Armed Forces Training: Ukraine
Ben Wallace Excerpts(4 years, 6 months ago)
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The Secretary of State for Defence (Mr Ben Wallace)
The UK military training mission in Ukraine, Operation Orbital has been extended by a further three years to March 2023. UK armed forces personnel deployed on Operation Orbital have trained over 17,500 members of the armed forces of Ukraine since 2015. It is much appreciated by the Ukrainians and has helped to save lives. The training is focused on building the resilience and capacity of the Ukrainian armed forces. It includes the identification of mines and improvised explosive devices (lEDs), infantry skills, medical care and logistics. In 2018, the training was expanded to include anti-armour, counter-sniping and mortar planning. In early 2019, Operation Orbital was expanded to include training and support to the Ukrainian navy. We intend to develop it further over the next three years with more focus on maritime support and at the institutional and operational level.
This extension of Operation Orbital will mean we can train thousands more personnel in the armed forces of Ukraine and continue to make a real difference in support of Ukraine’s sovereignty and territorial integrity.
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Shipbuilding
Ben Wallace Excerpts(4 years, 6 months ago)
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The Secretary of State for Defence (Mr Ben Wallace)
I have today published Sir John Parker’s review of the implementation of the National Shipbuilding strategy. I am very grateful for Sir John’s efforts in producing this review and are delighted that he has identified so much positive progress. Sir John noted how Defence has embraced the strategy with enthusiasm and evident cultural change. A copy of the review has been placed in the Library of the House and it is available on www.gov.uk.
To build on the success and progress we have made so far, this Government are committed to reinvigorating British shipbuilding industry for both the civil and military sectors and investing in the next generation to ensure a pipeline of skills for the future. That is why the Prime Minister has appointed me to act as the Shipbuilding Tsar on behalf of this Government, to better realise the potential that this sector can offer across the four Home Nations and to reinvigorate UK shipbuilding. This role brings together other Government Departments to shape policies and strategies. As Shipbuilding Tsar, I will work closely with my colleagues across Government to bring together the brilliant work already being done, and to ensure British shipbuilding thrives.
A significant success already delivered by this key strategy and Sir John’s recommendations is the Type 31 preferred bidder announcement to Babcock with contract award due by the end of the year. This major milestone demonstrates a transformation in the way this Department can deliver a rigorous warship acquisition programme securing the best capability for our armed forces and extraordinary value for money for the taxpayer. It is an exemplar of what Sir John Parker envisaged and has shown that the MOD can deliver contracts with a grip on content, specification, design and pace.
Sir John also acknowledged the impressive export success of the Type 26 which has already been selected as the baseline design to deliver nine Hunter class frigates for the Royal Australian Navy and up to 15 Canadian Surface Combatants for the Royal Canadian Navy. We will continue to build on this success and work alongside the Department for International Trade to deliver a competitive naval export plan. This will identify and strengthen opportunities for British shipbuilding and the wider supply chain.
Across Government, a huge amount of work is under way to review the pace and nature of the forward warship programme and to understand the skills needed to design and deliver these ships and their systems. We are already working collaboratively with industry to align these priorities and ensure we maintain the industrial base required to deliver future capability and platforms for our armed forces.
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Work of the Department
Ben Wallace Excerpts(4 years, 6 months ago)
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The Secretary of State for Defence (Mr Ben Wallace)
The first duty of any Government is to defend our country and to keep our people safe. The Ministry of Defence plays a pivotal role in delivering our national security objectives to protect our people, project our influence and promote our prosperity. This Government have increased the defence budget by 0.5% above inflation every year to over £41 billion by 2020-21, making us the biggest defence spender in Europe and the second biggest in NATO. The UK is the second largest defence exporter in the world, selling equipment worth £14 billion last year and supporting more than 260,000 British jobs. We are investing an extra £2.2 billion into defence over this year and next to ensure the UK’s world-class armed forces can continue to modernise, meet ever-changing threats and continue to protect the country’s national security. This includes prioritising key capabilities such as cyber, shipbuilding and the nuclear deterrent.
Operations
The UK armed forces are deployed around the world 24 hours a day, 365 days a year.
In 2019 alone we have marked 50 years of continuous at sea deterrence, increased the number of armed forces personnel in Afghanistan from 650 to around 1,100, delivered over 400 bespoke training activities in the middle east and north Africa, and provided military aid to the civil authorities on over 120 occasions.
British forces made the second largest overall contribution to the fight against Daesh after the US. We lead a 1000 strong force (c.800 from UK plus troops from France and Denmark) to undertake NATO enhanced forward presence in Estonia, and UK Typhoon aircraft have recently completed an air policing deployment in the Baltic sea region (2019).
We have delivered on our commitment to double the number of military personnel involved in UN peacekeeping, following deployments to Somalia and South Sudan, and increased our presence in the Gulf (Dubai), Asia-Pacific (Singapore) and west Africa (Abuja) to provide a focal point for defence activity. In 2018 we opened the first overseas navy base in 50 years in Bahrain.
In both 2017 and 2019, the UK provided military support for humanitarian and disaster relief to the Caribbean islands left devastated by natural disasters, Hurricane Irma (Op RUMAN) and Hurricane Dorian (Op BARYTONE). This year, in the Caribbean and Atlantic, the RFA have seized or disrupted 1.4 metric tonnes of cocaine and cannabis, worth over £45 million.
People
We are working to strengthen the support we give to our serving personnel, veterans and their families.
