Royal Navy

§ The Minister of State for Defence Procurement (Mr. Jonathan Aitken)

It is a privilege to open this debate on the Royal Navy, a subject on which this House has not had the opportunity to hold a full day's debate for nearly two years. During this period, the global security environment in which the Royal Navy has long played such an important and successful role has undergone momentous changes. So momentous indeed that as many of the old cold war certainties fade away only to be replaced by new and more imponderable challenges, some of us in the business of naval forward planning these days occasionally yearn for the stark simplicity and clarity of Lord Nelson's famous signal at the battle of Trafalgar: "England expects that every man will do his duty."

Of course, in one sense the duty of the Royal Navy is crystal clear. It is to play its part in the three defence roles which were set out in the foreword to the "Statement on the Defence Estimates 1992" by my right hon. and learned Friend the Secretary of State. Those three roles were: first, to ensure the protection and security of the United Kingdom and our dependent territories, even when there is no major external threat; secondly, to insure against any major external threat to the United Kingdom and our allies; and, thirdly, to contribute to promoting the United Kingdom's wider security interests through the maintenance of international peace and stability.

It goes without saying that the Navy's contribution to these tasks will be of pivotal importance for the naval assets of our island nation and have the mobility, reach, flexibility and sustainability to react to the unexpected and to offer maritime security and deterrence to our vital interests and dependencies across a globe which is two thirds ocean.

Therefore, today's debate is an opportunity to put, as it were, some naval flesh on the bare strategic bones of the three defence roles that I have just outlined, by telling the House how the Royal Navy fulfils its current commitment and operations and by giving some insight into our thinking on how the Navy will fulfil its changing tasks in the future. I will also at a later stage in my speech cover equipment, personnel, and force restructuring matters.

The last debate on the Royal Navy in the House took place on 27 June 1991. My hon. Friend the then Parliamentary Under-Secretary of State for Defence Procurement opened his speech by paying tribute to the men and women of the Royal Navy, Royal Marines and Royal Fleet Auxiliary for the part which they played in securing the withdrawal of Iraqi forces from Kuwait. It is good to record that their fine contribution has now been formally recognised by the award, earlier this year, of the battle honour "Gulf 91" to 15 of Her Majesty's ships, six Royal Navy air squadrons and 10 ships of the Royal Fleet Auxiliary. But the Royal Navy has not rested on those laurels. Since that previous debate it has been continuously engaged around the world.

§ Mr. Tam Dalyell (Linlithgow)

This morning gave notice to the office of the Minister of State for the Armed Forces that I would like to ask about the role of the Navy 304 in cleaning up the ecological problems of the Gulf. Will the Minister of State for Defence Procurement say a word on what the Navy is doing? The problems are continuing.

§ Mr. Aitken

We were grateful to the hon. Gentleman for giving notice. As the hon. Gentleman gave notice to my right hon. Friend the Minister of State for the Armed Forces, he will cover the point in his reply to the debate.

The Gulf is one of the most important areas in which the Royal Navy regularly operates. The Armilla patrol, which is now in its 13th year, continues to provide reassurance to British shipping and to operate in support of the United Nations sanctions on maritime trade with Iraq. Although Saddam's naval forces are quiescent for the time being, Iran has decided to raise the stakes of sea power among the Gulf littoral states by becoming the area's first submarine navy. Iran's neighbours in the region are watching Iran's naval build-up with increasing concern—a build-up which has been symbolised by the purchase and, more recently, the deployment of a Russian built hunter-killer submarine of the Kilo class.

Having visited the Gulf five times in the past six months and going on board Her Majesty's ships on two occasions during those visits, I have been left in no doubt by our friends in the area how much they appreciate the Royal Navy's important contribution to the stability of the area. That contribution is particularly well measured by those with long memories, for Britain has had a continuous naval presence in the Gulf for well over half a century. Although gone are the days when there used to be a common Arabic saying that when two fish are fighting in the Gulf the British are behind it, our more discreet presence today still has a valuable impact.

It is symbolised by the steady vigilance of the Armilla patrol and enhanced by special ship visits. Perhaps the most notable of those was the visit in March of HMS Triumph to Abu Dhabi. That was the first ever visit by one of our nuclear submarines to a Gulf port, and I believe that its presence left a clear and important message of reassurance to our friends in the region.

Referring to the security of our dependent territories, throughout past years naval forces have been deployed in support of garrisons in the Falklands, Belize and Hong Kong. The Royal Navy carries out joint operations with the authorities of those countries and of the United States and our dependent territories to combat the menace of narcotics smuggling, particularly in the Caribbean. The West Indies guard ship plays its part in those operations, and during the hurricane season it is well equipped to provide humanitarian relief. Last year, HMS Cardiff, assisted by HMS Campbeltown and the Royal Fleet Auxiliary Orangeleaf, provided valuable assistance to the island of Eleuthera in the wake of hurricane Andrew.

Ships of the Royal Navy are regular visitors to many of our dependent territories, from Hong Kong to St. Helena, and the new ice patrol ship, HMS Endurance, is just completing her second successful deployment to Antarctica in support of our interest in that region.

Those regular deployments form part of a wider pattern of deployments and visits aimed at developing the Royal Navy's operational capabilities, exercising with friendly navies and supporting our foreign policy and defence sales objectives. In 1992–93, Royal Navy ships showed the flag in 90 countries. Of particular note was the deployment of Task Group Orient 92, which consisted of four warships and two RFA vessels, led by the carrier HMS Invincible to 305 the far east for seven months. That was the first such far eastern deployment since 1988. We regard it as having been highly successful because of the tangible benefits arising, as they do, from joint naval exercises, growing export sales interest and general political goodwill, and all that in a region of growing political and economic importance.

I should also mention the visit of HMS Battleaxe to the Russian Baltic fleet base of Baltiysk. In its way, that visit was symbolic of the new spirit of naval co-operation that prevails between Britain and Russia in the post-cold war era, because Battleaxe was the first warship of the Royal Navy to participate in such joint manoeuvres with a cruiser of the Russian navy. More recently, we have seen Russian ships working alongside coalition naval forces in the Gulf helping to enforce UN sanctions on trade with Iraq. That has been very welcome as a gesture of international solidarity against Saddam and as an unprecedented opportunity for western navies to forge closer links with their former adversary. The Royal Navy has been at the forefront of those efforts and will continue to play a leading role in the important work of building on the new friendship between east and west in a practical way. In support of NATO, the United Kingdom continues to be a major contributor of maritime forces. We provide ships on a continuing basis in the Atlantic and the English channel. Since its formation last year, we have done the same for the standing naval force in the Mediterranean, which goes by the indigestible acronym STANAVFORMED. That force is currently engaged in the enforcement of United Nations sanctions and the arms embargo in the Adriatic—an example of how NATO's revised maritime force structure is adapting to new tasks.

