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Defence Procurement and Supply Chains
01 December 2020
Lead MP
Mick Whitley
Responding Minister
Jeremy Quin
Tags
DefenceEconomyTaxationEmploymentScience & TechnologyBusiness & Trade
Word Count: 9625
Other Contributors: 10
At a Glance
Mick Whitley raised concerns about defence procurement and supply chains in Westminster Hall. A government minister responded.
Key Requests to Government:
Mr. Whitley asks the government to ensure that additional funding goes towards projects sustaining high-skilled employment and providing quality training opportunities for young people. He specifically calls on the Minister to provide a cast-iron guarantee that new fleet solid support ships will be built in British shipyards.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Mr. Mick Whitley is concerned about the economic impact of job losses in defence manufacturing, particularly noting thousands of jobs at companies like Bentley, Airbus, and Rolls-Royce are under threat. He highlights a stark example from Barnoldswick, where operations have been offshored and workers locked out of their plant. Additionally, he mentions 5,000 lost jobs in the aerospace sector, disproportionately affecting local economies with high levels of deprivation.
Angela Crawley
Lab
Lincoln
The defence industry faces significant challenges due to the ongoing pandemic and Brexit. The end of the transition period will impact skilled labour movement, collaborative spending programmes with EU allies, and supply chains. ADS reports that almost 30,000 jobs are at risk due to these factors. Crawley also highlighted concerns about the future maritime support programme on the Clyde.
Charles Walker
Con
Broxbourne
I note the importance of local procurement and advocate for more transparency in the allocation of defence contracts to support regional businesses.
Christina Rees
Lab
Neath
Aerospace and defence are vital for Wales' economy, employing 23,000 people before the pandemic. The announcement of a new £2.4 billion contract with BAE Systems will sustain 4,000 jobs over 15 years. The Welsh Government supports innovation in this sector through initiatives like the MOD Sealand R&D centre and Thales' NDEC in Ebbw Vale.
Grahame Morris
Lab
Easington
Defence contracts represent an opportunity for job creation and retention in the UK. However, Rolls-Royce is cutting 350 jobs at its Barnoldswick site and offshoring them to Singapore. This undermines the viability of the site and raises concerns about the protection of critical technology. The Barnoldswick workforce helped set up the Singapore site but were given assurances that it would not put their own site at risk. Asked the Minister to ensure Government direction for companies such as Rolls-Royce to carry out work in the UK for fleet solid support ships, STOL engines for F-35 Lightning fighter, and lift-fan blades.
The UK has a strong defence industry, with significant spending on equipment and jobs. However, there is a need to develop a longer-term strategy for designing and building UK equipment to avoid substandard commercial off-the-shelf solutions. This includes investing in the British defence industry, relinquishing EU competition rules, and planning ahead for export potential.
Jim Shannon
DUP
Strangford
I emphasised the importance of Northern Ireland benefiting from defence procurement opportunities. I welcomed the Prime Minister's commitment to a £16.5 billion spend on various sectors, including shipbuilding and space research. I asked about Bombardier in Northern Ireland and whether they have been engaged for potential contracts. I also highlighted the need for apprenticeship opportunities through this programme. Thales in Belfast is involved in cyber-security and the Minister should consider it for future cyber-security contracts.
John Spellar
Lab
Warley
Mr. Spellar argued that there is a 'deep sickness' within the civil service's disregard for manufacturing, highlighting examples from France and Italy where shipyards were mandated to build ships using foreign designs but in their own yards. He criticized the UK government's reluctance to use state aid powers under EU regulations to support domestic industries. The Government's delay on procurement decisions, particularly regarding warship designations, is absurd. Companies are ready to bid and start production but face uncertainty due to indecision.
Kim Johnson
Lab
Liverpool Riverside
Ms. Johnson called for a multibillion pound boost to British jobs by placing delayed defence orders, emphasizing that spending by the Ministry of Defence supports 119,000 UK jobs and nearly 4,500 apprenticeships.
Simon Fell
Con
Morecambe and Lunesdale
I call upon the government to ensure that small and medium-sized enterprises in North East Derbyshire are given a fair chance to compete for contracts within the defence supply chain, highlighting concerns about the dominance of large conglomerates. Defence procurement is crucial for levelling up in communities like Barrow and Furness, where BAE Systems supports over 10,000 skilled workers building submarines. The company's investment in local education and skills training sustains the supply chain that contributes £1 billion to Cumbria's economy annually.
Stephen Morgan
Lab
Portsmouth South
Welcomed the four-year funding settlement for defence but expressed concern over flatlining of day-to-day revenue funding, leading to cuts in personnel and service jobs. Noted the importance of placing service personnel at the heart of defence operations and avoiding past mistakes like efficiency savings that led to a £13 billion budget black hole. Raised concerns about subcontracting practices affecting working conditions at HM Naval Base Clyde.
Government Response
Jeremy Quin
Government Response
Welcomed the debate, noting the £24 billion investment in defence. Highlighted support for the defence industry during the pandemic through prepayments (£138 million). Emphasized continued support for companies like Rolls-Royce at Barnoldswick despite current concerns. Mentioned the Typhoon programme's contribution to the UK economy and job creation. Noted £6.6 billion on military research and development, confirming orders of eight Type 26 and five Type 35 frigates, and progress on the FSS competition launch in spring. Emphasized support for future combat air system projects and commitments to Boxer at Telford with supply chain benefits. Announced a cross-Government review to ensure competitive and innovative defence sectors. Launched social value procurement model and joint economic data hub within UK Defence Solutions Centre. Targeted 25% spend with smaller companies, currently at 19%. Emphasized the importance of supply chain resilience and risk programme.
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Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.