PARLIAMENTARY DEBATE
Defence Procurement - 26 June 2023 (Commons/Commons Chamber)

We are driving the delivery of capability to the frontline. Over a two-year period to December 2022, we have seen a one-year reduction in the average programme duration, but we can do more to improve and are committed to learning the lessons of the Sheldon review.

I do not accept that. I am happy to write to the hon. Member with the details. Our position is that, obviously, we want to use UK steel and we recognise its quality, but there will be cases where the appropriate steel has to be sourced from elsewhere. Ultimately, we have to deliver the equipment required for our capability.

I am happy to be Mr Nice Guy when it comes to British industry. A central tenet of the defence and security industrial strategy is that industrial capacity is part of our defence capability. I am absolutely clear about that. Of course we want to have a strong domestic industry. There are occasions when acquisition has to be undertaken at pace and, as we have seen in getting equipment out to Ukraine, we have had to be flexible in how we source that equipment. But we are absolutely committed to a strong industrial base for defence, both at SME level and with our primes.

My hon. Friend is a champion of SMEs and makes an excellent point about prompt payment. I can assure him that the MOD has a standard contract term that requires primes to pay suppliers within 30 days. I am informed this is called DEFCON 534. Obviously, it is not to be confused with other uses of the word “DEFCON”, but it is a very important point. Like him, I want to see our SMEs supported.

As I said in the statement, I recognise the unique angle the hon. Gentleman has on this issue, because the factory in question is in his constituency. I stress that the employment of those employees is the legal responsibility of the company. We engage closely with them. One of the lessons learned is about that close engagement at SRO level through Defence Equipment and Support. Andy Start, CEO of DE&S, has led huge change in improving the way we work together. I suspect we will continue to build on the significant improvement the Secretary of State just highlighted, in terms of both cost and timing, between when the Opposition was last in power and now.

I am grateful to the hon. Gentleman for his praise for my brilliant colleague, my right hon. and learned Friend the Member for Cheltenham (Alex Chalk), who is now Secretary of State for Justice and the Lord Chancellor, no less. Absolutely, we have a plan, and that plan must take into account the lessons from the Sheldon review. In taking on this job, I recognise that there has been huge focus on Ajax, but I hope the fact that Ajax is now with the Household Cavalry for regular field training is a symbolic moment that shows we are turning the corner. We are going to engage right across defence to develop a better procurement system, and I want to ensure that delivers better outcomes. As I said at the Defence Committee, that is why we have tasked the permanent secretary to undertake an end-to-end review of the whole defence operating model.

The hon. Gentleman has ranged a long way, from air to ground. The key element is to strengthen our speed and agility, whatever the platform in question. Some of the platforms he refers to are at a conceptual phase. I am committed to driving pace because, although times are improving overall, ultimately we do not want to have the delays we have had in some notable programmes. We need pace because that is how we maintain our competitive edge against our international adversaries.