HC Deb 26 November 1974 vol 882 cc219-20
5. Mr. Hal Miller

asked the Secretary of State for Defence whether, in conjunction with the defence review, any estimate is being made of the likely effect of any cuts in employment in civilian firms supplying equipment and components.

Mr. Mason

I am not able to give any estimates in advance of my proposed statement, but I can assure hon. Members that we have kept the employment and industrial implications in mind throughout the defence review.

Mr. Miller

Does the right hon. Gentleman understand that very great uncertainty is being caused, particularly in my constituency, among many employees of firms supplying defence equipment and components and that in the case of one factory alone any significant reduction in aircraft would result in one-third of the work force being laid off? Is he to have any consultations with the work force, either directly or through the medium of his right hon. Friend the Secretary of State for Industry, who has pioneered this sort of consultation?

Mr. Mason

I recognise the hon. Gentleman's anxiety. I know that people in defence industries will be concerned. I hope that on 3rd December I will be able to make a statement outlining how much this will affect them but I hope that it will be manageable and that the unemployment prospects flowing from our review will not be so grim. I shall also be able to reveal that consultations wilt take place with both sides of industry as well as with our NATO allies.

Mr. Dalyell

Is it not sensible and attractive to my right hon. Friend that much of the oil-related expenditure done by the Navy should be transferred to the Department of Energy account?

Mr. Mason

That is not a question for me, I am sorry to say. My hon. Friend has struck one not for the Ministry of Defence but rather for the Department of Energy and for my right hon. Friend the Chancellor of the Exchequer.

Mr. Buck

The right hon. Gentleman has just said that his statement on 3rd December would enable him to say in what way these industries may be affected. Does that mean that after 3rd December there will still be room for alteration in view of any views expressed in the House about the balance of the defence review?

Mr. Mason

I shall not be able to give a clear indication of precisely how a firm in the shipbuilding industry or the aircraft industry will be affected, but it will be evident from the cuts that we will be making that some firms are bound to be adversely affected. The extent to which it will be manageable will depend on the time scale that we have in mind.