Oral Answers to Questions

Mark Francois Excerpts

Monday 23rd April 2018 Commons Chamber

[Mark Lancaster]

It is important that, through the Army 2020 review, we begin to bring units together because that gives greater stability. What I would say to the hon. Gentleman’s constituents is that it is not only the REME that they can join in the armed forces.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Capita’s performance on Army recruiting has been distinctly sub-optimal, such that throughout the Army it is now almost universally known by the unfortunate nickname of “Crapita.” Given the company’s half-a-billion pound loss this morning, given that it has debts of £1.7 billion, and given that it is rumoured to be preparing a £700 million rights issue, what assurance can the Minister give the House that we have a plan B in place in case it were unfortunately to go the way of CarillionAmey?

[Mark Lancaster]

May I start by thanking my right hon. Friend, not least for his report, “Filling the Ranks”? It has made a major contribution to addressing some of the issues that we have faced over recruitment, some of which are way beyond the realms of any contract with Capita and are a result of the changing dynamics of the British population. But I accept his broader point that there have been challenges within this contract. If he is asking me if I am confident that we have a business continuity plan in case things go absolutely awry, which I do not think they will, then yes.

Ministry of Defence

Mark Francois Excerpts

Monday 26th February 2018 Commons Chamber

[Sir Edward Leigh]

There is clearly a problem, one I hope the Minister will deal with later. Why does it take so long to recruit? Are we putting off potential recruits with our very slow processes?

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Just before my hon. Friend moves on from the issue of recruitment, does he agree that the performance of the Capita recruitment partnering project contract has been distinctly sub-optimal, and that if this continues for very much longer the Ministry of Defence would be wise to seek an alternative?

[Sir Edward Leigh]

My right hon. Friend is of course a former Minister for the Armed Forces and really does know what he is talking about. The Government should listen to him.

There is a problem with morale. Those who perceive service morale as low increased by 12% on the previous year in the Army and 15% in the Royal Marines in 2017. The overwhelming majority, 74%, feel proud to serve—we are proud of them for feeling proud to serve—but only a third feel valued by their service. What is the point of training men and women if we fail to keep them?

--- Later in debate ---

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

It is a pleasure to follow the hon. Member for Bridgend (Mrs Moon). As a former Defence Minister, I too can attest to being on the receiving end of a rolling barrage of parliamentary questions. This points to her great assiduity when it comes to defence matters, which she has demonstrated again in her speech this afternoon. I am glad to have been called to speak on the Defence estimates, which, for reasons I will explain, include an important change in the Government’s defence policy. I therefore believe that the estimates need to be increased. In giving important evidence to the Defence Committee last week, the new Secretary of State for Defence argued that “state on state” threats were now the primary threat to the security of the United Kingdom. This is an important shift in the Government’s position, and it has the logical knock-on effect that defence expenditure should now be increased to meet these new circumstances and the far more serious challenge that they represent.

It is important to put this change into historical context. I shall begin by going back to the 1980s, when the Berlin wall was still standing and the cold war was at its height. Britain, then as now, was a key member of NATO, and we spent about 5% of our GDP on defence, principally to deter the Soviet Union and the other Warsaw pact countries. As the Chairman of the Defence Committee, my right hon. Friend the Member for New Forest East (Dr Lewis), has pointed out in the House before, in the 1990s after the wall had come down, we, like other countries, took a peace dividend. This reduced our defence spending to between 3% and 3.5% of our GDP.

As we entered the new millennium, the horrific events of 9/11 led to massive shifts in strategy. The United Kingdom became involved in expeditionary conflicts in Iraq and Afghanistan, where our forces became increasingly optimised to fight wars with a counter-insurgency element, at reach, against technologically inferior but nevertheless very determined enemies. As a result, and with the MOD already under considerable financial pressure, we optimised our force mix accordingly while deprioritising areas such as anti-submarine warfare and air defence to the point where, today, we have only 19 frigates and destroyers and have seen a major reduction in fast jet squadrons. As the process continued, by the time of the 2010 strategic defence and security review and the accompanying national security strategy, it became the Government’s policy that there was no existential threat to the security of the United Kingdom. With echoes of the 10-year rule of the 1930s, state-based threats to our security were effectively seen as no longer relevant. However, the events of the past few years have shown those assumptions to be highly erroneous.

The activities of a resurgent Russia in annexing Crimea and effectively invading parts of Ukraine have shown a Russian willingness to use military force on the European landmass in order to achieve its political objectives. We have also seen heavy Russian involvement in Syria, which the House was discussing a little over two hours ago, and massively increased Russian submarine activity in the North sea, the north Atlantic and the GIUK gap. Russia has also exerted pressure on the Baltic states, which are now members of NATO and covered by the article 5 guarantee. All of that is occurring at a time when we have reduced our defence expenditure further to where it sits today: barely 2% of our GDP.

[Mrs Moon]

I wonder whether the right hon. Gentleman is going to address our undersea cables and the risks posed by Russian submarines in particular. I was recently at a meeting at which Defence Ministers from several states expressed grave concerns about the number of Russian submarines that they were seeing off their coasts and alarm at those submarines seeking the undersea cables that come ashore in their countries. Is the right hon. Gentleman aware of that issue?

[Mr Francois]

I am sure that the Minister may want to say something about that when he replies, but he will be constrained, because it is difficult to discuss the exact details of such matters in an open forum. However, when I served in the Ministry, I was certainly aware of a potential threat to those undersea cables, and everything that I have understood since then leads me to believe that that threat has increased, not decreased, so the hon. Lady makes an important point. The Chief of the General Staff, General Sir Nick Carter, sounded a timely warning in his recent very good speech to the Royal United Services Institute about growing Russian military capability and areas where we need to bolster our own Army in response.

In the United States, the recently published defence strategy, authored by Secretary Mattis, has declared that state-on-state competition, particularly with Russia and China, is now viewed as the primary threat to the security of the United States and its allies. That important change in policy was then echoed to some degree by our Secretary of State for Defence in his evidence to the Defence Committee only last Wednesday, and it is really important that the House appreciates what he said. During the sitting, he explained that the threat to the United Kingdom from other states, such as Russia and North Korea, is now greater than the threated posed by terrorism, telling the Committee:

“We would highlight state-based threats… as the top priority”.

He went on to say that state-based threats have

“grown immeasurably over the past few years.”

When I put it to the Secretary of State at that hearing that what he was announcing—the primacy of state-based threats to our security—was a massive change in focus and that it would have a knock-on effect on how Britain’s military was structured and its readiness for war, he replied unequivocally, “Yes it does.”

That means that the defence review that is currently under way—the modernising defence programme—is now taking place against a significantly revised strategic background, in which deterring military threats from other states such as Russia, North Korea and, to a lesser extent, China is now to become the primary focus of this country’s defence policy. This new context brings with it certain important implications.

First, we absolutely must retain our independent strategic nuclear deterrent as the ultimate guarantee of our national security. All three states I just mentioned are nuclear armed, and it is important that we retain our deterrent to deter any nuclear threat against us.

Secondly, if we are to deter state-on-state threats, clearly we must bolster our conventional defences. Joseph Stalin is reputed to have said, “Quantity has a quality all of its own.” We can no longer rely on advances in technological capability always to give us the edge in any future war. We also need to make sure we have sufficient mass—the number of platforms—to deter our potential enemies. That means, for instance, rebuilding our air defences and bolstering our anti-submarine warfare capabilities to help to protect the sea lines of communication across the Atlantic, which will be vital in any conflagration on the European mainland.

[Robert Courts (Witney) (Con)]

My right hon. Friend is making a powerful speech, and I am interested in his comments on rebuilding our air defences. Is he as encouraged as I am by the announcement last week of the combat air strategy? Does he also agree that, given the enormous cost of modern aviation programmes, we will have to look at doing one of two things? We will either have to take a very serious strategic look at what kind of aviation military capacity we want and then to plan accordingly or, if we want full-spectrum military capability, it will ultimately mean more money.

[Mr Francois]

I agree with my hon. Friend. He is right that the Secretary of State for Defence announced the new combat air strategy at the Committee, but what he announced on state-on-state threats was even more important. If we now have to deter Russian aviation capability as a state-on-state threat, it will be extremely expensive but, as my hon. Friend the Member for Gainsborough (Sir Edward Leigh) wisely reminded the House in his excellent introduction to this debate, the first duty of Government, above all others, is the defence of the realm. Our whole history as a nation reminds us that we forget that at our peril.

