In-orbit Research Satellites: Contingent Liability

Jeremy Quin Excerpts

Wednesday 20th May 2020 Written Statements

[The Minister for Defence Procurement (Jeremy Quin)]

I am today laying a Departmental Minute to advise that the Ministry of Defence has received approval from Her Majesty’s Treasury to recognise a new contingent liability associated with the operation of satellites conducting in-orbit research by the Defence Science and Technology Laboratory (Dstl).



The departmental minute describes the contingent liability that the Ministry of Defence (MOD) will hold as part of its space science and technology programme.



Dstl has installed a ground station at its Portsdown West site, which will contribute to supporting space research activities, upskilling civilian and military personnel in satellite mission operations, and task its first research satellites for the Ministry of Defence. Through this programme, MOD will develop the skills and capability to achieve its strategic objectives in the space domain.



The contingent liability will last the duration of Dstl’s operation of the satellites and will come into effect if a satellite collision was caused via Dstl operation. Mitigations are in place against risks to minimise likelihood and impact which are deemed to be 0.001-0.01%. Her Majesty’s Treasury has approved a value of up to £500 million for the contingent liability to cover the maximum estimated damage cost resulting from a collision. The MOD will note the liability in its accounts May 2020.

Attachments can be viewed online at:

http://www.parliament.uk/business/publications/written-questionsanswers-statements/written-statement/Commons/2020-05-20/HCWS249/ .

[HCWS249]

Oral Answers to Questions

Jeremy Quin Excerpts

Monday 16th March 2020 Commons Chamber

[Mr Toby Perkins (Chesterfield) (Lab)]

6. What recent assessment he has made of the adequacy of Army equipment.

[The Minister for Defence Procurement (Jeremy Quin)]

The Army conducts annual assessments to ensure that it has the right equipment for the future. It is undergoing an ambitious capability transformation programme, including investing in new, fully digitised Ajax and Boxer vehicles.

[Mr Perkins]

If the range and capability of our battle tanks and armoured vehicles are inferior to that of our potential adversaries, it is difficult for our world-class armed forces to continue to operate in that sphere. Will the Minister assure the House that the Challenger 2 and Warrior programmes will be brought forward at the earliest possible opportunity, to ensure that our world-class troops have world-class equipment?

[Jeremy Quin]

The hon. Gentleman is right: we need the very best equipment for our armed forces. As he is probably aware, the Army has no fewer than nine key projects for equipment modernisation, totalling some £17 billion over the next 10 years, and around 130 smaller projects. He mentions two in particular. On Challenger 2, we are well advanced through the assessment phase and will take decisions on that at a future date. On Warrior, we are on to the demonstration phase, which is going well, and we will be taking decisions in the future.

[Nia Griffith (Llanelli) (Lab)]

The recent National Audit Office report on the Government’s defence equipment plan showed that there is a potential funding shortfall of £13 billion, which will no doubt affect Army equipment as well as Navy and RAF equipment. Given that this is now the third time that the NAO has deemed the plan unaffordable, when will the Minister get to grips with this funding crisis?

[Jeremy Quin]

We are getting to grips with it right now. We are grateful to the NAO for its work. I gently point out to the hon. Lady that the Department hit budget this year, last year and the year before. We constantly review budgets to make certain that the equipment plan is affordable. We have shrunk the gap significantly, and we had additional assistance from the Treasury last year. We will make certain that we are meeting the needs of the armed forces.

[Nia Griffith]

I thank the Minister for his answer, but we know that the Army has cancelled various anti-armour projects and reduced the number of tanks it will upgrade. There have also been recent reports suggesting that the Army is to face further cuts in the integrated review. Can the Minister guarantee that the review will not be yet another cost-cutting exercise, leaving our armed forces short of the equipment that we need to defend the country?

