Strategic Defence Initiative (Hansard, 11 March 1986)

§ 7. Mr. Livsey
asked the Secretary of State for Defence what is the number of orders to date won by United Kingdom firms to participate in the strategic defence initiative research and development programme.

§ The Minister of State for Defence Procurement (Mr. Norman Lamont)
Seven contracts have so far been publicly announced by British companies for participation in the United States SDI research programme.

§ Mr. Livsey
Will the Minister comment on the fact that there are difficulties in negotiations between West Germany and America on the number of contracts being secured, and the fact that the former Secretary of State for Defence promised £1.5 billion of the so-called star wars crock of gold, but it looks now as if there will be only £300 million available out of a total of £26 billion?

§ Mr. Lamont
On the first part of the hon. Gentleman's question, if I heard the hon. Gentleman aright—I can hardly believe that I did—what happens in Germany is a matter for the German Government.
On the second part of his question, it was made clear that there is no set-aside, but there is a marvellous competitive opportunity for British industry. We are the first Government to sign such an agreement with the United States Government, and it opens up tremendous opportunities for the technology of this country.

§ Mr. Duffy
The House wants not fine words but evidence from the Minister. Will he confirm that late last year there was pessimism among United Kingdom firms, which was justified in the light of the problems with the Trident programme? Will the hon. Gentleman conduct a survey of firms so that we can have evidence, because the House shares such pessimism?

§ Mr. Lamont
I see no reason to be pessimistic. The agreement was signed at the beginning of December, and already seven contracts have been signed. They are highly important, and the hon. Gentleman ought to be encouraging British firms to go out and sell their technology in the United States. We have an enormous amount to offer. There is no reason to think that British companies, which lead in defence technology in so many areas, cannot capture a significant part of that market.

§ Mr. Dickens
Is it not a fact that the SDI programme, whatever the cost and whatever the orders at present, will create thousands of jobs in the United Kingdom? That being so, is it not wrong for the Opposition to attack arrangements which will yield so many jobs for our people?

§ Mr. Lamont
I entirely agree with my hon. Friend. There is, of course, something nonsensical and inconsistent in the Opposition's attitude. They suggest that if there is an agreement with the United States, our scientists will emigrate. Somehow they believe that if there is no agreement, our scientists will stay at home. That is nonsense.