Ministry of Defence (Procurement)

Julian Lewis Excerpts

Wednesday 19th October 2011 Westminster Hall

[Dr Julian Lewis (New Forest East) (Con)]

I do not know whether you care to cast your mind back to May 1997, Mr Hood, but you drew the short straw of being the hon. Member who had to respond to my maiden speech. That speech was about nuclear weapons—Trident—and I fear that this one will be on the same subject. Indeed, I suspect that it will not be the last one that you or other hon. Members hear from me on the subject. I sometimes think that I should go into a sort of partnership with the hon. Member for Islington North (Jeremy Corbyn). We have debated this subject many times over the years. He never changes his tune, and I never change mine, but the debate remains live. It relates to procurement, in addition to strategy and the ethics or otherwise of nuclear deterrence, because of course the procurement process for Trident has been much disrupted.

The hon. Gentleman made great play of the fact that Parliament has not yet had the debate. Well, excuse me, I think that Parliament did have a debate. If I remember correctly, it was in the spring of 2007, and both the Labour party and the Conservative party were wholly in favour of the next generation of Trident being constructed. I recall the then Leader of the Opposition—now the Prime Minister—to whose speech I had contributed, passing me an Order Paper on which he had inscribed the words “Julian gets his way”. Sadly, of course, there’s many a slip between cup and lip or, indeed, between a vote in Parliament and the deployment of a successor generation. The slip concerned came in the failure of the Conservative party to win an overall majority at the last general election. That ought not to have been a problem for the procurement process for Trident, given that the Labour party had gone into the election pledged to renew the nuclear deterrent and so had the Conservative party. Only the Liberal Democrats were opposed to that.

[Jeremy Corbyn]

I know that the hon. Gentleman loves the fact that the Conservatives are in a coalition Government with the Liberal Democrats—it is what gets him out of bed every morning and into work—but in his discussions with his Liberal Democrat colleagues, has he reached any conclusion about whether they do or do not want a nuclear missile or whether they want a different type of nuclear missile in the review that apparently is being undertaken?

[Dr Lewis]

I have to say to the hon. Gentleman—I am tempted to say “my hon. Friend”—that the Liberal Democrats really differ from both of us, because he knows where he stands on nuclear weapons and I know where I stand, but the Liberal Democrats stand firmly with a foot in both camps. They know that they do not want Trident, but they do not want to put themselves in his camp by telling the truth, which is that the majority of their activists are one-sided nuclear disarmers and do not want a strategic nuclear deterrent at all. Therefore, they come up with this fiction that it is possible to have a viable strategic nuclear deterrent with an alternative system to Trident.

That ought to have made no headway at all when the coalition was formed. The reason for that was that I and all the other Conservative Members of Parliament, who were being addressed by the Prime Minister-to-be at a meeting in Committee Room 14, were told what the terms of the coalition agreement would be, or some of the basic outlines of the terms. We were told that we would have to accept certain things that the Liberal Democrats wanted that we did not want, such as a referendum on the alternative vote, but that the Liberals would have to accept things that we wanted that they did not want, such as the renewal of Trident—that was the very example chosen. I remember my friend and colleague the future Chancellor of the Exchequer looking up at that moment, catching my eye—because at the time I was still the party spokesman on the Royal Navy and the nuclear deterrent—and nodding vigorously in confirmation of what the leader of the party had said. You can imagine, Mr Hood, my surprise and dismay—

[Mr Gregory Campbell (East Londonderry) (DUP)]

On the issue of discussions and debate, does the lesson of someone nodding vigorously in agreement with a position, only for that subsequently to be replaced by a cold, hard dose of reality, ring a bell in relation to other issues?

[Dr Lewis]

There is always the possibility that people will change their mind when they see different circumstances, but I genuinely feel that that has not applied in this case as a result of what I was about to explain and what hon. Members will remember. Out of the blue, even though the procurement of a replacement and successor system for Trident had specifically been excluded from the terms of the security and defence review, on the day when the statement was made, publishing the review and presenting it to Parliament, we were told that the main gate decision, the contracts for Trident would be put off until after the next election. With the greatest respect to the hon. Member for East Londonderry (Mr Campbell), there was no doubt at all that that had nothing to do with hard facts or realities creeping in, and everything to do with politics, as the letter subsequently sent out from the president of the Liberal Democrats, crowing in triumph at the delay of the Trident decision, made clear.