More than 4,000 organisations have signed the armed forces covenant and the new office for veterans’ affairs will ensure the UK leads the world in care for armed forces veterans.
We have launched the first ever UK-wide strategy on the delivery of support for veterans, including a new ID card for veterans, which will help them access specialist support and services.
The Flexible Working Act was passed enabling service personnel to request restricted separation and or part-time working to enable them to balance their personal commitments with Defence, helping to improve retention. We have also doubled the operational allowance for deployed military personnel and are currently investing a further £123 million, as a minimum, this financial year to improve service family accommodation in the UK.
We have made £280 million in payments to more than 18,000 applicants so far through the forces help to buy scheme and allocated over £230 million from LIBOR fines for the armed forces community.
We achieved the target of enrolling 50,000 apprentices in the MOD, 16 months ahead of the target date.
We are based across the United Kingdom, and through our industrial contracts and bases we support 10,000 jobs in Scotland and more than 6,000 in Wales.
We have met our target of cadet expansion programme of 500 cadet units parading ahead of time.
Equipment
We will spend £186 billion on equipment and equipment support between 2018 and 2028.
The Army have signed major equipment support contracts including a £439 million contract for Apache helicopter support and funded a demonstration phase to upgrade Warrior vehicles.
We have placed a £4.5 billion contract, including in-service support until 2024, to purchase 589 AJAX vehicles.
This month (October), UK F-35 Lightning jets landed and took off from HMS Queen Elizabeth for the first time, as part of the preparations for the carrier strike group deployment in 2021. Her sister ship, HMS Prince of Wales, is conducting sea trials and will be commissioned later this year.
In 2019 we took delivery of additional F-35B aircraft, bringing the total to 18, and placed order for more to be delivered between 2020-22. British F-35Bs completed their first operational missions this year.
We have taken delivery of our final Typhoon aircraft (taking the current fleet to 157) and have continued to grow the UKs A400M transport aircraft fleet.
This year we have announced our intent to procure five E7 airborne early warning aircraft and in recent years we have secured deals to provide nine P-8A maritime patrol aircraft and 50 Apache AH-64E aircraft through a foreign military sales agreement with the US Government.
The first steel has been cut for the second ship in the Royal Navy’s next generation of Type 26 anti-submarine frigates; the first ship, HMS Glasgow, will enter service in 2027. Australia and Canada have committed to purchase the design.
All four of the TIDE class tankers have been delivered while HMS Medway, the second of five new offshore patrol vessels, has been accepted into the fleet.
Building on the success of the RAF’s first ever satellite, Carbonite-II, we have joined the U.S. combined space operations centre in California. An RAF pilot has been seconded to Virgin Orbit.
Industry
The UK continues to play an ambitious and trailblazing role on the global stage, designing, developing and rapidly procuring state-of-the-art equipment that ensures our armed forces are fit for the future.
The defence industry champions British manufacturing, pushes the boundaries of technology and delivers unique export opportunities across the world to protect not just the UK, but our allies too.
As a thriving national sector with a truly global reach, the work of defence underpins the Government’s industrial and economic strategies and continues to drive British innovation on the international stage.
The DSEI exhibition showcases every two years the very best of British ingenuity, innovation and industry on the international stage, demonstrating how Global Britain continues to be a world leader in technology and defence.
Built on more than 400 years of excellence and innovation, we consistently push the possibilities to the limit, developing and exporting battle-winning capabilities that redefine the defence landscape.
We are constantly sharpening our cutting-edge capabilities, exploring and procuring the very best technology to ensure we continue to outpace adversaries for generations to come.
The UK alone injects nearly £20 billion into our national defence industry every year, almost £300 for every person in the country, making defence spending a powerhouse behind the UK economy, driving export orders and future-proofing the industry for generations to come.
We are implementing the national shipbuilding strategy to transform the procurement of naval ships, make the UK’s maritime industry more competitive, grow the Royal Navy fleet by the 2030s, export British ships overseas, and boost innovation, skills, jobs, and productivity across the UK.
Built on the foundations of a thriving UK defence sector that continues to turbocharge regional economies, a consortia led by Babcock, in partnership with the Thales Group, has been selected as the preferred bidder for the Type 31 general purpose frigates procurement process reinforcing international partnerships, building security co-operation and strengthening our influence across the world.
We have invested over £40 million in developing a new cyber security operations capability.
Investing £48 million to deliver a new state of the art chemical weapons defence centre at DstI Porton Down.
We have published the combat air strategy to strengthen the UK’s role as a global leader in the sector and to protect key skills across the UK industrial base. Team Tempest will bring together the UK’s world leading industry and sovereign capabilities across future combat air’s four key technology areas.
We have opened the £83 million state of the art defence fulfilment centre at Donnington, Shropshire, operated through the MOD’S partnership with Team Leidos to transform defence logistics.
The small and medium-sized enterprises action plan was published this year, and the defence and security accelerator has allocated over £36 million to over 200 proposals.
We have secured a £6 billion Qatari deal to purchase 24 Typhoon and nine Hawk aircraft from the UK.
As our exports orders climb, our supply chains continue to reinforce our regional economies, supporting highly skilled jobs and training apprentices to be the future of our pioneering UK defence sector.
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Defence
Ben Wallace Excerpts(4 years, 6 months ago)
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Bob Blackman
I thank my right hon. Friend for his answers thus far. Clearly the Islamic Revolutionary Guard Corps is a constant threat to shipping in the strait of Hormuz. Does he agree that it is now time that the entirety of the IRGC was proscribed, with their assets sequestered and sanctions imposed on them and their leadership?
