This Government have stepped up our support for naval shipbuilding. We have secured the largest shipbuilding export in British history, with the Type 26 being sold to Norway; we have invested in strategically important infrastructure; and we are driving naval programmes in UK shipyards. The shipbuilding and maritime technology action plan will set out our future ambitions to support the naval and civilian shipbuilding and maritime technology sectors.
Wight Shipyard and Diverse Marine in my constituency do fantastic work and they thoroughly welcome the launch of the new dedicated unit to help ensure that small defence companies can access Ministry of Defence contracts. However, given the recent news that a £200 million contract has been awarded to the Dutch firm Damen, what assurances can the Minister offer to companies such as Wight Shipyard and Diverse Marine that they will have a fair and credible route into competing for these major programmes?
Serco has indeed awarded a contract to Damen as part of its provision of tugs for the UK military. We have set out clearly our intention that more of our rising defence Budget should be spent with British companies, supporting the construction of more naval assets in British shipyards. We will continue to do that, not just through supporting the Type 26s and Type 31s being built in Scottish shipyards but, as we move to a hybrid Navy, through more platforms being built in shipyards right across the United Kingdom.
We could invest better in naval shipbuilding if the Government paid attention to a report published by the National Audit Office, which estimates that £1.5 billion a year of defence spending is lost to fraud and that the Ministry of Defence recovers only 48p in every £1 spent on counter-fraud work, less than other Departments. What will the Minister do to ensure that more of that funding can be recovered for our national defence?
Let us be absolutely clear: any money lost to fraud is money that people have taken away from our national security and our national defences, and that is unacceptable. The Department is looking at how we can continuously improve our anti-fraud measures, and we will continue to do so. As we roll out increased defence spending, it is even more important that we spend the money wisely.