§ 10. Sir Roger MoateTo ask the Secretary of State for Defence what assessment he has made of the export potential of United Kingdom defence industries; and if he will make a statement. [12036]
§ Mr. ArbuthnotBritish defence equipment manufacturers continue to enjoy success in the export market. In 1995, they won contracts worth about £5 billion. That achievement makes us the second largest exporter in the world.
§ Sir Roger MoateCan my hon. Friend give any estimate of how many hundreds of thousands of jobs are dependent on our defence industries? Is it not the case that, if ever the Labour party were in a position to carry 129 out its conference policies of reducing spending to the European average level, a large number of those jobs would be in jeopardy in Labour as well as Conservative constituencies?
§ Mr. ArbuthnotMy hon. Friend is right. Around 400,000 jobs throughout the United Kingdom depend on the defence industry. If we were to reduce spending on defence by £4.5 billion every year, it would be devastating to the British defence industry. That is why it is plain to the British people that we cannot trust Labour on defence, or even on industry for that matter.
§ Mr. MacShaneIs the Minister aware of the large export potential for British arms in Europe, both in the European Union and the wider continent? Does he find helpful the continuing public hostility of the Secretary of State to European integration and co-operation? Does he find helpful the speech that the Minister of State made in Munich last week, in which he invited Germany, in effect, to re-arm? The last person to say in Munich, "Deutschland Erwache!" which means "Germany Arise, Germany Awake!", caused some little trouble in Europe. Is it not the case that, while we have a Defence Department that is so hostile to European integration and co-operation, the future for Britain's defence industry is poor indeed?
§ Mr. ArbuthnotThat question was total, unmitigated drivel. When British defence exports have risen from 15 per cent. of world market share in 1994 to 19 per cent. in 1995, we should feel proud of what the country has done and realise that that shows the strength of British industry and the support of the British Government and the armed forces. We should talk about, for example, the Red Arrows' recent tour, which was a fantastic aerial display. They are excellent ambassadors for British industry. For the hon. Gentleman to come up with a question such as that is pathetic.
§ Mr. MansGiven the importance of the arms industry to the north-west, when my hon. Friend next speaks to his American counterpart, will he ensure that there is fairness in the export of arms to eastern Europe and that certain statements made by the Americans to the effect that eastern European countries will be more likely to be able to join NATO if they buy American combat planes are stopped?
§ Mr. ArbuthnotI am grateful to my hon. Friend. I have some sympathy with what he says because whether countries join NATO does not depend on their buying high-tech US equipment. That is something that they need to be well aware of before they make their decisions