Military Aviation Industry
Peter Luff Excerpts(13 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Defence (Peter Luff)
It is customary to congratulate the hon. Gentleman or hon. Lady who has secured such a debate at the end of the day, and I congratulate my hon. Friend the Member for Fylde (Mark Menzies) with particular pleasure today. It is his first Adjournment debate, mine too as a Minister, but it has been of the most exceptional value and great quality, so his congratulations are all the more deserved. There has been a phenomenal level of participation in what is normally a half-hour debate. My brief is littered with handwritten comments, which I hope I can decipher as I go through my remarks. If for any inadvertent reason I unintentionally overlook any hon. Gentleman in my response, I shall of course write to them subsequently. I also congratulate my hon. Friend on what was a very informative and entertaining maiden speech in the House during the debate on the strategic defence and security review on 21 June. He is clearly carrying on with exceptional skill the excellent work of his predecessor, Michael Jack, who also spoke very strongly for the aerospace industry in the north-west.
Peter Luff
This debate is timely, as my hon. Friend said, not only for the reasons he gave us—the very sad redundancies, which I want to discuss later—but because of its significance to the strategic defence and security review process. That process seriously constrains how far I can go in replying to many of the points made by hon. Members, and I apologise for that, but the debate is an important contribution to the process, and I welcome it for that reason.
The debate is also timely for a second reason, as we heard. Today is battle of Britain day: 15 September 1940, 70 years ago, was a critical turning point in the war, when RAF fighter command claimed a decisive victory over the Luftwaffe. It is fitting, when debating the aviation industry today, to pause and pay tribute to the bravery of our RAF service personnel, past and present, and to all those who work so hard to design and build the aircraft in which they fly. From the battle of Britain to Afghanistan, the skills of all those who work in the industry and their commitment to supporting our servicemen and women has proved to be second to none.
The contribution made by the UK’s military aviation industry in supporting our armed forces cannot be underestimated, and it certainly has not been in the Chamber this evening. All three of your Deputy Speaker colleagues, Mr Speaker, have interests in the aerospace and military aviation sector. I know that the hon. Member for Chorley (Mr Hoyle) and my hon. Friend the Member for Ribble Valley (Mr Evans) are particularly sad not to be able to contribute to this debate—they, too, have been outspoken advocates for their constituencies in the past—and the right hon. Member for Bristol South (Dawn Primarolo) has a strong local aviation industry and a vital interest in the A400M project.
I am relieved that Members from areas other than the north-west turned up. This is not just a north-west issue, although it is very important to that region, and the right hon. Member for Delyn (Mr Hanson) demonstrated that fact. We also have interests in Yorkshire and around the country, including the south-east, the south-west, the west midlands, and the east midlands. Wherever one goes there are aviation and military aviation interests, so I am glad that the debate has been so broadly drawn.
Our servicemen and women who are currently deployed on operations, particularly in Afghanistan, deserve the best equipment that we can provide, and there is no doubt that the UK military aviation industry has risen to that challenge in the past and, as hon. Gentlemen have said, continues to do so. I listened carefully to my hon. Friend’s excellent speech and I share his heartfelt and sincere view that it is crucial for the security of the UK and our allies that we have a strong and dynamic military aviation industry both now and in the future.
BAE Systems’ Warton facility, which lies within my hon. Friend’s constituency, demonstrates this ethos, supporting as it does the important multinational Typhoon and joint strike fighter programmes. I will be concentrating on fast jets and unmanned aerial vehicles—UAVs—but military aviation of course encompasses much more, including helicopters, tankers, strategic lift and, as the right hon. Member for Delyn reminded us in his fine speech on the A400M, intelligence, surveillance, target acquisition and reconnaissance, or ISTAR.
Turning briefly to ISTAR, my hon. Friend the Member for Macclesfield (David Rutley) told the House that he had met me, together with my hon. Friend the Member for Cheadle (Mark Hunter) and the right hon. Member for Oldham West and Royton (Mr Meacher), to discuss the Nimrod MRA4. I pay tribute to my hon. Friends and to the right hon. Gentleman for the way in which they put their case and, in particular, to the trade union representatives from Woodford who came with them and made such a powerful case. I apologise publicly for the fact that the meeting was so disrupted by Divisions in the House, but I think they successfully conveyed their key messages, and I congratulate them on that. I promise that I will take careful account of what was said.
The coalition Government recognise, of course, that the UK military aviation industry is a vital strategic asset. The challenge is to maintain a vibrant and innovative industry capable of meeting the needs of the MOD at a time of financial challenge, and to be competitive in the world marketplace while at the same time minimising any MOD investment in artificial sustainment activities—we want this activity to be real. We simply cannot do this without listening to what industry has to say; and industry has had some very powerful advocates in the Chamber this evening.
