PARLIAMENTARY DEBATE
Defence Suppliers: Innovation - 12 December 2016 (Commons/Commons Chamber)

With a rising defence budget and an equipment plan worth £178 billion over the next 10 years, we are renewing our capabilities. We spend up to 20% of our science and technology budget on research, and we have launched an £800 million innovation fund.

The Minister will be aware that the Ministry has a reputation among some suppliers of being somewhat challenging to work with. What is she doing to try to improve working relationships, particularly with small and medium-sized enterprises, including many of the defence industry suppliers in Worcestershire?

My hon. Friend and constituency neighbour is absolutely right that it can be challenging to work with Ministry of Defence procurement processes. We are particularly keen to encourage small and medium-sized businesses to apply for business with us. We want to increase the level of our spending that we procure from small businesses from 19% to 25%. Acting on direct feedback from small businesses, we have introduced a network of supply chain advocates to help smaller businesses through the maze of defence procurement, and their contact details are available to my hon. Friend and other Members on request.

The Minister has referred to renewing our capabilities. I have previously asked her about the programme to renew the Type 45 power and propulsion systems. I recognise that there are commercial sensitivities, but will she tell us whether there is a budget for the programme of improvements to the Type 45 power and propulsion systems, and when does she expect all six vessels to be improved?

I am very pleased to be able to confirm to the hon. Gentleman that there is a budget, and that progress is being made. These incredibly capable ships are performing a wide range of tasks. For example, HMS Daring is now in the Gulf, acting as part of our deployment there.

I am delighted to tell my hon. Friend that I was able to launch the first competition on Thursday at the University of Strathclyde in Glasgow. In the first competition—for up to £3 million—we are looking for new ways of exploring data to inform decisions. It does not sound as though that is exactly the area of specialisation with which the business my hon. Friend mentioned is engaged, but there will of course be further competitions, and applications are also open for a wide range of different ideas to be fed in directly.

No one would deny that it is vital to do everything we can to encourage innovation in the defence sector. Does the Minister agree with me that to foster an environment in which innovation can flourish, business and industry have to be able to trust what they are told by the Government? Given that, will she take this opportunity to explain to the shipbuilding industry exactly why she did not deliver on the copper-bottomed assurances, which she gave on at least four occasions, that the national shipbuilding strategy would be published before the autumn statement?

Mr Speaker, did you pick up in that question any congratulations on or delight at the fact that I was at the shipyards on the Clyde on Thursday, cutting steel for two new offshore patrol vessels? I remain astonished at the very grudging way in which the Scottish National party fails to recognise the billions of pounds of work that is being sent to shipyards on the Clyde.

For the record, I am absolutely delighted that the OPVs are being built on the Clyde. Will the Minister take this opportunity to apologise to workers and management across the UK shipbuilding industry for the misleading and contradictory statements that have come from the Ministry of Defence during the past few months? Will she also take this opportunity to explain why the shipbuilding strategy did not appear when she promised it would appear?

It is lucky the hon. Gentleman gets a supplementary, so that he can say some vague, grudging words of welcome for the fact that we have just announced two decades’ worth of work on the Type 26 frigates in Scotland. He is complaining about the lack of publication of a report that has been published; the Government will provide their response next year. [Interruption.] Sir John Parker’s report on shipbuilding was published on 29 November. I am sorry the hon. Gentleman has not had a chance to read it, and will send him a personally signed copy.

The hon. Gentleman is a very excitable burgher of this House. I am not sure that he has quite attained the apogee of statesmanship to which he should aspire. He must try to calm himself and take some sort of soothing medicament. That will probably do the trick. Let us hear from a calm person. I call Maria Miller.

The Minister’s focus on innovation is absolutely right. Will she look at the excellent work of the National Aerospace Technology Exploitation Programme, which is already running more than 100 innovation projects, and establish how she can help to continue that work?

Mr Speaker, you were absolutely right to call my right hon. Friend, who has asked such a calm and helpful question about the excellent work of that organisation. She also will be familiar with the work of the Defence Growth Partnership at Farnborough and the fantastic way in which it works to promote the excellence of the UK aerospace industry to people all around the world.