Service Family Accommodation

Julian Lewis Excerpts

Tuesday 20th December 2022 Commons Chamber

[Alex Chalk]

On the plan, as I have been at pains to underscore, the MOD is specifically putting money into that area over and above the normal maintenance contract. That is absolutely critical. It is what the hon. Gentleman would do in his own house if he wanted to get on top on maintenance issues: if he were able to, he would invest in it to ensure that things do not go wrong in future. That is precisely what the MOD is doing by way of a plan. To put that into context, £350 million is around double what is paid annually to keep on top of the problem, so there is a plan.

On funding, lest we forget, in the spending review of 2020, a full £24 billion was released by the then Chancellor and now Prime Minister to show that this Government will always get behind funding our armed forces and ensuring that they have the resources they need to be lethal, agile, expeditionary and so on.

On confidence, at the moment, frankly we do not have confidence in Pinnacle, VIVO and Amey. I am very disappointed by the performance that has been discharged so far. The hon. Gentleman asks about DIO. I do not think I am betraying any confidence in saying that some exacting questions need to be asked about precisely how this contract was entered into. Those questions have started to be asked, and I can assure him that they will go in the direction of the evidence—I make that clear. I want to get to the bottom of who knew what and when, and how this was allowed to happen.

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

In my hon. and learned Friend the Minister’s welcome and forthright response to this urgent question, he said that consequences would follow if satisfaction was not forthcoming. Can he explain to the House what those consequences might be, and what options the Government have to discontinue the contract and, if necessary, find alternative and better providers of service accommodation?

[Alex Chalk]

In the first instance, there are clauses in the contract that allow for the MOD to recoup—or, indeed, to refuse to pay out—certain sums that would otherwise accrue under the contract. In fact, from 23 January, we will be in a position to do that. We could not do it for the first six months because there is a contractual bedding-in process, but that point has now been passed, so there is, potentially, a financial remedy. As with any contract, however, if the breach has become so severe as to become a fundamental breach, other remedies may follow. My right hon. Friend will understand precisely what I mean by that. If he will forgive me, I will not go down the road of spelling out what all those remedies might be, but I can say that all options are being considered in the normal way, as he would expect.