Thirdly, we must seriously consider how we could reconstitute forces in a national emergency. We must accumulate war reserves in order to show that we have the ability to sustain a fight if we were ever to get into one. As just one example, the Committee took evidence from BAE Systems executives a few months ago. When we asked how long it would take to build a Typhoon from scratch, we were told it would take four years or, if they attempted to accelerate the process, perhaps three years at best.

Those long lead times for manufacturing sophisticated modern military equipment mean that, in reality, we would likely have to fight a so-called “come as you are” war, which involves using equipment that is either immediately available or that can be reintroduced into service at short notice. It follows from this that we should now adopt a practice of mothballing highly expensive and complex equipment when it goes out of service—rather than disposing of it all, often for a pittance—so we have the ability to reconstitute at least some mass, should that be required if the skies were ever to darken again.

Fourthly, in light of the new strategic situation of state-on-state threats, spending 2% of our GDP on defence is simply not sufficient. We helped to deter Russia during the cold war by spending 5% of GDP on defence. If we now have to deter Russia again, we will simply not be able to do so by spending only 2% of GDP on defence —our allies also need to make a greater contribution. If we are to maintain an independent nuclear deterrent, bolster our conventional forces and build up our war reserves, we obviously need to spend something much nearer to 3% than 2% on defence. If we will the ends, we must also will the means.

Finally, I went to the cinema recently to watch Gary Oldman’s wonderful portrayal of Winston Churchill in “Darkest Hour”—he got the BAFTA and I very much hope he gets the Oscar, too. That film brought home graphically what happened to our nation after the policy of appeasement in the 1930s and our having run down our armed forces to the point where they were unable to deter war. I humbly suggest that my friends the “pinstripe warriors” of the Treasury, as I call them, should be taken en masse to watch that film as part of their continued professional development, in the hope that that might yet bolster our overall determination as a nation to defend ourselves.

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[Mr Jones]

It is. As an example, we have to look only at the sale of Airbus in the United States market. As part of that deal, it had to build a plant in Alabama, I think. We have the mindset in this country that somehow the ticket price looks cheap, but we are not thinking about the loss in tax revenue going back to the Exchequer and the fact that the defence industrial base is suffering.

Some decisions in 2015 were very strange. The Navy has been mentioned, and I accept that naval platforms are far more capable than they were 10 or 20—and certainly 50—years ago, but people are fixated on the number of hulls. The Government came up with the novel idea of having a cheap alternative through the Type 31e. This was literally just to deal with the idea that we have a certain number of hulls. I asked what the Type 31e is capable of doing. It cannot do NATO tasks and it is not clear what weaponry will go on it. Lo and behold, when I looked at the Ministry of Defence budget, I saw that there was no budget line for it at all—it has a £1.3 billion price tag on it—so again, how will it be paid for?

The Secretary of State needs to look not just at asking for more money, which the budget clearly needs, but at some of the ill-thought-out decisions. Take the P-8, for example. Buying off the shelf from the United States might look like a simple solution, but as I understand it, sonar buoys and missiles cannot be fired from the P-8 as it is configured, so we will have to redevelop the programme, adding more costs in. This is about looking at whether we have to revisit some decisions and take things out of the budget. I think that will be the case if we are to fit the budgets,

The issue of numbers is always contentious. When we were in government, I remember the hue and cry from the Conservative Front-Bench team—the right hon. Member for New Forest East was part of it—when we froze training days for the Territorial Army. The cost was £20 million. From looking at the headlines and at the way some Conservative politicians were going on, one would have thought that the world had stopped. If a Labour Government had slashed the defence budget by 16% and sacked people or made them redundant, as this Government have, they clearly would have been condemned.

It is the same old story. I understand the point that the right hon. Member for New Forest East made about arguing for defence—I have argued consistently for it in this House—but these are political decisions. When I was in the Ministry of Defence in 2010, I did not hear Conservative politicians stand up and say, “No, we do not need extra expenditure.” We were being condemned because we were not spending enough. In 2010, I did not see a single poster or anything in the Conservative manifesto saying, “We are going to slash the defence budget by 16%,” but these are the real facts and we cannot ignore them.

Let me turn to recruitment, which my hon. Friend the Member for Bridgend touched upon. I do not like to say, “I told you so,” but the decision on the Capita contract for recruitment was criticised at the time. My hon. Friend the Member for Gedling raised complaints, asking why armed forces personnel were being taken out of recruitment centres and why such centres were being closed in some areas. The position we find ourselves in now was bound to happen. We have heard some of the stories. The recruitment process is not only taking a year, but given the rate at which people are being failed, it is no wonder the Government are not meeting the targets. It is now time to revisit the contract and put uniformed personnel back into recruitment centres. The Capita contract should be scrapped, because it is completely failing to deliver what was outlined.

My hon. Friend the Member for Bridgend talked eloquently about reservists. It is time to rethink Army 2020. It was never going to work. It was political cover so that when the Government were cutting the Army to 82,000, they could still give the impression that they had an Army of more than 100,000. The issues my hon. Friend raised are not the only concern. I have never had an answer to the question about how we get formed units. How do we get training whereby regulars and reserves can train side by side to go on operations? I have not seen any evidence that that is happening in practice. If, in addition, it is costing what my hon. Friend says it is, it might be time to revisit it and see whether those resources can be put elsewhere. Let us come back to the suggestion that Ministers were asking advice from the Army about this. They were not; it was a political decision imposed on the Army.

[Mr Francois]

Before the hon. Gentleman moves on from recruitment, may I ask whether he accepts that the other main problem with Army recruitment is the very large number of people who are being failed on medical grounds, often for very minor medical ailments that date back to their childhood? For instance, in the year to February 2017, some 10,600 people—both regular and reserves—who wanted to join the Army were told, “No, you cannot join on medical grounds.” At the same time, the regular Army was 3,000 recruits short. Does he believe that the MOD should look at that area again?

[Mr Jones]

That situation was predictable when the system was set up. What is worse, I have heard stories about young people who have nearly got to the end of the selection process but do not get called back in, but then get a telephone call from some Capita call centre saying, “I’m sorry, you’ve failed. That is it.” I am sorry, but that is not the way to treat people who have tried to join the armed forces.

The right hon. Member for Rayleigh and Wickford (Mr Francois) makes a good point. When we had senior non-commissioned officers stationed in recruitment offices, they could work out how to handle the recruits and use their breadth of experience to explain what life in the armed forces is like. This situation could have been avoided. Unless something has changed radically in the last few years with injuries, I agree with the right hon. Gentleman. I had case in which someone had a childhood knee injury. That person had to wait six months for a decision and then the knee injury was flagged up as the reason why he could not join the armed forces. That cannot be acceptable.

[Mr Jones]

My hon. Friend raises a very good case from personal experience. This needs to be looked at. I would scrap the contract and take it back in house. The old system perhaps needed tweaking, but it was delivering.

[Mr Francois]

I am sorry to hammer the nail, but this is very important, and we have the Secretary of State on the Front Bench at the moment to hear this. Is the hon. Gentleman aware that in some cases, people have been failed and prevented from joining the Army for relatively minor issues such as asthma? Paula Radcliffe and Sir Chris Hoy would have failed on the same grounds.

[Mr Jones]

That prompts the question, “How are the tests being done, what criteria are being used and how are they being interpreted?” The problem is partly that if we have a civilianised and, as it has been described to me, bureaucratic, tick-box process, common sense does not kick in, and perhaps common sense is what we need as well.

The problem is that we need to look at the size of our armed forces from a strategic point of view. What do we actually need? A decision was taken suddenly that the answer was 82,000—the Army was told that that is what it would get because the budget required it—but we need to look at the strategic needs of our armed forces. Members of the Royal Navy are under severe pressure in terms of deployment. With smaller numbers, there is a bigger turnover of individuals. In addition, people are doing constant back-to-back tours, which is not good for morale or family life. If that is happening, the chances of people staying long term will clearly be affected.

We need to look at our Navy. The idea that we have a Navy that cannot deploy and that we have ships that are laid up—my hon. Friend the Member for Gedling said that we are not deploying ships—is a damning indictment. The sight this week of HMS Mersey, an offshore patrol vessel, escorting three Russian vessels through the English channel summed it up in one. We need to think seriously about what we need. The hon. Member for Gainsborough said that we are a maritime nation, and that it is about not just kit, but people.

