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National Security Strategy

My Lords, the noble Lord, Lord King, has chosen a vital subject for debate. We are a global power, both in terms of defence and foreign policy. We are constantly assured that everything is being done to enhance our security. In the same week, however, we have been told—as the noble Lord said—that the FCO, which operates extensively abroad, faces, as a result of exchange rate movements, a cut of £100 million, and may have had to reduce its work—in fact, has had to reduce its work—on counterterrorism and on capacity building to help conflict prevention in Africa. It has valuable contacts in danger areas such as the Yemen and Somalia and collects invaluable biometric data through visa-issuing posts overseas, a vital weapon in the fight against terrorism. I hope that the new strategy group will ensure that such an essential source of information and influence should not be cut off by a Treasury ruling. In any future security strategy, decisions must be made after full consultation with any of those involved in decision-making. In a recent report to which Permanent Secretaries have contributed it is clear that under Tony Blair major policy decisions were made by him within No. 10 and the Cabinet Office, although not by the Cabinet. Those who were to implement the actions were not consulted first. The Islamist threat is, of course, immediate and continuing. However, we must not forget the strategic threat from China in terms of cyber attack, not only on our defence installations but our economic estate, and from Russia. We are a vulnerable island. Command of the seas and air and the possession of a sea-based deterrent are vital to our economy and survival. There will be difficult choices to be made. The new committee should be able to ensure informed consultation, followed by review by a Cabinet exercising collective responsibility, not a Prime Minister acting alone. Money is, of course, an issue. The first thing to do must surely be to review and reduce the present vast and complex system of committees and sub-committees which constitutes the Cabinet Office today. It should be possible to take the axe to some of this proliferating undergrowth. But there is a daunting picture of thousands of interlocking units. Some useful things are being done under the present system, but nothing which can justify ignoring the constitutional duty to place decisions where they belong—in Parliament for implementation by ministries. Collective ministerial responsibility needs to be restored and the JIC should meet weekly, as it used to. Whatever the special contribution of unelected advisers, they should not replace the civil servants who advise ministries and execute policy. One of the major failures in the system in recent years has been the plethora of ill-thought-out legislation—much of it knee-jerk reactions to the media—and the extensive involvement of, for instance, McKinsey’s in the work of the ministries and the Cabinet Office. Our foreign and defence policy should not be decided in the Treasury, still less by the PM alone. It will be for the committee responsible for the national security strategy to play a full part in providing the reorganisation needed to restore effective Cabinet government. It should be better able to operate a national security strategy, once the organs of government work as they should. Of the 27 secretariat groups and units, the most powerful and valuable are probably the Delivery Unit and the Strategy Unit, both now located in the Treasury. This gives the Treasury powers beyond its proper remit. There needs to be more transparency and accountability. Turning to the defence review, I hope that the committee will recognise that we are an island, a maritime nation. We need to have ships able to operate in the Atlantic and protect our shores, and to deliver troops anywhere in the world. We must be able to deliver Trident and maintain our submarine fleet. Russia has not produced a new fighter bomber without hoping to bring pressure to bear on NATO members with a common border. Again, the deterrent is better than war. On a different, but none the less important, issue, we need not least to take action to improve numeracy in the schools, to teach physics, chemistry and languages, and to fund defence research in the universities. We shall need graduates with these skills in a modern Army. It will be for the committee to return us to a government system which is not presidential and is fully accountable. The responsibility to execute policy decisions, and to advise, should return to the ministries. Only then can we proceed to an agreed national security strategy. Power to make strategic and tactical decisions must no longer rest, as it largely does at present, inside the Treasury. The latter has a part to play, but it should not be able to make decisions on defence and foreign affairs. If, by retaining deterrents, we can check potential aggressors, we should also consider reclaiming ownership of the nuclear industry and gas supplies. Moreover, I hope that part of our defence strategy will be to develop our own industrial base. What the noble Lord, Lord Davies, said in the previous debate was encouraging. We are a maritime nation, but we are also merchants. To thrive in those areas will be an important part of defence strategy.