Extracts from Defence questions: Ajax and General Dynamics - July 5

Tuesday, 6 July 2021 08:02

John Healey (Wentworth and Dearne) (Lab):...The Prime Minister has promised an extra 10,000 jobs in defence each year for the next four years. Buying British is the best way to deliver that promise so that we design and build for ourselves in Britain: it strengthens our economy and it strengthens our sovereignty. The defence equipment budget is now £19 billion. What proportion goes not to Britain, but to US suppliers?

The Secretary of State for Defence (Mr Ben Wallace): Many suppliers in this country may not be entirely UK in their country of ownership, but the Ajax, for example, is made in St Athan by General Dynamics and Boxer is made in Shropshire by a combination of BAE and the German Rheinmetall. We often insist that a significant proportion of those projects are made in the UK: for example, over 65% of the Boxer vehicle’s components are UK-made, including the metal frame made in Stockport. That provides British jobs, even if sometimes the countries of ownership are international. It is important to have international components because, as hon. Members have mentioned in previous questions, we also want to sell abroad. If we shut everyone else out, we should not be surprised if they do not buy from us.

Chris Evans (Islwyn) (Lab/Co-op): With the National Audit Office having judged the defence equipment plan to be “unaffordable” for the fourth year in a row, the continuing well-publicised disaster and rising cost of the Ajax project, and the cancellation of Warrior, can the Minister explain why this vanity project has become a spending priority for the Ministry of Defence?

The Minister for Defence Procurement (Jeremy Quin): I am delighted to help the hon. Gentleman on a few points. First, on the NAO report to which he refers, I believe that was done on the old numbers prior to a very fulsome provision to the Ministry of Defence of £24 billion being spent from the current levels. That has helped us to ensure that we can deliver the right priorities for this country in the future. On Ajax. I am pleased to reassure him that that is a firm price contract. As to Warrior, that is one example of the tough decisions we make to ensure that the budget comes in on balance, and we will continue to do so. That is the target of the Secretary of State and myself. We will continue to work on that and address all the priorities of the Ministry of Defence.

Martyn Day (Linlithgow and East Falkirk) (SNP) [V]: This week we learned that the Ajax programme has been withdrawn for a second time, on health and safety grounds. Experts say the problems are so serious that the Government should cancel the £5.5 billion deal. Does the Minister agree that Britain’s defence procurement strategy wastes billions of pounds and actually puts lives at risk?

The Minister for Defence Procurement (Jeremy Quin): No, I do not agree with that contention. This is a firm price contract. We are working closely with General Dynamics to ensure that it gets delivered, but as the hon. Gentleman would be the first to say—as we would all say in this House—the safety of our personnel must come first, which is why we paused those trials. As soon as we can get them going again, we will, but we will do so only if that can be done safely and appropriately...