[Jeremy Quin]

The integrated review is under way; it is nowhere near to bringing itself to any conclusions yet. The review looks at the totality of our place in the world, as the hon. Lady recognises, and how we operate as a country across the broadest spectrum. It is not a review designed to cut costs. It is a review designed to ensure that we know what we are doing in the world and that that is effected through really effective equipment—that is the purpose of the integrated review, and we look forward to its response.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

May I ask Ministers to extend the gratitude of the Defence Committee for our visit to Army HQ in Andover on Thursday? It was an illuminating visit, and the issue of Warrior and Challenger—now two decades old—came up. The Minister mentioned the integrated review. Given what we learned and the fantastic efforts that are being made to support the nation in tackling the coronavirus, may I invite the Secretary of State and the Minister to delay the integrated review until the new year, to ensure that we do it properly, rather than rush it when the focus is elsewhere at the moment?

[Jeremy Quin]

I am grateful to my right hon. Friend and to his Defence Committee for their work. The integrated review is important: it is important that we get on to it and move on with it at pace. We need to take firm decisions, and the swifter the better. However, as ever, we are mindful of events, and such things will obviously be taken into consideration if they need to be.

[Mark Pritchard (The Wrekin) (Con)]

I thank the Minister of State for his recent visit to Rheinmetall BAE Systems Land at BAE Systems in my constituency, following the award of part of the Boxer contract to that consortium. On the issue of Challenger 2 and the life extension project, does the Minister of State think that Shropshire defence manufacturing will feature in his decision making, and will the decision-making maingate still be this autumn?

[Jeremy Quin]

I am grateful to my hon. Friend. It was a great pleasure to visit his constituency and see at first hand the extraordinary skills in that constituency, and it was a great pleasure to meet many apprentices. As I said earlier about Challenger 2, we are in the assessment phase, and a decision on any next steps will be taken at a later date. I thank my hon. Friend for the question and the interest he always shows in the defence manufacturers in his constituency.

[Jessica Morden (Newport East) (Lab)]

7. What steps his Department is taking to support the families of armed forces personnel.

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[Steve Double (St Austell and Newquay) (Con)]

18. What steps his Department is taking to ensure that the capabilities of the armed forces are adequate to address future threats.

[The Minister for Defence Procurement (Jeremy Quin)]

The Ministry of Defence has rigorous processes to assure, test and develop our capabilities to keep our country safe. This will be looked at again as part of a thorough wide-ranging analysis through the integrated review.

[Steve Double]

There is no doubt that space will play an increasingly important role in defence. In Cornwall, we are excited about that opportunity, because we will soon be launching satellites from Spaceport Cornwall. Will my hon. Friend confirm that the space domain will fully be a part of the integrated review?

[Jeremy Quin]

We have established a space directorate, which is tasked with how to advance opportunities for the UK commercial space sector. I absolutely assure my hon. Friend that space and its potential will form a part of the integrated review.

[Mr Kevan Jones (North Durham) (Lab)]

Over the past decade, £430 million has been spent on the Army’s Warrior programme upgrade. Despite that, it is still only at the demonstration phase. Can the Minister indicate when a contract will be let? And will that contract be let only when the battlefield assessment phase is complete?

[Jeremy Quin]

The right hon. Gentleman is right that there has been a long period—nine years—of assessment and demonstration of the Warrior programme. It is important that it is looked at and that we have the right kit to take the Warrior through to 2040 and perhaps beyond. I confirm that we are at the demonstration phase. Any future steps will be taken at the conclusion of that phase.

[Anthony Mangnall (Totnes) (Con)]

Can the Minister reassure hon. Members and tell us what steps he will take to ensure that the continuous at-sea deterrent continues to function during the covid-19 outbreak?

[Jeremy Quin]

That is a perfectly reasonable question, but it will become familiar to my hon. Friend that we do not comment on CASD in this place. I thank him for his interest.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Ciaran Martin, head of the UK’s National Cyber Security Centre, confirmed recently that Russian hackers attacked British media, telecoms and energy companies. The Royal United Services Institute has confirmed that the UK will not be able to replicate many of the security benefits of EU membership. Will the Minister give the House an assessment of the capacity we are losing by leaving the EU and outline the Government’s costed proposals for how the UK can unilaterally develop that capacity?

