New Medium Helicopter Programme

I will call Adam Dance to move the motion and then the Minister to respond. I remind other Members that they may make a speech only with prior permission from the Member in charge of the debate and the Minister. As is the convention for 30-minute debates, there will not be an opportunity for the Member in charge to wind up.

I beg to move,

That this House has considered the future of the New Medium Helicopter programme.

It is a pleasure to serve with you in the Chair, Dr Allin-Khan. I thank the Minister for coming to answer pressing questions. I recognise how hard he and his team work and the headache that we must be giving him by going on about the new medium helicopter.

After retiring the Puma from service last year, the UK currently has a capability gap. We have no medium-lift helicopter ability for our armed forces, which means there is a clear requirement for helicopters to transport troops, equipment and supplies over long distances and difficult terrain on a wide range of missions. Although we hear a lot about the future of warfare, in the age of drones and even greater technology development, crewed helicopters are still key to a joint force that will allow our military to respond effectively to the ever-growing threats we face.

We have a gap that needs to be filled. That is what the new medium helicopter programme is for. As the last remaining bidder for the £1 billion contract, Leonardo is ready to fill that gap by offering the AW149 helicopter, built at the home of British helicopters in my constituency of Yeovil. The Minister will tell us that it is far more complex than many people outside defence may realise, but I think he can appreciate that it does seem quite simple. There is one bidder in a contract; that is a win, win, win. It fulfils a capability requirement, will help to boost defence spending and modernise our armed forces. It will provide investment in the British jobs and apprenticeships in Yeovil, which is what the Prime Minister told me he is determined to deliver.

I commend the hon. Gentleman for securing this debate. He is right to highlight jobs in his constituency and further afield, because many other companies depend on this work. Does he agree that this contract is crucial for replacing the RAF Puma HC2 fleet, and is critical to national security? The Minister and Government must prioritise and fund the replacement accordingly. The dithering must come to an end and action must be taken.

I agree that we need action. We need to ensure that we arm our forces with the correct equipment now. By contrast, not awarding the contract is lose, lose, lose, particularly for my constituency.

The future of the new medium helicopter is the future of Yeovil. Leonardo has been clear that if the programme does not go ahead, it will need to seriously consider the future of the Yeovil site. That puts more than 3,000 skilled jobs at the Yeovil site directly at risk, alongside 12,000 in the regional supply chain and the £320 million contribution to local GDP. It would also lead to a huge loss of investment in my community—starting with £1.2 million to Yeovil college, which does fantastic work training the skilled people we need in our defence sector—and the loss of the Westlands entertainment centre, and would leave a new solar farm unfinished, and so much more. It will be the death of my town. Local businesses have told me that they will shut overnight if Leonardo goes. House prices will fall and young people trained in Yeovil will leave.

Not awarding the new medium helicopter also has a knock-on effect for our country’s defence. That point gets a little lost in jargon of sovereign capability. If the site in Yeovil closes, we risk losing our country’s ability to build our own helicopters from start to finish, at the exact time that the world is becoming unstable and insecure. Put like that, as people back home tell me, it sounds insane not to get on with the programme and secure the future of the Yeovil site.

I thank my hon. Friend and constituency neighbour for giving way. He will know that many people who work at the Leonardo site live in West Dorset and commute. The company is responsible for providing training and apprentice opportunities for thousands of my constituents. I feel like every strategic defence review about the urgent need to speed up procurement—that is repeated ad nauseam. Even the most recent one recognises that the uncertainty around procurement undermines national security. My hon. Friend has rightly identified that there was a sole bidder, and that the programme is vital for the UK’s sovereign capability. Does he agree that unless the Government start to show that they are serious about speeding up procurement in the defence sector, we will lose vital industries, such as those that secure our ability to make helicopters, as well as thousands of businesses in the supply chain that support them?

I completely agree with my hon. Friend. This issue affects not just our constituencies but many constituencies in the south-west. Leonardo is the backbone of our area, and we must secure the contract, but the effect on our area is not the only knock-on effect. The site in Yeovil is making fantastic progress on the Proteus uncrewed helicopter, which was recently successfully tested. Even though we are one of the few nations leading on such technology, if Leonardo cannot sustain its current workforce, skills and funding, we will lose those skills and could potentially lose Proteus. Once those skills are gone, they are really hard to get back, so not awarding the contract will undermine the Government’s drive for greater autonomy in our armed forces.

