HEAD OF DEFENCE SALES (APPOINTMENT)

HC Deb 11 May 1966 vol 728 cc403-6

The following Question stood upon the Order Paper:

83. Mr. JOSEPH KEVIN MCNAMARA

To ask the Secretary of State for Defence if he will now make a statement on the appointment of a Head of Defence Sales.

The Secretary of State for Defence (Mr. Denis Healey)

With permission, I will now answer Question No. 83.

I am glad to inform the House that Mr. Raymond Brown, O.B.E., joint founder and Managing Director of the Racal Electronics Group has agreed to accept this post. He will start his duties on Monday next.

Mr. Brown will be responsible jointly to me and the Minister of Aviation. The appointment is for two years at a salary of £8,000 a year.

Mr. McNamara

While thanking my right hon. Friend for his Answer, may I ask him to assure the House that there will be no conflict of interest, that keen political control will be ensured to make certain that there are no sales of arms to areas where there might be a delicate balance, and that no arms will be sold directly or under licence to any parties engaged in the Vietnam conflict?

Mr. Healey

Mr. Brown has resigned his appointment as Chairman and Managing Director of Racal Electronics and has ceased to take any part in the business of the company. In his new post, he will have no contractual relationship with Racal, but occasions may arise in the course of export promotion when he may have to deal with matters affecting the interests of Racal as well as other firms. In such cases, it would be inappropriate for decisions to be made by him, and they will, therefore, be referred to the appropriate Permanent Secretary or his representative.

On the second part of the question, yes, Mer Majesty's Government will ensure that arms sales for which the Government are responsible take account of the possible political consequences of such sales.

On the third part of the question, about Vietnam, we regard the United States as a country to which we are perfectly free and indeed anxious to sell armaments, and we would not seek to impose any limitations on the use of the arms that we sold.

Mr. Powell

When the right hon. Gentleman made his original announcement on 25th January he will remember undertaking to ensure that the work of the new section and the gentleman appointed to it were open to the closest Parliamentary scrutiny. Could he now say how he intends to achieve that?

Mr. Healey

It will be open to right hon. and hon. Members to ask me or my right hon. Friend the Minister of Aviation questions about Mr. Brown's activities and the activities of the unit for which he is responsible; and we shall answer those questions.

Mr. W. Baxter

Is my right hon. Friend aware that this appointment has caused great concern throughout the length and breadth of our land? Is he further aware that it does not seem compatible with the appointment of a Minister of Disarmament? Will he look at the whole question again with a view to terminating the appointment before it is made?

Mr. Healey

On that last point, "No, Sir". It has been made clear on many occasions that we believe that it is not only our right, but our duty, to ensure that British defence industries have a market which enables them to survive and have a proper share of the international market, though I would assure my hon. Friend that the sooner that we can arrange for a multilateral abolition of the international traffic in arms at all levels through the operation of some disarmament agreement, the happier we shall be.

Mr. Marten

Can the right hon. Gentleman say what salary this gentleman is being paid? [HON. MEMBERS: "The Minister did say."] Will he also say whether the expenses he receives will be subject to minute examination? If they are, I am afraid that this will not be very helpful to the gentleman in his efforts to sell arms overseas.

Mr. Healey

On the question of expenses, as with other civil servants, Mr. Brown will be entitled to expenses for travelling, subsistence, and official entertainment in accordance with the approved scales. In addition, the new sales organisation will have its own funds for sales promotion, and we shall expect the industry to pull its weight in affording vigorous promotion to its own products. Mr. Brown is no amateur at selling defence equipment, and he is perfectly satisfied with the arrangements which have been made in this respect.

Mr. Rankin

Is my right hon. Friend aware that the appointment of Mr. Brown seems to be somewhat similar to a former appointment, that of Sir Basil Zaharoff, who earned a reputation in this country and in the Labour movement for his nefarious practices which were widely condemned by every member of the Labour movement?

Mr. Healey

With respect, I was not responsible for the activities of Sir Basil Zaharoff, nor were the British Government of the day. There is an immense difference between the activities of a private manufacturer of armaments and the activities of a Government servant in seeking to promote sales of British defence equipment in line with the policies of Her Majesty's Government.

Several Hon. Members

rose—

Mr. Speaker

Order.

Mr. W. Baxter

In view of the unsatisfactory nature of the reply, I give notice that I shall endeavour to raise this matter on the Adjournment at the earliest opportunity.

Mr. Speaker

Perhaps I might say a word on the matter of order on Questions which are taken at the end of Question Time. This is done for the convenience of Ministers who wish to give slightly longer answers, or because the Question has not been reached, but, once the Question has been asked, it is subject to all the rules of short, snappy supplementary answers on the part of Ministers.