HC Deb 01 May 1991 vol 190 cc298-300
2. Mr. Dalyell

To ask the Secretary of State for Trade and Industry how many British firms have obtained contracts in Kuwait; and what is the estimated value.

The Secretary of State for Trade and Industry and President of the Board of Trade (Mr. Peter Lilley)

I am aware of more than 35 companies which have obtained contracts worth over £140 million in connection with Kuwait reconstruction.

Mr. Dalyell

In relation to reports about torture and human rights, is there a penn'orth of difference between those whom we went to expel from Kuwait and those whom we went to defend? Do not we have to face up to the fact that Kuwait is now paralysed and that there is no chance of those who are there tackling the problem of the fires? Ourselves, the Americans and the Saudis should go in, take charge and do something about what is a major engineering project which cannot be left to relatively few firefighters in commercial terms.

Mr. Lilley

It is clear that excesses have been committed since liberation and the British Government have made their views on that clear to the Government of Kuwait. If the hon. Gentleman sees no difference between the appalling outrages committed by the Iraqi Government and army and the excesses that have been committed since liberation, he has extraordinarily confused vision.

Mr. Rowe

In my constituency lives the managing director of Reynolds and Wilson, a company which has been placed on the American blacklist. The Americans have told him that they have no evidence of malpractice and that there is no particular reason for the company being on the list, but that they do not intend to remove it. The company, which has traded in that part of the world for 60 years, is having the greatest difficulty winning contracts simply because of the Americans' disgraceful behaviour. Has my right hon. Friend any comfort for that company and others like it?

Mr. Lilley

I assure my hon. Friend that my officials are discussing the matter with the United States authorities and are awaiting further information from them. I can reassure my hon. Friend that so far three firms have been taken off the blacklist and I expect others to be taken off in due course.

Mr. Gordon Brown

What possible help can it be to exporters to Kuwait or anywhere else to proceed with privatising parts of the Export Credits Guarantee Department? Now that there is no serious British bid, will he abandon the sale, which the British Exporters Association says is a shambles and which could put control in Rome or Amsterdam? This could become the second Government Bill to be rejected in another place within days. Frankly, it is privatisation for privatisation's sake.

Mr. Lilley

The hon. Gentleman should be aware that in the European Community export credit facilities are issued by private sector companies in Germany, the Netherlands, France, Italy, Belgium, Portugal and Spain and that Denmark and Ireland are also considering privatising their export agencies, because they believe, as we do, that export credit for short-term business should be in the private sector. We believe that that is more in tune with the single market and it is in accord with our view that the private sector should be responsible for such matters. The hon. Gentleman thinks that all European countries are obsessed by dogma, but it is the Labour party alone which believes that this should be in the state sector.

Sir Anthony Grant

Although I appreciate that my right hon. Friend wishes to help British firms in this context—he is doing a good job—will he bear in mind the interests of our allies who supported us during the Gulf conflict? For example, I have a constituent who works for an Australian company with special expertise in putting out appalling oilfield fires such as those to which the hon. Member for Linlithgow (Mr. Dalyell) referred. Will my right hon. Friend assure the House that there will be sensible co-operation with such companies?

Mr. Lilley

Yes, I shall do so. I have passed on the information that the hon. Member for Linlithgow (Mr. Dalyell) asked me to refer to the group competing for contracts in the oilfields. There is every reason to believe that a group of British companies will be awarded the contract for damage assessment in one of the oilfields which is expected to lead to substantial contracts for extinguishing and capping burning wells and restoring oil production. Discussions on that continue with the Kuwait authorities.

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