Mr Wallace
My hon. Friend makes an important point about the threat that the IRGC poses to not only the region but countries such as ours. The Quds force is currently proscribed. Further proscription considerations are a matter for the Home Office. However, what is really important is that, where the IRGC poses a threat, like-minded countries around the world challenge that threat and ensure that it is dealt with.
[Official Report, 21 October 2019, Vol. 666, c. 676.]
Letter of correction from the Secretary of State for Defence.
An error has been identified in the response I gave to myhon. Friend the Member for Harrow East (Bob Blackman).
The correct response should have been:
Mr Wallace
My hon. Friend makes an important point about the threat that the IRGC poses to not only the region but countries such as ours. The Quds force is currently sanctioned. Further proscription considerations are a matter for the Home Office. However, what is really important is that, where the IRGC poses a threat, like-minded countries around the world challenge that threat and ensure that it is dealt with.
Oral Answers to Questions
Ben Wallace Excerpts(4 years, 6 months ago)
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Bob Blackman (Harrow East) (Con)
The Secretary of State for Defence (Mr Ben Wallace)
Happy Trafalgar day, Mr Speaker. Ships transiting the strait of Hormuz are currently exposed to the threat of being harried by units of the Iranian Revolutionary Guards and, in some cases, illegal seizure. While the international community is working to de-escalate tensions, up to four ships of the Royal Navy have been active in the strait since July.
Mr Baron
No matter how capable, a Royal Navy ship cannot be in two places at once. On this anniversary of the battle of Trafalgar, given that 95% of our trade is seaborne, is it not obvious that we need a much larger surface fleet, including a larger number of cheaper ships, if we are to play our full part in keeping world sea lanes open?
Mr Wallace
I agree strongly with my hon. Friend’s point, which is why this Government have invested in not only the new Type 26 frigate but the Type 31, which will be designed to be more affordable and will increase the overall number of frigates and destroyers that we are able to deploy. In this example, we very quickly managed to have four ships in the region to tackle the problem. We have now gone back down to supplying two ships there, but it was not the case that we could not get ships in the right place at the right time.
Bob Blackman
I thank my right hon. Friend for his answers thus far. Clearly the Islamic Revolutionary Guard Corps is a constant threat to shipping in the strait of Hormuz. Does he agree that it is now time that the entirety of the IRGC was proscribed, with their assets sequestered and sanctions imposed on them and their leadership?
Mr Wallace
My hon. Friend makes an important point about the threat that the IRGC poses to not only the region but countries such as ours. The Quds force is currently proscribed. Further proscription considerations are a matter for the Home Office. However, what is really important is that, where the IRGC poses a threat, like-minded countries around the world challenge that threat and ensure that it is dealt with.[Official Report, 24 October 2019, Vol. 666, c. 6MC.]
Stephen Pound (Ealing North) (Lab)
Trafalgar day has been mentioned, and later today, when “Up Spirits” is piped, we will all drink a tot to the immortal memory. I hope that the Minister will place on record his recognition and understanding that the Royal Navy and Royal Marine personnel currently on active service represent the very finest tradition of our services. Let us put that on the record.
Mr Wallace
I am, of course, delighted to agree with the hon. Gentleman about the amazing quality that they bring to our armed forces. I am a landlubber, as a former soldier, so I can only marvel at what I have come across so far in this job.
Nia Griffith (Llanelli) (Lab)
Happy Trafalgar day, Mr Speaker. Yesterday I had the pleasure of seeing the sea cadets parade in a splendid fashion for Trafalgar day. I welcome the Secretary of State and the new Ministers to their posts.
The situation in the strait of Hormuz and the wider Gulf has significantly escalated in the past few months. We have seen unlawful aggression in the international seas, British flagged ships seized by the Iranian regime, attacks on Saudi oil facilities and a recent commitment by the US to send an extra 3,000 troops to Saudi Arabia. We need to de-escalate tensions. With that in mind, can the Secretary of State confirm that the UK will not be sending troops to Saudi Arabia?
Mr Wallace
The hon. Lady is absolutely right that we have to de-escalate the situation in the Gulf, but what we will do is make sure that our allies in the Gulf are able to protect themselves by offering advice about how they can protect their airspace and protect themselves from loss of life, which is incredibly important. One of the ways to make sure this is de-escalated is to ensure, if there was another Iranian attack, for example, on an oil facility or any other facility in that part of the world, that it does not lead to loss of life because that for sure would lead to some form of escalation. We stand ready to help our allies with knowledge on how to do that, and that is the best way we think we can proceed to keep calming the tensions.
Nia Griffith
I thank the Secretary of State for his answer, but he will also be well aware of the catastrophic impact of the US withdrawal from the Iranian nuclear deal. Sadly, this is not the only commitment that the Trump Administration have very publicly undermined—withdrawing from the intermediate-range nuclear forces treaty and putting the chances of a new strategic arms reduction treaty in doubt—so what discussions has the Secretary of State had with his US counterparts on upholding and strengthening existing international security agreements?
Mr Wallace
On the joint comprehensive plan of action, dealing with the Iranian nuclear capability, I have made it clear to the United States, as have my colleagues in Europe, that we support the maintenance of that agreement. We think that is the best way forward to make sure Iran does not develop a nuclear weapon, but also to deal with the concerns that the Iranians have had over the years about their security. We will continue to press that, as we continue to press in the areas of Turkey and Syria for upholding international and human rights obligations.