[Jeremy Quin]

We have world-leading capabilities in cyber. I am comfortable and confident that, as part of the integrated review, we will put in place strong plans to further strengthen that work. In my contact with my European Union defence counterparts across the EU to date, they have been extremely keen to continue to work closely with the United Kingdom as sovereign equals. After all, we are the biggest spender on defence in western Europe, as the hon. Lady is aware.

[Mr Toby Perkins (Chesterfield) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

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[Joy Morrissey (Beaconsfield) (Con)]

T2. Does the Minister agree that British businesses, such as Martin-Baker aircraft company, based in Denham, are at the heart of our defence industry? Can I tempt him to join me for the opening of our new facility in the coming months?

[The Minister for Defence Procurement (Jeremy Quin)]

My hon. Friend is right. Martin-Baker produces the ejector seats for our F-35s that fly off HMS Queen Elizabeth. Diary permitting, I would be delighted to join her.

[Nia Griffith (Llanelli) (Lab)]

This weekend there has been widespread concern about the Government’s communication strategy on the coronavirus pandemic, including a number of anonymous briefings to the media, such as one on the role of the Army. As well as providing more detail about Operation Broadshare, can the Secretary of State explain reports that the Government are working on the assumption that at least 20% of personnel will contract the virus? What arrangements are in place to mitigate any impact that that may have on operations?

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[Jeremy Quin]

This £330 million sonar and mast contract is indeed good news. It will secure or create highly skilled jobs in Thales in Scotland, Greater Manchester and Somerset—and 30, I am delighted to say, in the constituency of my hon. Friend and neighbour in Crawley.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

T6. What assessment has the Secretary of State made of the impact of Covid-19 on plans to commemorate Victory over Japan Day in August with surviving veterans, and in association with the Royal British Legion and the Commonwealth War Graves Commission?

[Jason McCartney (Colne Valley) (Con)]

T7. David Brown Santasalo engineering in my constituency has been manufacturing engineering parts for the Ministry of Defence for many years, including propulsion gears for our Dreadnought submarines and our Type 26 frigates. It has shown a real commitment to quality apprenticeships. Will the ministerial team continue to show such commitment to great companies like it in the MOD supply chain? In fact, will the Minister visit David Brown Santasalo, and see at first hand its excellence in engineering?

[Jeremy Quin]

My hon. Friend has in the past raised this company, its work and particularly its apprenticeships with me. Diary permitting, I would be very pleased to visit it with him.

[John Spellar (Warley) (Lab)]

If companies such as David Brown are to be sustained, they need orders, as does the shipbuilding industry. Once again I ask whether we can start behaving like every other country. Will the Minister tell us from the Dispatch Box when he will start the fleet solid support vessels programme again, and tell us that these ships will be built in British yards?

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[Robert Courts (Witney) (Con)]

What future is envisaged for Team Tempest and the combat air strategy in the defence and security review?

[Jeremy Quin]

As my hon. Friend knows, the future of air combat, on which we have published a review, is an incredibly important aspect of our future defence, but I will not speculate on individual aspects of the integrated review, because it would be inappropriate to do so. We should be looking at the whole process of defence, and all the capabilities that we need to keep ourselves and our allies safe in the future.

[Mark Pritchard (The Wrekin) (Con)]

Her Majesty’s armed forces owe a huge debt of gratitude to Commonwealth citizens. On the issue of right to remain, can I ask the Minister what new protocols will be put in place between the Ministry of Defence and the Home Office?

Cawdor Barracks

Jeremy Quin Excerpts

Wednesday 26th February 2020 Westminster Hall

[The Minister for Defence Procurement (Jeremy Quin)]

I am grateful to my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) for securing this debate. Quite apart from his position as Chair of the Welsh Affairs Committee and his former role as Secretary of State, he has an understandable interest in the future of this long-established defence site, located in his beautiful Preseli constituency.

