HC Deb 14 January 1997 vol 288 cc118-20
5. Mr. Congdon

To ask the Secretary of State for Defence what measures his Department takes to assist British firms to win defence exports. [8975]

The Minister of State for Defence Procurement (Mr. James Arbuthnot)

My Department's defence export services organisation exists to provide British defence exporters with the strongest possible Government support, within the framework of our defence, security and foreign policies.

Mr. Congdon

Does my hon. Friend agree that if foreign countries wish to bid for our defence exports, they should ensure that their markets are equally open to our exports? Does he also agree that Hunting Aviation does a good job in maintaining engines for the Ministry of Defence and should, therefore, be given equal access to the Canadian market?

Mr. Arbuthnot

I will accept both of my hon. Friend's questions. Protectionism is extremely bad for the defence industry worldwide. We need a two-way street in the defence exports and imports of the United States, Canada and other countries. I also agree that Hunting Aviation's work for the Ministry of Defence is first class. We are evaluating a competition for T56 Aero engines. We have not yet reached a decision on that, but I entirely agree that we need a two-way street in exports and imports of defence industry work.

Mrs. Anne Campbell

When does the Minister expect to award the maintenance contracts for the RAF Tristar fleet, since that is one of the contracts that will have an enormous impact on the ability of Marshalls in my constituency to continue its exports of defence equipment?

Mr. Arbuthnot

Shortly.

Mrs. Peacock

Can my hon. Friend tell the House the value of our defence exports for the year 1995–96?

Mr. Arbuthnot

In 1994, we took something like 14 per cent of the world export share. In 1995, it was nearly 20 per cent. In 1996, we expect it to be up on that and, in 1997, we know that it will be significantly higher even than that. Exports were worth something like £5 billion in the last year and that is because Government policies have helped British industry to become lean and competitive. We produce excellent equipment at a very good price for overseas markets, as well as for the defence of the country.

Mr. Spellar

Does the Minister accept that exports need a solid domestic base? Does he think that our exports have been helped by the appalling delay and shambles in the Bowman project? Can he tell us how he got into such a mess and, more important, how he intends to get out of it?

Mr. Arbuthnot

Not only exports but the entire defence of the country need a solid defence base. That does not need a strategic defence review, with all the uncertainty that the Labour party would inject into our armed forces and defence industry. Bowman is an extremely important competition for the country. It is an interesting competition because it is constantly chasing a technology that is evolving so rapidly that it must not be allowed to become obsolete before it goes into service. We shall evaluate industry's new proposals to produce a single consortium, and we expect to make a decision on that round about March. We intend to get the Bowman equipment into service by 2002, and we intend to make sure that there is as much competition as possible so that the project will achieve good value for money for the British taxpayer.

Mr. Garnier

Does my hon. Friend accept that, for my constituency, one of the most important elements of the defence exports business is a company called King Trailers Ltd., which manufacturers trailers for military and civilian purposes? The company has endeavoured over the past few years to export trailers to foreign Ministries of Defence. It has had some encouragement from my hon. Friend's Department, but it needs all the encouragement that it can get. Will he visit the company in the next few months and give it the support that it deserves?

Mr. Arbuthnot

I not only accept but know that, because my hon. and learned Friend has raised the subject of the company with me on several occasions. I will happily accept his invitation to visit, but if I may, I would rather do so after the election, if I continue in this job.