Skills Base (Hansard, 12 January 1993)

§ 12. Mr. Barnes
To ask the Secretary of State for Defence if he will outline measures he proposes to take to minimise the erosion of the skills base in the defence industry; and if he will make a statement.

§ Mr. Rifkind
It is for companies operating in the defence business to decide how to preserve and foster the skills that they judge are required to fulfil current and future defence contracts at home and overseas.

§ Mr. Barnes
That means that the Minister is again sitting back and watching the destruction of skills in British industry—in this case, defence—which are of a high level and should be developed by the Government rather than destroyed. Last week, it was announced that 1,300 jobs were to go in Royal Ordnance factories. Why do the Government not start intervening in such industries and provide back-up and support so that there may be diversification and conversion into other industries? We have had enough of Governments being free-enterprise freaks.

§ Mr. Rifkind
I pointed out a few moments ago that British defence industries have been successful in increasing their market share from 17 per cent. of the world market to 20 per cent. That is a remarkable achievement and shows that the defence industries are capable of adapting to the new international situation.

§ Mr. Trotter
May I remind my right hon. and learned Friend of the need to maintain our shipbuilding base and of the importance to that base of ordering the landing platform helicopter carrier? The Select Committee on Defence was recently told by an official in his Department that that requirement remained essential. Can my right hon. and learned Friend give an assurance that the Government's commitment to order the LPH carrier will be maintained?

§ Mr. Rifkind
I am aware of my hon. Friend's great interest in the ordering of the LPH carrier. The tenders for that particular ship have been received, and they are currently being analysed. However, that will inevitably take some time.

§ Mr. Nicholas Brown
Will the Secretary of State take this opportunity to deny categorically the rumour that he intends to cancel the LPH carrier project, and confirm that he will make a firm procurement decision in the autumn?

§ Mr. Rifkind
I have just told the House that we are currently considering the tenders for the order.