§ 2. Mr. SpellarTo ask the Secretary of State for Foreign and Commonwealth Affairs what is his Department's policy on purchasing; and what priority he gives to British suppliers.
§ The Minister of State, Foreign and Commonwealth Office (Mr. Alastair Goodlad)In accordance with Government guidelines, the policy of the Foreign and Commonwealth Office is to purchase goods and services on a value-for-money basis and in accordance with our international obligations. British suppliers are used where they are competitive on quality, price and delivery.
§ Mr. SpellarI thank the Minister for his reply, but will he comment on reports that the British ambassador to the United Nations has traded in his British-built Rolls-Royce for an American-built Lincoln Continental? What image does he think that gives to British industry and what hope does it give to British car workers? Can he imagine any other car manufacturing country that would behave in a similar fashion?
§ Mr. GoodladThe Rolls-Royce is the finest car in the world. It will succeed in international markets, regardless of whether Her Majesty's ambassador in Washington abides by the criteria that I described. I am delighted that he does.
§ Mr. WilkinsonDoes my right hon. Friend, whom I welcome to the Dispatch Box, have regular discussions with Her Majesty's Treasury about seeking value for money in the procurement of items for the Foreign and Commonwealth Office? What is the view of his Department's officials, who have to make the decisions, about the directive to impose on the United Kingdom a minimum level of value added tax of 15 per cent? At some future date they would surely welcome a VAT rate below 15 per cent., as would all of us, but that, apparently, is precluded for the next four years.
§ Mr. GoodladI am most grateful to my hon. Friend for his kind words, and I welcome his interest in VAT. The Foreign and Commonwealth Office is spending £164 million in the current year on buying in goods and services. In the context of the increased globalisation of international trade, it is difficult to calculate the detail of that expenditure with the precision that both my hon. Friend and I would like, but I am sure that he will be as interested as I was to know that it is estimated that more than 85 per cent. of the expenditure is with British-registered companies.