British Armed Forces: Size and Strength

Mark Francois Excerpts

Wednesday 24th January 2018 Westminster Hall

[Leo Docherty]

I am sympathetic to the hon. Lady’s point, and I know the Minister is particularly well positioned to respond to it. The other difficulty with SDSR 2015 was the depreciation of sterling and the ongoing fluctuation of Trident within the MOD budget, which have caused considerable problems. Taken in the round, that means that the MOD budget has a black hole of £2 billion or thereabouts. That is why we are here today. That black hole has been driving the discussion about possible cuts. I would like to lay it clearly on record that I think all of us in the Chamber agree that any form of capability cuts is an entirely untenable prospect that we should resist.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

I congratulate my hon. Friend on securing this important debate at this critical time. On resources, does he agree that given the recent stark warning from the Chief of the General Staff on a resurgent Russia, we in this House have a role in deterrence, and that includes deterring the pinstripe warriors of the Treasury from leaving us without sufficient resources to fund our defence adequately?

[Leo Docherty]

I entirely agree with my right hon. Friend. It is our duty to make it clear to the Treasury that there is a large cohort of Members of Parliament who are absolutely determined to ensure that the Ministry of Defence has a sound financial settlement and is properly resourced.

Oral Answers to Questions

Mark Francois Excerpts

Monday 15th January 2018 Commons Chamber

[Mr Ellwood]

I do not quite recognise those figures. We have worked with the families federations to establish exactly what the armed forces want, and they want choice, particularly the youngsters who come in. Some will want to continue living on the garrison, but others will want to get on the housing ladder, and we need to help them; that is what we need to do for our armed forces.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

The most pressing worry of service personnel tonight in terms of the future of their accommodation will be that the parent company of the company that provides the maintenance of their quarters has just gone bust. Given the great importance of its service to service personnel, particularly in the middle of winter, may I press the Minister further and ask what plan B has the Defence Infrastructure Organisation come up with to make sure that maintenance will continue for service personnel throughout the winter?

[Mr Ellwood]

My right hon. Friend is right to raise this important question. There will be questions about the future of Carillion, and I understand that a statement on the matter will follow Defence questions. From the Defence perspective, we should recognise that a plan B was inherent in all the contracts. These are joint ventures, and if one of the companies steps back, there is an obligation on the other company to move forward and fill the space. We have been working on this for some time, and we have been prepared for this moment.

National Security Capability Review

Mark Francois Excerpts

Monday 15th January 2018 Commons Chamber

[Gavin Williamson]

I think that all Government Members recognise the importance of making sure that we maintain conventional forces, and the fact that we have to have a continuous at-sea nuclear deterrent; but we cannot have one and not the other. We have to ensure that we have that ability so that, if we are in a point of conflict, there is deterrence at so very many levels. That is why having robust armed forces—the Army, Navy and Air Force—is so incredibly vital.

The Government and the Conservative party made a clear commitment in our manifesto to maintaining numbers. We are working to ensure that we get the recruitment methods right, so that we can give many people right across the country the opportunity to be able to join the Army, Navy and Air Force. I have to say that if we are choosing between parties when it comes to who will prioritise defence, and who will ensure that our armed forces and this country’s national interests are protected, I know which party I would choose, and it sits on this side of the House.

I will continue to work with the Army, Navy and Air Force to ensure that we get the very best deal for our armed forces. We have a vision as to what we wish to deliver for this country: a robust, global Britain that can project its power right across the globe. We recognise that that is done not just through cyber-offensive capabilities, but the conventional armed forces. As I said earlier, as the national security capability review starts to conclude, I will update the House on the conclusions and how it will be developed.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

There has been speculation over the weekend that the defence element of the NSCR is going to be effectively broken out, and dealt with separately slightly later. Given the immense amount of speculation, will the Secretary of State confirm whether this is true? Is he also aware that if he continues stoutly to fend off the pin-striped warriors of the Treasury, he will have very strong support on the Government Benches and, I suspect, even among the Opposition.

Defence

Mark Francois Excerpts

Thursday 11th January 2018 Commons Chamber

[Dr Lewis]

That is absolutely right. It is a measure of how far downwards our expectations were managed during the reductions in percentage GDP spent on defence under the Blair Government and the Cameron coalition Government, that it was regarded as a cause for triumph and congratulation when it was finally confirmed that we would not be dropping expenditure below 2%. The matter had never been questioned at all prior to that period.

[Mr Francois]

I thank my right hon. Friend for giving way, and it is a pleasure to serve under his stout chairmanship of the Defence Committee—[Interruption.] I mean stout in personality terms.

In some ways, the situation is even more challenging than the one my right hon. Friend lays out. He has rightly given the figures in terms of GDP, but in recent years—as we heard in testimony from the permanent under-secretary—in almost every strategic defence and security review and comprehensive spending review, the MOD has had to sign up to additional sets of efficiency savings, now totalling some £30 billion over time. Not only does the MOD have a constricted budget, it has had to find those efficiency savings as well, which makes the situation even more challenging.

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[Mr Mark Francois (Rayleigh and Wickford) (Con)]

It is a pleasure to follow the hon. Member for Bridgend (Mrs Moon), who always speaks knowledgeably on defence matters, and I congratulate the hon. Member for Gedling (Vernon Coaker) on securing this important debate and, if I may say so, on introducing it so ably this afternoon. I want to focus on the national security capabilities review—the NSCR—and, in particular, its potential effect on the greatest asset we possess in defence: our people. There is already considerable anxiety in the armed forces about where the review may lead, and it is important to understand the serious damage that could be done to defence if those fears are not addressed.

Unfortunately, we are starting from a position in which the armed forces are already being subjected to a hollowing out. In May 2017, the total strength of the regular armed forces was 138,350, which is some 5% below their establishment strength, as the hon. Member for Gedling intimated—although shortages are far worse in highly specialised pinch-point trades, such as qualified engineers. In the year to April 2017, 12,950 people joined the UK regular armed forces, but 14,970 left over the same period—a net deficit of over 2,000 personnel. At present, trained and experienced personnel are leaving the armed forces faster than the recruiting organisations, which are already running to stand still, as it were, are able to make up for those who are departing. In particular, the Regular Army is currently around 30% below its annual recruitment target, managing only around 7,000 new recruits of the 10,000 required last year.

Moreover, as is borne out in the most recent armed forces continuous attitude survey—AFCAS—published in May 2017, there are also issues of morale, which is not as high across the armed forces as we would like it to be. Pressure of service life on families is still given as the greatest reason for leaving. As people leave, that only increases pressure on those who remain. There has also been a particular drop-off of morale reported in the Royal Marines. That is disappointing, but it may well be linked to some of the speculation about the future of our amphibious shipping and potential reductions in the size of the Royal Marines as a whole. I hope that that speculation does not become a reality.

If we are honest, we are dealing with a somewhat fragile situation, even before the outcome of the NSCR is known. There is clearly much staff work being undertaken, both within the Ministry of Defence and the Cabinet Office, in relation to this review, but I was particularly alarmed when one national newspaper, The Sun, reported some weeks ago that the Treasury was arguing at one stage for a reduction in the size of the Regular Army from its established strength of 82,500 down to as low as 50,000. If carried to fruition, that ludicrous proposal would involve making redundant well over a third of the serving Regular Army and would constitute perhaps the greatest blow the British Army has ever suffered in peacetime.

At a time when we face a resurgent Russia, which has carried out the annexation of Crimea, still has further territorial ambitions in Ukraine and is placing pressure on the Baltic states, reducing the Army would send entirely the wrong signals to the Russians about our commitments to NATO and our willingness to uphold the territorial integrity of our allies. It would be sheer folly. I only hope that the pin-striped warriors in the Treasury, who live in daily fear that their air-conditioning might malfunction or that the tea-trolley might be late, have since abandoned such a daft suggestion as there is no way that I and, as my hon. Friend the Member for North Wiltshire (James Gray) intimated, many of my colleagues on the Government Benches could possibly support a reduction of that magnitude in regular manpower. It is simply unthinkable.

Following on from the 2010 strategic defence and security review, I was the Minister responsible for implementing tranches 3 and 4 of the Army redundancy programme. It was an extremely difficult process that had a detrimental effect on morale and retention, as well as on recruitment. I very much hope that we will not have to announce any further rounds of redundancy in the Army, because that would threaten to make the situation I described earlier even worse.