The barracks has been a feature of the Pembrokeshire coast since 1944 and, as my right hon. Friend set out, it has the unusual distinction of having served all three of our armed services. It first served as an operational airfield for the RAF, which operated Liberator heavy bombers there during the second world war, as he set out. It then served as a station for Royal Navy airborne early warning craft during the cold war. Finally, it has served as the home of the Army’s electronic warfare unit since the 1990s. The barracks has therefore played an important role in the military history of Pembrokeshire as well as that of Wales more generally.

My right hon. Friend brought us up to date by eloquently describing the links between the community and the service personnel of the 14th Signal Regiment, and the respect and affection in which they are held. I recognise that both they and the base’s civilian employees are important to the local economy. I therefore wholly understand his concern about the effects of the November 2016 announcement of Cawdor’s closure. I also understand that this has been a long story. The base’s closure was announced in November 2016, and I sympathise with his point that this has been a period of uncertainty for the community.

However, I must tell my right hon. Friend, with regret, that the intent to dispose of the barracks remains. The armed forces are now 30% smaller than at the end of the last century, but the defence estate has not yet been proportionately reduced in size. In many areas we use our defence estate efficiently, but overall it is too big, too expensive and has too many sites to maintain. That is why in the 2015 strategic defence and security review we committed to investing in a smaller, but optimised and efficient, defence estate. Military capability outputs have been at the heart of our defence estate strategy, and we are taking a transformational approach to better support the future requirements of our armed forces by generating special centres of specialisation and capability clusters.

Consolidating the defence estate enables the Ministry of Defence to concentrate its assets, investing in significantly better facilities to support the men and women of our armed forces. The Cawdor site, designed for the needs of the second world war and the cold war that followed, is sadly no longer fit for the vital and increasingly central purposes of electronic and cyber-warfare in the 21st century. Nor does the unit’s geographic location provide the easy synergies that the regiment needs with the units and organisations that it supports. We must ensure that the regiment can maximise its operational capabilities.

The Government understand the strength of feeling in those local communities impacted by the relocation of military units, here and elsewhere, and the deep-rooted histories and ties that are thereby sadly broken. I can reassure my right hon. Friend that careful consideration is being given to alternative uses for the site, with the aim of increasing the commercial use, driving regeneration and creating local jobs. We have a little time, given that the earliest date for closure is anticipated to be 2024, and I absolutely commit that my Department will work closely with Pembrokeshire County Council on potential future uses.

[Stephen Crabb]

I am very interested in everything the Minister is saying. Can he give me a commitment this afternoon that in his new ministerial capacity—he is doing a great job in the Department, by the way—he will take the opportunity to visit the Cawdor Barracks site in the near future and perhaps come and see the site for himself, but also take a moment with me to meet Pembrokeshire County Council, to talk about the plans for closing the site and what steps need to be taken in the years ahead, to ensure that that transfer happens with minimal impact on my constituents and in the most productive and useful way possible?

[Jeremy Quin]

I can absolutely commit to meeting my right hon. Friend here at Westminster. I would like to take the opportunity to visit the site and talk to the county council, but I cannot commit wholly to that—he will appreciate the pressures on diaries right at the start of one’s time in post. I would like to visit, and I will certainly make myself available in Westminster to speak to him about the application.

I would also like to talk to my right hon. Friend about the Crichel Down rules. Those rules normally apply only where sites are undeveloped, but that is something that we can take up and talk about in the context of this site, if that is helpful. As I have just outlined, we will work with the county council and that work will inform the engagement that we will also have with the Welsh Government, with the office of my right hon. Friend the Secretary of State for Wales and others on the potential alternative uses of the site.