I must not wander too far from the procurement emphasis of this debate. Therefore, I would like to put a specific question to my hon. Friend the Defence Minister with responsibility for procurement issues. It relates to the study that is being done about alternative systems to Trident as a possible nuclear deterrent. That is being done as a gift, a present, a political offering to the Liberal Democrats in the coalition, and I believe that the study is being carried out by the Cabinet Office rather than the Ministry of Defence, although the Ministry of Defence is supplying the material to the Cabinet Office.

I have to say to the Minister that any halfway competent assessment team, facing the problem of examining the existing and the potential systems for carrying a nuclear deterrent in the future, could do a comprehensive study over a period of probably not more than two or three months and arguably over a few weeks, on the basis of the accumulated knowledge of half a century that we have in the business of strategic nuclear deterrence. I would therefore like to know what progress such a study is making or whether it will in fact be spun out until the next general election. The reality is that there is no alternative to Trident for the next generation of the strategic nuclear deterrent, and I suspect that my political opponents in the CND ranks would agree.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

Just as an aside, does the hon. Gentleman have any concerns that the study was one of the documents put in the waste paper bin in the park?

[Dr Lewis]

I do not mind so much when unclassified documents are thrown away, but I do mind when this country’s basic protection is thrown away. I really do not want to see another hung Parliament, with both major parties having gone into an election proclaiming their commitment to the next generation of the nuclear deterrent, only for a small third party that is adamantly opposed to that deterrent, but which does not have the guts to wear its unilateralism openly, to blackmail the leaders of those two parties in turn, saying, “You get rid of this weapons system and we will make you Prime Minister.”

[Stephen Gilbert]

I feel loth to interrupt my hon. Friend as he expands on how a small but effective team can punch above its weight in the coalition, because he is doing a splendid job. Does he not see, however, that the threat facing the United Kingdom has changed hugely over the 20 or 30 years since the end of the cold war? Does he not agree, therefore, that it is right and proper to examine whether we need to change our plans in response to that changing environment?

[Mr Jim Hood (in the Chair)]

Order. We are now moving from a procurement debate into a pro-nuclear or anti-nuclear debate.

[Dr Lewis]

I shall briefly deal with the point, as it is out there, and then I shall move back to procurement in the narrow sense, if I may.

[Mr Jim Hood (in the Chair)]

Order. I would much prefer you to carry on with your very interesting speech.

[Dr Lewis]

Thank you very much. I would simply say that punching above one’s weight and getting a result that reverses the mandate of the two large parties are very different things.

The question is what happens in the procurement process for a weapons system that Parliament has already voted in principle to bring into existence. The hon. Member for Islington North says Parliament should debate and vote on the issues again and again at every stage of the procurement process. As the Minister will confirm, however, procurement does not work that way; there are certain set stages in the procurement of a weapons system at which Parliament may have its say and at which contracts must be signed. The fact is that the contract in this case has been put off until after the election, and the result is that the entire procurement project has been put in jeopardy.

The systems we are worried about—whether nuclear systems or aircraft carriers—will be built over a fairly long period, but they will be in service over a very long period. The lifespan of the new super-carriers will be 50 years, and that of the next generation of the nuclear deterrent will be about 30 or 35 years. Therefore—I would not dream of returning to our earlier debate—the circumstances that have changed in the world over the past 15, 20 or 25 years might well change again over the next 15, 20, 30, 40 or 50 years. That is why we have armies, navies and air forces in times of peace, when there is no apparent threat on the horizon, and why we need systems such as the nuclear deterrent—to prevent us from being taken by surprise.