Many service personnel are watching this review very closely, and if it is seen to lead to a further reduction in our conventional capabilities or in the strength of our armed forces, many will react by simply voting with their feet and opting to leave what they might perceive to be a constantly shrinking enterprise. To be clear, I am not suggesting there would be a sudden rush for the exits, but, more likely, there would be a steady increase in the drumbeat of people requesting to leave, above and beyond the ability of the recruiting organisation to replace them. In short, more and more people would go and the hollowing out would become worse and, in some particularly sensitive areas of which the Minister will be well aware, critical.

Senior Ministers who will take the final decisions on the NSCR need to understand the stark reality of our admirable personnel and what may ultimately influence them to stick or twist and change their career. Those personnel do not want sympathy, but they want and deserve our respect. They deserve our empathy, too.

Ultimately, as the hon. Member for Bridgend intimated, we can buy as much shiny new kit as we like, but it is of no use to us, and will not provide the deterrent effect we would wish, unless we have people available and sufficiently trained to operate it in a hostile environment. Too often in defence, we talk about capability in terms of equipment, whether it be new Ajax fighting vehicles for the Army, Type 45 destroyers for the Navy, or F-35s for the Fleet Air Arm and Royal Air Force. However, without the required blend of man and machine, or increasingly woman and machine, we have no capability at all. We forget that at our peril.

The truth is that over the past few decades, under Governments of both colours, our service personnel and, indeed, the country have witnessed a continuing retrenchment in our capabilities and in the numbers serving in uniform. Together with our nuclear deterrent, as the Chair of the Select Committee said, our service personnel are our national insurance policy—they are the defenders of our freedom and of our way of life—and we are now at real risk of skimping on the premium.

As a former Defence Minister, I can only offer the House my earnest and heartfelt advice that we must not take our armed forces personnel and their families for granted. Our history as a nation shows that when we failed to keep up the insurance policy, as we did when we allowed our armed forces to seriously degrade in the early to mid-1930s, the ultimate result, a world war in which some 50 million people died, was utterly catastrophic.

We in this House, we who were sent here by our citizens and whose responsibility it is to protect them, are the guardians of that national insurance policy. On that basis, we have to say to our Government that the time for cuts is over. It is time for our cover to be increased.

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[Ruth Smeeth]

You’ll make me blush.

[Mr Francois]

And that’s not easy!

[Ruth Smeeth]

Not too easy. I thank the hon. Member for North Wiltshire (James Gray) very much. One important thing, demonstrated here today, is that the armed forces parliamentary scheme and the all-party parliamentary group on the armed forces inform all of us and ensure that the standard of debate in the House is as high as it can be.

I return to our amphibious capability. The proposals to cut our amphibious capability in the shape of HMS Albion and HMS Bulwark could cause tremendous harm to the adaptability and deployment options of our armed forces. Simply put, they would cut our options at a time when we need as many as possible, not fewer.

We will not adapt to this new world by running down our existing capabilities or by undermining the very people who are putting themselves in harm’s way in our defence; let us remember why they are there. But I fear that that is exactly what we are doing. It is no secret that the MOD currently faces a £20 billion black hole and the risk of further cuts. I sincerely hope that the new Secretary of State has made representations to the Treasury demanding more money from the pen pushers who worry about their air conditioning—my favourite quote of the day.

It is my very real fear that if we continue down the path that the Government have set, we may find ourselves ill-equipped to deal with what the future holds. We also need to recognise that Britain’s security does not just depend on our service personnel, vital though they are; we also need new and advanced technology platforms for them to use. A vital aspect of that is buying British, so that we can retain domestic skills to design, develop and produce cutting-edge defence technology.

In a post-Brexit world, that is more important than ever. That is why I began this year with a visit to the BAE Systems site in Brough to meet the team behind the Hawk. That was not just a chance to see some of the incredible engineering technology that goes into these aircraft; it was an opportunity to speak with the wider defence family—that is who they are: the engineers, technicians and manufacturers—who make kit knowing that their neighbours and children may well end up using it to keep them safe. They support both our own military and those of our allies, and we need to recognise that. Unfortunately, many of them are currently under threat of redundancy, owing to a lack of orders. The reality is that the MOD needs to step up and ensure that that industry has a steady drumbeat of orders, so that it can invest in their workforce and emergent technologies.

Fundamentally, however, my real concern today is that the Government are focused only on the cost envelope—trying to fill the black hole in the budget rather than investing properly in our future and what we need to keep us safe.

--- Later in debate ---

[Andrew Bowie]

Yes, I could not agree more with my hon. Friend. As I have said, we cannot underestimate the effect on the morale of people serving on bases such as Condor when every so often—every other month, it seems—we read in newspapers of ill-judged speculation about the future of bases by, in this case, Scottish Government Ministers. We cannot underestimate the effect that has on them, their families and the communities those bases serve.

[Mr Francois]

My hon. Friend mentioned accommodation a couple of minutes ago. Will he accept from me that the repairs and maintenance service provided by CarillionAmey is woeful and that many service personnel from across all three services are very upset about it? We need to honour our people and do better. Does he agree that the Minister, who I believe has sympathy with this point, should be encouraged to hold CarillionAmey more firmly to account?

[Andrew Bowie]

I could not agree more with my right hon. Friend. In fact, one thing that gets brought up time and again when I speak to friends still serving in the armed forces is the state of accommodation and the support they have received from that company. It would be very nice to see it held more firmly to account by the Ministry of Defence.

Since I came to the House, we have too often heard questions raised about whether the UK can afford to maintain its independent amphibious capability, seen key elements of Royal Marine training cut and even questioned the overall number of our Royal Marines. Over Christmas, we read about the selling of HMS Ocean for £85 million, barely two years after a £65 million refit, which would leave this country without a functioning helicopter carrier capability until the Queen Elizabeth comes into service in 2020.

Even more worrying, however, and something that has not been touched on in this debate yet, is the current level of troops medically fit to deploy today. The British Army today has an official full-time trained strength of 78,407, which is already below the target of 82,000. In answer to a written question of mine in November, however, it transpired that the number of medically unavailable troops stands at 18,000, meaning that the fit and trained strength of the Army is 60,500—just over 60,000 soldiers fit and able to deploy today. In the Navy, that figure is 24,893 out of 29,000. In the RAF, it is 25,000 out of 30,000. That means that as we debate this today the immediately deployable strength of our full-time armed forces sits at 111,026. To put that into context, it is three times less than the number of people employed in Britain by Tesco.

On Tuesday, in Foreign Office questions, I asked the Foreign Secretary about our pausing reluctance to intervene in Syria in 2013, which I believe prolonged the conflict and led to thousands more deaths. Whether someone was for or against intervention in 2013—I know that there are strongly held views on that, and I respect that—the fact is that we had that choice. We had, and still have, the ability to choose whether to intervene because of the size and capabilities of our armed forces. There is a genuine concern today, however, at the heart of the defence and diplomatic community and among our closest allies that in the not-too-distant future our ability to intervene for good, as we did in Kosovo and Sierra Leone, or to support our partners across eastern Europe, could disappear, and with it our standing on the world stage would be diminished, especially if we lose our amphibious capability or cut the number of troops even further.

I know that the Government support the armed forces. Ministers in the MOD are fighting daily battles to secure the budget and numbers, and the record on increased spending and procurement and the improvements in accommodation are a testament to this. Difficult questions must be asked, however, about recruitment and retention, about the size of our defence budget—is 2% of GDP enough? I do not think it is—and about whether the cost of funding our continuous at-sea deterrence should be met from an already-squeezed defence budget, or whether, as some believe, given that it is a continuing operation, it should come directly from the Treasury, as it did until 2010.

These are big and difficult questions, but they must be asked and answered, for we must maintain the trust of our armed forces and our allies. If we are serious—and I know we are—about being a truly global Britain, we must maintain our position on the world stage, leading the world in investment in and commitment to our responsibilities at home and abroad, and we must never lose the ability to intervene with moral purpose in defending the values that we cherish around the world when we choose to do so. Only when these questions are answered—and I know they will be by this Government—can we truly move forward with confidence that in this country we will continue to have the finest, most adaptable and best equipped armed forces in the world—armed forces that, as the hon. Member for Gedling said, we can all be truly proud of.

--- Later in debate ---

[Stewart Malcolm McDonald]

They will benefit from many elements of the social contract. Of course, they already receive some of these benefits as members of the armed forces anyway.