As well as contributing to STANAVFORMED, the Royal Navy is involved, both afloat and ashore, in support of operations in the former Republic of Yugoslavia. A carrier group led by HMS Ark Royal is deployed in the Adriatic at present with an air group of Sea Harriers, recently enhanced with a laser-guided bomb capability, and Sea King helicopters as well as artillery. HMS Ark Royal is there to provide additional protection for United Kingdom forces ashore and, if necessary, to assist with the withdrawal or reinforcement of United Nations forces. That presence powerfully demonstrates the flexibility and utility of one of our capital ships with the air power that she is able to deploy if necessary to provide assurance and deterrence to friend and foe.

§ Mr. Dalyell

As the author of an excellent book on President Nixon, which I enjoyed greatly, the Minister is in a better position than most to be frank with the House about the Anglo-American relationship. Is HMS Ark Royal in any way related to or under American command in these circumstances?

§ Mr. Aitken

I am grateful to the hon. Gentleman for giving my book that commercial plug in the middle of our Navy debate. I am sure that my booksellers and publisher will be grateful. Reading about the life of President Nixon has perhaps endowed the hon. Gentleman with a certain degree of conspiracy theory about the Anglo-American relationship which does not exist, if he reaches the end of 306 the book. As far as the episode to which I am referring is concerned, there is no United States control of HMS Ark Royal—lit would be wrong to suggest that there was.

§ Mr. Menzies Campbell (Fife, North-East)

On the obverse side of what the Ministry has been saying, in the press release issued by the Ministry of Defence this afternoon there is reference to the task group comprising HMS Ark Royal, HMS Broadsword and what I take to be the Dutch frigate De Ruyter, which, on the face of it, appears to be under the command of the overall British commander of the task group. Is that an example of the sort of co-operation between European maritime nations that we should be in favour of and hope might be more frequent in the future?

§ Mr. Aitken

The hon. and learned Gentleman makes a good and timely point. There is good co-operation between European navies, especially in the matter of enforcing and increasing the pressure on Yugoslavia. It is going on in the Adriatic and the Danube. For some years, we have had a close relationship with the Royal Netherlands Navy through joint marine exercises. That is a natural extension and co-operation of how we work together. I am grateful to the hon. and learned Gentleman for drawing attention to the good relationship.

§ Mr. John Wilkinson (Ruislip-Northwood)

Before my hon. Friend leaves the matter of the Netherlands and its marines, does he agree that the deployment of the task group to the Adriatic, and especially the deployment of HMS Ark Royal in a role for which she is not wholly designed, in addition to the normal naval air role—the deployment of soldiers—exemplifies the need for a purpose-built amphibious helicopter carrier and that it should be procured at the earliest possible date?

§ Mr. Aitken

I agree with the point made by my hon. Friend. Although HMS Ark Royal has done good service in providing the possibility of that amphibious capability, it is not purpose-built for that task. That is one of the considerations we took into account when we announced that the landing platform helicopter carrier was firmly in the defence programme. I shall say a few words of encouragement on the subject of the landing platform helicopter carrier later.

I should also mention as part of the record of our role in the Adriatic that the Royal Fleet Auxiliary's Resource and Sir Percivale are also in the area. They are in Split to provide accommodation and shore support for British forces ashore. There are also four Sea King helicopters of 845 naval air squadron based in Split. Although their primary role is to assist with casualty evacuation of UN forces, they also took part in the airlift of sick and wounded civilians from Srebrenica, and they stand ready to carry out such humanitarian tasks again if needed.

One other United Nations operation in which the Royal Navy is involved which I should mention is in Cambodia. Seventy Royal Navy and Royal Marine personnel are deployed there on peace-keeping duties as part of the United Nations transitional authority. They are involved in the patrolling of the Cambodian coast and the Mekong river system. This is the first time that the UN has included a maritime element in its peace-keeping operations.

Moving closer to home, Royal Marine commandos continue to take regular tours to Northern Ireland, while 307 the Royal Navy conducts patrols in Northern Ireland waters in support of the security forces. The fishery protection squadron patrols the United Kingdom's fishery limits and, following a review last year, Ministers agreed that that task should remain with the Royal Navy at least for the current year. The squadron acquitted itself well during the recent period of tension in the fishing grounds of Guernsey and will continue to ensure that fisheries regulations are fully and properly enforced.

In addition, the squadron is well placed to respond to a range of operational and humanitarian contingencies in United Kingdom waters. Some of the operations are in support of our law enforcement agencies. For example, last November HMS Shetland assisted customs officers in making a record seizure of 20 tonnes of cannabis worth about £60 million.

Lastly in this summary of our commitments, I should like to emphasise how well the Royal Navy has served our nation by continuing to underpin our national security by maintaining continuous deterrent patrols by our Polaris submarine for the past 25 years. In that period, the former Soviet Union has moved a long way from those dangerous years when Mr. Khruschev hammered with his shoe on the rostrum of the United Nations shouting the threat, "We will bury you". We were certainly glad then that we had such a sure shield against a possible nuclear attack.

Although that particular threat has mercifully receded, we should not forget that the world remains a dangerous and unstable place in many ways. It is imperative that we continue to safeguard the security of our realm against all possible external threats. It is vital that in Trident we maintain a deterrent which will be the ultimate safeguard of our nation's freedom well into the next century.

§ Mr. Andrew F. Bennett (Denton and Reddish)

The Minister has paid tribute to the Polaris regime and its deterrent effect. Would it not be far more logical to tell the House exactly what the Government intend to do in terms of developing the Trident programme? If Polaris is to be a deterrent, surely it is essential that people know what it is capable of. Would it not be a good time to break the tradition of secrecy about nuclear weapons and tell the House of Commons what is going on?

§ Mr. Aitken

The hon. Gentleman has a naive attitude both to the importance of deterrence and the surprise element in it and to the importance of not letting any potential adversary or enemy know exactly what Trident might or might not be able to do.

Within obvious constraints, we disclose a great deal of information to the House through the Select Committee. We have answered questions with considerable frankness about our studies of a sub-strategic role for Trident. Although we obviously keep matters such as warhead numbers and targeting secret, we are reasonably candid in our parliamentary democracy with the House and with the country.

