§ 1. Mr. Greville Jannerasked the Secretary of State for Industry whether, in view of recent defence cuts, he will take steps to assist the electronic engineering industries in the city of Leicester.
§ The Minister for Industry and Information Technology (Mr. Kenneth Baker)The Government will consider any request from electronic engineering industries in Leicester for assistance towards particular projects within the rules of existing schemes for industrial support. The Department is considering the provision of products and process development scheme support to electronics companies in Leicester.
§ Mr. JannerIs the Minister aware of the desperation experienced in the deeply troubled city of Leicester over the potential loss of jobs—due to defence cuts—in the two Marconi factories in my constituency? Will he consult the Secretary of State for Defence to see what can be done to help that company in its difficult position?
§ Mr. BakerI regret that the difficult decisions that are made to meet essential defence requirements within the limits of prudent public expenditure have inevitable consequences for employment in particular places. I appreciate the hon and learned Gentleman's concern. The choice of radar in these contracts is for the Secretary of State for Defence to make. However, in this and all other public purchasing decisions full weight will be given to the long-term consequences for British industry as a whole. I undertake to bring the hon. and learned Gentleman's comments to the notice of the Secretary of State for Defence.
§ Mr. LathamOn that point, do the Government have an essential "Buy British" policy for Government-purchased public equipment? If so, would not the Marconi affair be a particularly good case in which to show that they have one?
§ Mr. BakerThe Government are developing a whole series of public purchasing initiatives. This subject has been discussed several times from the Dispatch Box. I prefer to describe the policy as a "Think British, buy British" policy. However, important considerations are involved in the placing of contracts.