The decision to close Cawdor barracks is an operational one, driven by the needs of the armed services, but it is no reflection on the Government’s strong commitment to maximising the contribution of Wales to the defence of the UK and maximising the benefits of the defence sector there. On the contrary, as my right hon. Friend, the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) and I, along with many other hon. Members, discussed in yesterday’s debate, Wales has made a first-rate contribution to the defence of the realm, and we are determined to maximise the benefits of the defence sector there.

To conclude, closures of established military bases inevitably have consequences for local communities, and my right hon. Friend has drawn that to our attention. Over recent years the Government have had to make a number of such difficult decisions in respect of bases around the UK. Our armed forces need facilities and accommodation that fully meet their operational needs. However, we recognise that the closure of this long-established site will inevitably have impacts on Pembrokeshire beyond the defence community. That is why my Department is working actively with the local authority and others to identify the most beneficial future use of the site. I commit myself to continuing to do so, with the help and assistance of my right hon. Friend.

Question put and agreed to.

UK Armed Forces: Wales’s Contribution

Jeremy Quin Excerpts

Tuesday 25th February 2020 Westminster Hall

[The Minister for Defence Procurement (Jeremy Quin)]

I echo the remark made by the shadow Minister, the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones), that the debate has been very consensual. Looking around, I can see that no one in the Chamber would disagree that the first duty of Government is the security of the nation, and this Government are absolutely committed to maintaining a strong defence through well equipped and highly trained armed forces.

The UK’s armed forces are rightly renowned and respected around the world. People from every corner of our country and our Union share pride in what the armed forces achieve. Wales’ contribution to our defence and to the ongoing success of our armed forces is immense. I am delighted that, for my first outing as a Defence Minister, I have the opportunity to reply to this debate, and I congratulate my hon. Friend the Member for Brecon and Radnorshire (Fay Jones) on securing it and on her excellent speech. I will respond by drawing out three themes: Wales’ contribution to capability, to defence support, and to recruitment, which is the lifeblood of our armed forces, as many hon. Members have mentioned.

In determining the location of our armed forces, our priority is to have units that not only fight together, but live together and are based close to their training areas, generating centres of military specialisation, which gives the UK the best possible operational capability. Currently, there are 2,200 Regular Army forces personnel based in Wales, many at Brecon’s infantry battle school and associated training facilities and the headquarters of 160th Brigade. I reiterate to my hon. Friend that 160th Brigade headquarters will remain in Wales. My Department is undertaking an assessment study to determine the precise location. She is lobbying hard for the Brecon area, and we hear her loud and clear. We are sympathetic, and I look forward to ongoing discussions.

On balance, the defence estate review is neutral for Wales, as my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) mentioned and as was picked up by other Members including the shadow spokesman, the hon. Member for Merthyr Tydfil and Rhymney. Some planned defence closures are envisaged, including Cawdor barracks—I know I will hear a lot more about that from my right hon. Friend. Questions tomorrow will be interesting, although I would not say that I am anticipating them eagerly. We plan to relocate an infantry unit to Wales, however, and have identified our preferred location as MOD St Athan, on which there will be more to come.

In the air, RAF Valley is our Air Force’s key Welsh location. All new fighter pilots pass through RAF Valley’s fast jet course before reaching their frontline squadrons. Its runway was restored as part of a £20 million refurbishment.

[Nick Smith (Blaenau Gwent) (Lab)]

May I press the Minister to revisit the estate strategy? Please will he ask his Department to produce a paper specifically looking at whether one of our Welsh regiments could be based in Brecon? This afternoon, we have heard cross-party support for that idea. It would be great if the Ministry of Defence and the Minister on his first outing—he is doing brilliantly—supported that consensus.

[Ben Lake (Ceredigion) (PC)]

Will the Minister allow another intervention?

[Jeremy Quin]

I will allow the hon. Gentleman.