§ Mr. Michael Colvin (Romsey and Waterside)

Does my hon. Friend acknowledge that it is no use having nuclear submarines if they are locked into port because the approaches to their ports are strewn with mines? Will he say a word about the attitude of the Ministry of Defence to new orders for Sandown minehunters? Some years ago the Ministry of Defence invited tenders for seven new Sandown class minehunters. The invitations for tender 308 were withdrawn in 1991. I gather that the minehunters will be required in 1994. Perhaps my hon. Friend could say when invitations for tender will he required once more.

§ Mr. Aitken

Yes, I shall do so. If my hon. Friend will be patient, I will answer his question when I come to our forward equipment programme.

I wish to say a further word about Trident. The Trident programme continues to make excellent progress. It remains on schedule to enter service from the mid-1990s and it is well within budget. As my right hon. Friend the Secretary of State for Defence announced in January this year, the currently estimated cost for procuring Trident is some £10.7 billion, which represents a total real cost saving of £2.8 billion against the original estimate. We were gratified that in its 1992 report on Trident, the Defence Select Committee commented on the gratifying and unusual spectacle of a major defence programme coming in far below estimate. Construction of all four Trident submarines is progressing well.

§ Mr. Bennett

The Minister tells us that Trident is coming in below cost. But as he has never admitted what was in the original specifications, how can we tell that it is below cost?

§ Mr. Aitken

I said that it was below estimate, which is different from below cost, as most numerate hon. Members will understand. Even though the hon. Gentleman is a staunch opponent of all nuclear programmes and weapons, he should, at least on the basis of value for money for the taxpayer, be pleased that we have brought Trident in well below estimate.

§ Mr. Bennett

But the specifications have been cut.

§ Mr. Aitken

There is no question of the specifications being cut. Trident remains a formidable and decisive nuclear weapons system.

I am also pleased to tell the House that the construction of all four Trident submarines is progressing well. The first of class, Vanguard, successfully completed exhaustive and rigorous contractor sea trials earlier this year, and is planned to be accepted by the Royal Navy later this year. I had the honour earlier this year of laying the keel of SSBN 08, the fourth Trident submarine. I hope that that ceremony and the order that preceded it firmly underlined the Government's commitment to a four-boat Trident force. For only with a fourth boat can we be absolutely sure that over the lifetime of the force there will be at least one boat on patrol at sea at all times.

§ Mr. George Foulkes (Carrick, Cumnock and Doon Valley)

There were some reports in the press about cracks in Vanguard during its trials. Can the Minister state categorically that that was not the case?

§ Mr. Aitken

The Vanguard sea trials were excellent in all respects except one minor matter of a sonar buoy which was lost due to a break of the towing equipment. We were completely satisfied with the inherent structure of Vanguard and its performance in the contractor sea trials, subject only to minor teething troubles which were of no major importance and are normal in contractor sea trials.

The Polaris submarine has served Britain well, providing continuous patrols for the past 25 years. We 309 confidently expect that the Trident submarine will, with similar patrols, safeguard our national security for the next quarter of a century or more.

The commitments and operations that I have outlined make an impressive record of achievement. But there are other areas of activity in which the end of the cold war era has lightened the burden on our naval forces. The House will not expect me to go into details about the substantial anti-submarine warfare operations and preparations in which the Royal Navy regularly engaged during the times when we thought that we might conceivably one day have to do battle with the Soviet navy in the Atlantic, the Mediterranean or even the western approaches.

Mercifully those days are past. But as we cheerfully bring down the curtain on the old cold war era we must also accept, perhaps with a touch of sadness, that we now can do with a smaller Royal Navy to safeguard our vital security interests and to perform our foreseeable defence tasks.

§ Mr. Barry Porter (Wirral, South)

My hon. Friend has given a good exposition of the role and the requirements of the Royal Navy. One thing is puzzling me. I declare an interest. It is an emotional one rather than a financial one. I have a son who serves in the Royal Navy. That gives me the advantage that at least he keeps me up to date with what his friends think of our present policy—which I will not go into.

It is inevitable that one must take into account that resources will be concentrated on the Army and especially the infantry in view of what is happening in ex-Yugoslavia. Is my hon. Friend willing to say that, whatever happens in that direction, the Royal Navy will not suffer? I do not ask that for an emotional reason. The Royal Navy clearly has a role to fulfil. It is probably as stretched as it can be at present.

§ Mr. Aitken

I am certainly glad to confirm that the Royal Navy will not suffer in the sense that it will remain an absolutely pivotal component of our defence forces and I will give further details of that. Because of the very nature of the changing risks and the security environment, we will really need the capability that the Royal Navy provides superbly of mobility, reach and sustainability—the very qualities that I have tried to summarise in my speech. I hope that my hon. Friend and his son will be right in having confidence that we shall have such a navy in years to come.

§ Mr. Mark Wolfson (Sevenoaks)

I should like to probe that issue a little further. My hon. Friend is dealing with specific aspects of the Navy's activities such as Trident and other parts of the procurement programme. The country and serving naval personnel seek a clear update on policy since "Options for Change" which will give us a broader picture and understanding of what size navy is required. I do not believe that such an update has been adequately given at a strategic level.

§ Mr. Aitken

My hon. Friend makes a fair point and we are responding to it, not least by holding this debate and listening to the voices of the House.

As I shall say later in my speech, we intend to publish, in the form of the White Paper on the Statement on the Defence Estimates for 1993, a full account of where all the 310 services stand and where we think they will stand in terms of the equipment programme and the numbers, with more information than ever before. When my hon. Friend hears our plans, he will be satisfied that his question will be fully answered when that crucial and important document is published.

§ Mr. Peter Griffiths (Porstmouth, North)

In following the question asked by my hon. Friend the Member for Sevenoaks (Mr. Wolfson), will my hon. Friend assure us, without in any way seeking to forecast what will be included in the White Paper, that there is no suggestion that the reductions in manpower and ships will go beyond those forecast in "Options for Change"? That is the extreme. Can we have an assurance that we are not talking about going beyond it?

§ Mr. Aitken

If my hon. Friend will bear with me, he will hear clearly what our plans are and how they are linked, as they must be, to our commitments and operational tasks. That is precisely what "Options for Change" was all about. Some element of downsizing was forecast and we have been sticking to those forecasts. If there are any amendments to them, the place for those amendments to be published is the defence estimates.

§ Dr. John Reid (Motherwell, North)

The Minister is making play of the fact that we will have a White Paperr on the defence estimates for 1993. What happened to the debate on the defence estimates for 1992–93? Surely we should have had that debate before discussing the issues we are now debating.

§ Mr. Aitken

Those are matters for the usual channels and for the Leader of the House. No Minister can announce suddenly from the Dispatch Box that there will be a debate on a request from an Opposition spokesman. The hon. Gentleman is far too old a hand in Parliament not to know that. I shall make sure that his request is passed on to the usual channels.

