§ 16. Mr. Martyn JonesTo ask the Secretary of State for Defence what percentage of contracts awarded by the Ministry of Defence go to British-owned companies.
§ Mr. Alan ClarkThe Ministry of Defence does not maintain contract statistics on the basis of the ownership of companies but by the location where the majority of the work is to be undertaken. Taking into account our share of international collaborative programmes, around 90 per cent. of the defence equipment budget is spent with companies in the United Kingdom.
§ Mr. JonesShould not we spend 100 per cent. of our money in this country, bearing in mind the fact that we are in a recession created by the effect of eleven and a half years of Tory misrule on the economy and the fact that we have the biggest-ever balance of payments deficit? Will he make efforts to do so in the future?
§ Mr. ClarkI reject that argument. The figure of 90 per cent. represents an excellent tribute to the competitiveness of British industry. My Department searches constantly for the best value for money in weapons procurement. That is our obligation to the hon. Gentleman's constituents who pay their taxes and to the whole of the public. We look for value for money by objective criteria and, as I say, it testifies to the competitiveness of British industry that it managed to reach the 90 per cent. total.
§ Mr. BatisteDoes my right hon. Friend agree that British defence companies need clearly defined time scales against which to commit their expenditure? In that context, when will he be in a position to announce the decision for the replacement of the Chieftain tank, bearing in mind the outstanding performance of the Challenger tank in the Gulf war?
§ Mr. ClarkIt is perfectly true that not only did the Challenger tank perform extremely well, but the whole support operation provided by the manufacturers was of the highest quality. I hope that a decision on the replacement of the Chieftain will not be delayed too long.