§ 14. Mr. Nigel EvansTo ask the Secretary of State for Defence what proportion of MOD defence equipment is procured in (a) the United Kingdom and (b) Europe. [361]
§ Mr. ArbuthnotWe estimate that over the past five years 91 per cent. by value of our direct equipment expenditure, including collaborative programmes, has been placed with United Kingdom industry, and 9 per cent. overseas. We do not have a breakdown of the overseas figure by particular area.
§ Mr. EvansI am grateful for that response. Does my hon. Friend agree that procurement policy is important for the future not only of the armed forces but of defence manufacturing capacity in this country, so that we can retain research and development and a skills base in the United Kingdom? That applies not only to large firms such as British Aerospace, in my constituency, but to 452 smaller companies such as the 127 small firms that have joined the Consortium for Lancashire Aerospace, which had a turnover of £3.5 billion last year.
§ Mr. ArbuthnotI agree with my hon. Friend. The competitiveness that Government policies have introduced into British industry means that that industry has been successful throughout the world. That is a good story for my hon. Friend and his constituency.