That is why, in addition to the engagement with industry that has occurred during the SDSR—despite, Mr Speaker, reports to the contrary—I recently announced the publication of a Green Paper at the end of this year to explain the MOD’s defence industry and technology policy, to follow the conclusions of the SDSR in the autumn. It will include a full discussion of many issues, including sovereign capabilities and skills—I hope that will please my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard)—and, I hope, the role of apprentices, which was mentioned by my hon. Friends the Members for Pendle (Andrew Stephenson) and for Brigg and Goole (Andrew Percy). On a recent visit to Rolls-Royce I was struck by the number of senior managers who had started their working life with the company as apprentices, which shows how important that route of entry into the industry is.
As a result of that Green Paper process, we will publish a White Paper in the spring, which will formally set out our approach to industry and technology through to the next SDSR, which I hope will come after a much shorter gap than this one. That will provide the clarity that the industry needs to understand what our priorities are and how we plan to engage with it to bring those priorities to fruition.
Two of the highest priorities in the Green Paper and White Paper will be reinvigorated Government support for exports and helping small and medium-sized enterprises to expand and prosper. Many of them serve and supply the military aviation industry, as hon. Members have said. We will support the drive for exports with an active and innovative programme of defence diplomacy, and Ministers will play an important and personal role in that.
My hon. Friends the Members for Fylde and for Blackpool North and Cleveleys mentioned the role of my right hon. Friend the Prime Minister in securing a recent Hawk contract in India, which shows how important high-level ministerial engagement is. When I wore a previous hat, as Chairman of what was once called the Select Committee on Trade and Industry, we repeatedly made the call for such engagement, and I am delighted to see it bearing fruit so quickly under the coalition Government. The entire ministerial team was at the Farnborough air show this year to demonstrate our support for military exports in general and the military aviation sector in particular. I undertake that that level of support from Ministers will continue.
I turn to the BAE Systems site in Samlesbury. The MOD continues to recognise BAE’s integral role in the UK aerospace industry, and it is essential that we continue to work together for our mutual benefit as we establish and confirm the UK’s strategic objectives in the wake of the SDSR. In that respect, I very much welcome the company’s own review that is currently under way to ensure that its Military Air Solutions business has the right balance of skills, capabilities and resources to meet the new challenges that lie ahead. That cannot be achieved without some effect on the structure of the company, and I note with sadness the company’s announcement on 9 September that it sees a need for more than 700 job losses at a number of its aviation business sites following decisions by the last Government in 2009. Those losses come on top of earlier such announcements.
My hon. Friend the Member for Fylde will be aware, however, that BAE Systems is making a multi-million-pound investment in the north-west at its Samlesbury facility, which will be state-of-the-art. The company aims to develop the site into a major centre for unmanned air system development. Samlesbury has a strong tradition of design, engineering and manufacturing excellence in the aerospace industry, for which I pay tribute to it. It is home to some of the most advanced aerospace manufacturing and assembly technologies in the world.
On the subject of advanced technologies, unmanned air systems, which my hon. Friend mentioned, are already making a critical contribution to our operations in Afghanistan. Hermes 450, Desert Hawk and Reaper are saving the lives of our forces, our allies and the Afghan people themselves. I look forward to the introduction of Thales’s Watchkeeper system, which is currently the MOD’s largest unmanned air vehicle procurement programme. It will provide operational commanders with a day and night, all-weather capability to detect and track targets without the need to deploy troops into potentially sensitive and dangerous areas. My hon. Friend mentioned HERTI, which, if I remember correctly, is a privately funded capability at BAE Systems.
Looking further forward, we are investing in programmes to help us better understand possible future roles for unmanned air systems. Mantis, for example, is a programme funded jointly by the MOD and BAE Systems, which is leading an industrial consortium. The programme is a concept demonstrator with state-of-the-art sensors that will demonstrate a UK-developed deep and persistent intelligence, surveillance, target acquisition and reconnaissance capability of the type currently provided by Reaper.
Mark Hendrick
The Minister is speaking very strongly about the importance of the UAV programme, which is taking place principally at Warton, and I totally agree with him. He mentioned the restructuring at Samlesbury, which we all know has amounted to hundreds of jobs being lost last year and hundreds more this year. What does he have to say to people there who are going to lose their jobs, some of whom have given a lifetime of commitment to Samlesbury? That is likely happen to even more of them as a result of the defence review, in addition to the losses announced recently.
Peter Luff
I hope the hon. Gentleman heard me express deep regret for those redundancies, which result from decisions taken in the past. Exactly how BAES chooses to distribute its skills and work force in future is a matter for BAES, and it is not for me to comment. However, I express deep regret to those individuals, many of whom are outstanding engineers and technicians who started as apprentices and who have given a lifetime of work to some excellent products. I shall turn to the importance of maintaining a skills-base in the north-west, in particular for unmanned aerial systems, in a moment.
Another unmanned aerial system, Taranis, is the MOD’s prototype unmanned combat aircraft of the future. Built by BAES, Taranis reflects the best of our nation’s advanced design and technology skills. It will allow the MOD to gain a better understanding of the most cost-effective and capable future combat air capability force mix between manned and unmanned platforms. A pinnacle of UK engineering and aeronautical design, Taranis is a leading programme on the global stage and a significant step forward in this country’s fast jet capability. It is truly a trailblazing project.