Dr Lewis
Mr Wallace
I look forward to working with my right hon. Friend. I think I am going in front of his Committee later in the week, and no doubt I shall bow to his knowledge as he will no doubt grill me.
I understand the point that my right hon. Friend has made. All our defence capabilities have to match our ambitions across the board—that is the first point—whether that is land, sea or air. It is the case that our surface fleet is of over 50—of course, 19 are frigates and destroyers—and that means we do allow flexibility in our fleet to meet certain needs, such as disaster relief, which was done by a Royal Fleet Auxiliary ship. However, in case the threat changes, we must always be prepared to move to match that threat, and we will always keep under review the size of our fleet, but it is also why we are continuing to invest in new ships—more capable sometimes than numbers because of the very potency they pose. The Type 26 frigate will be a world-leading capability, and that in itself will be a deterrent to many of our adversaries.
Andrew Jones (Harrogate and Knaresborough) (Con)
The Secretary of State for Defence (Mr Ben Wallace)
We are committed to supporting the UK defence manufacturing industry. On 14 March, the Government provided an update to Parliament on our ambitious defence prosperity programme, which includes work to sustain an internationally competitive and productive UK defence sector. In 2017-18, the MOD spent £18.9 billion with UK industry and commerce, directly supporting 115,000 jobs.
Matt Western
I thank the Minister for his response, but last week the former head of MI6, Sir John Sawers, said that the deal for Cobham, which is being taken over by Advent, the private equity company, should be blocked. The Business Secretary said that there would be guarantees, but we know that in the case of GKN and Melrose, those guarantees were worthless. If the US President can say that the US automotive industry is a concern that should be protected for national security, what sort of protections do we have in place for our industry?
Mr Wallace
The hon. Gentleman makes a really important point about protecting our sovereign capability and I take that incredibly seriously, as someone who worked previously in QinetiQ, in the UK aerospace sector. The issue with Cobham is ongoing. It is currently before the relevant Department in Whitehall. We have made our internal submissions on that and I therefore cannot comment on that particular issue. It is important that we maintain and keep our sovereignty, where that is viewed as necessary for our future, but we should also not forget that the reason we are the second biggest aerospace exporter in the world is that we take an international consortium attitude towards it.
Mr Cunningham
Can the Secretary of State tell us the future value of contracts to British companies such as GKN and Rolls-Royce and the future cost of those contracts?
Mr Wallace
Given the recent increase in our settlement of £2.2 billion, of which a large proportion will go on investing in the capital part of our budget, the future for UK aerospace should be bright and looks bright. The Type 31 frigate, for example, will be made in Rosyth and will be delivered by UK yards.
Mr Mark Francois (Rayleigh and Wickford) (Con)
Although the bulk of its work in the United Kingdom is civilian, Airbus also does some military work—for instance, on the A400M transport aircraft. More importantly, leaving aside the problems with that aircraft, which are dreadful and multifarious, the current chief executive, Guillaume Faury, and his predecessor both threatened to withdraw up to 14,000 jobs from the United Kingdom if we left without a deal and in a disorderly manner. Now that we have a deal and are not planning to leave in a disorderly manner, does the Secretary of State agree that the chief executive of Airbus should withdraw that threat and should start talking about investment into the United Kingdom rather than disinvestment?
Mr Wallace
My right hon. Friend raises an interesting point. My only advice to chief executives of aerospace companies is to invest where the skills are and where the customers are, and that is in the United Kingdom.
Mr Robert Goodwill (Scarborough and Whitby) (Con)
Although the order for the CVRT replacement, the Ajax tank, was placed with General Dynamics, Lockheed Martin and Rheinmetall—American and European companies—the hulls are being kitted out in Merthyr Tydfil and the turrets are being built in Bedford. How important is it that, if we place orders for the best equipment available in the free world, we should have as much UK content as possible?
Mr Wallace
Where possible, we should do all we can to ensure a huge proportion of UK content in all the contracts we deliver so that our forces get the kit they need.
Wayne David (Caerphilly) (Lab)
I welcome the new Ministers to their posts. A little more than three months ago, a prominent Conservative Member of this House said:
“We must continue to hammer home the importance of sovereign capability”—[Official Report, 16 July 2019; Vol. 663, c. 277WH.].
That was, of course, the new defence procurement Minister, speaking before she was promoted. Thinking about the fleet solid support ships, for example, can I ask the Secretary of State why his Ministers do not practise what they preach?
Mr Wallace
The hon. Gentleman is tempting me to comment on an ongoing competition. As he knows, if we were to prejudice that competition, both the UK taxpayer and potentially UK industry would be at risk of being sued by the other consortium. The Under-Secretary of State for Defence, my hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), whom I welcome to my team, was not the Minister at the time of that competition, so to hold her to account in that way is unfair.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Mrs Maria Miller (Basingstoke) (Con)
The Secretary of State for Defence (Mr Ben Wallace)
To help sustain future capabilities we have published strategies for shipbuilding and combat air and refreshed our defence industrial policy with a new emphasis on supporting growth and competitiveness, which are central to our procurement programmes, including, for example, the Type 31 frigate and Tempest.
Stephen Metcalfe
The UK has a world-beating defence industry that is dependent on high-value design. How is the Department supporting the Government’s “Engineering: Take a Closer Look” campaign to ensure that people understand how vital engineering is to our defence industry?
