Shipbuilding Strategy

Jim Shannon Excerpts

Tuesday 23rd January 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to speak in debates, Ms McDonagh.

May I first congratulate the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) on setting the scene so well, and the right hon. Member for New Forest East (Dr Lewis), the Chair of the Defence Committee, on his special contribution? I am very pleased to make a contribution, and in debates such as this I always refer to the fact that as an ex-serviceperson—on the land, of course—I have an interest in the support of service personnel and wish to see that we do our best, whether it be for the RAF, the Royal Navy or the Army. This debate gives us a chance to focus on the Royal Navy. My hon. Friend the Member for Belfast East (Gavin Robinson) is doing the armed forces parliamentary scheme with the Royal Navy and is also on the Defence Committee. We are very privileged to have his contribution in that Committee, and hopefully in this debate as well.

I am proud to be from a party—the Democratic Unionist party—that pushed the last Government hard into increasing the spend on defence by 1%. As we try to do, we used our influence in a very constructive fashion to make sure that defence issues are the top priority for Government. We have also got some feedback on that, as my hon. Friend will know. We have some commitment to defence spend in Northern Ireland in relation to reserves—this debate is not about that, of course—and capital spend. Those are some of the good things that we are doing positively in relation to Northern Ireland with the Ministry of Defence.

The reason for that defence spend is clear. While it is great to have money spent locally, the fact is that no matter where in the United Kingdom of Great Britain and Northern Ireland someone lives, they will benefit from armed forces that are well trained, well fed and well equipped. That is the reason we are here. The summary in the national shipbuilding strategy, which I am not going to read because I am sure that Members have it in front of them, is clear that the Royal Navy needs to have the eight Type 26 frigates and the strategy for the Type 31e frigates as well. Again, the hon. Member for Plymouth, Sutton and Devonport referred to that.

I believe that we benefit by having been able to send aid over after the recent Hurricane Irma and during the crisis period. Our Royal Navy was already there and able to respond. We benefit by being able to meet our responsibilities throughout the world with a fleet that is capable, and we further know that we can defend these islands and our British colonies when needed. Better than our knowing that we can do that, the rest of the world also knows—it is important that it does—that we can and will do so if and when the need arises.

I will tell this story, not flippantly but to have an illustration on the record. I once had a teacher who advocated picking out a pupil at the start of the year to be introduced to Cain and Abel. The premise was that he had a cane and was able to use it. He then demonstrated that to the class at the first opportunity—I was a recipient of it on many occasions in the ’60s—and we knew from then on that we did not want ever to meet Cain and Abel again. That is perhaps rather simplistic, but it illustrates why it is important that the Royal Navy has the ability to be our Cain and Abel wherever it may be in the world. I am not advocating the use of blunt force to make a statement; I am saying that we have proven in the past that our abilities are numerous, and that we have the premier armed forces in the world. We also need to underline the fact that that is not simply a historical fact; it is a present-day reality. For that, we need facilities that are capable and that make the grade. Every one of us in this debate, whatever angle we come from, will want to impress that on the Minister, whom I am pleased to see in his place; I am also pleased to see the shadow Minister in his. Hopefully, we will all make constructive contributions to this debate, so that we can move forward in a positive way.

I read an interesting article on the topic on the website Save the Royal Navy that gave a concise view of where we are and where we are headed in terms of our shipbuilding strategy and defence capability:

“When the Tide class oil tankers were ordered in 2012 (a remnant of the Military Afloat Reach and Sustainability (MARS) project), no British company had bid for the construction work. There were two main reasons: most UK yards were occupied working on the QEC aircraft carriers blocks, but they also knew they would not be able to compete on price with foreign state-subsidised shipyards. The controversial decision to look abroad made sense at the time, the MoD got four ships at a bargain £452 million and no British shipbuilder could claim they would go under without the work. (£150 million was spent in the UK with BMT who designed the ships together with A&P Falmouth, who are fitting them with additional military equipment). Five years later, the landscape has changed significantly”,

which is why this debate is important.

“The QEC construction project is in its final phase, but one of its very positive legacies has been to help stimulate a modest revival in commercial shipbuilding, and there are now yards hungry for further naval work.”

In a past life as a member of the Ulster Defence Regiment back in the ’70s, I guarded the Samson and Goliath cranes in the old Harland and Wolff shipyard, which made a significant contribution to shipbuilding in Northern Ireland. On the border of my constituency, within that of my hon. Friend the Member for Belfast East, the shipbuilding giant was at one stage the biggest employer of men in both our constituencies, with some 35,000 workers at its peak in the 1920s.

Harland and Wolff has not produced a ship in about 14 years, although it continuously built and provided ships over a period of time. The last to leave Queen’s Island was the £40 million Anvil Point, at the start of 2003. The 22,000-tonne ferry was the second of two vessels built for the Ministry of Defence. Harland and Wolff is teaming up with other companies such as Thales, also in my hon. Friend’s constituency, to bid for a £1.25 billion contract. I believe that they have not only the ability but the drive and desire to deliver the best that can be given. They are invested in securing every bolt and screw, not simply for the sake of their reputations but for the sake of their own children and grandchildren, who may well serve their country on the ship.

[Gavin Robinson (Belfast East) (DUP)]

I am grateful for the lettered references to me in glowing terms. Harland and Wolff in my constituency is one of many shipbuilders seized with the aspiration associated with the national shipbuilding strategy. Does my hon. Friend agree that it would be helpful for the Minister to clarify the distinction between UK content and UK benefit? What is intended, and what surety can UK shipbuilders take from that distinction?

[Jim Shannon]

Everything that I said about my hon. Friend was absolutely true, so he can take my comments as such, but his intervention was specific to the Minister, to whom we look for a helpful response. My hon. Friend outlined some of the issues in the briefing document that we had beforehand about building only in the UK and skills. We need skills not only in the Royal Navy but in the shipbuilding programme. Costs can never be ignored; it comes down to how we do it best. I understand that we are considering exports for the ships and frigates that we are building, but it seems that that may not have been realised yet. Quantity or quality is a difficult debate. What is best? We certainly want quality, but perhaps we need quantity to go along with that.

To return to the Royal Navy’s ability to fulfil all its missions, let us consider some of the things that we are aware that the Royal Navy does today. Fisheries protection will become more apparent when we leave the European Union on 31 March 2019. All our seas will be back in our control, and when they are, we will need to police them to ensure that other countries do not take advantage of places where they once fished, but where they will only be able to fish if they have an agreement with us. We must put that on record. The Navy has a role in the Falkland Islands and in anti-piracy in eastern Africa, as well as in dealing with refugees in the Mediterranean. The demands on the Royal Navy are immense; we should keep that in mind.

I am suddenly conscious of time, so I will finish with this. It is vital for the local economy that shipbuilding is done in-house and not outsourced, and the collaboration of local and UK mainland companies seeks to do that. I believe that that trumps the freedom of trade thought process, with which I agree to an extent, although I do not believe that it precludes the fact that charity begins at home. It is not charity, of course; it is having business, workers, jobs and contracts at home. If we have the capability to produce, which we clearly do, then that work can and must be carried out right here at home.