To return to a point I made earlier, projects such as Mantis and Taranis will enable the UK to retain vital aeronautical engineering and design skills, not least in the north-west at Warton and Samlesbury. However, we acknowledge the risk to sustainment of critical engineering skills and, in particular, a critical mass of design skills within the UK aerospace sector. We are currently funding some work with BAES and key UK suppliers to sustain capabilities pending SDSR outcomes, which I am afraid I cannot prejudge.
My hon. Friend the Member for Fylde of course has a specific in interest in Warton, and its work is vital to the Department. The Typhoon programme contracts are worth approximately £20 billon for, from memory, about 160 aircraft, up to and including tranche 3A. I was asked to say that I would not cancel tranche 3B, but I cannot cancel it, because no order has been placed. However, all future Typhoon contracts are SDSR dependent. Of course, a significant proportion of the Typhoon work goes to BAES.
The MOD has also awarded a contract worth approximately £145 million for unmanned air systems air projects based at Warton. As a number of hon. Members pointed out, the site makes a critical contribution to the multi-billion dollar JSF F-35 programme, about which many hon. Members spoke enthusiastically. I agree with my hon. Friends the Members for Burnley (Gordon Birtwistle) and for Pendle that a two-engine option is vastly preferable in terms of security, design and driving down cost. I hope our American friends will be persuaded to pursue the two-engine option, which offers great strategic and financial advantages to countries participating in the programme.
The UK’s military aerospace industry is well placed to continue performing significant work in maintaining Typhoon’s capability edge and to address the considerable export interest that is being shown. Indeed, with two existing export customers—Austria and Saudi Arabia—official campaigns being pursued in India, Japan, Turkey and other countries, and with further opportunities in the middle east, including in Oman and Qatar, Typhoon promises to provide excellent employment prospects. That underlines that healthy defence exports are the best way in which to sustain a viable defence and aerospace sector in the UK.
The hon. Member for Hyndburn (Graham Jones) suggested that we were in some sense withdrawing from a commitment to Typhoon, but nothing could be further from the truth. Such suggestions are very damaging to our defence exports. This country has a fine aircraft in Typhoon, which is already in active service and serving the country very well indeed. However, the Typhoon situation will require the industry to continue modernising its approach to address the capability and through-life support requirements of those customers, as it does in the UK, rather than simply focusing on aircraft production and supply. Through-life support costs are hugely important, and we look forward to showing the way ahead through the Green Paper that I mentioned. Certainly, we will work with industry to ensure that, in future, our requirements for new equipment are designed from their inception with exportability in mind. That is very important in, for example, the unmanned air systems environment.
My hon. Friend the Member for Fylde asked for reassurances on the JSF. Again, it must be SDSR dependent, as in everything else, but the UK’s contribution to the JSF development will not change—it is fixed by the memorandum of understanding that we signed jointly with the US in 2001. There are significant work share benefits for the UK aerospace sector and it is important to recognise that those benefits come because of the excellence of that sector, which has won those contracts in competition in world markets. That is a great tribute to British engineering and the sector itself.
The UK’s plans to purchase further joint strike fighters are incremental—we already have some bought for test purposes—and they have always been based on the programme reaching technical maturity levels and being affordable within the overall resources for defence. We will regard future purchasing plans accordingly, as part of the normal planning process and the outcome of the SDSR. The UK continues to play an important role in the JSF programme through the provision of expertise and resources, including RAF pilots who are now flying the short take-off and vertical landing—or STOVL—flight test aircraft.
The SDSR underpins all this work and, together with the new national security strategy, will provide a coherent and consultative approach to security and defence across government. Our National Security Council has agreed that the overarching strategic posture should be to address the most immediate threats to our national security while maintaining the ability to identify and deal with emerging ones before they become bigger threats to Britain. This flexible, adaptable posture will maintain the ability to safeguard international peace and security, to deter and contain those who threaten Britain and her interests and, where necessary, to intervene on multiple fronts. It will also, crucially, keep our options open for a future in which we can expect our highest priorities to change over time.
It is very clear that the current defence programme is unaffordable and tough choices will need to be made. It cannot be said too often that the programme for the next 10 years is £38 billion over-committed, a sum that we simply cannot fund. That is additional to any requirement to cut budgets beyond that. That over-commitment of the existing budget is the legacy of the last Government.
Graham Jones
Will the Minister accept that the reason for the £38 billion overspend is the Government’s choice to cut the deficit further and faster? Otherwise the money would be there.
Peter Luff
Labour Members just do not get it. It is not a matter of choice. The last Government made a choice to be—I shall choose my words with great care—a little disingenuous with the figures and to make commitments that they knew they could not meet. We have to deal with the £38 billion over-commitment before we address any budget deficit reductions, and that is the problem we face in the Ministry of Defence.
Mark Hendrick
The Minister ignores the fact that we had a major global economic crisis and the Government had to bail out the banks after the irresponsible behaviour of generations of financiers. The reason we are in the terrible state we are in now, which the coalition Government seem to forget, is the behaviour of the bankers, not of the previous Government.