Mr Wallace
I congratulate my hon. Friend on being appointed engineering envoy by the Government. Engineering is incredibly important, which is why we support the “Engineering: Taker a Closer Look” campaign, which will form part of that legacy and focus on STEM youth engagement, targeting not only young people but the gatekeepers, such teachers and parents. We are fully supportive of the campaign objective, which is to increase consideration of a career in engineering with a specific focus on 11 to 16-year-olds, especially among under-represented groups, such as girls and black and minority ethnic groups.
Andrew Lewer
What steps is the Department taking to ensure key industries maintain sovereign capability?
Mr Wallace
To keep skills and innovation here the Government have been determined to invest in home-grown innovation. It is the best way to sustain UK capability in the long term. That is why the defence and security accelerator, launched in 2016, is so important, as is the defence innovation fund, under which £800 million will be spent in that sector over the next 10 years.
Mrs Miller
Thousands of people in north Hampshire contribute to the defence of our country, and the ability of companies such as Fujitsu, Harris and BAE Systems and their supply chains to recruit experts from across the world to work with our domestic home-grown talent is an essential part of our winning formula. How will the Government ensure that that recruitment can continue after we leave the EU?
Mr Wallace
My right hon. Friend the Home Secretary has been very clear about the need for a points-based system to enable us to secure the skills that we need, but, again, the long-term solution is investment in our skills base. I was pleased about the increase in further education funding that was announced in the recent spending review, which will be important to ensuring that that happens. In my constituency in Lancashire, investment in schools and higher and further education colleges is the bedrock of BAE’s capability.
Mr Kevan Jones (North Durham) (Lab)
I know that the Secretary of State is reluctant to talk about the fleet solid support ship contract, but may I ask him what percentage of the bid is being taken into consideration in terms of support for UK jobs and manufacturing? Will he really be content to be the Secretary of State who is willing to export jobs to Spain rather than investing in this country?
Mr Wallace
I think that the last part of the right hon. Gentleman’s question anticipated the result of any competition that will take place, and I am not going to comment on who or what is going to win if we progress to that stage with competent bids. It will be important for all the bids to include an element of UK capability, and we will ensure that we take that into consideration. It is important to us, and to the skills in this country, for the customer—the MOD, which is spending all that money—to secure not only an export market but a UK base.
Ruth Smeeth (Stoke-on-Trent North) (Lab)
Project Tempest is delivering and investing in a future fast jet programme. However, given what we are hearing about the potential closure of Brough, may I ask what conversations the Secretary of State is having with BAE Systems about replacement training jets, and what investment he is planning to make in some new Red Arrows?
Mr Wallace
I shall have to write to the hon. Lady about the Red Arrows, because I was not expecting that question, but the Tempest project is an important signal to BAE Systems that the Government are committed to another generation of fast jets. I shall be meeting representatives of BAE soon, and I shall ensure that its desire to be part of the programme is reflected in the locations of its workforce around the country.
John Spellar (Warley) (Lab)
The Secretary of State made a very significant statement from the Dispatch Box a while ago when he said that companies should invest where the skills are and where the customers are. That only applies if the customers are prepared to use their buying power to insist that the manufacturing takes place in the UK. Why will the Secretary of State not change Government policy, even before Brexit, and insist that the solid support vessels are built in British yards? Make a decision, man!
Mr Wallace
The two aircraft carriers are built in British yards, the Type 26 is built in British yards, the Type 45 is built in British yards, the offshore patrol Batch 2 is built in British yards, the Type 31 is currently built in British yards, and we will continue to invest in our yards. The right hon. Gentleman will have heard the hon. Member for Stoke-on-Trent North (Ruth Smeeth) ask how we could ensure that BAE continued to invest in its workforce. It can continue to invest in its workforce because it also manages to export around the world When we export, we must recognise that we need an international consortium, because we cannot sell purely to ourselves; we have to export around the world.
Mr Steve Baker (Wycombe) (Con)
The Secretary of State for Defence (Mr Ben Wallace)
Our armed forces have suffered decades of being hollowed out to meet short-term pressures. Eventually, that takes its toll on the men and women of the armed forces and the equipment and maintenance programme. The funds announced recently in the spending review will allow us to reinvest and to maintain our forces at their present levels. The adequacy of our capability is of course defined by the extent of our ambitions, and by whether we as a nation are willing to fund them.
Mr Wallace
My hon. Friend has raised some concerns about the engagement with Europe, and, indeed, about Europe’s ambition. I think it absolutely right that the European Commission has a strong ambition for a single defence capability. We have made it clear that we will only join any part of this European defence arrangement voluntarily, and on condition that there is a unilateral mechanism for exit. That is the key purpose. We will, of course, work with international partners often to face threats.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
If the Secretary of State wants to assess the strength of the armed forces, does he now agree that it is about time that they had a trade union to stand up for ordinary members of the armed forces against his puny Government?
Mr Wallace
Coming from a party that would reduce the armed forces to a rubber boat in Scotland, I do not think we should take any lectures from the hon. Gentleman and the SNP. It is absolutely clear: the SNP is obsessed with trade union representation rather than investing in armed forces.
Mary Creagh (Wakefield) (Lab)
Vicky Ford (Chelmsford) (Con)
The Secretary of State for Defence (Mr Ben Wallace)
In the light of recent events at the Syrian border, the Government urge all parties to ensure that they comply with international law, including international humanitarian law and obligations on human rights. We urge a swift de-escalation of the conflict by all parties.
Vicky Ford
I note that changes were made last week to the political declaration on the future relationship between the EU and the UK. Can my right hon. Friend the Secretary of State confirm that no member of the British armed forces would ever be obliged to serve alongside any EU army without Ministers’ support?