I turn to the issue of housing. I was amazed to hear what the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) said. Actually, I should have singled him out because he gave a thoughtful speech. Military housing that I have seen is the kind of stuff that you would not put a dangerous dog into. It is one area where the right hon. Member for Rayleigh and Wickford (Mr Francois)—who is not in his place, unfortunately—sees that the Government really need to put some work in.

On recruitment, as my hon. Friend the Member for Glasgow North West said, we need an urgent alternative to the Capita recruitment contract, which rakes in about £44 million per year over 10 years. It was the right hon. Member for Rayleigh and Wickford who suggested, in his marvellous report last year, that an alternative way needed to be found to fill the ranks. On terms and conditions, let us get our house in order. The right hon. Gentleman has now rejoined us.

I say to Labour Members, in the genuine hope that we can work together on this, that we should get an armed forces trade union Bill before the House. Let us give the armed forces the dignity and decency they deserve as workers in uniform so that they are in a better position to bargain for better terms and conditions for themselves and their families. I am very pleased not only that that was in the SNP manifesto, but that my party is currently undertaking some policy work—led by our armed forces and veterans spokesperson, my hon. Friend the Member for Glasgow North West—on how we can improve the terms and conditions offered to the armed forces.

[Mr Francois]

The hon. Gentleman has mentioned accommodation. I do not know whether he is aware that Carillion, the parent company of CarillionAmey, is in an extremely difficult financial situation at the moment. It is actually in discussions with its creditors about whether the company will be allowed to continue. Under those circumstances, does he agree that it is extremely important for the Ministry of Defence to have a plan B, so that if the worst were to happen to the corporate entity, its personnel can still receive a housing service?

[Stewart Malcolm McDonald]

I am very grateful to the right hon. Gentleman for his intervention because he is absolutely right. My preferred option would be to bring this back in house. I do not know whether he would go that far, but his central point is right that the MOD needs a plan B. I have been watching with interest the news on Carillion, which made the papers just this morning, and this is a really critical time for it.

I want to talk about capability, and I will do so briefly. We are running slightly ahead of time, but I wish to hear what the Minister has to say. Following the 2015 SDSR, there is a new mini-review, led by Sir Mark Sedwill, as several right hon. and hon. Members have mentioned. The review is looking at both security and defence aspects. My fear, which other Members have adumbrated, is that it is about what the Government can get away with spending, as opposed to what they need to spend given the threats they face.

As the hon. Member for Gedling said in his speech, we learned from a report in the Financial Times at the weekend that the review will now be split. Many of the Members who regularly attend defence debates will recall that the report was supposed to be published, and presumably a ministerial statement would have been made, early in the new year. I would have been charitable and extended that right up to the end of March. We now learn, however, that the defence aspects will be kicked later into the year. I would be grateful to the Minister if he told us in his summing up whether that is the case. The cynic in me does wonder—I am not normally one for being cynical—if this is about getting beyond the local elections in May. I sincerely hope not, because that kind of politics is not on.

--- Later in debate ---

[Mr Ellwood]

I welcome the hon. Gentleman to the debate, and it is a pleasure to join him in paying tribute to RAF Odiham and all the RAF bases and the work the RAF does; this is going to be a fantastic year for the RAF. I encourage all Members to talk to their local authorities and ask what they might be doing to mark Armed Forces Day on 30 June this year. This is a great opportunity for us to make sure the nation and our local communities can celebrate what our armed forces do.

[Mr Francois]

I thank my right hon. and gallant Friend for giving way, and, like many others in this House, I am delighted that he remains in his place. I read his cogent article in The Sunday Telegraph about the many roles our armed forces perform, including in maintaining the economic wellbeing of our nation, not least as 90% of our trade comes by sea. Will he say something about the importance of that before he moves on to talk about equipment?

[Mr Ellwood]

I would be happy to do that. We perhaps take for granted how open our economy is, and how we require the freedom of the seas to ensure that we can trade and attract business here. There is now an entwined link between security and our economy, and we forget that at our peril. My right hon. Friend reminds us of this powerful point.

My hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) went through a comprehensive list of our equipment. I feel that he must have copied my list! I will simply underline the fact that we have some amazing bits of equipment coming through as a result of our pledge to spend £178 billion. The aircraft carriers have been mentioned, as has the F-35B, of which 14 have now been delivered. We have heard about the Type 26, and we have had a good debate about the Type 31. We have also heard about the River class, and the Dreadnought programme is coming on line as well. In the Army, we have the Ajax armoured fighting vehicles; these were Scimitars and Samsons in old language, if my hon. Friend remembers them. In the RAF, we have the upgrade of the Typhoon, and the F-35 fifth-generation fighter is joining our armed forces as well.

Much of this debate has focused on expenditure. As has been mentioned a number of times, the Defence budget is £36 billion this year. We hold the fifth largest Defence budget in the world. The Government have made a commitment to increase this by 0.5% above inflation every year of this Parliament, so it will be almost £40 billion by 2021. The Secretary of State has expressed the view strongly in public that the capability review is a priority for the Ministry of Defence, and he will shortly outline in more detail the process of how we will move forward. The capability review was brought about because things had changed since the SDSR in 2015. We have had terrorist attacks on the mainland, and cyber-attacks, including on this very building. We have also seen resurgent nations not following international norms. It was rightly decided that this necessitated a review, to renew and reinforce our commitment to the UK’s position as a force for peace, stability and prosperity across the world.

Oral Answers to Questions

Mark Francois Excerpts

Monday 27th November 2017 Commons Chamber

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

I, too, welcome the Secretary of State to his new role and wish him all the best for the future, whatever challenges may now await him. I reiterate the point made by my hon. Friend the Member for North Wiltshire (James Gray), and echoed by the Secretary of State, that the defence of the realm is the first duty of Government, above all others. Does he agree that our history as a nation teaches us that lesson again and again?

[Gavin Williamson]

My right hon. Friend always speaks with a high degree of common sense and truth. I pay tribute to him for the work he has done for the Ministry of Defence. I agree with his assessment, because ultimately a Government will be judged on how they defend the nation.

--- Later in debate ---

[Gavin Williamson]

I have already had the privilege of visiting Scotland, and I will be certain to visit Rosyth in the future. I am incredibly grateful for the amazing work that has been done on the construction of HMS Queen Elizabeth and HMS Prince of Wales, and we look forward to working with all our industrial partners to ensure that we have a robust industrial defence sector. I very much hope that we will have the support of the hon. Gentleman’s party for that and for the defence of the whole of the United Kingdom.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

The Secretary of State has had a foretaste from both sides of the House today of the furore that is likely to follow if HMS Albion and HMS Bulwark are deleted from the inventory. May I humbly suggest that, given the relatively small saving that that would represent, the game is simply not worth the candle?

[Gavin Williamson]

Someone once said to me that there was no such thing as a former Chief Whip, and I always listen with great intent and interest to the views of all colleagues.

UK Amphibious Capability

Mark Francois Excerpts

Tuesday 21st November 2017 Westminster Hall

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Mr Gray, I am grateful to be called in this important debate, which relates to one of the most important capabilities in our military armoury: amphibiosity. I congratulate the hon. Member for Stoke-on-Trent North (Ruth Smeeth) on introducing the debate so well.

We are really here today because of the strong rumours that the Ministry of Defence is considering deleting the landing platform docks, HMS Albion and HMS Bulwark, from the naval inventory. The reason behind that, which seems in effect to be an open secret, is that the Navy top level budget, or TLB, is over-programmed and the First Sea Lord has been asked to come up with savings within his TLB.

I shall return to the budgetary challenge at the end, but the first thing to say is that the Queen Elizabeth carriers, highly capable ships though they are, cannot act as a replacement for the LPDs and do not have their highly specialised capability. Although the carriers could launch marines over the beach by helicopter, either Chinook or Merlin or both, the carriers do not have docks and therefore cannot host landing craft, which would be needed to bring the heavy equipment of a marine commando on to a perhaps hostile beachhead. If we abandon the LPDs, we are in effect relying on a friendly port to be available if we are to land a marine commando or, indeed, 3 Commando Brigade on the shore. It may be a convenient planning assumption to believe that a friendly port will always be available, but that may not necessarily always be the case.

In fact, history teaches us an important lesson about the need to maintain this capability. In 1981, the Nott defence review advocated deleting the Invincible-class aircraft carriers and the assault ships, HMS Fearless and HMS Intrepid, from the naval inventory. At this stage, I have a small confession to make. Following the announcement of the Nott review, as a precocious 16-year-old, I wrote a letter to the then Prime Minister, Margaret Thatcher, in 1981 in which I argued that we should not sell our aircraft carriers to Australia because—I still remember the words—as history shows us, we never know when we might need them.