Peter Luff
It is the nature of Adjournment debates not to be too partisan, so I shall just spell it out in very simple language. The problem facing the MOD—the £38 billion—is nothing to do with international crises or bankers. It is because the last Government made commitments that they had no money to pay for. It is nothing to do with deficit reduction or the crisis. I could not be clearer about that. The £38 billion is a problem that we have inherited that we would have had to deal with irrespective of any need to address the extraordinarily large structural deficit that we also have in the UK. The £38 billion is a starting point before we address the consequences of the crisis.
John Woodcock
I hope that the Minister will accept my apologies for coming in slightly late for his speech. Members on both sides of the House accept that there is an over-commitment in the budget. Will he accept the findings of the Defence Committee’s report today that there is a grave danger that if the correction is done in the wrong manner—and it is being done very quickly—we will lose the capacity to maintain or restore capability in vital areas in future years?
Peter Luff
The Select Committee’s statement was constructive and thoughtful. I have not read every word of it yet, but it is a very helpful document. In some areas, it has not quite understood the process, but never mind—it is a good response, and today’s debate shows that Members on both sides of the House, including me, understand how important it is to maintain these capabilities and to ensure that we can take part in the next generation, particularly of unmanned aerial systems, which are the future of fast jet production. I will not labour the £38 billion point any more, but it does set the framework of what the Government have to contend with.
For Britain’s defence, and despite all the financial constraints we linger under—both inherited ones and the structural problems caused by irresponsibility in fiscal policy generally—that means taking strategic decisions for the long term. These are the realities we face as we approach the critical decision-making phase of the SDSR. I reiterate that no decisions have been taken on any of the issues debated in the House this evening. The right hon. Member for Delyn (Mr Hanson) referred to the A400M. Everything is in the pot, including the Nimrod MRA4. Everything is there together, and nothing has been singled out or decided. We have to do that to ensure we address both the fiscal challenges and the defence issues facing our country.
Mr Hanson
The contracts for the A400M were signed by my right hon. Friend the Member for Coventry North East (Mr Ainsworth) before the election, but that has been put in abeyance by the coalition Government. So a decision has been made on something that would, it had been decided, go ahead.
Peter Luff
I would like to be more explicit, but I cannot be. We are, and I quote:
“Pleased that agreement in principle on the future of the A400M programme has been reached between Partner Nations and Airbus Military (AMSL); this is an important stage in agreeing an amended contract.”—
the contract now needs to be amended—
“Work on the amended contract continues, and we expect it to be concluded later this year. However, as these discussions are ongoing and at a critical state, it would be inappropriate to provide any further details at this stage.”
I hope that the right hon. Gentleman will accept, therefore, that the issue is not just about the SDSR; negotiations are also going on at present.
I said that no decisions had been taken. However, my right hon. Friend the Defence Secretary made one such commitment at Defence questions earlier this week: he is keeping the RAF. I hope that provides some reassurance to hon. Members.
The potential prize is great: modernised, well-supported armed forces ready to defend and promote British national interests and successful manufacturing industry to support that. The UK military aviation industry is a strategic asset, and this Government will ensure that it remains so. We are committed to increasing the exportability of our equipment and delivering the industrial and technology support our armed forces need. The MOD’s defence industry and technology policy Green Paper will be a significant step towards achieving those aims. I welcome the opportunity to engage with our industrial partners in the coming months to ensure that, despite the serious financial challenge we face, these aims will become a reality.
Question put and agreed to
Oral Answers to Questions
Peter Luff Excerpts(13 years, 9 months ago)
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Andrew Bridgen (North West Leicestershire) (Con)
7. What assessment he has made of the potential benefit to small and medium-sized enterprises of the new Defence Industrial Strategy.
The Parliamentary Under-Secretary of State for Defence (Peter Luff)
The Government are committed to enhancing the role of small and medium-sized enterprises, both as a vital part of the United Kingdom’s economy and as suppliers to the Ministry of Defence. In December we will publish a Green Paper on our defence industrial and technology policy, which will include proposals for better support for small and medium-sized enterprises. It will be followed by a White Paper. In parallel, we propose to work with industry to review the representation of small and medium-sized enterprises on the National Defence Industries Council to ensure that their voice is properly heard.
Andrew Bridgen
I thank the Minister for his answer, but will he agree to meet me at his earliest convenience to discuss the legitimate concerns of companies in my constituency about tendering for MOD contracts?
Peter Luff
We are well aware that SMEs can suffer particular challenges as a result of excessive delays, frequent changes and complexity in the procurement process. We intend to take full account of those concerns during our development of the Green and White Papers. However, I should welcome an opportunity to discuss the issues with my hon. Friend in my office at an early date, and I look forward to seeing him with his constituents.
Mr Bob Ainsworth (Coventry North East) (Lab)
When the Government purchase from small and medium-sized companies, those companies’ ability to deliver must be taken into account in the procurement process. Given that the Minister has not yet signed the contract for the light protected patrol vehicle, can he assure us that in that instance, ability to deliver—and in a timely way—will be fully evaluated? The vehicle really is needed in Afghanistan without delay, and that must surely be the Minister’s priority.
