Supplementary evidence submitted by the Scotland Office
Jim Mather MSP wrote to the Secretary of State about the Government's memorandum to the Select Committee's inquiry and the Defence Industrial Strategy. He subsequently suggested it might be helpful if the correspondence was made available to the Committee. Des Browne was very pleased to agree to this suggestion. I enclose copies of the four letters that make up the correspondence and hope you and the Committee will find them useful.
I am copying this letter to Jim Mather.
David Cairns
Minister of State, The Scotland Office
30 April 2008
Annex A
Letter from Jim Mather MSP, Minister for Enterprise, Energy and Tourism, the Scottish Executive to Rt Hon Des Browne MP, Secretary of State for Scotland
I write with regard to the evidence recently provided by your officials in the Scotland Office to the Scottish Affairs Select Committee investigating experience and skills for the defence industry in Scotland.
Point 15 of the evidence provided by the Scotland Office lists the national industrial capabilities identified in the Defence Industrial Strategy to allow the UK to retain appropriate operational sovereignty. However, I would invite you to clarify apparent differences in the evidence provided by the Scotland Office regarding these capabilities and the actual wording in the Defence Industrial Strategy.
The apparent disparity surrounds the strategic capabilities identified for retention onshore listed in the Maritime Chapter of DIS Section B2.18, DIS states:
— It is a high priority for the UK to retain the suite of capabilities required to design complex ships.
— There is no absolute requirement to build all warships and Royal Fleet Auxiliary vessels onshore.
— The UK shall retain the ability to maintain and support the effectiveness of the fleet.
The evidence provided by the Scotland Office states:
— It is a high priority for the UK to retain the suite of capabilities required to design complex RN warships.
— Whilst there is no absolute requirement to build RN surface platforms onshore.
— The UK shall retain the ability to maintain and support the effectiveness of the fleet warships.
I must ask for clarity on these points as the changes implied by the Scotland Office to the capabilities identified as sovereign undermine the integrity of the Defence Industrial Strategy. You will understand that I am deeply concerned this could imply a revision of the capabilities identified as sovereign without consultation or notification to key stakeholders. If this were the case, it could impact substantially on the work programmes made available to UK industry and have a significant impact here in Scotland where a large proportion of the UK naval defence capability is based.
I would therefore ask for clarification on the capabilities the Scotland Office consider as listed as sovereign, and whether the high priority is for the UK to retain the suite of capabilities required to design complex ships or only complex Royal Naval warships? As you will appreciate, the latter would effectively mean any tender to build Auxiliary vessels could be open to European competition and the remaining two classes of ships within the MARS programme could follow the Fleet Tankers in being tendered within Europe.
I would also ask you to clarify, whether the Scotland Office view is that the UK should retain the ability to maintain and support the effectiveness of the fleet or only support the effectiveness of the fleet warships? I would argue this could lead to a situation where by only supporting fleet warships, maintenance and refit of all other Royal Navy Surface Platforms could be opened to European tender and reduce the UK's capacity to provide through life support.
Jim Mather MSP
Minister of State for Enterprise, Energy and Tourism
The Scottish Executive
28 February 2008
Annex B
Letter from the Rt Hon Des Brown MP, Secretary of State for Scotland to Jim Mather MSP, Minister for Enterprise, Energy and Tourism, Scottish Executive
Thank you for your recent letter about evidence provided by the Scotland Office to the Scottish Affairs Select Committee and the Maritime chapter of the Defence Industrial Strategy (DIS).
I should like to make it clear that there has been no change in the policy set out in the Maritime chapter of the DIS—published in December 2005. The six strategic capabilities identified at page 70 of the DIS remain valid.
Currently, the UK has ample demand to occupy its shipyards as a result of programmes such as CVF and the Type 45 destroyers. As you note the first element of the Maritime Afloat Reach & Sustainability (MARS) programme—the Fleet Tanker (FT) requirement—has been advertised in the Official Journal for the European Union. The department is currently assessing the responses it has received from industry and decisions on where the FTs will be built are yet to be taken. Furthermore, no decisions have been made in respect of the procurement strategy for later MARS vessels—Fleet Solid Support (FSS) and Joint Sea Based Logistics (JSBL)—although we expect that at the very least, initial design work will be undertaken in the UK.
Des Browne MP
Secretary of State for Scotland
31 March 2008
Annex C
Letter from Jim Mather MSP, Minister for Enterprise, Energy and Tourism, Scottish Executive to Rt Hon Des Brown MP, Secretary of State for Scotland
Thank you for your letter of 31 March clarifying that there is no change in the policy set out in the Defence Industrial Strategy (DIS) published in December 2005 and that the six strategic capabilities remain valid.
We are greatly reassured by your statement as the strategic capability to design, build and support the UK's complex support ships is vested to a very large extent in the defence industry in Scotland and future industry rationalisation decisions would need to take this requirement into account.
With regard to the evidence provided by the Scotland Office to the Scottish Affairs Select Committee I would like you to give consideration to releasing our recent correspondence to the Committee to enable them to publicly record this rectification. I believe the next scheduled meeting of the Committee, when Baroness Taylor is due to give evidence, takes place on 29 April 2008.
Jim Mather MSP
Minister of State for Enterprise, Energy and Tourism
The Scottish Executive
13 April 2008
Annex D
Letter from Rt Hon Des Browne MP, Secretary of State for Scotland to Jim Mather MSP, Minister for Enterprise, Energy and Tourism, Scottish Executive
Thank you for your letter dated 16 April 2008 concerning the Scottish Affairs Select Committee Inquiry on the Defence Industry in Scotland.
I agree with your suggestion that it would be helpful if our exchange of correspondence on this matter were to be forwarded to the Select Committee. I will arrange for it to be done.
Des Browne MP
Secretary of State for Scotland
April 2008
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