PARLIAMENTARY DEBATE
Defence Procurement - 25 March 2024 (Commons/Commons Chamber)

The Department uses a range of measures to assess the effectiveness of defence acquisition. We have reduced the average time taken to deliver our projects and programmes, but we must go further to drive pace, so last month I announced our new integrated procurement model.

The hon. Gentleman asks a very important question. Of course, training is fundamental to bringing in the next generation to man our capability. I recently had the pleasure of visiting RAF Valley, where I discussed the issue with the RAF. It was able to confirm to me that, for the first time in a long time, there were more students taking up their places rather than in holds. That is a key metric in which we are seeing significant progress, but yes we want to go further.

Yes.

On the important question of steel, we do not expect the closure of Port Talbot to have a significant impact on defence, but obviously we will continue to monitor that situation. I would just gently point out that in 2022-23, the last year for which we have figures available, 89% of spend by the MOD with industry was with British industry. It will be an awful lot harder to make that level of spend if Labour is unable to commit to matching our spending commitments. If the hon. Gentleman is so concerned, perhaps he will join other colleagues on the Labour Benches in insisting that the shadow Secretary of State confirms whether he will match 2.3% of GDP now and our target of 2.5% as soon as the economy supports it.

My right hon. Friend makes an excellent point. He made a similar point in the debate on readiness last week about the importance of accommodation. I think we can all agree that there is a tendency in defence to focus on the big shiny platforms. Accommodation is a key priority; we are very committed to improving accommodation. We know that in the winter before this one performance was not satisfactory. That is why we put in extra investment of £400 million and announced a winter plan. I am pleased to say that we have made huge progress, for example in ensuring that thousands of properties have work achieved on damp and mould.

I greatly enjoyed my visit to Odiham, where my hon. Friend and I discussed a wide variety of issues. He is right to draw attention to our commitment to the procurement of 14 extended-range Chinooks—they have a huge range, of 1,000 miles—but there is also the industrial benefit to the UK and, of course, to my hon. Friend’s constituency. I can confirm that not only has that procurement made us a £300 million saving, but it will contribute £150 million-worth of benefit to the UK’s prosperity.

My hon. Friend has championed this matter consistently. I am pleased to say that we held the first UK trade mission in December, and that there will be further such missions. I can confirm most importantly that, following that mission, UK defence companies and the Ukrainian Government have signed the following agreements. Babcock has been being awarded a three-year contract by the Ukraine ministry of defence to support and maintain two mine countermeasure vessels; BAE Systems and AMS Integrated Solutions have signed an agreement that will enable them to offer specialised artillery systems support directly to the Ukrainian armed forces; and Thales has signed a memorandum of understanding with the Ukrainian drone company AeroDrone, which will bring together the best of Ukrainian and Northern Irish engineering to deliver new capability to Ukraine’s forces.

I will take no lectures from the hon. Gentleman, whose party has been unable even to procure a ferry. [Hon. Members: “It says here!”] I know the subject, and I can confirm to him, because I am very proud of this, that at my insistence our competition for the new medium helicopter will involve a far greater emphasis both on supporting UK industry and on supporting exports. It is by supporting exports that we secure industrial resilience and support for prosperity across the United Kingdom. Of course it is a competition, but we have three very good entrants.