Peter Luff
I understand the right hon. Gentleman’s close personal and constituency interest in this procurement. I entirely agree with what he has said, and I can give him an absolute assurance that the ability to build the vehicle on time will be a key part of our decision. As he has pointed out, it is very important to the protection of our troops in Afghanistan.
Mr Sam Gyimah (East Surrey) (Con)
8. What assessment he has made of the implications of the outcomes of the recent Kabul international conference of British troops in Afghanistan; and if he will make a statement.
Mr Matthew Offord (Hendon) (Con)
13. What recent representations he has received on funding for equipment for UK troops in combat operations.
The Parliamentary Under-Secretary of State for Defence (Peter Luff)
The coalition Government are absolutely committed to funding equipment required for UK troops on operations. In June, the Prime Minister announced uplifts totalling £256 million for equipment for Afghanistan and, on top of that, the MOD and the Treasury continue to approve new urgent operational requirements—more than £95 million since June. I am also delighted to be able to tell the House that the latest armoured all-terrain vehicle, Warthog, arrived in Afghanistan on Friday.
Mr Offord
I thank the Minister for his response. Given that improvised explosives devices are now the favourite weapon of the Taliban in Helmand province and are causing more of our troops to be killed and injured, will the Secretary of State tell us what he is doing to ensure that our brave soldiers have the necessary equipment to counter this deadly threat?
Peter Luff
My hon. Friend is absolutely right to emphasise this very serious threat to our forces. We recognise fully the rapidly evolving threat of IEDs and take all possible measures to combat them. While visiting our troops in Afghanistan on 10 June, the Prime Minister announced an additional £67 million for the counter-IED campaign; this will include specialist dogs, bespoke counter-IED Mastiff vehicles, remote-controlled vehicles, and equipment to neutralise and analyse IEDs. In addition, the MOD and the Treasury continue to approve new equipment to counter the impact of IEDs through the urgent operational requirements process. Since June, an additional £50 million of new counter-IED UORs have been approved, including sophisticated detection equipment, new personal protective clothing and the new counter-IED collective training capability—it is a pretty good story.
Mr Bob Ainsworth (Coventry North East) (Lab)
May I ask the Minister to try to answer this question, rather than to rant in the way that the Secretary of State did in response to my previous question? Can the Minister tell us why the Government have delayed the deployment of the new Chinook helicopters ordered last December?
Peter Luff
I understand why the right hon. Gentleman wants to make mischief on this particular issue, but he is confusing two separate issues. Commanders on the ground will always welcome enhanced helicopter capability—of course they will—and we will do what we can to deliver it. However, military commanders have confirmed that they have the helicopters they need to carry out the tasks that they have been given. Since November 2006, helicopter availability has increased considerably— by 140%—and more Chinook mark 3s will be available for deployment in the months ahead. These kinds of criticisms from those on the Labour Benches would be better made if they had not left us with this wretched £38 billion overspend.
Mr Julian Brazier (Canterbury) (Con)
The House will have noticed a certain role reversal just then. On helicopters in Afghanistan, may I urge my hon. Friend to look hard at the practice of the Americans, nearly half of whose combat helicopters are piloted by reservists? Such an approach would make a huge saving to the taxpayer and guarantee a large number of flying hours on the part of those operating them.
Peter Luff
I understand the point that my hon. Friend makes, and I am aware that he has made it on a number of occasions. Of course we benefit from the activities of American pilots in Afghanistan and I assure him that we will continue to do so.
Chris Evans (Islwyn) (Lab/Co-op)
14. What recent assessment he has made of the provision of mental health care for members of the armed forces and for veterans.
Andrew Stephenson
On Saturday I visited Euravia, a company that repairs and overhauls aircraft engines, which is located in Kelbrook in my constituency, for the presentation of the Queen’s award for enterprise in the international trade category. Does the Secretary of State agree that high-tech manufacturing jobs play a vital role in our economy?
The Parliamentary Under-Secretary of State for Defence (Peter Luff)
It is difficult not to agree with that very important statement. I agree entirely with my hon. Friend. Of course, defence manufacturing jobs play a particularly important part in the high-tech end of manufacturing. We will bring forward a defence industrial and technology policy Green Paper later this year, which I hope will underline the importance of that issue.
Mr Bob Ainsworth (Coventry North East) (Lab)
In May, the Secretary of State said that
“there is no lack of clarity in the Government’s policy: we believe in a continuous, at-sea, minimum, credible, nuclear deterrent, based on the Trident missile system. I hope that that is explicit enough”.—[Official Report, 26 May 2010; Vol. 510, c. 272.]
Will the Secretary of State repeat that?
Sarah Newton (Truro and Falmouth) (Con)
T7. What recent assessment has the Secretary of State made of the benefit of the Royal Fleet Auxiliary cluster contract in reducing costs and improving efficiency?