§ Mr. Winston Churchill (Davyhulme)

I am sorry to labour the point raised by two of my hon. Friends, but my hon. Friend the Minister spoke rather ominously about something called the downsizing of the Royal Navy. Can we be absolutely clear on that? Will the Minister give an unequivocal undertaking at the Dispatch Box that there are no plans at present to go below the levels of manpower, vessels or funding envisaged in "Options for Change"? That was bad enough; if we are to go below it, it will be a matter of the greatest concern.

§ Mr. Aitken

My hon. Friend is asking for assurances which are too sweeping for any Minister to give. We have already announced some of the funding changes that have been made, such as public expenditure survey rounds and so on. On the key issue of numbers, in which I know he has a vital interest, I shall give some figures in my speech—if I am allowed to get on with it—but the definitive document with the maximum transparency within the limits of national security will be the White Paper to be published in July on the whole sweep of defence, including the Royal Navy. We thought that it was just as well to listen to voices in the House before making any such announcement.

§ Mr. Churchill

It will be the last day of term.

§ Mr. Aitken

No, it will not be the last day of term

§ Mr. Richard Ottaway (Croydon, South)

I appreciate my hon. Friend the Minister giving way as I know he wants to get on, but I should like to ask him a specific question that will not require him to give sweeping generalisations.

When the Army complained that they would be unable to expand operations in Bosnia, it was announced that two or three regiments would be saved. Can the Minister assure me that there will be no reduction in the Royal Navy budget to fund the saving of those regiments?

§ Mr. Aitken

The defence budget is a totality. We are not in the business of sacrificing one project to pay for another. It is not the adductory technique that my hon. Friend seems to envisage. We look at the totality of the defence budget and at our commitments and we either go to the Treasury or fit our commitments to our resources. There is no question of there being sacrificial lambs in the Navy of anywhere else in order to save regiments.

I am trying to turn to force restructuring, a matter on which I am being pressed by hon. Members on both sides of the House. The plans were initially set out in the White Paper, "Britain's Defence for the 1990s" and were elaborated in last year's White Paper. I sometimes wonder whether the Opposition ever read those careful blueprints for our future defence strategy.

I shall place one modest bet about the speech shortly to be made by the hon. Member for Carrick, Cumnock and Doon Valley (Mr. Foulkes) from the Opposition Front Bench. My bet is this: with the predictable if unsteady reliability of a Scotsman singing Auld Lang Syne on new year's eve, he will once again call on Her Majesty's Government to carry out a defence review.

§ Dr. David Clark (South Shields)

Absolutely right.

§ Mr. Aitken

I thought that I had got it right. This tired old siren song is the Labour party's all-purpose excuse for not having a defence policy of its own and we reject it.

A defence review means the reduction and reordering of our defence commitments and forces to match an externally imposed financial target. That is not what we are about; we are not engaged in a Denis Healey-style defence review with its Treasury driven imperatives to cut, cut and cut again.

§ Mr. John McWilliam (Blaydon)

I cannot see how the Minister can claim that "Options for Change" and its effect on the Royal Navy are not Treasury led. That certainly is the view of the Defence Select Committee and has been reinforced since then.

§ Mr. Aitken

The Select Committee does not have an absolute monopoly on accuracy and wisdom. We have frequently given the answer that it is a commitment—driven White Paper. To this day, we fit our forces to our commitments and operational roles. I know that various critics of the Government love to stick on the label Treasury driven. I can assure the hon. Gentleman—and I have said it time and again—that that is simply not a fully accurate picture.

I have done my best to spell out some of the changes in the security environment. If the major adversary of the country and our allies, the Soviet Union, has changed direction and become an ally, it is quite natural that there should be an alteration in our commitments and resources. That simple point does not seem to have been taken on board by all our critics.

§ Mr. Nick Raynsford (Greenwich)

Would the Minister like to tell the House, if he is so emphatic that it is not in any way the case that the present Government's policy is driven by the Treasury, why there was the announcement shortly before Easter that naval numbers were to be reduced yet again, from 55,000 to 50,000, when a White Paper is due in three months' time? What prompted that announcement, other than the Treasury?

§ Mr. Aitken

As I am about to tell the House, the announcement that the hon. Gentleman greeted with shock and surprise, as though it were something new, triggered by the Treasury, was always foreseen in the various "Options for Change" projections. I will now come, if I may, to the subject of redundancies because I know that there is understandable sensitivity on this.

In "Options for Change" we have re-examined our force posture in the light of the momentous change in the strategic environment which took place as a result of the collapse of communism in eastern Europe. This process was policy-driven, not resource-driven. What we are now doing, in the context of our annual re-costing of the defence programme, is developing a more extensive analysis and presentation of how the force structure and forward programme relate to our existing policy objectives, tasks and commitments throughout the world.

My right hon. Friend the Secretary of State expects to report the results in the "Statement on the Defence Estimates 1993", which will be published in July. When we publish SDE 93, I think and hope that it will be clear for the Navy, as for our other services, that while the resource constraints of the public purse, to which there has been so much reference, provide a healthy discipline to our plans for future force levels, nevertheless it remains the case that our commitments, and the operational environment of those commitments, drive the decision on our force levels and on our equipment programme.

It follows from what I have just said that as we restructure the Royal Navy we take all the relevant factors into account. We continue to keep naval manpower levels under review to ensure that numbers are sufficient to meet our requirements but also to ensure that we do not maintain them at artificially high levels. The post-"Options" Navy was planned to reduce to about 55,000 by the middle of the 1990s, and this remains our intention. However, we are moving to a fleet of younger, more efficient and less manpower-intensive ships. For example, a type 23 frigate needs approximately only two thirds of the crew of a type 22. As force levels reduce, we will be seeking a commensurate reduction in support infrastructure. By this I mean the more efficient and economical use of manpower, including civilianisation and contractorisation of support area functions. These, and market testing, will also contribute to a lower uniformed manpower requirement, which will inevitably decline.

We recognise that, in the difficult task of reducing manpower, we have a duty to act sensitively and fairly to the men and women of the Royal Navy, Royal Marines and Royal Fleet Auxiliary who have so well served their Queen and country. We have taken great care to ensure that, wherever possible, all steps short of redundancy, including the maximum use of manning regulators, have been used to effect the necessary manpower reductions. But the situation has been made more difficult by the fact that fewer people have been leaving the Navy during the past two years than would normally be the case—perhaps 313 because of the recessionary environment. Indeed, application rates to leave the Navy are at a ten-year low. Some redundancies are therefore, sadly, unavoidable.