Mr Wallace
My hon. Friend makes the key point when she suggests that this could not happen without Ministers’ support, or indeed without the intention of this Government to voluntarily join an EU task force, a NATO task force or any other type of international task force. I can absolutely reassure her that we will not enter into any of these European schemes without doing so voluntarily and without a unilateral exit.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
As we approach Remembrance weekend and the launch of the Royal British Legion’s poppy campaign, we remember all those who have given their lives for our country and of course all the veterans who have served. Many veterans have accessed the veterans gateway for help and support, but there is significant concern that the funding for the gateway is not guaranteed. Will the Minister address that concern today and guarantee the necessary funding to enable the veterans gateway to continue its good work?
Stewart Malcolm McDonald (Glasgow South) (SNP)
Will the Secretary of State commit to publishing his Department’s analysis of leaving the European Union as far as forfeiting our rights and responsibilities under article 42.7 of the Lisbon treaty is concerned?
Tom Tugendhat (Tonbridge and Malling) (Con)
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
Ministers will be aware that Hawk manufacturing at Brough is due to end in 2020 after more than 100 years of aircraft manufacture. I thank the Under-Secretary of State for Defence, the hon. Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), for agreeing to meet me on Wednesday, but ahead of that meeting will she please consider all suitable BAE MOD contracts and what pressure can be put on BAE to ensure that some of them are manufactured in Brough?
Mr Wallace
I have regularly met the unions from Brough over the years, and not only because I represent a site in Lancashire that also employs BAE workers. The key is for us to support BAE to get more export bids and, at the same time, to prepare for the next generation of fighter. With that, we will make sure that with our money and with taxpayers’ money comes a commitment from BAE that the jobs are as much based here, throughout the country, as they have always been.
Mr Robert Goodwill (Scarborough and Whitby) (Con)
Carol Monaghan (Glasgow North West) (SNP)
The Secretary of State will be aware of reports of the use of white phosphorus by Turkey in northern Syria. What is he doing to assist NATO allies with the investigation into this?
Mr Wallace
The hon. Lady is right that white phosphorus is permitted only for use in signals and markers; it is not allowed, under the Geneva convention, to be used as a weapon. A number of people are collecting evidence about that and many other incidents. When that evidence is presented either to me, to the Organisation for the Prohibition of Chemical Weapons or to the UN, we will consider together what the next step should be.
Several hon. Members rose—
Reserve Forces and Cadets Association External Security Team Report 2019
Ben Wallace Excerpts(4 years, 8 months ago)
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The Secretary of State for Defence (Mr Ben Wallace)
I have today placed in the Library of the House a copy of a report into the condition of the reserves and delivery of the Future Reserves 2020 programme compiled by the reserve forces and cadets associations external scrutiny team. I am most grateful to the team for their work. The report raises interesting points which, after a thorough examination, I will respond to later in the year.
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International Military Sales Ltd
Ben Wallace Excerpts(10 years, 1 month ago)
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Mr Ben Wallace (Wyre and Preston North) (Con)
It is a delight to serve under your chairmanship, Ms Dorries. May I draw attention to my entry in the Register of Members’ Financial Interests? I have been the chairman of the all-party group on Iran for the past nine years, and I am a former overseas director for the aerospace company Qinetiq.
I want to highlight the relationship between International Military Services Ltd and the Ministry of Defence, and a specific case as it relates to Iran. It is a sorry passage in our history and the UK’s relationship with that country. It is not only a sorry story, but un-British in that the process that I will describe has been marred by double dealing and obfuscation. The Minister will be relieved to know that I am not talking about recent history; I am talking about way back in the 1960s and 1970s.
In the days of the nationalised defence industry, the British Government established a private limited company as its trading arm to sell weapons and aerospace equipment abroad and munitions to overseas buyers, mostly to other Governments. A lot has changed since then and the aerospace industry has been almost completely privatised. For that reason, in 1991 it was decided to wind up this little shell company that was wholly owned by the Government. It would have been wound up, but for one problem—a debt owed by that company to the Government of Iran, equivalent to between £400 million and £500 million.
The debt may explain why, 23 years later, the company still exists. What was the cause of the debt and what should we do to put it right? Between 1971 and 1976, the Shah of Iran paid up front—quite rare in those days, and even today—the equivalent of £650 million for 1,500 Chieftain tanks and armoured vehicles. When in 1979 the revolution deposed the Shah, Britain quite rightly ceased those exports until the country had settled down and we clearly knew its intentions.
However, we chose not to return the equivalent of the £450 million that Iran had paid us. Instead, we sold the tanks to Saddam Hussein, who then proceeded to use a number of those tanks against the people of Iran. I think it is widely accepted that the west’s support for Saddam Hussein was a catastrophic error. That period of history is well behind us, and I hope we will not make such mistakes again. However, since that time, and despite Iran’s attempts through the rule of law to access the funds owed, the UK has held on to them.
I am not here to urge the British Government to break the successful sanctions regime, but I am here to urge that we honour the debt once and for all.
Jack Lopresti (Filton and Bradley Stoke) (Con)
I congratulate my hon. Friend on securing this debate. If the matter were to be resolved, what impact would it have on the sanctions that Iran has to adhere to, given what we know about some of their motivations and activities?
