HC Deb 18 May 1993 vol 225 cc140-1
2. Mr. Sheerman

To ask the Secretary of State for Defence what estimate he has made as to what percentage of total orders of defence equipment from Kuwait since the Gulf war has been won by United Kingdom firms.

Mr. Aitken

We estimate that in 1991 and 1992 United Kingdom defence-related sales to Kuwait amounted to some 30 per cent. of the value of total orders placed by that country.

Mr. Sheerman

Does the Minister agree that the word around the defence industries is that there have been very few firm orders from Kuwait since the Gulf conflict? Does he further agree that the defence sector of our manufacturing base is still vital to this country? lf, in competition with the Americans, we cannot gain more orders from places such as Kuwait, is not it about time that we took steps to enable our defence manufacturing sector to diversify more quickly?

Mr. Aitken

I am glad to know that the hon. Gentleman supports the export successes of our defence industries. He will therefore be pleased that I am able to tell the House that the latest figures for the year ended 31 December 1992 show that we managed to achieve export orders of £5.1 billion, which is 20 per cent. of the world market. Both of those are record figures, and ones of which we, and especially the defence industrial base, can be proud.

On the hon. Gentleman's specific point about Kuwait, it is true that only limited definite orders have been placed so far. However, they are good orders and United Kingdom defence successes have included contracts for mine clearance, naval base reconstruction, tactical radios and technical school equipment. The biggest projects of all are the tank project, which went to the Americans, and the Warrior and Piranha contracts, which we hope will come to us. We believe that, on a Government-to-Government basis, there are good grounds for having confidence that the contract will soon be negotiated. The Kuwait Government have announced that they have selected the Warrior and the Piranha for their armoured vehicles, so we are optimistic about those exports.

Sir Donald Thompson

Will my hon. Friend consider allowing our defence industry to learn the lessons of Kuwait and sell to those countries that are presently barred to it? After all, our NATO and European friends are allowed to sell to those countries.

Mr. Aitken

My hon. Friend draws attention to the fact that, as well as our tremendous record of export successes, Britain has a high record for exporting responsibly. We examine all export licences on their merits, taking into account a wide range of considerations including human rights and the stability of the countries concerned. We manage to combine great success with a full sense of responsibility.