I must draw my remarks to a conclusion, as others will not have time to speak otherwise. However, I would not like today to pass without paying tribute to my right hon. Friend the Member for North Somerset (Dr Fox), the former Secretary of State for Defence, and wishing him all the best. I served under him and three previous shadow Secretaries of State, and I know that defence specialists across the parties are bound by a common world view and a common realisation that decisions taken in the defence portfolio, above all others, will determine whether the people of this country remain safe and whether our forces, when they go into action, sustain great casualties or emerge triumphant, bearing few, if any, casualties. The responsibility for those issues is fearsome. My right hon. Friend had a passionate belief in the importance of the Anglo-American alliance and of procuring a future generation of the nuclear deterrent, and I trust that his successor will be equally committed.

Finally, I welcome the hon. Member for Plymouth, Moor View (Alison Seabeck) to her responsibilities. Like many members of Labour defence teams in the past, she takes defence seriously and works on a non-partisan basis when she can.

[Several hon. Members]

rose—

--- Later in debate ---

[Alison Seabeck (Plymouth, Moor View) (Lab)]

It is always a pleasure to serve with you in the Chair, Mr Hood. This is my first opportunity to speak as shadow Minister since the Minister’s warm welcome last week at Defence Question Time. Looking back through Hansard, it is a little surprising that this is the first Westminster Hall debate on procurement since the last election, with the exception of two half-hour debates. I therefore warmly congratulate the hon. Member for Sittingbourne and Sheppey (Gordon Henderson) on securing this debate. He certainly ranged widely, as promised, and highlighted the broad scope and reach of the Ministry of Defence in procurement. There are major challenges in balancing defence equipment needs while ensuring value for money and retaining the essential skills base to support sovereign capability.

I know that I am not the only MP in the Chamber who has a sizeable defence community in their constituency. Before the last election, my constituency was called Plymouth Devonport, which included Her Majesty’s naval base at Devonport. Thanks to the Boundary Commission, it looks like it might be coming back at the next general election, but we shall see. For me and many hon. Members, providing the right equipment to our troops when they need it, so that they can carry out the work for which they have been trained to the best of their ability, is of upmost importance. A number of hon. Members in the Chamber and I have constituencies filled with military personnel and their families, and I often pick up concerns on the doorstep. I should say at this point that I am delighted to have 29 Commando back in Plymouth, safe and sound. It is right and proper to debate the issues here today.

I listened with interest to the speech made by the hon. Member for Sittingbourne and Sheppey and particularly to his reference to the British Army training unit, Suffield, based in Alberta on the Canadian prairies. It is worth noting that the reason why the British Army started to use that training site was due to the loss of El Adem and Tobruk in Libya when a certain Colonel Gaddafi came to power. The hon. Gentleman’s point about the need for bases in secure venues is absolutely right. Suffield was used briefly during world war two, and since 1972 it has been used as a British Army training base, initially on a 10-year lease. The agreement has been repeatedly renewed, which the hon. Gentleman touched on. I believe that a rolling programme of indefinite use is being offered. I note his comments and questions regarding that area. Other hon. Members also quite rightly challenged whether money was being best spent by the MOD on upgrading the premises there. I will listen with interest to the Minister’s answers to those questions.

The hon. Member for Sittingbourne and Sheppey also touched on morale and beer prices, and he raised a genuine concern about how new companies break into the MOD marketplace, to which I will come later in my speech.

My hon. Friend the Member for Barrow and Furness (John Woodcock) flagged up some potential problems, such as the need to secure the skills agenda and the loss of historic capability in Barrow, which is a lesson that we cannot forget. He also spoke about the implications of delays for contracts and cost overruns that follow.

The hon. Member for St Austell and Newquay (Stephen Gilbert), in supporting concerns about the rotation of staff in procurement, raised a challenging issue. That did not used to be the case, because officers used to be retained within certain specialties, and a number of senior and ex-members of the armed forces have spoken to me on exactly that issue in the past. I hope that the Minister will respond to that, because that area deserves consideration.

My hon. Friend the Member for Islington North (Jeremy Corbyn) asked a series of serious questions about Trident replacement and whether it is needed. He has always campaigned on that issue with a great deal of commitment. Again, I want to hear what the Minister has to say about the time scale and transparency regarding Trident.

My hon. Friend the Member for Blaenau Gwent (Nick Smith) raised the issues of contracts and transparency and of the cost of the over-specification of projects.