Peter Luff
I am delighted to be able to tell my hon. Friend that her constituency is playing a major part in ensuring that those contracts are delivering, as it were, more for less, with much greater capability compared to previous contracting arrangements, at lower cost. I congratulate her constituents in Falmouth for the part they are playing.
Dr William McCrea (South Antrim) (DUP)
In the light of the strategic defence and security review, can the Secretary of State assure the House that the coalition Government will maintain our forces’ capability to protect UK interests across the world?
Mr Douglas Carswell (Clacton) (Con)
T8. The Minister has the unenviable task of running a Defence Department in a difficult financial climate. Does he agree that this makes it all the more vital that we get maximum value from our defence budget? Could we not achieve that if we bought more kit generically off the shelf, rather than through a protectionist defence industrial strategy?
Peter Luff
Obviously, the prime duty of Ministers in the Ministry of Defence is to ensure that our troops have battle-winning military superiority, but I agree with my hon. Friend that that can often be done by buying off the shelf. Strangely, in a fast-moving technological world, that can often mean superior products with lower operational risk, which brings double benefits. As I have emphasised, there are many areas in which sovereign capability is absolutely vital, and cannot be prejudiced—for example, in cryptography.
Kevin Brennan (Cardiff West) (Lab)
The Secretary of State rightly mentioned the importance of skills to our armed personnel. Will he take the opportunity to reaffirm the previous Government’s commitment to the building of a new defence training college at St Athan in south Wales?
Defence Fixed Telecommunications Services
Peter Luff Excerpts(13 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Defence (Peter Luff)
I wish to inform the House that my Department has recently extended our public-private partnership contract with BT Group to provide the Defence Fixed Telecommunications Services (DFTS). DFTS provides secure and survivable wide area network voice, data and video telecommunications services to defence users in the UK and abroad, and also to defence and industry partners including the National Air Traffic Systems and the Met Office. The services provided under the contract are vital to the daily operation of the Ministry of Defence and the armed forces, both in peace and at war.
The current contract, which expires in July 2012, has been extended for three years until 2015 under existing contractual provisions. The extension is valued at about £810 million. It is expected to achieve net operational and financial benefits in excess of £90 million and, through taking full advantage of BT’s 21st century network programme, will lead to improvements in performance and security which would otherwise be unachievable. A number of impending obsolescence issues will also be resolved.
Work is under way to re-compete the contract before this extension comes to an end in 2015. This will form part of a major overhaul in the way the MOD procures and manages voice, data, video and information and communication technology services, and will reflect the outcome of the strategic defence and security review.
Defence Storage and Distribution Agency (Removal of Agency Status)
Peter Luff Excerpts(13 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Defence (Peter Luff)
With effect from 31 July 2010, the Defence Storage and Distribution Agency (DSDA) will cease to have the status of an executive agency of the Ministry of Defence (MOD).
DSDA was established as an agency in 1999 to store, maintain, issue, process and distribute materiel for the MOD and other designated users. In April 2006, DSDA launched a major efficiency programme under the future defence supply chain initiative (FDSCi). This completed in 2008 having successfully delivered savings of 35% in annual operating costs, reductions in staff levels of 37% and fundamental improvements in service levels.
Subsequently the operational efficiency programme (OEP) has been considering potential future operating models for DSDA post-FDSCi. It anticipated greater value for money may be achieved by pursuing a strategy of increased outsourcing and transfer of business and assets to third party providers for the majority of activities that can be delivered outside of MOD.
This does not require agency status. Moreover, the change of status will enable the restructuring of the joint support chain to improve and streamline the end to end support chain to be fully implemented and deliver significant improvements.
Animal Welfare Advisory Committee
Peter Luff Excerpts(13 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Defence (Peter Luff)
I am pleased to announce an early contribution to this Government’s commitment to reduce the costs of bureaucracy following a review of public bodies sponsored by the Ministry of Defence (MOD).
All of the bodies have been reviewed against the technical, impartiality and transparency tests. We have concluded that they are all still needed, except for the Animal Welfare Advisory Council (AWAC). The AWAC was formed in 1996 to provide independent scientific advice to the Secretary of State for Defence on the care and welfare of animals used in procedures for defence research purposes in the United Kingdom. The AWAC is not responsible for monitoring compliance with animal welfare regulations since this is done by the Home Office and their independent Animal Procedures Committee (APC). Consequently the AWAC has not met since 2007. We have consulted with all interested parties and it has been agreed that the AWAC will be dissolved immediately. We are confident that the Home Office and their independent APC will ensure that the MOD continues to take the issue of animal health and welfare seriously and complies fully with all animal welfare regulations.
Oral Answers to Questions
Peter Luff Excerpts(13 years, 11 months ago)
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Claire Perry (Devizes) (Con)
4. What estimate he has made of his Department’s expenditure on military equipment in 2010-11; and if he will make a statement.