As we all know, in 1982, when the Falklands crisis blew up from almost nowhere, it was only because we still had our carriers and their Sea Harrier aircraft and the amphibious assault ships, Fearless and Intrepid, that we were able to mount an opposed amphibious assault and successfully recapture the Falkland Islands. No doubt very many intelligent people wrote very articulate staff papers that contributed to the 1981 review and a great deal of intellectual energy was put into the argument that we could do without these ships—but they were all wrong. Maintaining that amphibious capability should be an important part of our national armoury, and NATO’s as well, so what is to be done?

I believe that the alternative option of trying to cull 1,000 Royal Marines would be a grave mistake. The Royal Marines are some of the most elite infantry in the world and are, in effect, tier 2 special forces. We also derive around 40% of our tier 1 special forces, the Special Air Service and the Special Boat Service, from the Royal Marines. Not only do the Royal Marines have an incredibly proud history, having recently celebrated their 350th anniversary; they also have tremendous utility, and I can see no defence advantage at all in getting rid of 1,000 of the best maritime infantry in the world.

[Rebecca Pow]

The Royal Marines are also extremely good value for money. That has to be included. They comprise 4.5% of armed forces personnel—whereas the Army is 57%—and from that we generate 46% of the special forces badge manpower.

[Mr Francois]

I believe they are extremely good value for money and extremely capable, but this still brings us back to the problem of the naval TLB. As the previous Secretary of State was keen to stress, we have a rising defence budget, which is due to go up 0.5% each year in excess of inflation. That being the case, some of that uplift in the budget should be earmarked to the naval TLB, in order to ease the pressure and avert cuts to either the amphibious capability or the Royal Marines.

My final point is one I made to the former Secretary of State when he appeared before the Defence Committee last month, namely that given the furore that would likely result from trying to delete the LPD and our amphibious capability, and the relatively moderate savings this measure would generate, politically the game is not worth the candle. I humbly offer the same advice to his successor and to the Minister.

Defence Aerospace Industrial Strategy

Mark Francois Excerpts

Thursday 16th November 2017 Commons Chamber

[Ruth Smeeth (Stoke-on-Trent North) (Lab)]

I beg to move,

That this House has considered defence aerospace industrial strategy.

I must begin by thanking the Backbench Business Committee for allocating time for this very important debate on the Floor of the House. I also thank my friend, the hon. Member for Witney (Robert Courts), for co-sponsoring it.

Madam Deputy Speaker, I am sure you would agree that the calibre of Members here on a Thursday afternoon is testimony to the importance that the House places on both our military and the need for them to have the right kit, at the right price, at the right time. Our debate on this matter is timely. This month we mark the 100th anniversary of the creation of our Royal Air Force. It therefore seems fitting that we should also recognise the fundamental role that our domestic defence aerospace sector has played in maintaining our country’s aerial supremacy for generations.

Last weekend all of us here today, along with millions of British citizens, gathered across the country to commemorate the courage and the sacrifice of those men and women who have served in our armed forces, to protect our country. But while we remember those who have fallen defending our country, we must also honour those currently in uniform. Their dedication, skill and bravery is demonstrated every day, in every corner of the world.

These efforts are exemplified by those 1,350 service personnel who are currently supporting Operation Shader. In the last week alone, RAF Tornadoes and Typhoons undertook further operations in support of the battle against Daesh, eliminating hidden improvised explosive devices, destroying Daesh stockpiles and, vitally, disposing of Daesh armoured truck bombs. Over the course of this conflict against the most barbaric and ideological of opponents, British air support has played a vital role, striking Daesh 1,384 times in Iraq and 262 times in Syria.

The men and women of our RAF, and indeed of our entire armed forces, serve with courage and distinction, but they do not operate in isolation. They require the platforms and the weapons to do their job effectively and with as little collateral damage as possible. Their military success depends on the technology and the weaponry that we can bring to bear and—crucially for this debate—on the wider defence family that develops, designs, manufactures and maintains it. I am delighted that members of the defence aerospace industry from the GMB at Brough are in the Gallery today.

The men and women who develop these products do so in the knowledge that it may well be the sons and daughters of their friends and neighbours who are called upon to use them. They understand the stakes and they do everything they can to ensure that when our armed forces are deployed, our brave service personnel have what they need to keep them safe and to get the job done, in order to keep us safe. They recognise their role in defending our country; the question today is, do we, and importantly, do the Government?

I maintain that it is the defence family—the inventors and engineers, tradesmen and technicians, fitters and fabricators—who have built Britain’s defence industry into a world leader and sustained our sovereign capability in a world where such strength has never been more vital. It is that very defence family which I fear is currently being sold short by the Government, especially in the aerospace sector. Unless we address that now, the situation will become even more challenging in a post-Brexit world. Simply put, to ensure our sovereign capabilities post-Brexit, we need to develop a defence aerospace industrial strategy now to protect our domestic skill mix.

The Government have recognised that need in our maritime defence sector with the development of the national shipbuilding strategy. All we are asking today is that the same generosity be applied to the defence aerospace sector to give it and the workforce some stability for the next generation.

That is not beyond us. British industry has developed such iconic aircraft as the Hawk, the Harrier, the Tornado and the Typhoon, and that is before we even touch on the A400M or any of our helicopters. We have earned our place as a global leader in the manufacture and support of combat aircraft. It is, however, my contention that the development of a long-term industrial strategy for our defence aerospace industry would do far more than reassure an individual sector. It would provide lasting benefits to our economy, retain a valuable skills base, guarantee our sovereign military capability and secure our position on the global stage.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

The hon. Lady has mentioned Tornado twice, including the valuable role it has played in Op Shader. It remains a potent combat aircraft, even today. Does she agree that when the Tornado retires from service in 2019 we should keep some as a war reserve, and that British industry has the skills and capability to support that?

[Ruth Smeeth]

I agree with the right hon. Gentleman, who has raised that point repeatedly in recent months. We have to decide what reserves we need, but that is no replacement for the development of our future capabilities.

First, on our economy, our defence aerospace sector makes an enormous contribution. It is the core of our wider defence industry, which directly employs more than 142,000 people, with a further 116,000 indirectly employed in the supply chain. In 2016, BAE Systems alone contributed £11.1 billion of gross value added to the UK—equivalent to 0.6% of our entire economic output—but there is further additional value to ensuring that those defence jobs stay in the UK. The Royal United Services Institute has calculated that for every pound the Government spend on a defence contract when the good or service is generated in the UK, the Treasury receives 37p back in revenue, as well as the new platform or system we have procured.

It is self-evident that a strong defence industry is a major contributor to a strong national economy, and our defence aerospace industry supports thousands of well-paid and highly skilled jobs, the majority of which are outside the south-east, as well as boosting our economy through exports of world-class products. Our defence aerospace sector accounts for 88% of all defence exports —an incredibly important aspect of our economy, especially as we look to leave the EU, not least for the impact on our future balance of payments.

But there are challenges in the sector that fundamentally relate to two factors. One is that export sales typically depend on the use of future platforms by our own RAF—the British brand and RAF stamp of approval mean a huge amount for other state actors. When buying British is key for the global success of the sector, we need to pay attention.

The second significant challenge is the extended lead-in times and development processes that characterise the defence aerospace industry. That requires a long-term strategy, not a short-term fix, to ensure a steady drumbeat of orders and constant research and development to maintain confidence within the industry and to protect jobs and our domestic skills base.

We have seen recently what happens when that certainty is missing from the market, with BAE announcing up to 2,000 redundancies owing to a gap in its order book. Those job losses are not just a blow for those workers and their families, but could result in a loss of skill and expertise that could set us back a generation. I believe that those jobs could be protected in the short term if the Government committed to bringing forward the order for the new Hawk aircraft for the Red Arrows and to securing the next wave of export contracts for that aircraft.

Armed Forces Pay

Mark Francois Excerpts

Wednesday 1st November 2017 Commons Chamber

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

I thank the shadow Secretary of State for bringing the motion before the House.

In the short time that I have been the Defence spokesperson for my party, it has become abundantly clear that the Secretary of State—who, unfortunately, is leaving us at this moment—is not so much running a Department as presiding over a shambles with, I believe, the fourth-biggest spend in Whitehall. You have to hand it to Ministers, Madam Deputy Speaker, because it takes some brass neck to come to this House time and time again and seek to portray this team as in command of its ship, when the reality is that when you lift that thin veil, the chaos and the haemorrhaging of money is there for all to see, and it is like nothing I have seen in the two and a half years that I have been a Member of this House.