Given all that, why the delay? As far back as June last year I was told to “listen out”. I have heard so little since that I was worried that I might have lost my hearing—but don’t worry: I had my ears checked and they are working just fine. It seems that the problem is getting the defence investment plan to work. We were told that the DIP would answer all. It would set out the Government’s plan for spending on our defence and armed forces, including on the new medium helicopter, but at this point we might as well call it the delayed investment plan.

The new Chief of the Defence Staff told me, as a member of the Defence Committee, that the medium helicopter programme was still very much on the armed forces’ priorities list. Does my hon. Friend agree that the Government need to ensure that it is in the defence investment plan, because the service chiefs are asking for it? It is not all about uncrewed capability; we will always need crewed capability. This programme needs to be prioritised now, even before the defence investment plan comes out, because the Minister will tell us that they are still working it through. The Treasury and the Ministry of Defence need to get their act together and reinforce the programme to save the 3,000 jobs, plus those in the supply chain of SMEs that enable Yeovil to deliver it.

I completely agree with my hon. Friend. I will come on to that point and his question to the Chief of the Defence Staff later in my speech.

In a response to my last urgent question on the defence investment plan, the Minister told me that it will be published when it is ready. That is the real problem, as Leonardo’s best and final offer will expire in March this year. Even more worrying are the reports of the £28 billion funding gap for our armed forces over the next four years, which suggest that the money for the new medium helicopter is not there. That raises quite a few questions that I will ask the Minister—I apologise in advance; he should please grab his pen and paper. I will not bother asking when we will get an announcement on the new medium helicopter, because we all know that the answer will be, “Wait for the DIP”, but if the Minister would like to show me up on that point, he should please do so.

First, the Chief of Defence Staff told my hon. Friend the Member for North Devon (Ian Roome) at a Committee hearing that, although the new medium helicopter is not at the bottom of the investment list, how high it is up that list is

“ultimately…a matter for Ministers.”

Will the Minister tell us how much of a priority the new medium helicopter is compared with other programmes that his Department is considering?

Secondly, if the new medium helicopter is a priority, then we can only assume that the problem is the money. That begs the question: why did the Government press ahead with the tender as it was, if they knew that Leonardo was the only bidder and that the money was probably not there? One billion pounds is not the kind of money we might lose down the back of the sofa, is it?

That leads me to what my constituents really want to know: what is going on now to solve this? Is the Minister’s Department committed to making sure that the deal does not time out? I know that he cannot comment on the endless rumours about who is causing the delays in the DIP, but will he tell us how many conversations he has had in recent months with colleagues from No. 10 and, importantly, the Treasury on the DIP and the future of the new medium helicopter?

It is good to see you in your place, Dr Allin-Khan. I thank the hon. Member for Yeovil (Adam Dance) for scheduling this debate. I am afraid that he will know some of my answers to his questions, because he has asked me them before, and I will give him broadly similar answers to those he has had before. In relation to his challenge, I will try not to show him up on the questions that I have already answered previously. I appreciate his passion for this topic, and I commend the Westland Helicopters tie that I have spotted he is wearing—we seem to be at a Putin-esque table in this debate, with one person down at the far end away from the other, but we have much in common on this issue, as he knows from our private conversations.

I welcome the opportunity to talk about the contribution that Leonardo UK makes to our armed forces and our economy, especially at a time when we are reassessing every pound of defence spending and investment that we are making. Our intention is very clear, as we set out in the strategic defence review and the defence investment plan: we need to fundamentally rewire defence and build a stronger, more lethal military, which can deter and, if necessary, defeat, those who threaten us. As such, we are looking at the whole programme of defence spending.

Let me get straight to the issues that the hon. Gentleman raised. He will not be surprised when I say that I cannot announce a decision on the new medium helicopter programme today, but I can assure him that we will announce that decision as soon as possible as part of the defence investment plan. I am acutely aware that the contract decision is of great consequence, not to just Leonardo and its workforce at Yeovil but the wider community. As a fellow south-west MP, I can assure him that the importance to the wider region is not lost on me.

I also remind the hon. Gentleman that when we discussed this in the main Chamber, I committed that we will not allow the decision to time out. He is right that the best and final offer price has an expiry date, but we have committed as a Government that we will not time out—that is, it will not simply fail at that point; we will make a decision ahead of that, as part of the work we are doing on the defence investment plan.

I thank the Minister for reiterating that point. My concern is that we do not have a date for when the DIP will come out, and he has just said that the new medium helicopter programme will be in the DIP. Is he therefore saying that if it is not out by the end of March, he will make a decision outside of the DIP on the new medium helicopter programme?

