HC Deb 06 March 1990 vol 168 cc717-8
6. Mr. Thurnham

To ask the Secretary of State for Defence whether he is making any revisions to the future level of defence procurements; and if he will make a statement.

The Minister of State for Defence Procurement (Mr. Alan Clark)

Plans for all aspects of defence expenditure, will be reviewed in the 1990 public expenditure survey.

Mr. Thurnham

Should not British contractors look more towards Europe? Why should not we sell Sea Harriers to the French? The French navy has apparently had no inquiries from any British defence contractor in relation to any British equipment.

Mr. Clark

I cannot answer for the purchasing policy of the French navy, but my hon. Friend is incorrect. British businesses have sold a lot of equipment to the French navy. Racal recently sold it a communications system. We have recently endorsed our confidence in the Sea Harrier and I am glad to announce that within the past few days we have placed an order for a further 10 Sea Harrier FRS2 aircraft to replace those likely to be lost through attrition and sustain the Sea Harrier capability.

Mr. Duffy

Will the Minister confirm that the opening up of the defence market for defence procurement, as confirmed at Gleneagles last month, will offer the prospect of a more cost-effective level of defence spending, to the relief of the British taxpayer, and will open up the prospect of more jobs for members of the Amalgamated Engineering Union, the Manufacturing, Science and Finance Union and the General, Municipal, Boilermakers and Allied Trades Union, which is the prime objective of all those trade unions?

Mr. Clark

I am glad to hear what the hon. Member has said. I do not know what the attitude of those unions would be to his party's policy statement, with its undercurrent of drastic reductions. Certainly at the Gleneagles meeting, chaired by my right hon. Friend the Secretary of State, there was a mutual exchange of contract bulletins which means that industries in all the countries attending will have access to one another's defence procurement contracts.

Mr. Trotter

Does my hon. Friend accept that whatever the changes taking place in eastern Europe and the Soviet Union, large-scale manufacture of modern tanks continues in the Soviet Union? Does he accept that there is a continued need to replace the British tank fleet and to go ahead with the development of Challenger by Vickers?

Mr. Clark

We want the Challenger 2 development programme to proceed smoothly. When it is concluded we shall examine all the options which determine the type of tank we choose and the quantity.

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