Mr Wallace
There would be no impact, because in this country we have the facility of the High Court. The funds are already held by the High Court on behalf of the Government, but should the High Court make a ruling, or a settlement be reached, they could be handed over within the parameter of the High Court and held until such time as they were unfrozen through the sanctions licensing scheme or made available as a result of a change to sanctions. This is not about releasing funds tomorrow morning to the Iranian Government, but about putting a wrong right, putting our relationship with Iran on a more open and just footing, and, hopefully, putting the matter right.
However, I am afraid that this matter does not quite end there, because Britain and Iran are signatories to the Permanent Court of Arbitration in the Hague, an international treaty whereby we effectively arbitrate over contracts. In 2001, the court ruled in favour of Iran to recover the debt. The onus is on the United Kingdom to honour its treaty obligations.
If we fast-forward to 2013, however, we find that Iranian officials, who had set out from Iran with UK visas issued by the Foreign Office, come to this country to access the services of the commercial court. On landing at Heathrow, their passports are removed from them, their visas are revoked and they are detained for a number of days in asylum centres. That was not a particularly British way to resolve an issue, especially given that we had only recently issued their visas. It was a worrying sign.
To date, the Home Office has not been willing to give me a full explanation of the reasons behind the officials’ detention. However, I am sure that the Home Office will be careful, because any court—any judge—would look very poorly on something that is done without a valid reason, as this case involves access to legitimate justice and our courts. Let me be clear: I am not seeking to change the sanctions regime and I am not seeking to hand this money over. However, in the current environment, in which we are trying to put UK-Iran relations on a better footing, I am seeking a swift settlement for all parties.
Across a range of areas, Iranian entities that are not under sanction and are not involved in any way with the Iranian Government are suffering as a result of the UK’s fear about extraterritorial US sanctions. That is because many of those sanctions, while they do not deal with US companies, have an extraterritorial reach that can unfortunately leave many British entities with a Hobson’s choice—trade with us or trade with Iran.
We are now in the rather perverse position in which the US Government are issuing letters of comfort to US banks to allow them to trade with Iran, and to allow them to have approved and licensed financial transactions with Iran, while our banks are receiving no such comfort or protection from the reach of Congress. American banks in the US are protected from Congress by the US Administration, but British banks are thrown to the lions.
As sanctions become a more common foreign policy tool—with some success; they have certainly helped to contribute to the process of Iran coming to the table—we in Britain should make it very clear that we will follow the rule of law, fill in the detail and ensure that sanctions are clearly adhered to. However, that does not discharge us from our outstanding obligations.
Previously, there have been numerous rulings in the UK, Germany and the US courts that clearly distinguish the difference between the discharge of an obligation by a party—in this case, the obligation of International Military Sales Ltd to the Iranians—and the payment of the funds to a designated entity. They are two separate issues and to conflate them, as people have tried to in the past, supposedly as a reason for not resolving this matter, is to put unnecessary and unreal barriers in the way.
I would like to hear from the Minister. I am grateful to him for coming to Westminster Hall today, because I am aware, as chairman of the all-party group on Iran, that Iran policy is way above my pay grade. It is made by the P5+1, and in No. 10 and the White House. However, I would be very grateful if the Minister at least recognised the importance of resolving this matter. We should wind up the company, which has existed in limbo for 35 years, and we should discharge the MOD’s obligation to a brass plate somewhere else in London. We can then put this sorry tale behind us.
The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)
It is a pleasure, Ms Dorries, to serve under your chairmanship at this later than anticipated hour; I am grateful to you for keeping Westminster Hall open. I thank my hon. Friend the Member for Wyre and Preston North (Mr Wallace) for securing this debate. It is important that we have this opportunity to put on the record the Government’s position on the subject that he has raised today.
I know that my hon. Friend, who is chairman of the all-party group on Iran, has taken a keen interest in this matter since he joined the House. It is entirely appropriate that he should have secured this debate . He has raised the issue of a dispute, and it is important to try to get a little clarity on the record as to the nature of that dispute. It relates to a number of contracts—not to a single contract—between the Iranian Ministry of Defence, which I shall refer to as MODSAF, and International Military Services Ltd, known as IMS. I am pleased to have this opportunity to outline the Government’s position regarding the dispute. As my hon. Friend has acknowledged, I am, of course, somewhat limited in what I can say, given pending litigation in the High Court between IMS and MODSAF. The UK Ministry of Defence itself is not a party to those proceedings.
I will make a number of key points in responding to this debate. First, I wish to make it clear that the Government would like the matter to be resolved as soon as practicably possible, which I think was the main challenge laid down by my hon. Friend. We share his determination in that respect, not least because, as he said, the dispute can be traced back to 1979 and the demise of the Shah’s regime in Iran. At that time, IMS, a company wholly owned by the MOD, had approximately 60 contracts to supply MODSAF with defence equipment and services. The change in regime in Iran saw the cancellation and termination of those contracts, resulting in a number of legal disputes.
The vast majority of the disputed contracts were settled on 22 October 1990, but four contracts were not. The two largest of those four contracts involved, as my hon. Friend said, the sale of more than 1,000 main battle tanks and armoured recovery vehicles. These contracts were referred to the International Chamber of Commerce for arbitration. The ICC ruled on 2 May 2001—more than 10 years later—in favour of MODSAF. By agreement between the parties, MODSAF agreed not to pursue payment of the awards until the outcome of a planned challenge to the awards by IMS. That was under the proviso that IMS paid, by way of security, a sum sufficient to meet the awards into the High Court. That payment was made in December 2002.
IMS subsequently challenged the ICC awards through the Dutch legal system, as the seat of the ICC arbitration, culminating in a final ruling on 24 April 2009 by the Dutch Supreme Court. The challenge by IMS was partially successful, in that the Dutch Supreme Court partially set the ICC awards aside.
