Eurofighter

HC Deb 26 November 1996 vol 286 cc137-9

4. Mr. Donald Anderson

To ask the Secretary of State for Defence what recent discussions he has had with his German counterpart concerning the Eurofighter project. [4312]

Mr. Portillo

I met my German counterpart, Volker Rühe, last week. We had extensive discussions on a wide range of subjects, including Eurofighter. He told me that Germany expects to make a decision on participation in the production investment phase and the production phase of the Eurofighter programme early in 1997.

Mr. Anderson

The Secretary of State will be aware of the Labour party's total commitment to the project, because of its vital contribution to the Royal Air Force, to our industrial defence base and to employment in the north-west and Bristol. Now that there is endorsement from every party in the German coalition, and following his conversations, is the Secretary of State convinced that the period of instability is over and that we can proceed, confident that the project will commence not later than March next year?

Mr. Portillo

I am pretty confident about the attitude of the German Administration, but the proposals must go through the Bundestag, and one can never take parliamentary votes for granted. We must therefore wait until that happens.

In the run-up to the election and, as the hon. Gentleman says disarmingly frankly, with so many marginal seats, I fully expect the Labour party to be solidly committed to the Eurofighter before the election. I point out, however, that it is a £15 billion project. I observe that the Labour Benches are full of Members who hate defence spending. They are busy promising to spend money on one programme after another. I know that, if the shadow Chancellor were Chancellor of the Exchequer, he would be looking for cuts in the defence budget. I very much doubt whether Eurofighter would continue under a Labour Government.

Mr. Wilkinson

Will my right hon. Friend make it clear to Herr Volker Rühe that the export potential of the aeroplane is of crucial interest to his Government and country as well as to us and to the Italians and the Spanish? In that regard, the longer the project's production is delayed, the more vulnerable the aircraft and export markets will be to competition. Finally, will my right hon. Friend remind Mr. Rühe that the United Kingdom spends hundreds of millions of pounds in the Federal Republic through the stationing of British troops in time of peace, not least through the payment of locally employed German civilians?

Mr. Portillo

My hon. Friend will know that my approach to international negotiations is one of delicacy and sensitivity. Therefore, I naturally urge my German colleagues to participate in the programme, and I hope that they will do so. My hon. Friend expertly employs the right arguments: we want the plane to be thoroughly exportable and, if it is delayed, it will be less competitive because it will be late and more expensive. It would be a false economy to save money on the project now, because it would cost more in the long term. My hon. Friend utilises those arguments admirably.

Mr. Spellar

It is unfortunate that, after a few good weeks, today the Secretary of State demeaned himself by attempting to undermine the important Eurofighter project with a petty political issue. Will he take the opportunity to redress that mistake by joining me in extending congratulations to British Aerospace and its work forces on their excellent work developing the Eurofighter? Will he convey to his German counterpart at their next meeting the strong views of both his Government and their successors that the production stage should commence as quickly as possible?

Mr. Portillo

The hon. Gentleman must not think that British industry is naive: it knows what Labour Members of Parliament think. British industry players can read the motions put down at Labour party conferences, and they are not taken in by Opposition Front Benchers' Johnny-come-lately attitude to defence.

My hon. Friend the Member for Ruislip—Northwood (Mr. Wilkinson) referred to defence exports. The industry can read perfectly clearly the Labour party's attitude to arms sales and arms exports. It knows that Labour is strongly committed to global disarmament, and then where would our defence exports be? The hon. Gentleman must not assume that he has taken in British Aerospace or any other leading British company.