On the issue of pay and the broader issue of terms and conditions, I wish to bring the House’s attention to a piece of work that will be led by my hon. Friend the Member for Glasgow North West (Carol Monaghan)—a commission set up by my party to review what offer we think should be made to members of the armed forces. That will look in detail at the issues of pay, pensions, a trade union or representative body—which was mentioned today and in a previous debate this week—and, of course, housing and homes for veterans and their families.

On the pay cap, it should be noted that the Scottish Government were the first Government anywhere in the UK to commit to lifting the 1% pay cap right across the public sector. We believe that it is the very least that workers in uniform—be they nurses, police officers or those who protect us in the armed services—truly deserve. The pay freeze—which, as has been mentioned, is in reality a cut to their wages—is one of the many, many components making up the crisis in recruitment and retention. Inflation has pushed the cost of living up for everyone, meaning that their take-home salary is being stretched like never before. For too many, there is too much month at the end of their money.

Let me just adumbrate for Ministers, with inflation sitting at 3%, what that means. If your base pay is £21,000 you receive £21,210 after your 1% rise. When you account for inflation, Madam Deputy Speaker, it leads to a real wage loss of £420. So how Ministers and Government Back Benchers can come to this House and participate in the inevitable crescendo of backslapping and chest thumping, claiming to be the party that backs the armed forces—no doubt we have a couple of hours of that to go—is beyond me. I would be embarrassed to defend this Government’s record on armed forces pay.

Having outlined—[Interruption.] I shall come to the nuclear deterrent; I am glad that the Whip, the hon. Member for Burton (Andrew Griffiths), mentions it from a sedentary position. Having outlined, as many speakers no doubt will, the bravery and sacrifice that those in our armed forces display, and what they are asked to live with, it would take some nerve to do anything other than support the Opposition motion and offer my party’s support for it. But there is a deeper, more fundamental issue that we cannot ignore, and that is how this Government and previous Governments have chosen to spend money defending the nation, which brings me to the Government Whip’s point.

There are certainly many arguments against Trident, and I have had very honest disagreement with those who support Trident. The cost is certainly one argument against it. The drain that the cost puts on our ability to defend ourselves is, I believe, unsustainable, and more and more people in the defence community are realising that.

Let us put that cost in context. The Government’s own figure for Trident is £31 billion, so if we take a starter Army officer’s salary of £26,000, it equates to over 1.1 million new staff officers. Clearly we do not need that many, but when the picture is laid out in those terms, against a backdrop of a recruitment crisis, broken manifesto pledges on the size of the army, and forces numbers at their lowest since King George III was on the throne—since Arthur Onslow was the Speaker of the House of Commons—it puts the draining cost of Trident on our conventional capabilities into some perspective. And that is before we even get to the £100 million of efficiency savings that commanders have been asked to make in addition to cuts to already threadbare budgets for training, for maintenance, for accommodation and for travel.

I want to return to those numbers: 82,000 was the commitment made by the Conservatives in their manifesto. It was their pledge, not mine, and it was not one number—

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Before the hon. Gentleman completely leaves Trident behind, is he aware that the Defence Committee recently took evidence from a group of senior academics who told us that it would be wrong to assume now that North Korea is incapable of reaching the United Kingdom with a thermonuclear warhead? In other words, they think that the North Koreans are already there, or extremely close to it. Given the unstable nature of the North Korean regime, is not that a very strong argument for retaining our own independent nuclear deterrent to deter whatever those in Pyongyang might think?

[Stewart Malcolm McDonald]

No, because it is obviously not deterring anyone, given what the right hon. Gentleman has just said.

--- Later in debate ---

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

This morning, along with 20 other MPs and peers, I attended a brief act of remembrance at the Guard’s Chapel in Wellington barracks, where we paid our respects to the fallen. I think that it is an underappreciated fact that over 30 Members of this House have themselves served in the armed forces, in either the regulars or the reserves, including myself, the Minister for the Armed Forces and the Under-Secretary of State for Defence, my right hon. Friend the Member for Bournemouth East (Mr Ellwood). Another of those people is my right hon. Friend the Member for New Forest East (Dr Lewis), Chairman of the Select Committee on Defence, who served in the Royal Naval Reserve and who was present this morning. However, he has asked me to offer his apologies to the House because he had two unbreakable commitments this afternoon and therefore could not, as he usually would do, contribute to this debate.

Our armed forces are currently under pressure. As of May 2017, the total strength of the regular armed forces was 138,350, some 5% below their establishment strength, and the shortages are far worse in specialised trades. In the year to April 2017, over 2,000 more people left the regular armed forces than joined.

As I argued in the House recently, a combination of lower retention than expected and failure to achieve recruiting targets means the under-manning in the armed forces is worsening. The Royal Navy and Royal Air Force are now running at around 10% below their annual recruiting target, while for the Army the shortfall is, unfortunately, over 30%.

This continuing process of “hollowing out” in the ranks also threatens to compound the problem by increasing the pressure on those personnel who remain. In order to address these problems, the Ministry of Defence needs to improve its recruiting performance, particularly among black, Asian and minority ethnic personnel and female personnel. The MOD has a target, set by the Minister for the Armed Forces, for 15% of all recruits to be female by 2020. In the year to 31 March 2017, female personnel represented 10.2% of the regular armed forces, while the proportion for the reserves was somewhat higher, at 14%.

The RAF, which for some time has had a programme devoted to nurturing female talent, has three female officers of two-star rank, and there is one female officer of two-star rank in the Army, but, unfortunately, there is none in the Royal Navy.

[Ruth Smeeth]

As the right hon. Gentleman had to correct me on Monday to inform me of the position, may I ask whether he agrees that we hope that, at some point, the senior service, the Royal Navy, will catch up with everybody else and ensure that we have a female leading officer sooner rather than later?

[Mr Francois]

Yes, I would like one day to see our new aircraft carrier, Queen Elizabeth, which is named after our wonderful Queen, captained by a woman.

The MOD has been able to make much of female representation in media terms in order to show the career progression that is possible for female officers, but clearly it would be desirable to see female candidates reaching three-star rank or above in the relatively near future. The independent service complaints ombudsman has three-star rank, but she is independent of the armed forces. In addition, as a ministerial example, my hon. Friend the Member for Portsmouth North (Penny Mordaunt) was, I believe, the first female Minister of State for the Armed Forces in history; she held the post from 2015 to 2016.

The MOD is now also introducing women in ground close combat, meaning that in future women will be allowed to serve in the Royal Marines, the infantry and the RAF Regiment. Places will be made available to female candidates who can pass the requisite physical standards, which will be maintained as the same as for their male counterparts; that is important in maintaining confidence in the process. In addition, women will be allowed to apply for posts in the special forces, again entirely on merit, thus clearly demonstrating there are no longer any areas of the armed forces that are off-limits to female personnel.

The RAF Regiment was opened up to suitably qualified female candidates this September, and women will be able to take places in the Royal Armoured Corps and the infantry in 2018. It will take some time for the absolute number of women in ground close combat to build, but the opportunity should be used at an early stage, with exemplars, to demonstrate unequivocally that there are no longer any restrictions of opportunity for women serving in the armed forces.

The flexible engagement system, which we debated in the House on Monday evening and to which several Members have already referred, will positively affect the ability to attract and retain a diverse workforce. FES is designed to allow individuals to decide on their level of commitment, including opportunities for work in full-time and part-time capacities, with the current barriers between regular and reserve being reduced. That flexibility should be particularly helpful in assisting women to enjoy full careers in the armed forces over a period of time, while reducing concerns female recruits may have about the longevity and potential progression of their careers.

Overall, female recruitment—including representation at senior level—is starting to show real success, and this is one area where the Ministry of Defence can afford to be more ambitious. The 15% recruitment target by 2020 seems likely to be met and the Royal Air Force is already intending to raise its target to 20% by 2020. If the Department wants to continue the momentum that is currently being developed in this area across the three services, I believe it should set a new stretch goal of 20% of recruits being female by 2025. In addition, maximum publicity should be given to the introduction of women in ground close combat, to highlight that all areas of the armed forces are now open to female talent.

