§ 12. Mr. ChisholmTo ask the Secretary of State for Defence what assessment his Department makes of the industrial implications of procurement decisions. [30894]
§ Mr. ArbuthnotWe have always taken industrial factors into account in defence procurement decisions. We have recently taken steps to ensure that that happens in a more systematic way.
§ Mr. ChisholmI am glad that there has been a slight improvement recently. Is it not high time that the Government took account of this country's employment and industrial base in awarding defence contracts and abandoned the hands-off approach that they have adopted in the past 17 years? Is the Minister aware that more than 300 jobs at GEC-Marconi Avionics in my constituency depend on the awarding of the Sea King airborne early warning contract? The rival bids involve far more development and manufacturing work that is being done overseas. [Interruption.]
§ Mr. ArbuthnotThe hon. Gentleman's question was clearly greeted with enthusiasm. He makes his constituency point in the way in which I would expect him to do, but I remind him that some 90 per cent. of work by value done for the Ministry of Defence is won by British companies in this country.
§ Mrs. Ann WintertonDoes my hon. Friend agree that defence procurement contracts awarded to this country are vital to the maintaining of our manufacturing capacity? Will he continue to look favourably on Royal Ordnance at Radway Green in my constituency, which is operating successfully at home, in Europe and overseas to win contracts in the face of stiff and—it must be said—not always fair competition?
§ Mr. ArbuthnotI was pleased to be able to announce recently the award of a contract for Royal Ordnance—partly, if I may say so, on the urging of my hon. Friend, who has worked so hard for her constituents in this regard.