We made clear as long ago as 1991 that there would need to be a redundancy programme in the Navy arising out of "Options for Change", probably extending over three years. A total of 1,672 officers and ratings were made redundant in the first two phases of the programme. It is with great regret that we have recently had to announce the third phase of redundancies, involving up to 2,300 officers and ratings. The House should note, however, that in the first two phases of the Navy's redundancy programme we were able to achieve almost 90 per cent. of the necessary redundancies through voluntary applicants, and we are determined to meet as many as possible of the third phase of redundancies in the same way.

Such decisions are never easy, and we are doing our utmost to help those affected. I will not detain the House with details of what we believe are the reasonably generous redundancy and resettlement packages which we provide. As I have said, we greatly regret the necessity of any such redundancies, and our objective is to give the maximum help and assistance to all officers and ratings who are making the transition from service to civilian life.

Before moving on to equipment issues, I would like to say a few words about the royal dockyards which, I know, are a subject of considerable interest to hon. Members on both sides of the House. As my right hon. and learned Friend the Secretary of State made clear on 9 February, we believe that all nuclear refit work should be concentrated at one dockyard, while we plan to continue with two dockyards, for reasons of competition, in non-nuclear refitting. My right hon. and learned Friend also said that much work remained to be done before further decisions could be taken, and that work is well under way. I should like to make it clear that no further decisions have been taken. We understand the desire in the local communities and the workforces for an end to the uncertainty, and we will make further announcements as soon as we can.

§ Mr. Menzies Campbell

Is the Minister able to be a little more precise about that? He has in the past been a little more precise about when he expects a decision might be taken. As he appreciates, it is a matter of some concern for the communities of both Devonport and Rosyth, and it would be helpful if he could give a clearer indication of when he expects the decision to be made and announced.

§ Mr. Aitken

I can be no more precise than to say that it will be within the next few weeks. One of the problems is that the two royal dockyard management companies themselves frequently keep sending, sometimes in unsolicited form, new information which must be analysed by our experts and by Ministry of Defence staff. That is one of the reasons why these delays have occurred and why it has taken longer than we ourselves would have wished. I am sure that the hon. and learned Gentleman would be the first to agree that it is better to take more time over a decision and get it right than to rush into one or give people the chance to say that their case has not been fully analysed or heard.

As to equipment, I have already said that good progress is being made with our plans to maintain a four-boat strategic nuclear deterrent under the Trident programme. 314 In addition to the strategic deterrent, over the coming decade our fleet of nuclear-powered submarines, currently standing at 13 boats, will consist largely of the Swiftsure and Trafalgar class submarines which are being modernised with the latest sensors and command systems. We are currently considering options for the design of a new class of SSN, to succeed the Swiftsure class, which is based on the Trafalgar class and is planned to enter service around the turn of the century. The SSN force which will result will be well-armed, capable of deploying at high speed, and able to match the increasingly sophisticated submarine forces which are now being developed and sold world-wide.

The major diminution of the submarine threat from the former Soviet Union, which I mentioned earlier, has made it appropriate for us to examine the requirement for the Upholder. The primary role of the Upholder class conventionally-powered submarines was to patrol the Greenland-Iceland-United Kingdom gap against Soviet submarines, releasing SSNs for wider-ranging operations. The Upholders were ideal for this task and their relative lack of endurance and speed were not a disadvantage in the circumstance then envisaged for their operations. Our judgment on the future of the Upholders will be based on an assessment of the most likely future submarine operating patterns. No decisions have been taken as we are still evaluating the position in the way that I have just outlined.

§ Mr. Peter Viggers (Gosport)

Will my hon. Friend tell the House if, in the whole history of the Royal Navy, any class of ship has been disposed of before it has entered service?

§ Mr. Aitken

I have not said that the Upholders will not remain in the fleet. We are considering all our options. I am afraid that I am not a sufficiently good naval historian to give my hon. Friend an immediate answer. I simply do not know if he is right or not. But he must not jump to conclusions from the outline of our current thinking that I have explained.

Our destroyer and frigate force, which is currently at a level of 40 warships, is now the youngest since the first world war with an average age of just 10 years. Six of the new type 23 anti-submarine warfare frigates have now been accepted into service and a further seven are currently being built at Jarrow and Swan Hunter. We plan to order more type 23 frigates, though we have not yet decided on the size and timing of these future orders. I am pleased to announce that we placed last week a contract for a further five type 23 command systems and associated on-board spares at a value of approximately £30 million. This equipment will process high volumes of combat data and will provide the Royal Navy with what we believe are the finest such systems in the world.

Our type 23 frigates will, with the Merlin EH 101 helicopters, form a formidable anti-submarine warfare combination. We currently have 44 of these helicopters on order and good progress is being made on this contract. Together with our three aircraft carriers, two of which will be operational at any one time, we will continue to have the ability to make a significant contribution to NATO or other coalition warfare operations.

Our naval air assets on those carriers will also be significantly enhanced by the mid-life update of our Sea Harrier fighters with the state of the art Blue Vixen radar 315 and the advanced medium-range air-to-air missile known as AMRAAM. These enhancements, which are due to enter service next year, will enable the Harriers to engage multiple targets beyond visual range as well as having a look-down shoot-down capability.

Another new class of ship to enter service 'with the Royal Navy over the past two years has been the Sandown class single role minehunter. We now have four of these capable vessels in service, with a further one being built by Vosper Thornycroft. We plan to order further vessels of this class, and expect to be in a position to issue invitations to tender for the next batch shortly.

§ Mr. Colvin

When the new invitations go out to tender, will bids be permitted to include foreign hulls, as happened before? It seems to me monstrously unfair to British companies such as Vosper Thornycroft that foreign hulls should be included, often made by continental firms which are nationalised and subsidised by the relevant Governments; thus they present unfair competition to British companies. What other ship in the Royal Navy has its hull made overseas?

§ Mr. Aitken

We have an open procurement policy. About 91 per cent. of our prime contracts are won by British firms. It is often up to these prime contractors to arrive at their best judgment of what will meet our specifications and our value-for-money criteria. We do not interfere with their judgment; if they want to include a combination of foreign elements in their bids, we do not rule that out. Indeed, it would be excessively protectionist to do so.

§ Mr. Churchill

Although I do not ask my hon. Friend to be protectionist, does he agree that British firms have a right to be protected in the procurement process from unfair competition launched by firms which are nationalised and which benefit from subsidy in other countries? It would be monstrous if British firms went under because the Ministry of Defence accepted contracts from subsidised firms abroad.