The Government and IMS accept the ruling of the Dutch Supreme Court. However, there are legal issues that remain unresolved as to the precise amounts payable to MODSAF and crucially, as my hon. Friend said, as to how the sanctions regime that had been subsequently imposed impacts on the awards and the circumstances under which MODSAF is entitled to receive payment. These issues are subject to litigation, with a High Court hearing scheduled for June.
In addition, as I have already mentioned, there are other contracts under dispute. In relation to one of these, an infrastructure contract, the ICC tribunal ruled in favour of IMS on 28 January 2005. Prior to the Dutch Supreme Court ruling in 2009, international sanctions were imposed against the Iranian Government, in the context of their potential nuclear aspirations. In 2008, MODSAF itself was designated under the relevant sanctions regulations. Notwithstanding the recent sanctions relief included in the joint plan of action agreed with Iran, the bulk of the sanctions remain in place until a comprehensive settlement is reached on the nuclear programme. It would be inappropriate for the Government to comment any further on these issues, given the pending litigation.
However, the Government would like to see a final and appropriate resolution of these long-running disputes, and we hope that the recent progress in reaching an understanding on a variety of issues with the Iranian Government will facilitate that objective.
Mr Wallace
I am not referring specifically to this case. In general, given previous rulings, does the Minister not recognise that it is perfectly acceptable for a court to deal with the discharge of an obligation separately from how that obligation is then paid to an entity? They are not the same things.
Mr Dunne
My hon. Friend pre-empts the conclusions to my remarks, but I can confirm that we anticipate a resolution being possible, ideally without recourse to the High Court action in June. We would be happy to see the parties engage to reach a settlement on the outstanding issues before it gets to court. We think that can be done irrespective of the sanctions regime. Once a settlement has been reached to agree a final amount, the payment of that amount becomes a matter for the prevailing sanctions regime in place at that time. I agree that those are separate issues, but the ultimate payment cannot be made while the sanctions regime is in place.
I want to mention a couple of other factors that the House needs to be aware of. All the negotiations that have taken place on this matter have been conducted by employees of IMS on a confidential basis, in turn routinely channelled through legal representatives. Also, given the title of this debate, I should like to clarify the relationship between the Ministry of Defence and IMS. IMS is a wholly owned subsidiary of the Ministry of Defence; all but one of its 20 million shares are held by the Secretary of State for Defence and the other single share is held by the Treasury Solicitor. It is governed by the Companies Act, with accounts filed in Companies House. The company formally ceased trading in 2010 and now exists purely to resolve the disputes that I have already touched on.
Oral Answers to Questions
Ben Wallace Excerpts(10 years, 8 months ago)
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Mr Hammond
I understand my hon. Friend’s point of view. He has on other occasions raised the issue of entering into a contract for the submarines at an early stage. Our current way of managing our equipment programme is to enter into contracts with industry at the point at which projects are mature enough to enable us to secure the best possible value for money for the taxpayer. Entering into a contract at this stage, when the project is relatively immature, would not represent value for money.
Mr Ben Wallace (Wyre and Preston North) (Con)
3. What conclusions he has drawn from the Trident alternatives review about alternatives to a UK nuclear deterrent based on Trident.
James Morris (Halesowen and Rowley Regis) (Con)
9. What conclusions he has drawn from the Trident alternatives review about alternatives to a UK nuclear deterrent based on Trident.
The Secretary of State for Defence (Mr Philip Hammond)
The review demonstrates that no alternative system is as capable as a Trident-based deterrent, or as cost-effective.
Mr Wallace
Does my right hon. Friend agree that one of the dangers of the alternatives to Trident is that of mistaken identity? An intercontinental ballistic missile leaves a very distinct signature on launch, whereas the alternatives could be confused with conventional weapons, and hence trigger an escalation rather than a de-escalation of conflict.
Mr Hammond
My hon. Friend is absolutely right. The Trident alternatives review makes clear that that is just one of the many drawbacks of a cruise-based system. The other primary drawbacks are the risk, the time scale for development, the likely cost, the lack of range, and the vulnerability of the weapons system.
Army Basing Plan
Ben Wallace Excerpts(11 years, 2 months ago)
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Mr Hammond
I welcome the hon. Gentleman’s contribution to this debate. I have to say it is a delight to be in a Parliament where Members are arguing for military establishments in their constituencies. Many of my colleagues in NATO and EU countries do not enjoy that same level of parliamentary and public support for the armed forces. I am grateful to all Members of the House for that.
Mr Ben Wallace (Wyre and Preston North) (Con)
I welcome my right hon. Friend’s announcement that once again, Fulwood barracks will be home to a regular unit as the site of 3 Medical Regiment. These new units will need not only housing and barracks but training areas. Is my right hon. Friend looking for further training areas on top of the existing military estate?
Mr Hammond
We do not expect, in overall terms, to be looking for additional training areas. Clearly, the Army and the armed forces are getting smaller, and one would expect us to be consolidating training rather than expanding it. I would therefore not encourage my hon. Friend to think in terms of expansion of training areas.
Oral Answers to Questions
Ben Wallace Excerpts(11 years, 5 months ago)
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Mr Ben Wallace (Wyre and Preston North) (Con)
The previous Government entered into the joint strike fighter agreement without securing the source access code to allow British manufacturers to make British products for our planes without having to go via the American prime contractor. Will the Minister update the House on what progress has been made in acquiring the very important source data?