HC Deb 09 July 1996 vol 281 cc167-8
12. Mr. Key

To ask the Secretary of State for Defence what meetings he has had with defence contractors and their employees to discuss the procurement programme. [34908]

Mr. Arbuthnot

My right hon. Friend and I have frequent meetings with defence contractors and take the opportunity of visiting the many excellent UK companies that support the armed forces, such as Pains Wessex in my hon Friend's constituency, which I visited last week.

Mr. Key

We were grateful for my hon. Friend's visit to that important company in my constituency. Will he bear in mind that there are some 400,000 jobs in the defence manufacturing industry and that, apart from providing the best possible equipment for the best services in the world, those jobs depend on our export market, not least to our important friends and allies such as Saudi Arabia and many other countries around the world?

Mr. Arbuthnot

My hon. Friend is right: we are doing well in defence exports. We do not want our defence exports to be stifled by the dead hand of regulation and we do not need defence diversification agencies, such as would be imposed by the Labour party. For example, Pains Wessex—the company that I visited recently—has been diversifying and, over the past few years, it has reduced its dependency on defence from 70 per cent. to 50 per cent. yet, at the same time, its defence business has grown.

Mr. Jamieson

In the Minister's discussions with defence contractors, has he considered the possibility of the United States Government going to war and commandeering the assets of United States companies, which would include the assets of the Devonport dockyard? Those assets could be used for the war effort of the United States against the will of the British Government.

Mr. Arbuthnot

No, Madam Speaker.

Mr. Mark Robinson

Will my hon. Friend assure hon. Members that he is doing everything in his power to promote British exports overseas, particularly the excellent EH101 helicopter, which is now flying and has great potential in the export market?

Mr. Arbuthnot

Yes, it is an excellent helicopter, and I take every opportunity to tell people how excellent it is. The Government, in conjunction with Italy, have spent a great deal of money to develop one of the best medium helicopters in the world. I thank my hon. Friend for his support in this regard.