809 Naval Air Squadron
Debate between Earl Attlee and Earl of Minto(2 months ago)
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The Earl of Minto (Con)
My Lords, the noble Baroness asked a very detailed question. The key is that, as the threat changes, we need to change the capability to meet it. We work on very long lead times. All these aircraft are extremely complicated and need to be adjusted to meet the particular threat as it comes through. Through the relationship with Lockheed Martin and the Joint Program Office, we are trying to understand what the delay on some of the deliveries is. However, we do not currently anticipate a shortfall in the ability to build the UK Lightning Force to full operational capability by the end of 2025.
Earl Attlee (Con)
My Lords, what is the point of having all the platforms that my noble friend the Minister referred to if we cannot improve the terms and conditions of service for the ratings, to retain them so that they can man the platforms?
The Earl of Minto (Con)
My noble friend makes a very good point. I think we addressed this last week or the week before. An enormous amount of work is being undertaken on the question of recruitment and, particularly, retention, to ensure that the terms and conditions of employment within His Majesty’s Armed Forces are fit for purpose.
Ukraine
Debate between Earl Attlee and Earl of Minto(2 months, 2 weeks ago)
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The Earl of Minto (Con)
My Lords, this is all part of the same story. There are links between these different malign organisations that need addressing. I cannot give an absolutely clear answer about the western Balkans, but I am very happy to write to my noble friend with the detail.
Earl Attlee (Con)
My Lords, on the issue of sanctions, we are doing the right thing. We are trying to impose as many sanctions as we can on many entities and people. Obviously, we should not stop those. However, reports in the Economist suggest that they are not actually very effective.
The noble Baroness, Lady Smith, touched on European co-operation. In my opinion, as I said on 26 January, it is essential that we co-operate on a European level and decide who is going to do what. I said then that if necessary—if it is what we should do—we should create a Royal Ordnance factory. We should be looking at making 100,000 rounds of 155 millimetres a month, but so far as I can see we are just pussyfooting around. That is what President Putin will see. He will see that we are pussyfooting around. For instance, we are not overturning planning regulations or telling BAE Systems that it can do whatever it likes, and needs to do, to create the amount of ammunition we need. We are not telling BAE Systems that if it needs to requisition a machine tool from another factory and that would totally interfere with the rest of our domestic production, it does not matter. The priority must be to make the ammunition.
If we do not give Ukraine the munitions and other equipment that it needs, Ukraine will fail and be defeated by the Russians. The situation is dire. We will then have to double defence expenditure and keep it doubled for the foreseeable future. The cost to us will be very high, and we will not be able to do the things that we want to do for our people because we are going to have to waste the money on defence expenditure.
The Earl of Minto (Con)
My Lords, I thank my noble friend for the impassioned view he takes. He is right, and I agree that we need to up the pace of production. Through the International Fund for Ukraine and other enterprises, the amount of money being spent to arm and replenish the situation in Ukraine continues to grow. Out of the £900 million pledged as part of the International Fund for Ukraine, 27 contracts are out with a total value of £340 million, and another £22 million-worth are just about to be placed. There is a competition out for a further £300 million for ammunition. There is £40 million for drones and another £194 million across air defence and maritime packages. That is just this country, but this is a combined effort across Europe. I am sure noble Lords will have seen that the Germans have started building a new ammunition factory, and the pace of growth continues to increase.
The Earl of Minto (Con)
To ensure that we get exactly what we want, and to ensure capacity and deliverability.
Earl Attlee (Con)
Surely, we should tell industry what we want and tell it to get on with it. If it says that it needs some sort of capacity, power or machine tool, we should provide it.
The Earl of Minto (Con)
There is certainly an element of that, but we work within a global market where resources are not freely available. It is very important to ensure that the vast amount of money spent on the production of munitions is properly spent.
British Steel
Debate between Earl Attlee and Earl of Minto(6 months, 1 week ago)
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The Earl of Minto (Con)
I completely understand the position of the noble Lord. During this transition period there is bound to be some effect. However, once the new systems are in place, there should be no change.
Earl Attlee (Con)
My Lords, like the noble Lord I support the UK steel industry. Can my noble friend the Minister say how much ferrous scrap the UK economy generates and how much we export overseas?
The Earl of Minto (Con)
I thank my noble friend for that question. We generate just over £11 million-worth of ferrous scrap each year, of which about £8 million-worth is exported.
Small and Medium-sized Enterprises: Interest Rates
Debate between Earl Attlee and Earl of Minto(8 months ago)
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The Earl of Minto (Con)
My Lords, it is an extremely good point. If one goes back to before the financial crisis in 2008, when the big five really dominated, there has been nothing short of a revolution in business lending since then. In fact, last year some 55% of all SME borrowing came from challenger banks—at-base banks and specialist SME banks such as OakNorth and Hampshire Trust Bank. The whole structure has changed in the last few years, and my guess is that some of the more traditional banks are feeling the pain in this area.
Earl Attlee (Con)
My Lords, is the Minister aware that the UK hovercraft industry is experiencing serious difficulties in obtaining performance bonds to cover stage payments in the construction of a hovercraft? If the answer is not in my noble friend’s brief, can he write to me?
The Earl of Minto (Con)
I was not aware that there was this trouble in the hovercraft industry. My guess is that it is something to do with the balance sheet, but I will certainly write to him and we will follow that one up.