§ Mr. Aitken

That is a fair point. When we consider bids we insist on fairness. If we decide that there has been unfair competition and massive foreign Government subsidy, or anything of that kind, we carefully take it into account, and it plays a key role in our decision making.

§ Mr. Andrew Hargreaves (Birmingham, Hall Green)

I am sorry to take up more of my hon. Friend's time, but he mentioned 40 ships; and irrespective of comments about British manufacturers and shipbuilders, I should like to hear my hon. Friend categorically confirm that he has no plans to reduce that total of 40 ships simply because we cannot manufacture them cheaply enough in Britain for the Royal Navy to procure them.

§ Mr. Aitken

If my hon. Friend's point is the familiar one, to do with what "about 40 ships" means—whether it means between 35 and 45—this has been all around the houses in the Select Committee. We shall try to shed some light on it in the forthcoming White Paper.

In the context of future warship building, I should like briefly to refer to the Anglo-French frigate project. known as project Horizon, which Italy has now joined. We are now into an 18-month period of exploration, with France and Italy, of the prospects for collaboration on an anti-air warfare frigate to replace our type 42 destroyers around 316 the turn of the century. This is a good example of international co-operation on the design and build of a ship, and it has many potential benefits, such as military interoperability, cost savings and the pooling of technical knowledge and capability. A provisional joint project office was set up here in London last November, and we anticipate that the memorandum of understanding for the full project management office will be signed soon.

Lastly, I turn to the subject of amphibious forces. We believe that this will be an important capability for the Royal Marines and the Royal Navy to excel in as we approach the new security environment of the 21st century. That is why we recently reaffirmed our commitment to provide the Royal Marines with modern and capable amphibious shipping by confirming that the new landing platform helicopter carrier remains firmly in our programme. Best and final offers for the LPH were received from Swan Hunter and VSEL on 22 April, and they are being evaluated against our normal technical and value-for-money criteria. This process is now close to completion, and we hope to be able to announce the results in the fairly near future.

§ Mr. Michael Jopling (Westmorland and Lonsdale)

My hon. Friend will be aware of my great desire that this order should go to Barrow, with the hull being built on the Clyde. The prospects of unemployment in Barrow as the submarine programme runs down are horrific, but the yard possesses great skills and the most modern naval shipbuilding technologies.

My hon. Friend has already said that the order will be placed on technical merit and value for money. Will he give the House an absolute undertaking that no other issue besides technical merit and value for money will be allowed to influence the order? Can he also be more specific about when the awarding of the contract will be announced?

§ Mr. Aitken

I can certainly confirm that we will make our decisions in accordance with our usual value-for-money and technical criteria. Of course we take some wider considerations into account, but the whole emphasis is on technical and value-for-money considerations.

I cannot go any further than I have already about the timing of the announcement. Since last I wrote to my right hon. Friend, saying that the announcement would be made much later in the year, we have been able to accelerate it to some extent, and I hope now to be able to make an announcement in the reasonably near future.

§ Mr. Ian Davidson (Glasgow, Govan)

In the Minister's first answer he said that financial and technical criteria would be those that counted; then, in his second, he said that other factors would be taken into account. Are there any circumstances in which these other factors could allow an order that was not the best in technical and financial terms to win the contract? This subject causes a great deal of concern not only in Barrow but in Govan, where it is hoped that the Kvaerner hull will be built for the new landing platform helicopter carrier.

§ Mr. Aitken

These exchanges have shown that hon. Members representing their constituents' interests have one abiding wish: that the Government will be seen to be scrupulously fair when awarding a major contract of this type. Fairness is our paramount consideration, and we will 317 make our announcement at the right time, as soon as we can. I feel confident that the House will regard us as having played fairly with all parties.

§ Mr. Ian Bruce (South Dorset)

Will my hon. Friend consider value for money in the context of the use of helicopter platforms on Royal Fleet Auxiliary vessels and other container ships used so effectively during the Falklands war? Will he ensure that we have enough marine helicopters—and enough to be used by the Army and the RAF too in marine environments—and sufficient platform flexibility to give the Navy teeth? So often those teeth are provided by the helicopters. I hope that my hon. Friend will ensure that he does not go for too many gold-plated solutions; rather, he should go for flexible solutions that ensure that we have a large number of helicopters to deploy when necessary.

§ Mr. Aitken

I share my hon. Friend's view that helicopters are crucial to future warfare. He is right about avoiding gold-plated solutions; we have tried to do that in in our amphibious programme. The LPH specifications are not gold-plated by warship standards of the past. Relatively speaking, they are not an over-expensive solution to the problem.

The new LPH will be the cornerstone of the Royal Navy's amphibious capability. Its main role will be to enable an amphibious landing force of up to 800 men to deploy ashore, by means of its embarked helicopters, in a single assault wave. Together with the replacements for our assault ships and the upgraded landing ships, this will provide the Royal Marines with the capable specialised shipping necessary to fulfil their role well into the next century.

Also on that subject I should mention that we are continuing to make progress towards replacing our two assault ships HMS Fearless and HMS Intrepid. The project definition phase for the replacement of those ships is continuing and the timing of an order will depend on the successful outcome of that process. On current plans the new ships will enter service around the end of the century. In addition to new ships, we also plan to upgrade our three older landing ships logistic with ship life extension programmes and we expect to be in a position to invite tenders for the first of these later this year.

I have detained the House perhaps almost too long, but on a quiet afternoon it may be right since this is the first Navy debate for two years to cover, as it were, the full horizon of Navy matters. Before I conclude, I apologise to the House for not being able to stay for the final speeches and the later part of this debate. I have to fulfil a long-standing engagement to appear on BBC "Question Time," and I thank the Opposition Front Bench and my hon. Friends for their forbearance and understanding of my later absence.

These are difficult and testing times for the Royal Navy as it adjusts to the much-changed but still dangerous strategic environment. Outside Russia and the United States of America, the Royal Navy is one of the largest and most capable, perhaps the most capable, navies in the world, with a fleet currently standing at three aircraft carriers, 40 destroyers and frigates, 13 nuclear submarines and four conventional submarines, supported by nine 318 counter-measure vessels and some 20 ships of the Royal Fleet Auxiliary. Indeed, we spend some £6 billion a year on ensuring that our capability remains razor-sharp.

We are not, and could not in this environment, be complacent. The world has changed and is changing still. That is why we are taking time to decide in detail the way in which the Navy itself should change to reflect those circumstances. As I have emphasised, we intend to publish our detailed plans in this year's White Paper. We will, of course, take into account the opinions expressed in the House in the debate.

