§ 16. Mr. HindTo ask the Secretary of State for Defence whether his Department is considering changing the policy of the Defence Export Services Organisation.
§ Mr. Alan ClarkNo, Sir. The policy of the Defence Export Services Organisation remains unchanged. It will continue in its successful work of assisting United Kingdom companies, both large and small, to market and sell their defence products and services overseas. It is through the sustained efforts of British industry, with the support of the DESO, that Britain is able to maintain its position as a major exporter of defence equipment.
§ Mr. HindMy hon. Friend will be aware of the importance of DESO and of the companies in the north-west which contribute to it. Does he agree that any 663 attempt which might made along the lines of the Labour party's document on changing procurement policy, with a cut of a quarter in the defence budget, would lead to the loss of jobs and investment and would greatly damage the nation's balance of trade?
§ Mr. ClarkYes, indeed. We have a surplus of £517 million in this sphere and it is paradoxical that Labour Members should suggest an arms conversion agency which would take industrial production away from the defence industries and into industries which they regard as socially acceptable.