HC Deb 10 November 1981 vol 12 cc409-10
8. Mr. Colvin

asked the Secretary of State for Defence if he has considered placing a mandatory obligation on the Procurement Executive to include small firms in the list of those asked to tender for Ministry of Defence contracts.

Mr. Pattie

Small firms are always included in Ministry of Defence invitations to tender for contracts appropriate to their capacities and lines of business.

Mr. Colvin

Is my hon. Friend aware that in the United States about 20 per cent. of Department of Defence procurement comes from smaller firms, arising mainly from the fact that these contracts are set aside especially for that sector of business? Will he consider a similar form of positive discrimination in favour of small businesses so that they might receive a fairer share of Government business?

Mr. Pattie

I am interested to hear my hon. Friend's views on United States practice in this regard. We shall certainly look at what is done there to see whether we can learn anything from it. However, the Government believe that it would be as wrong to discriminate in favour of small firms as it would be to discriminate against them. That view is shared by the CBI in relation to the access of smaller firms to Government contracts.

Mr. Dempsey

In pursuing this procurement policy, will the Minister use his good offices to ensure that Scottish industry gets the maximum opportunity to tender for this work in view of the inordinately high level of unemployment in Scotland at the present time?

Mr. Pattie

Yes.

Mr. Peter Fraser

Even if my hon. Friend will not accept the suggestion of a mandatory obligation on the Ministry of Defence, will he reconsider the circumstances in which small businesses that seek to be subcontractors to the major defence contractors can obtain defence standard 05–24, as that would enhance their prospects of obtaining vital subcontract work?

Mr. Pattie

Quality assurance approval is a complicated matter. Perhaps I can write to my hon. Friend on this question and place a copy of the letter in the Library.

Mr. Park

Will the Minister comment on the reported placing of a contract for submarine sonar equipment with a French firm when British companies say that they can do the job equally well and cheaper?

Mr. Pattie

I am sure the hon. Gentleman will accept that that issue is important enough to merit prior notice. Now that he has raised it with me, I shall be glad to look into it.