I have been pretty clear on a number of occasions in the Commons that we are not letting this decision time out. Therefore, a decision will be made, which is consistent with what I have said before.

This is a really important programme, and I see that the official Opposition have not even bothered to turn up to the debate. I asked the Defence Secretary about the DIP, and he told me it would be out by the end of December. Now it is going to be March. Can the Minister guarantee that it will be March? What is the hold-up? Is it that the Treasury and the MOD cannot agree the finances? Could he be honest and let us know what the delay is in getting the DIP out?

As a Department, we are working flat out to deliver the DIP. It remains one of the key actions that we are trying to deliver as a Department. As a Defence Minister, I would prefer to get it right to getting it done quickly, with decisions that may not be as comprehensive or clear as we would like them to be. We have committed that we will get it out as soon as we can. I have also said a number of times that we will not let the decision on the new medium helicopter time-out. In the spirit of commenting on ties, it is good to see the hon. Gentleman wearing an RCDS tie; as a graduate of the Royal College of Defence Studies, which I know he is as well, it is good to see that.

I want to set out the engagement we are having with Leonardo, because it is important that we tell the story about what is taking place while we are looking at the new medium helicopter programme, as well as the wider record that we inherited. We have been engaging closely with the management team at Leonardo in both the UK and Italy, and we have stressed throughout that the company remains a vital strategic partner to UK defence. In fact, the Defence Secretary spoke to Leonardo’s global chief executive, Roberto Cingolani, last week. I continued those discussions in Riyadh in Saudi Arabia this week, when he and I were at the world defence show, where I met with both Roberto Cingolani and the managing director of Leonardo’s helicopter division, Gian Piero Cutillo.

Last month, the Secretary of State visited Leonardo’s radar and advanced targeting system centre in Edinburgh to confirm the award of a £453 million contract to manufacture upgraded and new radars for the Eurofighter Typhoon fleet, which is a huge investment in cutting-edge British technology with Leonardo. That investment will support 400 highly-skilled jobs at Leonardo’s site in Edinburgh and Luton, as part of a network of nine main sites that the company operates across the UK, employing more than 8,500 people. The Secretary of State’s Parliamentary Private Secretary, my hon. Friend the Member for Luton South and South Bedfordshire (Rachel Hopkins), is sitting behind me. The Leonardo site in her constituency will also benefit from that contract, which reinforces the fact that contracts are about not just the point of manufacture but the supply chain across the entirety of the UK—a point that I know has been made in a number of these debates.

Does the Minister agree that the new medium helicopter programme is a chance not just to upgrade an important capability but to move the service branches on to a common helicopter platform?

The hon. Gentleman is certainly right that we inherited a situation where there are far too many platforms across all our forces, which complicates servicing, operations and interoperability—the warfighting effect they can have—and does not create the inter- changeability that we are looking to deliver, as set out clearly in the strategic defence review.

The hon. Member for Strangford (Jim Shannon) is no longer in his place, but in his intervention he spoke about the Puma helicopter, which is a really good example. Those helicopters were on average between 43 and 50 years old. It is hard to make the case that the Puma helicopter was at the cutting edge of military aviation. It was also an incredibly expensive helicopter to keep up. As we made decisions about removing old technology and investing in new technology, we announced that platforms like Puma would be retired. Retiring old equipment and bringing in new equipment is the right decision, and that is effectively the work we are trying to do at the moment.

I do not disagree with the points the Minister is making, and Lord knows I am happy for us to dedicate the rest of the debate to bashing the previous Administration for their failures. He talks about the need to future-proof decision making. Part of the problem that we have with defence procurement is the length of time it takes to get from a decision to deployment. That means that we end up changing the spec of what we are asking for, which ends up with the Ajax disaster that we are all looking at. In the remaining time, will the Minister speak to what the plans are to speed up defence procurement to make quicker decisions on both smart tech and dumb tech and on crewed and uncrewed, so that we can get to that war footing as quickly as possible?

I had noted the hon. Gentleman’s question and was coming to it in a moment, but as he has invited me to, I will deal with it now.

Since the general election, we have signed 1,100 major defence contracts as a Government, and 84% of those have gone to British companies. Where we do buy from international companies, we do so either because the technology is solely available from international supply or because it provides a military advantage in terms of timescale, price point or interoperability function with existing technologies. That is a necessity. I want to see more of our rising defence budget spent with UK firms, and that includes international firms that are based in the United Kingdom, creating jobs and growth opportunities.