Oral Answers to Questions

Lord Lancaster of Kimbolton Excerpts

Monday 13th December 2010 Commons Chamber

[Claire Perry (Devizes) (Con)]

11. What arrangements are in place to monitor the progress of his Department’s major equipment procurement programmes.

[Mark Lancaster (Milton Keynes North) (Con)]

14. What arrangements are in place to monitor the progress of his Department’s major equipment procurement programmes.

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

I receive monthly reports and quarterly detailed project health checks on the Ministry of Defence’s largest projects. Last year, discounting deliberate policy decisions made by the previous Government, the MOD met all its targets to deliver its major projects to cost, time and performance. This year looks equally encouraging. The top 30 major projects are also reviewed annually by the National Audit Office and in this year’s report the Comptroller and Auditor General said:

“In-year performance on the majority of large defence projects which we examined has been encouraging".

But we should not wait for the NAO to tell us how we are doing at the end of the year. That is why I can announce to the House today that the Secretary of State and I are forming a major projects performance board that will review our most significant projects regularly.

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[Mr Speaker]

We are most grateful.

[Mark Lancaster]

Historically, one of the fundamental problems with procurement has been a disconnect between Ministers, civil servants, uniformed personnel and the defence industry. How do we intend to address that problem in the future?

[Peter Luff]

My hon. Friend is absolutely right. We talk of a conspiracy of optimism in these major projects that has so often characterised procurement decisions in the past. The list I rattled through in answer to my hon. Friend the Member for Devizes (Claire Perry) partly addresses the concerns of my hon. Friend the Member for Milton Keynes North (Mark Lancaster). I am sorry that I said it so fast, but it was important to get it on the record. If I do not deliver on that, I think my job will be on the line.

Oral Answers to Questions

Lord Lancaster of Kimbolton Excerpts

Monday 8th November 2010 Commons Chamber

[Dr Fox]

I am extremely aware of the dependence of a large part of the economy on the MOD’s budget. Precisely because we are so aware of that, we will produce a consultation document in the near future, which will look at the supply chain as it relates to the MOD and its budget. The Government’s aim is that small and medium-sized enterprises are given every opportunity to help us to shape the regulatory framework and the skills base required so that we can ensure that they are given every possible help to remain in business.

[Mark Lancaster (Milton Keynes North) (Con)]

From 13 December Camelot intends to change its rules, which will prevent many members of our armed forces who are serving overseas from playing the national lottery. It is a simple pleasure, and as they remain UK taxpayers, will the Secretary of State look into the matter and attempt to persuade Camelot to change its mind?

[Mr Robathan]

This is news to us. I assure my hon. and gallant Friend that I will certainly look into it and let him have a proper answer when I have done so.

Strategic Defence and Security Review

Lord Lancaster of Kimbolton Excerpts

Monday 21st June 2010 Commons Chamber

[Dr Fox]

As part of the coalition agreement, we agreed that we would have a value-for-money study to examine the costs of the programme and see where we could achieve better value within it. That is the process that is now ongoing.

The Foreign Secretary has set out the new Government’s distinctive British foreign policy, which has at its heart the pursuit and defence of UK interests and a recognition that our prosperity and security is bound up with that of others. That will require the enhancement of diplomatic relations with key partners, using Britain’s unique network of friendships, bonds and alliances and working bilaterally as well as multilaterally. That does not mean that we must be able to do all things at all times. We will need to be smarter about when and how we deploy power, which tasks we can undertake in alliance with others, and what capabilities we will need as a result. That must be based on a hard-headed assessment of the current security environment and the growing threats to peace and stability.

We live in a period in which direct military threats to UK territory are low, but in which the wider risks to our interests and way of life are growing. Over the coming decades, we could face weak or failing states creating new focal points for exportable Islamist terrorism that threatens our citizens and our allies, as we have seen in Yemen and Somalia. We could also face a nuclear-capable or nuclear-armed Iran destabilising Shi’a-Sunni and Arab-Persian fault lines, as well as those with Israel and the rest of the world. That could create an uncontrollable cycle of nuclear proliferation and, at worst, the erosion of the post-Hiroshima taboo against nuclear use by both Governments and terrorists. Elsewhere, we could see the emergence of old or new regional powers and the return of state-versus-state competition and confrontation. More immediately, competition for energy and other resources, including fresh water, could take on a military nature.