The Navy that results from that process may not be as large as in former days—the lines at the Spithead reviews may be shorter—but we remain committed to our Royal Navy fleet being capable, modern, well-equipped and ready for the challenges that the future may bring. Above all, we can take great pride in the professionalism, loyalty and excellence of the men and and women who serve in the Royal Navy and the Royal Marines. I think that there is respect and affection for the Royal Navy in the hearts of all the British people. For a medium-sized European power we are still a nation of supreme naval excellence. It might be a little over the top for a Minister of the Crown to begin each day, as Lord Curzon used to do, by singing "Rule Britannia" in his bath. Nevertheless, I hope I have convinced the House that the Royal Navy can still rule some waves with honour and distinction.

§ Mr. George Foulkes (Carrick, Cumnock and Doon Valley)

The Opposition also welcome the debate on the Royal Navy which, as the Minister conceded, is not before time. I should also like to associate the Opposition with the Minister's final remarks about the professionalism and loyalty of those who serve in the Royal Navy. There is no doubt about that in any part of the House and it is right that tributes should be paid.

We would also welcome a debate on the estimates, which is even longer overdue than a debate on the Royal Navy. That would enable us to take the wider look that is needed at our defence requirements and how best to meet them.

The Minister offered a bet. I did not take him up on it because he was right. We have been pressing for some time for a proper defence review, as have many other people—commentators, academics and people in the services, as well as representatives of all Opposition parties. We had defence reviews in 1957, between 1966 and 1968, between 1974 and 1975 and in 1981. There was an average interval of about seven years between them. There has not been a proper defence review for 12 years. During that time we have had the Falklands war, the end of the cold war, the Gulf war and the conflict in the Balkans. All those changes mean that we require an open debate and a strategic review of what personnel and equipment are needed to cope with the new threats and realities and how our contribution can complement those of other NATO countries.

The Select Committee on Defence—not just the Opposition—has said that instead of a proper defence review we have had an ad hoc, Treasury-driven series of thick salami slices, cuts off the defence budget, with the Navy bearing the brunt, as was emphasised at the hearing of the Select Committee only yesterday. Decision making 319 in the Ministry of Defence has been a secret and secretive exercise. David Bolton, the director of the Royal United Services Institute for Defence Studies, said: Defence is now too important to be left to silent debate. It may be the silent service, but we want an open debate. Even Professor Norman Stone, someone with whom I do not usually associate, has said: The secrecy has offended even the Government's allies. That secrecy ill befits the Minister who opened the debate who, as a Back Bencher, had an exemplary record as a champion of open government. It is indicative of the powerful effect that the Ministry of Defence has on Ministers when they go there; the Secretary of State himself is another perfect example.

At Question Time, when Opposition Members and Government Back Benchers have asked fair, straightforward questions about tactical air-to-surface missiles, the Upholder class submarines and other important issues, Ministers have often been evasive and sometimes been obstructive. It has been left to the Select Committee—to their credit, members of the Select Committee are here today—to take an overview and to extract information from Ministers and officials, although my colleagues tell me that it has been like getting blood from a stone.

As my colleagues know, I am always an optimist—the eternal optimist—

§ The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. Nicholas Soames)

One needs to be, in the Labour party.

§ Mr. Foulkes

One needs to be when one is in the Labour party; the hon. Gentleman is right.

At the weekend, I came across what I thought was a dramatic announcement in a Ministry of Defence press release. Like the hon. and learned Member for Fife, North-East (Mr. Campbell), I get all of them. It said: Archie Hamilton, MP, Minister of State for the Armed Forces, said today that the Ministry of Defence is to conduct a review".

§ Mr. Foulkes

At last—[interruption.] The Secretary of State is very perceptive. At last, there is to be a review, not of defence strategy or of our requirements for defence, but of all the Ministry's historic buildings. That will be very useful. Of course, the Minister of State will be seconded to the Department of National Heritage. My right hon. Friend the Member for Manchester, Gorton (Mr. Kaufman) will call him before the Select Committee on National Heritage and commend him, but that should not be the top priority of the MOD today.

I expect that most of the debate will be characterised by the widespread concern about the uncertain future faced by the Royal Navy, uncertainty which is the result of a lack of Government decisiveness and strategy. There is a feeling that the Royal Navy will lose out most in the continuing round of defence cuts, as the Select Committee found yesterday. We understand that the high-profile demands of United Nations operations, which we support, have placed greater strain on the Army and the Royal Air Force, but the Navy is important and vital. There is no such thing as a military operation with just one wing of the armed forces. The presence of the Ark Royal in the Adriatic is a clear reminder of that.

§ Lady Olga Maitland (Sutton and Cheam)

How does the hon. Gentleman equate his anguishing about Navy force levels with the declared intention of his party at the 320 general election to reduce defence spending by £7 billion a year? That is the equivalent of maintaining the Navy, the Army or the Air Force.

§ Mr. Foulkes

The hon. Lady has misunderstood the position. That point has been raised on several occasions. It was not in the manifesto. I think that the hon. Lady is referring to a decision of the party conference to which other Conservative Members have referred. It raises an important question of comparative defence cuts. I quote: Parallels can be found throughout the western world which show that substantial savings can be made on defence and they are appropriate at the present time."—[Official Report, 2 June 1992; Vol. 208, c. 697–98.] That is not my quotation; that was said by the Secretary of State in the House. We recognise that in the long term there must be a peace dividend, but we also accept that we have commitments to Northern Ireland, the Falklands, Hong Kong and Belize, as the Minister rightly said. We also make it clear that any cuts must be made after a complete defence review; we should not have the wild, random slashes that are being made by the Government. I am grateful to the hon. Member for Sutton and Cheam for raising that matter.

I was dealing with the presence of the Ark Royal in the Adriatic and, therefore, the importance of the Navy, which will play a key role in future international operations. It may use its amphibious capability or it may enforce sanctions or a blockade, which will be increasingly necessary in relation to Bosnia, or it may carry out drug patrols in the Caribbean, an operation that the Minister rightly identified.

The Navy's strategic role has already changed and there must be full discussion of the priorities of our naval forces in the post-cold war era. The Minister spoke about activity around the Kola peninsula in relation to the Upholder class. Is that activity still a priority or do we need to focus on bluer waters now that the Soviet threat has ended?

One of the many reasons for a defence review is to examine what sort of naval forces Britain, which currently has the fourth largest navy in the world, can afford to maintain. Bearing in mind our responsibilities, especially in NATO and the United Nations, we must also discover those capabilities that we cannot afford to lose. Those two need to be reconciled and only a comprehensive defence review can do that. However, there is no comprehensive information from the Government, just a series of leaked stories seemingly emanating from within the Ministry of Defence. In that context, it was a bit rich at a previous Question Time for the Minister to characterise the Opposition as plumbers chasing leaks, because those leaks seem to result from the disarray in his Ministry.

