Autumn Statement (Hansard, 24 November 1992)

§ 5. Mr. Bennett
To ask the Secretary of State for Defence if he will make a further statement in the light of the defence expenditure plans announced in the autumn statement.

§ Mr. Rifkind
The expenditure plans in the autumn statement allow us to maintain the direction for defence, set out last year, in "Britain's Defence for the 90_s". The new force structure and lower pay and inflation will provide significant savings over the period.

§ Mr. Bennett
Does the Secretary of State agree that one of the most important aims of the autumn statement is For the Government to obtain value for money? Is he aware that the National Audit Office produced a critical report on the handling of defence lands by the Ministry of Defence? The public feel that if there are to be fewer soldiers, less defence land will be needed for training. Against that background, why have the Government suddenly decided to take over the Cnewr estate on the Brecon Beacons, ending the possibility of public access to the area, agreement on which has taken almost 10 years to negotiate? Should not the Ministry of Defence stop taking over new land until there has been a full review of the use of the countryside by defence forces?

§ Mr. Rifkind
I must remind the hon. Gentleman that, although the size of the armed forces is being reduced, large numbers of Army personnel are returning to the United Kingdom from Germany, where they will no longer be required. They will not be able to undergo training in Germany, so there is a continuing need for adequate training sites in the United Kingdom. The proper procedures are followed before a conclusion is reached on the suitability of any individual site for training.

§ Mr. Ward
Will my right hon. and learned Friend confirm that the £500 million programme for re-equipping amphibious forces announced by the Minister of State in the previous Parliament will still go ahead?

§ Mr. Rifkind
Obviously, we attach importance to ensuring that the commitments of the Ministry of Defence are properly resourced and resolved. We are examining the precise details of the implications of the autumn statement for several matters. I am conscious of the importance of amphibious work and it will be fully taken into account.

§ Mr. Hutton
I wish to point out that the tender deadline for landing platform helicopter vessels passed six or seven weeks ago and that it is fundamental to the survival of many of our warship yards that the Government make a firm announcement of their intention to place an order for the LPH. Will the Secretary of State make it clear to the House and to our shipbuilding community that the Government remain committed to placing an order for the LPH and, in addition, they intend to place a firm order for the landing platforms dock? That is also extremely important for the future of our industry.

§ Mr. Rifkind
The hon. Gentleman must appreciate that for six weeks to elapse after a tender deadline is by no means unusual. Several tenders for that order have been received. It always takes a proper period to evaluate all the tenders so that a proper conclusion is reached. I assure the hon. Gentleman that there has been no delay with the project.

§ Mr. Streeter
Will my right hon. and learned Friend confirm that one way in which the Minister of Defence can make substantial savings is to award the vital contract for the maintenance of the Trident boats to Devonport dockyard? That would save £400 million of taxpayers' money over 10 years.

§ Mr. Rifkind
Significant representations have been made by both Plymouth Devonport and Rosyth about that contract. All the matters are being properly evaluated at present. When we have reached a conclusion, we shall not only announce it but explain the reasons for it to the House.

§ Mr. Martlew
Does the Secretary of State not understand that the announcement in the autumn statement that increases in forces pay would be restricted to 1.5 per cent. has dealt a devastating blow to the morale of our forces, which is already at a low ebb? Does he agree that it is not good enough to tell our troops, whether on the streets of Belfast or in the Bosnian mountains with the United Nations, that the nation is grateful, but, by the way, we are cutting their wages by 2.5 per cent. next year? Will the Secretary of State review that disgraceful policy?

§ Mr. Rifkind
Members of the armed forces, as well as others in the public sector who are employed, understand the importance of ensuring that resources can be released to help provide employment in other areas. The hon. Gentleman—who, no doubt, is anxious for the problems of unemployment to be dealt with—should be more sensitive to the realistic ways in which that can be achieved.