It is conceivable that we will negotiate the next half century without confronting any of those risks—I certainly hope so—but it is equally possible that the UK could face security policy decisions relating to any or all such risks during the course of the next Parliament. That is the reality of the world in which we live, and we must break away from the recent habit of planning for the best-case scenario and then hoping the worst never happens. Unlike what happened during the cold war, we cannot be confident about how and how quickly such trends may evolve. I shall therefore conduct a thorough stocktake of our contingency plans in the months ahead.

Of course, responding to such events would not be for Britain alone. Britain’s relationship with the United States will remain critical for our national security; it is the UK’s most important and prized strategic relationship.

[Mark Lancaster (Milton Keynes North) (Con)]

Given the contingencies that my right hon. Friend outlines, is it not important for us to have a strategic reserve? What lessons can be learned from last year’s debacle, when the previous Government had to do a humiliating U-turn over cuts to the Territorial Army, to ensure that we do not make such mistakes again in the coming defence review?

[Dr Fox]

It is very clear that we require civil contingency in the UK, and as part of the wider SDSR, we are looking at the protection of the UK homeland. We cannot simply direct our armed forces at external threats while ignoring internal threats. That must be a raised priority, as it will be as part of the wider security review.

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[Mr Ainsworth]

I know the hon. Gentleman’s views. I have heard him describe, both privately and publicly, his position on Afghanistan and how we can pursue it. I have to tell him, however, that we are pursuing a counter-insurgency strategy in Afghanistan—that is agreed across the coalition—and while that is so, while there are people in theatre and while they are doing the very difficult work that we have asked them to do, we must give them support.

During Labour’s years, big changes were made to the structure of our armed forces’ capability. A great deal of modernisation took place. There were big moves away from cold war capability towards the modernised expeditionary capability that our armed forces have shown in recent years. I accept what the Secretary of State has said—that he wants to continue that move—and I also accept that the threats have changed. We need to examine the emerging threats, and consider what role we need to play in the world. I hope and believe that I made a start on that during the Green Paper process, about which the Secretary of State has used very kind words. I hope he will be as open and engaging in the methods he will use in relation to the strategic defence review as I tried to be with the Green Paper.

What the Secretary of State has effectively said to us, it seems, is that a process is under way and that he will invite everyone to participate, but the way in which we will participate is by having an opportunity to make submissions to him. I suggest to him that anyone and everyone has always had that ability. If this means we cannot continue to write to him expressing our views, I think he will miss a real opportunity. He knows that there are considerable financial pressures on both the MOD budget and the public finances overall. I do not believe that, when he is faced with all those difficulties, it is in his interests or those of a proper debate to do anything other than continue to be open and give people an opportunity to share—[Interruption.] Well, if the Secretary of State did say that, I am wasting my breath, but I am worried that what he said was, “We have a decision-making process, and if you want to make a submission, you are free to do so.”

I would have thought that it was in the Secretary of State’s interests, and those of the Government and the nation, that he share his emerging thinking with us. It seems that he has even cancelled the interim assessment or interim announcements that he was going to give. When are we going to hear what his emerging thinking is, because he has said very little about that today? We are only six weeks away from the recess and the Government have set themselves a very tight time scale. Do they genuinely want to engage the nation, the Opposition, academia, industry and everyone else who needs to be involved; or are they simply going to invite us to make written submissions?

[Mark Lancaster]

Last year when the right hon. Gentleman was Secretary of State for Defence, he effectively made policy on the hoof by announcing he was going to scrap the Territorial Army budget and thereby stop people like me training for six months. Given the mistakes he made last year and the appalling way he carried out that review, does he not think this current process is much better?

[Mr Ainsworth]

With the greatest of respect to the hon. Gentleman, let me point out that we were dealing with in-year budgetary measures—yes, they proved very controversial, and significant changes were made that people subsequently came to welcome, even if they could not find the ability to do so on the day—but that is very different from dealing with a strategic defence review, which is about the shape and framework of our armed forces for the years to come. I suggest to the hon. Gentleman that it therefore ought to be tackled in a different, more open way. There is lots of expertise and interest on both sides of the House and outside this place. The people who possess it want genuinely to engage with this process, and I would have thought that, if the Secretary of State wants to fend off the purely financial pressures, it would be in his own interests to welcome that.