The hon. Member for New Forest East (Dr Lewis) is on the flip side of the coin from my hon. Friend the Member for Islington North. He described, with benefit of his long-standing interest and knowledge in defence matters, some of the problems regarding procurement and politicians’ role in muddying the waters, if I am to be gentle about what is going on in the coalition regarding Trident.

[Dr Julian Lewis]

Because there has been such candour on Government Benches about muddied waters, for the sake of clarity, will the hon. Lady take the opportunity to reaffirm her party’s firm commitment that Trident should be renewed and replaced by the successor system?

[Alison Seabeck]

The hon. Gentleman and I both stood on manifesto pledges that said exactly that. I also thank him for his kind comments in welcoming me to my new role.

I would like to look more generally to the future of defence procurement. It would be remiss of me not to thank my predecessor in this role, my hon. Friend the Member for Barnsley East (Michael Dugher), for his work alongside that of my right hon. Friend the Member for East Renfrewshire (Mr Murphy) in taking forward Labour’s review on defence procurement—not least in commissioning the report from Admiral Lord West, Bill Thomas from Hewlett Packard and Tony Roulstone from Rolls-Royce Nuclear. I thank them for their incredibly detailed and thought-provoking report, which builds on the work carried out under the previous Government by Bernard Gray, who has been brought in by this Government as the new Chief of Defence Matériel.

In response to questions last week, the Minister told me that he had read the report, although from our exchange last Monday, I think that there might be some differences in interpretation. However, I believe that we need, on the back of the report and Lord Levene’s excellent work, to look at structural reforms and at how, despite repeated attempts by successive Governments, we have failed to tackle overpriced and overrun projects. The Public Accounts Committee and the National Audit Office have clear views and some pretty sharp criticism on that. The Gray report did not mince its words either when talking about overheating in the equipment programme and the inability of the system to flesh out the real cost of equipment at an early stage.

We need to have a defence procurement policy that works with an active industrial policy—one that promotes defence exports, an area in which we in Britain excel and should continue to do so. The hon. Member for Sherwood (Mr Spencer), who is no longer in his seat, pointed that out. While value for money is clearly important, so is the quality of the product supplied to our armed forces, and British products are among the best. More than 21% of the global market in the past five years was met by British production, and we are the largest exporter to the European Union. Also, there is evidence that competition in the export market leads to an enhanced drive for innovation and improvement in those companies, from which the MOD could benefit. The make or buy proposals in the report submitted to the shadow defence team—it is good reading—deserve some further consideration. We all agree that we need a sustainable defence industrial base that can continue to deliver in the long term. Will the Minister let us have his thoughts on the proposal in the Gray report for a 10-year rolling budget, which does not seem to have found full favour with the current Government?

The hon. Member for Gosport (Caroline Dinenage) was absolutely right to say that small and medium-sized enterprises need a degree of long-term certainty when it comes to supporting programmes, particularly bigger programmes. My hon. Friend the Member for Islington North rightly mentioned the need for diversification of industry. It is all to the good if companies can diversify and find other markets, but there are a number of firms, of which I have several in my constituency, that are incredibly specialised in what they do. They provide bespoke products for defence purposes and it is difficult for them to expand, change or move on from what they do.

I welcome the Minister’s thoughts on all those issues. Will he tell us what sort of relationship he has with his colleagues in the Department for Business, Innovation and Skills and what the feelings are about the need to join up procurement policy, which is such an important element in all this?

Finally, is the Minister happy that, for future procurement policy, there is a clear enough delineation between the absolute sovereign capability and the deployment sovereign capability? Is that something that will be made clear in the expected White Paper? Given the ever-changing nature of conflict, the need for greater co-operation between nations, the drive to secure British business opportunities in this field and the economic challenges that we face, we need to ensure that Governments now and in the future have in place the best systems through which to deliver equipment that is designed to enable the front-line soldier to survive, operate and fight. We also need the best technology and back-up for our armed forces, so that they can deliver force wherever and whenever it is required. I look forward to the new White Paper, because there is a real opportunity to make a difference in this particular sphere of MOD procurement.