The Minister tended to dismiss a little lightly the size of the frigate and destroyer force. "Options for Change" suggested a force of about 40 ships, but the Minister said that there were exactly 40. Is it exactly 40? [Interruption.] Perhaps the Minister will tell us the figure in his reply. We are told to wait for the White Paper, which is rather like waiting for Godot. The evidence taken yesterday by the Select Committee and the comments by hon. Members suggest that there will be about 35 vessels. That means that the operational total may be as low as 30 because some vessels will be undergoing refits. The rumoured sale of the type 21 frigates and the recent announcement about the reduction in Navy manpower seem to support the Select Committee's prediction.

321 Some hon. Members, including Conservative Members, have spoken about the method used to announce reductions in Navy manpower, and I cannot let the matter pass without some comment. I have read on a number of occasions that the Navy is now into stealth technology, but so are Ministers in their methods of making announcements. A major announcement about reductions in Navy manpower was sneaked out in a written answer just before the Easter recess. Ministers knew that on the day following that answer, a Friday, there would be a rail strike and that not many people would be around. Ministers announced in a statement in the House that there had been a change of mind on Army manpower and that the number would be reduced by 3,000 fewer than they originally intended. However, the intention to slash Navy manpower by 5,000 was revealed in a written answer.

§ Mr. Wolfson

I intervene not to support the Opposition's defence policy but to record my extreme dissatisfaction and that of my constituents about the way in which that announcement was made.

§ Mr. Foulkes

I am grateful to the hon. Gentleman, who is a respected Member of the House. He is right. The Minister said that the White Paper would be issued in July and there was some jocularity about that being at the end of term. I hope that that trick will not be played on us again. As we have heard, the White Paper is crucial and it should not be left to the fag end of the Session when everyone is `bout to go on holiday.

The Government must clarify the size of the surface fleet. They say that that information will be contained in the White Paper and I hope that that document will set out the exact size. When speaking about the type 42 destroyers, the Minister rightly referred to the encouraging co-operation with France and Italy on the future frigate. We need to know exactly how many there will be. Press reports have suggested that there will be eight such vessels to replace the 12 type 42s, but we need to know the exact position.

The Minister rightly said that, in the changed climate of world security, amphibious capability is becoming even more crucial. International responses on peacekeeping and humanitarian intervention greatly benefit from the flexibility of amphibious forces. We welcome the decision to confirm the order for the landing platform helicopter vessel. The helicopter carrier is a vital part of the maintenance of an amphibious capability and it is necessary for the long-term future of the Royal Marines. As an hon. Member wickedly suggested a few days ago, without that carrier the marines might have to go by bus or train.

Thousands of shipbuilding jobs depend on the contract for that carrier. At this point in my speech, I intended to criticise the Minister, but I now have to say that I welcome the fact that a decision for the placing of that contract will be announced later this month. That is an encouraging step and will remove some of the uncertainty.

§ Mr. Davidson

The conference of the Scottish Conservative party is about to take place. As it is unlikely to have much good news for Scotland, does my hon. 322 Friend agree that the announcement about the order for the helicopter landing ship would be appropriate for that event?

§ Mr. Foulkes

I prefer all such announcements to be made in the House rather than at party conferences. In any case, the Scottish Conservative party conference will be preoccupied with the Scottish people's march for jobs and democracy which, when the marchers arrive there, will convey an important message to that conference.

§ Mr. Bill Walker (Tayside, North)

Is part of that march for jobs an expression of the hon. Gentleman's desire to sit on the Treasury Bench, a desire that never seems to materialise?

§ Mr. Foulkes

It has not materialised so far, but the hon. Gentleman does everything that he can to make it happen and I am grateful to him for that.

I should like to ask about other amphibious elements. The Minister spoke about the landing platform dock replacements which are just as important to the future of the amphibious capability as the LPH. The Minister said that Intrepid and Fearless can remain until the end of the century. That is an optimistic assessment. Perhaps the Minister of State could clarify the time scale for those docks.

There is further confusion about submarines. Once again, the Minister was rather coy about the Upholder class submarines about which the hon. Member for Gosport (Mr. Viggers) asked him a telling question. As they say in the world of football transfers, as Graeme Souness knows to his cost, and tabloid gossip, the Upholder class has been heavily linked with Canada. That would be a significant sale because not only would a totally new class of submarine be sold before it entered service—which, I understand, would be the first time that that has ever happened, although the Minister was not sure about that—but it would involve vessels costing more than £800 million when training and infrastructure investments were included. If the submarines are to be sold or even if such a sale has been considered or discussed with Canada, the House should be told about it and the Government should come clean.

The overriding impression among Opposition Members, people and the media is that the sole reason for the sale is not that Upholders are no longer required for our strategic capability but that the Government badly need the money for other promised procurement projects. How many other new projects will be hived off to fund the continuing procurement requirement? To sell the Upholders is a major strategic decision which needs to be reported to the House. They should not simply be sold off, flogged off, to raise hard cash. I hope that the Minister of State will give us a straight answer about those submarines.

That brings me to the issue of defence sales.

§ Mr. Ian Bruce

Before the hon. Gentleman leaves the subject of submarines, I have a question for him. Just before the last general election, Labour's policy on nuclear submarines was that it would review the need for the fourth Trident submarine. Would the hon. Gentleman take the opportunity, now that we are already building the fourth Trident submarine, to say that Labour party policy now is to support the nuclear deterrent and have a four-boat fleet?

§ Mr. Foulkes

The fourth Trident has been completed and we accept that as a fait accompli. I shall deal in a little more detail in a few minutes with some of the wider aspects of our nuclear deterrent.

The Upholder class sale is a clear sign that the Royal Navy is not exempt from what a recent National Audit Office report described as a sell-off of British military equipment on a scale unprecedented since the period following the second world war in what seems in some cases to be a bargain basement sale. The Minister may be aware that the same report suggested that taxpayers' money had been lost by not getting the best prices in previous equipment sales and that the director of sales had not carried out adequate studies to achieve the best prices in the international market. The report stated: the directorate has insufficient information … to know whether they are covering their costs. I should be interested to hear from the Minister of State for the Armed Services what the Government intend to do to remedy the inefficiencies highlighted in that report. In a recent sale at Rosyth, equipment worth many thousands of pounds—some of it new and some of it used—was sold to a private dealer for £1. That is not getting the best value for money out of a sale of assets that cost thousands of pounds. If the Minister cannot do so now, I hope that at some time he will respond to that report.

It appears from all the