it will advise the Secretary of State on the setting of key profit rates for single-source contracts.

Critical to ensuring that the MOD is able to negotiate prices that are fair and reasonable to both suppliers and taxpayers is the generation of better quality and more standardised cost data. Therefore, regulations enabled by this Bill will introduce a requirement for standard reports throughout the life of single-source contracts worth more than £5 million, allowing the MOD to build up a database against which future pricing assumptions can be judged and on the basis of which more robust, long-term cost forecasts can be made.

On contracts above £50 million, suppliers will also have to provide quarterly contract reports to support effective contract management, report any relevant events and deliver information about their overhead costs, allowing us better to align the industrial capacity the MOD is paying for with our long-term capability requirements. Clause 25 also creates a power for the MOD to gain access to suppliers’ records.

In order to ensure that suppliers fulfil their reporting and transparency obligations, the Bill includes a compliance regime. Failure to provide the required information on a timely basis will result in a penalty being applied under a civil penalty regime. Penalties will vary with the value of the contract and the single source regulations office will act as the appeal body for the compliance regime.

We recognise that we are requiring our suppliers to provide unprecedented levels of sensitive commercial information that would be of great value to their competitors or to market analysts. We need this information to ensure we get value for money on what is a significant proportion of defence spending, but obtaining proprietary information by statute imposes on Government a duty to secure its proper protection. In order to ensure that the increased level of transparency and reporting we require is not subject to abuse, the Bill creates a new criminal offence of unauthorised disclosure of sensitive information obtained under the new single source framework, such as forecast financial performance and investment or rationalisation plans.

Given that confidential and commercially sensitive information is already exempt from freedom of information requests, we do not think it will be necessary to bar release under the Freedom of Information Act in order to protect the information. However, I am clear about our obligation to our suppliers in respect of their sensitive information and the Bill creates an order-making power to allow the Secretary of State to invoke a full statutory bar on disclosure under FOI if the routine exemptions prove inadequate to protect the exceptional level of information that we are requiring to be disclosed to us.

Army Basing Plan

Baroness Stuart of Edgbaston Excerpts

Tuesday 5th March 2013 Commons Chamber

[Mr Hammond]

Of course, new build and refurbished accommodation will be to the highest grade 1 standard of military accommodation. With respect to my hon. Friend, I suspect that part of our problem with accommodation is that some of it was originally built to last rather too long, so we are struggling to refurbish and patch up old buildings, some of which are around 100 or 150 years old. Building new building to modern standards is the way forward to provide the kind of accommodation that our troops deserve and that our covenant promises them.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

This is indeed an historic announcement. The British troops and their families will be greatly missed by the German people. My understanding is that the original treaty required two years’ written notice of the intention to withdraw and a commitment to pay for any environmental clean-up. Has the Secretary of State given that written notice, and what calculation has he made of the environmental clean-up costs?

[Mr Hammond]

I cannot give the hon. Lady a definitive answer on the written notice, but my discussions with the German authorities make it clear that they have been aware of our intentions for many years. They are completely comfortable with what we are doing, although of course they regret the fact that we are leaving Germany. We will of course be responsible for remediation of the barrack sites being handed back to the German federal authorities and work is already ongoing with the German authorities on scoping for exactly what is required, which will be different according to the intended future use of the locations.

Oral Answers to Questions

Baroness Stuart of Edgbaston Excerpts

Monday 25th February 2013 Commons Chamber

[Mr Francois]

The case of Corporal Killick is still before the court, with sentencing deferred pending advice on his mental health. I hope that the House will appreciate that it would therefore not be appropriate for me to comment further today. However, in general terms, when on operational deployment members of the reserve forces, such as Corporal Killick, have access to the same extensive range of mental health counselling and treatment as their regular colleagues, including access to mental health professionals in theatre and treatment in military-run departments of community mental health, if necessary. This issue is a priority for the Government, who have invested £7.2 million in it.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

In response to my hon. Friend the Member for Gateshead (Ian Mearns), the Secretary of State said that he had “right-sized” the Army in line with the defence budget. How would he rebut the suggestion that that sounds like the strategic defence review was not strategic but budget-driven?

[Mr Philip Hammond]

It sounds like a Government who are rejecting the previous Government’s policy of sending people out to do a dangerous job without the kit, equipment and support that they need and deserve. We have a moral obligation not to put people in harm’s way unless they are properly equipped, and setting the size of the armed forces at a level the taxpayer can afford to support and equip properly is the morally correct and appropriate thing to do.