Defence Procurement: Steel Industry

Oral Answers to Questions — Defence – in the House of Commons at 12:00 am on 12 September 2016.

Alert me about debates like this

Photo of Christina Rees Christina Rees Labour, Neath 12:00, 12 September 2016

What steps he is taking to ensure that the British steel industry and its workers benefit from current and future defence procurement.

Photo of Harriett Baldwin Harriett Baldwin The Parliamentary Under-Secretary of State for Defence

We positively encourage bids from British companies to ensure they are in the best possible position to win future steel contracts. We have issued new policy guidance to address the barriers which might prevent UK steel producers from competing effectively in the open market.

Photo of Christina Rees Christina Rees Labour, Neath

Now that Government Departments are mandated to provide information about the proportion of UK steel used in the Crown Commercial Service, will the Minister please tell the House what percentage of UK steel is used in current defence projects and what percentage will be used in future?[This section has been corrected on 11 October 2016, column 4MC — read correction]

Photo of Harriett Baldwin Harriett Baldwin The Parliamentary Under-Secretary of State for Defence

The hon. Lady rightly speaks up for steel production in her constituency. She will be very pleased to know that, for the largest project that the UK Government have ever procured that uses steel—she will be aware that that is the carrier programme currently under construction on the Clyde—the vast majority comes from Tata Steel. I believe it is 94%.

Photo of Tom Pursglove Tom Pursglove Conservative, Corby

I wholly support the increasing use of small firms for defence procurement, but will the Minister undertake to encourage those small firms to use British steel wherever possible?

Photo of Harriett Baldwin Harriett Baldwin The Parliamentary Under-Secretary of State for Defence

My hon. Friend is absolutely right that it is a process of encouraging competition not only within the procurement process, but where there are long lead-time items. In our strategic defence and security review, we clearly set out the largest programme of investment in ships for some time, and there will be a lot of long lead-time items. Small business and producers will be able to work with those who are procuring contracts with prime contractors to find a place in that supply chain.

Photo of Kate Hollern Kate Hollern Shadow Minister (Defence)

Recent defence procurement decisions have failed to take into account the benefits to the UK economy gained by manufacturing domestically. A growing number of products, particularly steel, are procured abroad. Will the Minister therefore commit to assess the wider economic and social benefits derived from building the three new solid support vessels in the UK with British steel, and to share that information with the House?

Photo of Harriett Baldwin Harriett Baldwin The Parliamentary Under-Secretary of State for Defence

The hon. Lady is right again to highlight the fact that, in our strategic defence and security review, we set out a programme in which we are investing in more ships and more aeroplanes, and there is more cyber-investment. She mentions the solid support ships. They will not be procured until later in the Parliament, but I assure her that we will do everything we can with those long lead-time items and the programmes that have been set out in advance to ensure that British companies, including British steel companies, have all the information they need to be successful.