The Parliamentary Under-Secretary of State for Defence (Peter Luff)
The Department’s current planned expenditure on the procurement of military equipment—excluding urgent operational requirements for Afghanistan—for the financial year 2010-11 is £6.6 billion, of which £5.5 billion is capital expenditure. In addition, planned expenditure on the associated military equipment support costs for the financial year 2010-11 is £6.3 billion, of which £1.6 billion is capital expenditure.
Claire Perry
Will the Minister confirm that he has digested fully the lessons of the Bernard Gray report, which was suppressed by the previous Government and, when released, suggested that £2.5 billion was being wasted on procurement procedures? When will he update the House with the new procurement procedures?
Peter Luff
I congratulate my hon. Friend on a very sensible question. Labour’s record on debt and financial instability makes that challenge even more important than it already was. I have digested the lessons of that very important report, the strategy for acquisition reform continues, and I hope to report to the House at a later date.
Angus Robertson (Moray) (SNP)
The Government recently made a commitment to publish regional and national defence expenditure statistics and then, within days, reneged on it. Does the MOD have any commitment to equitable defence spending throughout the UK?
Peter Luff
If Scotland accepted the case for the nuclear deterrent, the hon. Gentleman’s argument would be a lot more impressive.
Mr James Arbuthnot (North East Hampshire) (Con)
It is good to hear about the Department’s planned expenditure and, particularly, from my hon. Friend. Last year, on 20 July, the Ministry of Defence published its accounts, which set out the planned expenditure, and for the third year running those accounts were qualified. Will they be published again this month, and will they be qualified again this year?
Peter Luff
They will be published at a very early date, and I am sure that my right hon. Friend’s Committee will take a very close interest in them when they are.
Mr Bob Ainsworth (Coventry North East) (Lab)
In December last year, I announced £150 million to improve the capacity of our counter-improvised explosive device teams in Afghanistan, and, as that is the highest threat level that our forces face, expenditure was kept under review. Recently, the Prime Minister announced another £67 million for the same purpose, and I welcome that, because it is really needed. However, will the Minister clarify the situation? The Prime Minister has repeatedly said that that £67 million will double the number of counter-IED teams. Is that true?
Peter Luff
The £67 million is intended to provide enhanced protection for our teams in Afghanistan and additional mine-detecting equipment, and to procure working dogs—a very effective part of counter-IED work.
Mr Ainsworth
I understand that, and it is welcome. That is exactly what I put in place when I was doing the job that the hon. Gentleman and his team are doing now, and I kept that need under review. However, is it all new money, and will it do what the Prime Minister repeatedly said it would? He said in terms, “We are doubling the counter-IED teams.” He cannot double the counter-IED teams for £67 million. Let us have a straight answer.
Peter Luff
The right hon. Gentleman is understandably concerned, as this is about a very important threat to our armed forces. I can tell him, however, that the difference between this Government and the previous Government is that we have found the money that is crucial in dealing with this threat, and lectures on new money or old money come very ill from him. In the past, commitments were made for many things, but we are actually going to find the money and deliver this vital tool for our armed forces serving in Afghanistan.
Charlotte Leslie (Bristol North West) (Con)
5. What plans he has for future support for cadet forces.
Mr Stephen Hepburn (Jarrow) (Lab)
6. What his plans are for the future of the aircraft carriers programme.
The Parliamentary Under-Secretary of State for Defence (Peter Luff)
As the hon. Gentleman will be aware, we are in the process of carrying out a strategic defence and security review within which all aspects of the defence programme, including the Queen Elizabeth class aircraft carriers, will be examined. The impact on any specific equipment projects will be announced following the conclusion of the review in the autumn.
Mr Hepburn
I thank the Minister for that reply, but urge him to stand by the Defence Secretary’s pre-election comments and statements saying that these particular carriers were of urgent and vital importance to Britain’s defence. May I urge the Minister to give full steam ahead to these projects and invite him to meet me at my constituency shipyard to discuss the matter further?
Peter Luff
I would be delighted to meet the hon. Gentleman in his constituency and look forward to doing so on a mutually agreeable date. However, he will understand that with a strategic defence and security review going on, it is impossible to give the type of commitment that he seeks. I wish I could, but I cannot.
Diana R. Johnson (Kingston upon Hull North) (Lab)
7. What recent discussions he has had on alternatives to the Trident nuclear deterrent.
Mr Douglas Carswell (Clacton) (Con)
17. How many defence procurement contracts have been frozen since his appointment.
The Parliamentary Under-Secretary of State for Defence (Peter Luff)
Out of the 57 equipment-related projects that were subject to re-approval as part of the exercise announced by the Chief Secretary to the Treasury on 17 May, two projects—the search and rescue helicopter project, and the procurement of long-lead items for the successor deterrent—have been suspended pending the outcome of urgent ongoing reviews. However, all projects, including those that have been re-approved, are being considered as part of the strategic defence and security review.
Mr Carswell
Does my hon. Friend believe that it is in the best interests of our armed forces that senior officials involved in preparing MOD contracts are regularly recruited to work for the contractor and lobby Government on its behalf?
Peter Luff
Like my hon. Friend, I have severe doubts about that particular practice, and I can assure him that I am watching it very carefully.
