Boeing AWACS (Offset Arrangements) (Hansard, 18 January 1989)

§ 15. Mr. Hanley
To ask the Chancellor of the Duchy of Lancaster what steps his Department has taken to encourage the British civil aerospace companies to participate in the Boeing airborne warning and control system offset arrangements.

§ Mr. Atkins
During the course of 1988 my Department organised a series of seminars on the United States civil aerospace market. The scope for selling to Boeing and participating in the AWACS offset arrangements figured prominently in these.

§ Mr. Hanley
Does my hon. Friend not agree that following the great success of the provision of Harriers for the US forces by British Aerospace, his Department should encourage further co-operation for the benefit of the economies and the defence of these two nations?

§ Mr. Atkins
My hon. Friend is right. The Harrier has been one of the most successful programmes involving both military and civil aerospace companies in this country. It is worth reminding the House, in case it has forgotten, that the positive trade balance in aerospace products is about £2.4 billion per annum. That makes it an extremely successful industry.

§ Mr. Madden
Does the Minister agree that it would be helpful to good industrial relations in the electronics industry if Plessey and GEC took the opportunity to announce publicly that they intend to sever their links with the secret blacklisting organisation, the Economic League, and will stop using its secret and often illegal services?

§ Mr. Atkins
The hon. Gentleman would not expect me to comment upon that matter, and I do not intend to.

§ Mr. Haselhurst
While my hon. Friend will agree that no guarantees were offered under the offset arrangements, can he say how far the Boeing aircraft company has honoured the intent?

§ Mr. Atkins
As my hon. Friend is perfectly well aware, these are predominantly matters for the Ministry of Defence. I can tell him that to date over 900 United Kingdom firms have made contact with Boeing through the AWACS offset office. Of those, 200 have visited Boeing plants, and Boeing claims that competitive opportunities have been made available to more than 100 British companies. There is stilll much evaluation being carried out by the Ministry of Defence which has already accepted about £150 million as offset, has rejected £77 million, and is still examining £403 million. When those figures are clear, my hon. Friend will be able to ascertain, as will I and the Ministry of Defence, how successful the offset agreement has been.