§ 11. Mr. Michael Colvin (Romsey)What assessment she has made of the impact of the strategic defence review on Britain's defence industries. [49382]
§ The Minister for Science, Energy and Industry (Mr. John Battle)Our Department was closely involved with the strategic defence review so that we were able to analyse carefully the implications for the UK defence industry of the emerging proposals. Industry was also closely involved, which led to widespread agreement on how to modernise our defence procurement processes and the White Paper, which has been warmly welcomed.
§ Mr. ColvinI thank the Minister for that reply. Did he see in the SDR reference to the Defence Evaluation and Research Agency? Has he had time yet to read the report on the agency by the Defence Select Committee, which concludes that, in view of the sensitive work that it undertakes and the importance of preserving its impartiality and critical mass, it is a part of the public sector that should not be privatised?
§ Mr. BattleI thank the hon. Gentleman for those comments. I have read the Defence Select Committee report and the Government have announced proposals, as was set out in our manifesto before the election, to set up a defence diversification agency within DERA to foster, in partnership with industry, a greater two-way 569 technology transfer between the military and civil sectors. Decisions on the way ahead will be announced when the results of the consultation process have been assessed. I understand that industry is involved in that consultation, and I am sure that the hon. Gentleman's comments and those of the Select Committee will have been noted.
§ Mr. Denis MacShane (Rotherham)Is the Minister aware how much the strategic defence review has been welcomed by those in the steel industry, because of course steel is the raw material to be used in the new ships and aeroplanes discussed in the review? Has my hon. Friend seen early-day motion 1563 on the Order Paper today, in my name and the names of about three dozen other hon. Members, which draws attention to the productivity record of the British steel industry? Does my hon. Friend agree that, as the steel industry prepares for our new defence procurement programme, it is getting little help from the Conservatives, who did nothing for that industry while they were in power and do everything to talk down the steel industry and manufacturing now that they are in opposition?
§ Mr. BattleMy hon. Friend champions the steel industry at every opportunity, and he is welcome to do so. He represents his constituents and the industry well in doing that. The Defence Industries Council welcomes the partnership that was offered by the strategic defence review. It stated:
The defence industry welcomes the Government's firm commitment to a partnership with UK industry to acquire equipment and services for the armed services more cost effectively.More important, there will be benefits for companies throughout the country—not only those that supply the gear, but those in the supply chains that back up that equipment.
§ Rev. Martin Smyth (Belfast, South)I welcome the modernisation of the defence procurement plans. Does the Minister agree that the Raytheon project, which is a combined project involving large parts of British industry, is important, and will he support it as it progresses?
§ Mr. BattleContracts are out for procurement and I obviously cannot comment on them. The defence review 570 is good news for industry as a whole and has been welcomed by industry. In combination with the work of DERA and the defence diversification agency, it will contribute to manufacturing success in the UK in the future.