Mr David Hanson (Delyn) (Lab)
Can the Minister tell the House when he expects to agree the contract signed by my right hon. Friend the Member for Coventry North East (Mr Ainsworth) for the A400M, which is built in Bristol and serviced in north Wales? Twenty-two planes with 22 sets of wings are under contract by the Labour Government, but they have been frozen by the Conservative-Liberal Government.
Peter Luff
I wish I could answer the right hon. Gentleman’s question at length, but all I can say is that the A400M, like all other major projects, is part of the strategic defence and security review—the long overdue strategic defence and security review.
Dr Julian Lewis (New Forest East) (Con)
T1. If he will make a statement on his departmental responsibilities.
Gordon Banks (Ochil and South Perthshire) (Lab)
Will Ministers tell me how effective they consider Vector Aerospace, in Almondbank in my constituency, to be in keeping the UK’s armed forces’ front lines effective?
The Parliamentary Under-Secretary of State for Defence (Peter Luff)
I am delighted to pay tribute to the many defence companies that make such a valuable contribution to the work of our armed services, and I would be delighted to hear more from the hon. Gentleman about the company in his constituency. I know that its work is very valued.
Richard Harrington (Watford) (Con)
T5. In view of the constraints on military spending, both financially and in terms of personnel, what help has the Ministry of Defence been asked to give the Home Office in providing security for the Olympic games?
David Tredinnick (Bosworth) (Con)
Is my right hon. Friend aware of the anger in my constituency because the reverse bidding for the contract for the supply of socks did not work effectively? Does he understand that HJ Hall, which has supplied socks for three generations, lost the contract because it could not make its bids within the existing system, and will he please look into the issue?
Peter Luff
I congratulate my hon. Friend on his vigorous defence of his constituents. I agree that the matter is important, and I should like to discuss it with him further.
Barry Gardiner (Brent North) (Lab)
When personnel tragically lose their lives on active service, is there a time limit by which their families must vacate service accommodation? If so, what is the time limit, and what assistance are those families given to find alternative accommodation?
Armoured Vehicle Contract
Peter Luff Excerpts(13 years, 11 months ago)
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The Parliamentary Under-Secretary of State for Defence (Peter Luff)
: I am pleased to announce a major contract award in favour of General Dynamics (UK) for the prototyping and demonstration of a new armoured combat vehicle intended to replace the existing combat vehicle reconnaissance (tracked) (CVR(T)). This award represents a major step towards equipping the British Army with a fleet of new highly capable, modern specialist tracked combat vehicles, able to conduct a wide range of military tasks representative of both current and anticipated operational scenarios. Initially this contract will focus on an improved reconnaissance variant called Scout but will also demonstrate a common base platform which will be the basis for other essential variants, and offer logistical commonality and benefit.
We have chosen a tracked vehicle design, that builds upon a mature platform already in service with other European nations, but which offers growth to meet the UK’s current and anticipated requirements over the next 30 years. As a result, the specialist vehicle family will benefit from increased protection, modern systems, improved fire power and, importantly, greater survivability over existing vehicles, and will be optimised for deployment world wide.
GDUK is based near Newport, Gwent, where the main programme management team will be situated; their proposed manufacturing solution has a high UK content (over 70%) with many UK-based subcontractors involved. Skills required are largely high-value engineering design skills, which will help sustain and develop the UK defence engineering sector.
This contract only commits MOD to the demonstration phase at this time. Commitment to full production will not happen until around the middle of this decade, when sufficient evidence has been gathered from the trialling of prototypes and other demonstration work to ensure the vehicle designs are optimised and fully fit for purpose. This second decision point also allows SDSR to inform whole fleet numbers, based on the future size and shape of the British Army, before the major investment decision is taken.
The award of this contract, to progress the replacement of the current CVR (T) fleet, demonstrates commitment to long-term equipment planning for the Army. This will be welcome news to our soldiers.
Defence Support Group
Peter Luff Excerpts(13 years, 11 months ago)
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The Parliamentary Under-Secretary of State for Defence (Peter Luff)
The following key targets have been agreed with the chief executives of the Defence Support Group (DSG) for the financial year 2010-11. They are designed to drive continued improvements in the agency’s performance and are as follows:
Defence Support Group (DSG)
KT1: Quality
Deliver an improved quality performance by achieving fewer than three attributable major customer concerns within DSG’s air business and implementing a new system to record “major” customer concerns for the land business and set a baseline against which future years’ targets can be set.
KT2: Financial Performance
To achieve at least a 3.5% return on capital employed.
KT3: Efficiency
To develop a phased DSG capacity and capability optimisation plan.
KT4: Delivery
To meet delivery targets as agreed with the customer:
(a) Air Business—to achieve 95% of customer programmes;
(b) Land Business—to meet customer agreed targets for delivery schedules on critical programme lines (94% September 2010, 94% December 2010 and 97% March 2011) and land load tasks (92% of urgent specified tasks, 85% of routine tasks).
Met Office
The Ministry of Defence plans shortly to release information on Met Office financial year 2010-11.