HC Deb 12 January 1993 vol 216 c755
6. Mr. Miller

To ask the Secretary of State for Defence what representation his Department has received about Government assistance towards arms diversification.

Mr. Rifkind

We receive a variety of representations from time to time on the question of arms diversification. The product ranges in which companies compete is, however, a matter best left to their own commercial judgment.

Mr. Miller

Against the background of recent arms cuts involving redundancies in my area, such as those at British Nuclear Fuels Ltd., British Aerospace, GEC and Cammell Laird, and in view of the Government's statement at the NATO meeting in Rome in November 1991 that they would support eastern European countries in their diversification, does not the Minister think that it is about time that he gave such support to British companies? Does he agree with the managing director of British Aerospace's military aircraft division that the Government have no policy on spin-off technologies?

Mr. Rifkind

British industry has not requested Government assistance for diversification. That is perfectly straightforward because it believes, rightly, that it is in the best position to judge what is in the interests of companies and how best to diversify to meet its changing needs. I remind the hon. Gentleman that, notwithstanding defence cuts, £9 billion worth of orders are placed primarily with British industry for defence procurement, so it is a continuing massive source of employment.

Mr. Ian Bruce

My right hon. and learned Friend has the difficult task of trying to trim the defence budget to close to our target, which is well above what the Opposition parties would try to achieve. Has he had conversations with my right hon. Friend the President of the Board of Trade about the moneys available for communities that will be affected by defence cuts? When we cut miners' jobs, the Government immediately had £1 billion available for the mining communities. It seems strange that we do not have similar plans for the communities affected by defence cuts.

Mr. Rifkind

As my hon. Friend will be aware, any area that experiences large unemployment can benefit from the Government's regional policy and from the special assistance available to parts of the country that fall within the relevant criteria.