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Defence: Spending Review and Aircraft Carriers

I thank the Minister for repeating the Statement. We on these Benches also send our condolences to the families and friends of the service personnel killed in Iraq and Afghanistan. We supported the carrier project from the outset and welcome this overdue announcement. We also welcome the commitment to retain the three current naval bases. Aircraft carriers are essential to maintaining Britain’s expeditionary military capability and ability to operate forces around the world as well as to provide humanitarian relief. I regret the long time that it has taken the Government to reach this point. It seems to identify a less-than-constructive relationship between the MoD and the defence industry. We on these Benches have on numerous occasions asked the Government to announce the order for the carriers to allow the industry to consolidate, rather than having the industry consolidate first. When does the Minister expect contracts to be signed and the construction of the carriers to begin? We welcome co-operation with France, particularly if there are cost savings, but provided it does not delay the in-service dates. The carriers will support the new joint combat aircraft. How many of those aircraft will the carriers hold and what are their current target in-service dates? Noble Lords will remember that the ISD was revised from December 2012 to December 2014. With current recruitment and retention difficulties, can the Minister guarantee full manning of the carriers? The carriers will require adequate protection and will form part of an integrated future Navy fleet with, in particular, the Type 45 destroyers. To date, only six Type 45s have been ordered. Is the Minister satisfied that we will get eight? I know that the noble Lord, Lord West of Spithead, was very keen to see that happen when he was First Sea Lord, and I am very pleased to see him in his place. The MARS programme will address the support demanded by the new carriers and Type 45s. In February 2006, three companies began competing for the role of prime integrator. That process was not expected to last more than nine months. Can the Minister confirm the current status of the process? These projects form but a small part of the equipment programme. Can the Minister say whether the FRES project is still on track? We cannot be complacent on other programmes across all services that are vital to future military effectiveness, and the other services will want assurances that they will not suffer heavy cuts to allow the carrier project to go ahead. In December last year, the Minister gave a commitment to publish the equipment programme. Can he confirm that? As part of the Comprehensive Spending Review have the Government assessed whether the funding announced will be enough to meet all the pressures within the equipment programme and the costs of ongoing operations? The Minister will be aware that the unit cost growth of major weapons systems and procurement projects is typically 10 per cent per year in real terms. He will also be aware of continuing concerns about whether the costs of ongoing operations are fully funded from the Treasury special reserve, and that the urgent operational requirements process for ongoing operations often ends up being in competition with the equipment programme. Will he assure the House that funding for contingent operations neither draws on the defence budget nor will negatively impact on it at a later date? In the Statement, the Minister gave us the total departmental expenditure limits for defence. Can he give the House the cash equivalent budgets?