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Debate on the Address

My Lords, it will come as no surprise that I would like to press the Minister, the noble Lord, Lord Drayson, on an issue that I have raised in the defence debates following the Queen’s Speeches in 2004 and 2005: aircraft carriers. While I am delighted that the Minister has frequently reiterated the Government’s unflinching support for the projected two new aircraft carriers, I am frustrated—although, sadly, not surprised—that I cannot congratulate him on the start of their construction, let alone anything else. In May last year my questions about press reports that the Main Gate date was slipping into 2006 went unanswered, yet 18 months later we still have no date. Indeed, the Daily Telegraph reported at the start of this month that there are risks of even further slippage due to, "““continuing disagreements between the industry and the MOD over rising costs””." That is a debate in itself, considering that the initial estimate was between £2.8 billion and £3 billion and we are now looking at a figure closer to £3.8 billion. I fully accept the desirability of maximising the de-risking process within the carrier project but the MoD’s management has been disappointing. The creation of this ““alliance””, followed by the award of a ““physical integrator”” contract to KBR, has revealed a constantly shifting strategy. Has the de-risking process now been accomplished? Can the Minister inform the House of the outcome of the alleged discussions with the industry at the start of this month? How is the component costing and consequent business case for the project proceeding? Will he now give a firm date for Main Gate, as there appears to be a chicken and egg situation, with each side waiting for the other to move first? Perhaps the Government, as the customer, should get on and place an order and rely on the industry to make its own arrangements for how and where the various modules of both vessels are to be produced. It seems to me that, once the Government and industry have sight of the workload in future years, the review of the shipyard situation can be also successfully concluded. Linked to the cost debate, I hope the Minister can offer me greater clarity on the role of the French. We welcome their desire to take advantage of the extensive design work undertaken in the UK but we remain concerned that, given the pressures on the budget, Her Majesty’s Government may suddenly announce that they will share the two carriers between the UK and France, consistent with the Le Touquet declaration of 2003. Will the Minister give an undertaking that this will not happen? I reiterate our belief that the ““Queen Elizabeth”” and ““Prince of Wales”” will eventually be ships of which we will be enormously proud. They are essential if the Royal Navy is to continue to carry out its remit, and will be the nucleus of a very formidable fighting force capable of projecting military power and peace-keeping anywhere in the world. However, the abandonment of the original proposed in-service dates of 2012 and 2015 respectively leaves us with a very serious capability gap. Without the right kind of Sea Harriers, the Invincible class will require another nation to provide air defence. What discussions have Her Majesty’s Government had with other nations, such as the USA, about the provision of air defence should the situation arise? In the debate of 19 May, I asked whether the Joint Strike Fighter in-service date will coincide with the arrival of the first of the carriers, stating that the weight problem appeared to have been solved. Unfortunately, the outstanding issue still appears to be the ongoing lack of agreement on the supply of technology which will allow British contractors to maintain and upgrade the aircraft. If this is not sorted out, it is self-evident that this aircraft will be useless to us. Does the new political scenario in the US affect this? Could the Minister update us? If there seems to be no solution to the problem, what is the Government’s plan B? Will the carriers be capable of being converted to take non-short-take-off and vertical-landing aircraft? It is possible that the whole future of the carrier programme will depend on the good will of the new US Congress. Up to now, the Government have been very consistent in their support for the project. Can we be assured once again that that support is still in place? I am conscious of the workings of these debates, and ask the Minister to undertake only to write to me in answer to any questions that he cannot respond to today.