Defence Jobs: Wales

9. What steps he is taking to increase the number of defence jobs in Wales.

On 19 February, the Secretary of State and the First Minister of Wales announced a £50 million Welsh defence growth deal, making Wales a launchpad for the next generation of autonomous technology. Thousands of skilled workers in Wales will be involved in the design, testing and manufacture of these innovative technologies. This proves yet again that defence is an engine for growth in Wales and shows the power of two Labour Governments working together to deliver in the interests of Wales.

I welcome and fully endorse the Minister’s comments about the benefits of two Labour Governments working together for the people of Wales. In the 19th century, ironworks in my constituency made cannons and cannonballs for the Royal Navy; in the 21st century, skilled workers and businesses in Merthyr Tydfil and Aberdare, such as General Dynamics, are ready to continue our area’s role in enhancing the nation’s defences. I seek an assurance from the Minister that businesses in the supply chain across the south Wales valleys will continue to play a key role in providing those skilled jobs in our communities to ensure that investment in the defence sector gives a necessary boost to the confidence of areas such as mine.

Having visited my hon. Friend’s constituency, I know what a champion he is, not just for large companies such as General Dynamics but for the wider supply chain. That is precisely why the Department has committed to increasing our direct spend with small businesses by 50% by 2028, ensuring that we are removing the barriers to small businesses being able to engage with the defence supply chain more and investing in the skills that those small and large businesses require to make the most of a rising defence budget. I look forward to meeting my hon. Friend and his constituents in relation to General Dynamics shortly.

I call the Liberal Democrat spokesperson.

The hon. Member for Merthyr Tydfil and Aberdare (Gerald Jones) knows better than most that the Ajax programme is not only a national defence procurement issue, but specifically a Welsh one; around 400 workers in Merthyr Tydfil are connected to the Ajax factory. Workers have been hospitalised, troops have been put at risk and £6 billion of taxpayers’ money has already been sunk into the programme. While Ministers deliberate, those workers are left completely in the dark about the future of the project and their jobs. I cannot imagine how that must feel for them and their families. Will the Minister tell us when a final decision will be made on Ajax and what he has to say to the workers in Merthyr Tydfil who are waiting for clarity about their families’ futures?

I thank the hon. Gentleman for the way he posed that question. What happened on Exercise Titan Storm was of serious concern to all Members of this House. It was for that reason that we paused use of Ajax and initiated a number of safety investigations into what happened and the impact on our people, and put in place measures to ensure that we could learn lessons. We have now received those reports and are analysing them, and I hope to be able to make further announcements in due course. The hon. Gentleman is absolutely right to talk about the workers and not just the soldiers in uniform. That is why we are continuing a strong dialogue with General Dynamics and the local Members of Parliament on this issue.