§ 3. Mr. SpringTo ask the Secretary of State for Defence what proportion of defence contracts has been awarded to United Kingdom companies; and if he will make a statement.
§ The Secretary of State for Defence (Mr. Malcolm Rifkind)Measured by volume, United Kingdom companies have been awarded 90 per cent. of the direct contracts placed by the Department during the past 12 months.
§ Mr. SpringIs my right hon. and learned Friend aware of how welcome the defence orders announcements have been in my constituency, where already Graseby Microsystems is supplying electronic equipment for Challenger tanks and Vinten is supplying reconnaissance pods for the Royal Air Force? Does my right hon. and learned Friend agree that they are immense technological spin-offs, wholly beneficial to British industry overall, and a result of our defence industry activities?
§ Mr. RifkindYes, my hon. Friend is quite right. Indeed, far from the defence industries having taken for granted those announcements, they were extremely relieved to hear that the success of the "Front Line First" study had enabled us to confirm those orders, thereby securing up to 10,000 jobs and £5 billion worth of investment in those industries.
§ Mr. Menzies CampbellIn the course of his extensive statement last week, the Secretary of State referred to a number of procurement programmes, but made no reference to the Hercules replacement programme, to the attack helicopter or, indeed, the support helicopter, all of which, in their own way, are important to British companies. Can he confirm that those are still in the long-term costing? Will he tell us why they were not referred to last week? When may we expect decisions in respect of all three?
§ Mr. RifkindI can confirm that all three are still in the programme. They were not referred to last Thursday because we had nothing new to say on those matters. We are considering the various tenders or continuing the contractual negotiations on the support and attack helicopters and we shall report to the House as soon as those are concluded. We are assessing the short-term requirements of transport aircraft in view of the age of the current Hercules fleet.
§ Mr. Bill WalkerDoes my right hon. and learned Friend agree that the most important thing of all is to buy the right equipment for our service men? As his answer shows, British industries are manufacturing the right equipment. However, there is also the question of mid-life updates and refits. For example, the Tornado GR1 refit is on order, which is a massive investment. There is also the question of the C-130J aircraft in which there is human British input.
§ Mr. RifkindThat is indeed the case and we are anxious to ensure that United Kingdom defence industries, which are second to none in the world, as their export achievements demonstrate, should continue to have a strong home base to ensure that they can make the maximum contribution to the national interest.
§ Mr. Nicholas BrownThe Secretary of State will be aware that the Swan Hunter shipyard went into receivership more than a year ago. He will be aware of the heroic struggle for survival by the shipyard workers on Tyneside. He will be aware that that struggle will have cumulated after his decision to procure the Sir Bedivere at Swan Hunter or elsewhere. Is he now able to tell the House where the Sir Bedivere will be procured?
§ Mr. RifkindAs the hon. Gentleman is aware, there is a question specifically on that matter on the Order Paper. I must ask the hon. Gentleman to wait.
§ Mr. GallieWill my right hon. and learned Friend confirm that the defence White Paper "Front Line First" offers a great opportunity for the civilian sector to get involved with basic pilot training? Is he aware of the excellent facilities at Prestwick, with the British Aerospace flying college?
§ Mr. RifkindThere are indeed good opportunities for the private sector, including those at Prestwick. I also draw attention to the increased opportunities for local employment in Benbecula following the decision to retain the range and the likely increase of contractorisation there and elsewhere in the United Kingdom.
§ Mr. MartlewWill the Secretary of State confirm that the Ministry of Defence has approached the United States Government with regard to the possibility of purchasing an American aircraft as an alternative to the Eurofighter 2000?
§ Mr. RifkindNo, I will not confirm it because it is not true. As with the procurement of any large project, before coming to a final decision on production, we wish to be aware of the available alternatives. I must emphasise that Eurofighter remains the firm commitment of the British Government to meet the needs of the Royal Air Force in the next century.
§ Mr. Nigel EvansIs my right hon. and learned Friend aware that many of my constituents who work at British Aerospace were delighted by last week's announcement of the mid-life update of Tornado aircraft? They will also be made happier by the commitment that my right hon. and learned Friend has just given on Eurofighter 2000. They would be ecstatic if they were also given the opportunity to work on the replacement for the Hercules, if that large aircraft were given an opportunity to compete with the C-130J in future.
§ Mr. RifkindEcstasy is not normally at the disposal of the Ministry of Defence. Even if we cannot provide ecstasy, we will certainly do our best to come to a sensible and wise decision about the matter that my hon. Friend raised.