[Gareth Thomas]

Two years ago, the Government set up an armed forces credit union to help armed forces personnel on low pay who might be vulnerable to payday loan companies charging very high rates of interest. Two years on, the three armed forces credit unions are well-established, but could do with the MOD taking steps to advertise their services more widely. Given that 15 years ago the right hon. Gentleman showed a brief interest in co-operatives, may I encourage him to join me in encouraging the Minister to think through what else the MOD might do now to encourage awareness of that armed forces credit union among military personnel?

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[Mr Francois]

The hon. Gentleman’s researcher has clearly been on the ball. I know that in the United States service credit unions are far more advanced than here; there is a big movement in America. I for one would ask Ministers to look munificently on the hon. Gentleman’s point.

[Mark Lancaster]

rose—

[Mr Francois]

Indeed, I think the Minister wants to intervene.

[Mark Lancaster]

I am now feeling guilty for not giving way to the hon. Member for Harrow West (Gareth Thomas). He makes a very reasonable point. I am very pleased with the progress we have made with the credit unions, but there is always more we can do. I will look into this point, and write to the hon. Gentleman.

[Mr Francois]

We appear to have got some consensus there.

In July 2013 the Government published a White Paper entitled “The Reserves in the Future Force 2020: valuable and valued”, which envisaged an ambitious revival and expansion of Britain’s reserve forces, under the heading of Future Reserves 2020, or FR2020. The roll-out of that programme was initially complicated by a combination of excessive bureaucracy, delays to medicals for recruits and IT problems.

In response, the three services—in particular the Army, where the greatest problem lay—committed additional resources to reinforce the recruiting effort, and now, several years on, that has borne fruit. As of May 2017, the trained strength of the Army reserve is 26,730 as against a target of 26,700; the maritime reserves, including the Royal Marine Reserve, stood at 2,590 against a target of 2,320; and the figures for the RAF reserves, including the Royal Auxiliary Air Force, were 2,140 against a target of 1,860.

Reserve recruiting now enjoys support from across British industry, including the Business Services Association, the CBI, the Federation of Small Businesses and the Institute of Directors, and is an important part of the armed forces covenant. In addition, considerable success has been achieved by offering “recruitment bonuses” to ex-regulars who have left the services but have then joined their reserve counterparts.

There is no room for complacency. That has only been achieved with considerable investment, of both money and effort, by the regular as well as the reserve forces. If the targets in FR2020 are to be met, it is vital that this earmarked funding is continued and not sacrificed to in-year savings, which would run the risk of seriously compromising the momentum achieved to date. Overall, however, the reserves story is now becoming a successful one, and is far healthier than it was only a few years ago.

An important aspect of the overall quality of life in the services is represented by service accommodation, and this is where the Ministry of Defence must do better if it wishes to retain the support of service personnel and, particularly, of their families. Remember the saying: “Recruit the serviceman, retain the family.” The UK tri-service families continuous attitudes survey, published in July 2017, shows that the level of satisfaction with the maintenance of service families’ accommodation remains low following a large decrease in 2016. In particular—this follows on from the point made by the hon. Member for Stoke-on-Trent North (Ruth Smeeth)—there are issues surrounding the delays in the MOD’s housing contractor, CarillionAmey, responding to requests for maintenance and also with the quality of the maintenance and repair work subsequently undertaken. Only 34% of those surveyed said that they were satisfied with the responsiveness of the contractor and only 29% were satisfied with the quality of maintenance or repair work that it undertook.

[Ruth Smeeth]

Does the right hon. Gentleman agree that one of the problems with that contract is the existing key performance indicators? The contractor gets a big tick for turning up within 24 hours, but that does not mean that the boiler has been fixed. That could take another eight days. The letter of the contract might be being fulfilled, but it is definitely not being fulfilled in spirit.

[Mr Francois]

The hon. Lady anticipates what I am about to say. I will come on to boilers in just a minute. Her point about acting to the spirit of the contract is well made, and I agree with her.

The FCAS report states:

“Satisfaction with most aspects of SFA fell markedly in 2016 due in part to underperformance by the National Housing prime contractor and changes to the SFA charging method in April 2016.”

Similarly, the Army Families Federation—sometimes affectionately referred to as the Army freedom fighters—reports that housing continues to be the biggest concern for Army families. There is overwhelming anecdotal evidence about the poor performance of CarillionAmey and, put simply, we are not honouring our people by providing them with this shoddy service. We send a serviceman halfway around the world to fight for their country and we call them a hero, as that is what they are, but back at home their wife spends weeks trying to get their boiler fixed because of the startling ineptitude of the people we have hired to keep their home warm. And then we wonder why people leave.

This has gone on for too long, and it is simply unacceptable. Either CarillionAmey should materially raise its game on behalf of our service personnel or it should be unceremoniously sacked and we should find someone competent to do the work instead. Housing associations and registered social landlords around the country have been carrying out basic maintenance and repairs as bread-and-butter work for years, so why cannot CarillionAmey do the same?

There are a variety of reasons why people are leaving the armed forces at present, and pay is one factor but—as has already been pointed out—not the predominant one. As the Minister rightly said, the armed forces continuous attitude survey published in May 2017 points out that the primary reason for people wanting to leave the services is the effect of separation or long hours on their family life. That is the greatest challenge that Ministers have to grapple with. The Armed Forces (Flexible Working) Bill, which we debated in this House on Monday, should help in this regard, as it will allow service personnel to vary their commitment, rather than face an acid test of only being able to leave the services in order to reduce the pressure on their family. In other words, it might persuade some personnel to stick rather than twist when their family are under pressure because of their commitment to their country.

The issue of pay itself has now become something of a challenge, particularly in relation to retention. The AFCAS notes that only 33% of personnel are satisfied with their basic rate of pay, and that only 27% are satisfied with their pension benefits, although it should be pointed out that the armed forces have one of the few remaining pension schemes anywhere in the public sector where employees do not have to pay a contribution of their own—something that I know MOD Ministers have fought valiantly to defend.

Recommendations on pay are made by the Armed Forces Pay Review Body and its recommendation in January 2017 was essentially for a 1% pay increase, although certain personnel would qualify for additional increments and also for specialist recruitment and retention pay, particularly if they serve in areas where the armed forces are struggling to retain specialists. Any further pay increase for the armed forces will be subject to the next recommendation of the AFPRB early next year, so we will have to wait and see what it recommends. It is likely that any increase above 1% would need to come out of the defence budget, which could have implications for some elements of the equipment programme, for instance. However, given that the police have now had an above 1% pay increase, if the AFPRB were to recommend something similar next year, I think that Ministers would have to take it seriously.

[Wayne David (Caerphilly) (Lab)]

The right hon. Gentleman makes an important point. Does he agree that it would be quite wrong if the MOD implemented more cuts to equipment to finance a pay increase?

[Mr Francois]

I cannot say what the AFPRB is going to recommend. In fairness, we will have to allow it to go through its deliberations and see what it concludes. However, given that the police have been given an increase above 1%, I am sure that there will be strong views in the armed forces about what should happen to them. But let us await the recommendation of the AFPRB.

In conclusion, our armed forces, on whom we rely so much, continue to be under pressure in the fields of recruitment and retention. Although the principal reason for people leaving the armed forces is pressure on family life, pay also appears to be entering into the equation, and I think that Ministers in the Department are cognisant of that. We must also do something about the poor quality of repairs and maintenance of service accommodation. I urge the Ministers sitting on the Treasury Bench this afternoon to formally review the performance of CarillionAmey and to be prepared, if necessary, to re-let the contract unless the company succeeds in materially raising its game. We have to continue to attract the brightest and the best to serve us in uniform, and we must continue to provide the resources to make that prospect a reality. We also need to ensure that those people have homes that are fit to live in.

[Several hon. Members rose—]

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[Conor McGinn]

I do not wish to contravene the rules of the House by getting into a debate with the Minister, but I am not sure that he can express particular confidence that the target of 30,000 reserve recruits will be met. The Government started to publish the figures only after pressure from the Opposition several years ago. We will continue to monitor progress on that in particular, because although, like the hon. Member for Aldershot (Leo Docherty) said earlier, I am not a mathematician, I know that if we need to recruit 10,000 and we are attracting only 7,000 to the Regular Army, and we have not met the quota that we defined to meet national security needs through recruitment to the reserves, it is not going to add up. It is not going to add up for the armed forces, and it is not going to add for the British public.

[Mr Francois]

In my speech, I gave figures about recruiting targets for the reserves and explained where we currently stand, and I pointed out that we are ahead of target.