[Ben Lake]

At the risk of labouring the point, as the hon. Member for Blaenau Gwent (Nick Smith) mentioned, there is cross-party unanimity on that. The Minister would therefore not only ensure that a Welsh regiment was based in Wales, but succeed in getting the support of all parties represented Wales. He would also achieve the rare feat for a Minister of fulfilling a recommendation of a Welsh Affairs Committee report on the issue.

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[Jeremy Quin]

I thank both hon. Gentlemen for their honeyed words and kind remarks. I am afraid that I will not respond with an answer to satisfy them fully. We have made clear our preference for the location of the extra infantry unit at St Athan. We recognise the case for Brecon as the ongoing location in some form—in that area—for the 160th Brigade headquarters. I cannot fully satisfy the hon. Gentlemen, but defence is always an area in which tough decisions have to be taken, and we will not always make the ones that either of them like, but we are where we are. There is a decision, in preference, for St Athan as the location for the new military unit.

We have discussed the RAF, so moving on to the Royal Navy, the £11 million Royal Naval Reserve base in Cardiff will be completed in 2020. I see that the hon. Member for Cardiff South and Penarth (Stephen Doughty) is pleased with that, and he referred to it in his speech.

In addition to the physical presence of thousands of armed forces personnel, vital elements of our military equipment capability are manufactured and maintained in Wales. For example, the Army’s next generation of Ajax armoured fighting vehicles are made at General Dynamics UK in Merthyr Tydfil and Oakdale. The RAF’s Shadow aircraft will be supported by Raytheon in Broughton for the next decade under a £250 million contract. Furthermore, MOD Sealand has been designated as the global F-35 component repair and maintenance hub. Sealand is also the home to the Defence Electronics and Components Agency which, as mentioned in the debate, makes north Wales a national centre of excellence in this field.

Not only does Wales supply invaluable equipment to the armed forces, but it generates prosperity and jobs. The F-35 programme alone will generate more than £2 billion in revenue over the next 30 years. I was delighted that my Department’s procurement spend in Wales increased by 11% in the last financial year to £1.08 billion—the highest percentage increase in all the UK’s regions and countries. That investment supports more than 7,500 jobs directly and thousands more across wider supply chains, including 1,150 highly skilled private sector jobs at RAF Valley, making it the second biggest employer on Anglesey. There is more to come, with 200 jobs on Shadow at Raytheon’s intelligence and surveillance hub, additional Qioptiq personnel at St Asaph, and the new Cardiff Royal Naval Reserve centre supporting about 300 jobs locally.

Defence equipment investment supports vital roles across Wales, but all in the Chamber would agree that the most important jobs are those undertaken by the men and women who join our armed forces. Traditionally, Wales has always been a strong recruiting area for our services, especially our land forces, and that proud tradition continues. I have some reassurance for my right hon. Friend the Member for Preseli Pembrokeshire. Capita was discussed during the debate but, over the past year, it has been reinvigorated and there has been a far better performance on the contract. I am delighted that 77,000 people applied to be regular soldiers alone in the course of the past year, which is a 33% increase. Change needed to be made, and we have made changes, so that contract is performing far better.

The hon. Member for Cardiff South and Penarth referred to the need to have diversity, and I could not agree more. It is absolutely the Army’s intention to ensure that the armed forces reflect the country that they serve. If the hon. Gentleman looks at the most recent recruiting campaign, he will see that that is absolutely front and centre to how we perform.

I am afraid I cannot be precise about the numbers of recruits from Wales as we do not maintain regional recruitment figures, but given the strengths of the connections of the Welsh regiments—the Welsh Guards, the Royal Welsh and the Queen’s Dragoon Guards—I am absolutely certain they will get more than their fair share.

I wish to say so much more in the debate, but I am being tugged down to allow my hon. Friend the Member for Brecon and Radnorshire to respond. I hope on other occasions we will be able to talk about veterans and service families accommodation. I would be delighted to speak to the hon. Member for Islwyn (Chris Evans) in particular on that issue. I apologise that I have not been able to respond to more of the points made in the debate, but I wish to allow my hon. Friend an opportunity to respond.