Summer Adjournment Debate

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Department: HM Treasury

Summer Adjournment

Margaret Ferrier Excerpts
Thursday 21st July 2016

(7 years, 9 months ago)

Commons Chamber
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Margaret Ferrier Portrait Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
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I wish to speak about a very important matter that affects many people in Scotland. It is certainly not the first time the issue has been raised in this place, but, unfortunately, in the light of the circumstances, it needs to be brought to the Government’s attention again.

Yesterday, when giving evidence to the Defence Committee on naval procurement for the Type 26 frigates, First Sea Lord and Chief of the Naval Staff, Tony Douglas, replied in response to a question on when the Type 26 design would be approved, “I can’t give you a time or a date. It could be next year.” This suggestion could in effect place the Type 26 programme on the Clyde on an indefinite delay. That would be wholly unacceptable and nothing short of a betrayal of the workers on the Clyde.

The Ministry of Defence needs to come forward and be absolutely clear, open and honest about the level of uncertainty that the Type 26 programme faces. The new Minister with responsibility for defence procurement, the Under-Secretary of State for Defence, the hon. Member for West Worcestershire (Harriett Baldwin), could give none of the assurances on the future of the contract that were promised to the Clyde shipyards. Yet again, the future of the programme has been cast into very serious doubt.

That news came less than 48 hours after the Tories trooped through the Division Lobby—accompanied, unfortunately, by many of their allies on the Labour Benches—to vote en masse for the renewal of Trident. A blank cheque has in effect been written for weapons of mass destruction. On Monday, my hon. Friend the Member for Argyll and Bute (Brendan O’Hara) asked the Defence Secretary whether the massive expense of Trident and the recent analysis by the Institute for Fiscal Studies showing that UK GDP might be reduced by up to 3.5% as a result of the Brexit vote would result in a black hole in the public finances of up to £40 billion in 2020, and what that would mean for defence procurement. The Defence Secretary could not give an answer.

Bob Stewart Portrait Bob Stewart
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Economists seem to get it consistently wrong. They got it wrong on Brexit. They cannot talk about 2020 when, as far as I can see, they cannot even get it right for next week. Their forecasts are always wrong.

Margaret Ferrier Portrait Margaret Ferrier
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It does not matter what the figure is; we are going to spend up to £205 billion on a weapon of mass destruction that could kill hundreds of thousands of people worldwide—it is based in Scotland—so I am sorry, but I do not agree with the hon. Gentleman.

The UK’s nuclear weapons programme has a major knock-on effect for the rest of the defence procurement budget. Other massive projects are in the pipeline, including the Type 26 frigates, but the ring-fencing and generous contingencies for Trident are no doubt affecting that project. The workers on the Clyde appear to be paying the price for the obsession on the Government Benches with Trident and Brexit.

I cannot stress enough how much of a betrayal this represents for those shipyard workers, their families and the communities that depend on this work. They have had assurance after assurance from the UK Government, both in this place and from the Scottish Tories, but are now suffering from the continuing uncertainty over and mismanagement of the Type 26 programme. Every penny spent on Trident is a penny less for conventional defence, including the Type 26 frigates.

GMB Scotland organiser Gary Cook admitted in April that £750 million had been removed from the Type 26 programme’s budget. On several occasions during Monday’s debate, the issue of jobs was brought up—when we voice our concern about weapons of mass destruction we are told to shut up and be grateful for the jobs. Without doubt, those jobs come at the expense of other people’s livelihoods. It seems the Government care about defence jobs only when it suits their agenda.

Leaked emails have shown that delays in the delivery of the Type 26 global combat vessels will cost the taxpayer more money than proceeding with the work would. The Type 26 frigates were due to be built by BAE Systems, with work beginning in December. The Ministry of Defence then asked for savings of £500 million over five years, refusing BAE’s Systems’ offer of saving £275 million while still beginning work on time. The delays have put jobs at risk, and the suggestion in the leaked emails that those delays will end up costing the taxpayer more money in the long term has been echoed by former First Sea Lord Admiral Lord West. The delays show the Government’s ideological obsession with making cuts, no matter the cost. By going back on the original deal and rejecting BAE Systems’ offer, the Tories have confirmed that they are prepared to put jobs at risk and waste taxpayers’ money by pursuing cuts across all sectors of Government.

Steven Paterson Portrait Steven Paterson
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The point that shines through all this is that assurances were given to workers on the Clyde in 2014. Promises were made that have been betrayed. In a week when we have committed to a 40-year programme on Trident, it really sticks in the craw that those workers are still waiting for the promises made in 2014 to be delivered.

Margaret Ferrier Portrait Margaret Ferrier
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My hon. Friend takes the words right out of my mouth. I was just about to say that Scotland has come to expect cuts and broken promises from this Government. We remember the pledges that were made just a couple of years ago. The Tory Government told us during the independence referendum that jobs in shipbuilding would be safe if Scotland voted no. If the very clear promises made to workers on the Clyde by the UK Government before the referendum were to be broken, it would be an unforgivable betrayal of that workforce, and people in Glasgow and across Scotland would not be quick to forget.

Now that I have got that out of the way, on a lighter note, I would like to take this opportunity to wish Mr Speaker, his deputies and all Members of the House of Commons a very enjoyable, relaxing and safe summer recess. I thank all the estate staff, including those at the Table Office and the House of Commons Library, the Doorkeepers, and all the people who serve us in the Tea Room and other cafeterias, including Noeleen, who I wish all the best. A special thanks must go to the Clerks and staff who look after me and other hon. Members on the Scottish Affairs Committee—I wanted to get that on the record. I will be spending my time during the recess as we all will, back in my constituency, working hard. However, we have to have a break to recharge our batteries before returning to Parliament in September. I wish everyone a happy summer.