§ 1. Mr. Brandon-Bravoasked the Secretary of State for Defence what steps he is taking to promote civil spin-off from defence research and development.
§ The Parliamentary Under-Secretary of State for Defence Procurement (Mr. John Lee)Civil spin-off from defence research is sought and encouraged through the British Technology Group, the patenting of inventions and direct contacts between the Department and industry. These arrangements are now complemented by the activities of Defence Technology Enterprises, a private sector company established as a joint initiative between the MOD and the private sector.
§ Mr. Brandon-BravoI welcome that reply. I know that my hon. Friend is aware of the concern in many quarters that so much of the nation's research and development is defence orientated. Will he tell the House a little more about the enterprise project, which, I believe, involves a partnership between public and private money?
§ Mr. LeeDefence Technology Enterprises is a joint initiative. The share capital is owned entirely by the private sector. It is making encouraging progress. There are executives of Defence Technology Enterprises in three major research establishments— Malvern, Farnborough and Portsdown — seeking ideas and concepts for commercial exploitation. The first licence—for software programme verification—has already been agreed.
§ Mr. DouglasWhat civil spin-off will result from the memorandum of understanding between the Government and the United States on the strategic defence initiative?
§ Mr. LeeWe expect that, in the fullness of time, there will be a substantial spin-off. It is impossible to be too specific at this stage.
§ Sir Antony BuckDoes my hon. Friend agree that a further spin-off will be substantial defence sales abroad? Will he confirm that those sales are currently about £2.5 billion, and will he say whether they are declining or expanding?
§ Mr. LeeMy hon. and learned Friend is absolutely right. Defence sales are about £2.5 billion a year, or 3 to 4 per cent. of our total national exports. That excludes the Saudi aerospace contract, which is substantially more than that.