Shipbuilding: Warships

Lord Garel-Jones Excerpts

Wednesday 14th November 2018 Lords Chamber

[Earl Howe]

My Lords, I absolutely share the noble Baroness’s ambition for the prosperity of the UK shipbuilding sector. Future warship procurement will be restricted to UK-wide competition for reasons of national security. However, we think it right for other naval ships to be subject to open competition. This is not just because of the rules of the EU treaty. Of course, we hope that UK shipyards will be able to compete for those contracts, but they will win them only if they are internationally competitive. It is that competitiveness that will ultimately secure their prosperity, not only as suppliers in the UK context, but as potential exporters in the global marketplace.

[Lord Garel-Jones (Con)]

Will my noble friend tell the House what effect he thinks the recent announcement in the Budget of an extra £1 billion for the Ministry of Defence will have, not only on the building of complex warships in the United Kingdom, but on the wider operational activities of the Ministry of Defence?

[Earl Howe]

I am grateful to my noble friend. As the House will be aware, the Autumn Budget gave defence a further £1 billion between now and 2020, in addition to the £800 million of in-year support that we received earlier this year from the Treasury. We have not yet allocated precise sums to particular programmes, but there is no doubt that the additional funds represent a substantial boost for defence. It means that we will be able to modernise some key capability areas. Offensive cyber, anti-submarine warfare and protection of the deterrent are some good examples. Importantly, it also means that we do not have to make any cuts to the force structure or changes to our capability plans.