HC Deb 27 October 1992 vol 212 cc852-4
5. Mr. David Martin

To ask the Secretary of State for Defence how many jobs in the United Kingdom are dependent on defence equipment expenditure.

Mr. Aitken

We estimate that about 350,000 jobs in the United Kingdom are dependent on defence equipment expenditure, including those dependent on defence sales overseas.

Mr. Martin

I know that my hon. Friend does not need to be reminded yet again by me of the importance of defence expenditure to Portsmouth, so can he assure me that he will continue to remind the public as well as the defence industry that any alternative policy is one of swingeing cuts in defence expenditure, such as was proposed and passed yet again at the Labour party conference this year, that the Liberals are little better and that that policy is very much against the defence interests of this country?

Mr. Aitken

My hon. Friend is right, as he represents a Portsmouth constituency, to remind us of the extraordinary resolutions passed at this year's Labour party conference. If those resolutions, which call for devastating defence cuts, were ever to be translated into political reality, they would mean the disappearance of at least a quarter of our armed forces and the redundancy of at least 100,000 workers in defence industries. Only this Government have a strong and credible policy for Britain's defences.

Ms. Rachel Squire

Is the Minister aware that the largest industrial complex in Scotland is Rosyth royal dockyard? Is he in particular aware that 4,200 direct jobs and many hundreds more indirect jobs depend upon the assurances that the Government and their Ministers have given since 1985? In particular, will he remind the present Chancellor of the Exchequer of what he said in 1985: that the Government's commitment to Rosyth was clear from the massive investment that they were making in the dockyard to carry out the Trident refit? Will the Minister therefore give Rosyth the assurance of a future and its work force the assurance of jobs for all of them?

Mr. Aitken

I am well aware of the concerns that the hon. Lady expresses. Both my right hon. and learned Friend the Secretary of State for Defence and I have visited Rosyth and Devonport in recent weeks. No decision has yet been taken. Any press speculation and reports that have appeared are wrong. We are considering the matter carefully and we shall reach and announce a decision in due course.

Sir Geoffrey Johnson Smith

My hon. Friend will be aware that the German Defence Minister came to this country not many weeks ago to discuss the future of the EFA programme. In the light of the startlingly good progress that has been made in reducing the cost of this worthwhile aircraft, can my hon. Friend tell us what the reaction of the German Defence Minister has been to that progress?

Mr. Aitken

I should be unwise to second guess the reactions of the German Defence Minister, but I have no doubt that he has carefully and thoughtfully noted the fact that the new cost estimates are exactly in line with the requests that he made for a 30 per cent. reduction in the cost of the aircraft. I take considerable encouragement from the results that have been produced.

Mr. Wigley

Does the Minister accept that the expenditure to which he referred, which will generate 350,000 jobs and £9,000 million worth of expenditure, will have a considerable economic effect? Is he aware that more than 50 per cent. of that expenditure will be made in south-east England, but less than 2 per cent. in Wales? Is not that a hidden regional policy working against areas outside the south-east?

Mr. Aitken

I do not accept the hon. Gentleman's breakdown of the figures. My impression, without being able to check the figures, is that a much more substantial percentage of British defence spending goes to key aircraft factories, particularly in the north-west of England. I do not think that the imbalance is anything like as bad as he suggests. There is no regional policy in defence spending. We place our contracts on the basis of value for money and obtaining the best products at the best prices.

Mr. Streeter

Will my hon. Friend confirm that the all-important contract for maintenance work on the Trident boat, to which he has referred, will be placed on the basis of what is best for national security, cost effectiveness and value for money, and that, accordingly, it will be awarded to Devonport Management Ltd., on whose future many thousands of jobs in Plymouth depend?

Mr. Aitken

My hon. Friend is a forceful advocate of Devonport, just as the hon. Member for Dunfermline, West (Ms. Squire) is a forceful advocate of Rosyth. My right hon. and learned Friend the Secretary of State and I are ensuring that we take a fair and even-handed approach to the problem, which I hope will result in a fair and just decision.

Dr. David Clark

On jobs and defence, does the Minister appreciate that Labour believes that there are overwhelming strategic demands for the retention of the naval dockyards at both Rosyth and Devonport? Will he assure the House that no decision will be made to close either of the yards on narrow, short-term financial and ideological calculations?

Mr. Aitken

I can certainly give the hon. Gentleman the assurance that we shall take the broadest strategic view, although value for money is a strong and important consideration. I assure him that the decision will be a fair and carefully considered one.