HC Deb 11 February 2002 vol 380 cc11-2
5. Mr. Lindsay Hoyle (Chorley)

If he will make a statement on the number of UK jobs sustained through MOD procurement. [31896]

The Parliamentary Under-Secretary of State for Defence (Dr. Lewis Moonie)

The number of UK jobs sustained through Ministry of Defence procurement for equipment and services has been estimated at 255,000. That includes the numbers employed directly in UK industry on MOD contracts and those employed indirectly through the supply chain—that is, subcontractors and others who supply the main contractor.

Mr. Hoyle

I recognise how important UK manufacturing is to defence, but can we ensure that contracts are sustained and that UK contractors have easy access to them? I am thinking of the truck industry in central Lancashire, which is dependent on such contracts, as well as Royal Ordnance at Chorley, which has security of supply, and many others in the aerospace industry.

Dr. Moonie

It is our duty to obtain value for money from procurement spending. As the biggest single customer of the UK industry, the MOD has a continuing interest in ensuring that its supplier base, which includes specialist defence companies and general companies in most industrial sectors, is efficient and competitive and enables the achievement of maximum value for money in defence procurement. However, value for money is never just about price; other considerations are taken into account.

Angus Robertson (Moray)

May I begin by associating my party with the Secretary of State's comments on the death of Princess Margaret?

Will the Minister of State explain how many of the 255,000 defence-related jobs in the United Kingdom to which he referred are in Scotland? Will he also comment on his written answer of 1 February to my question about procurement expenditure? He said that in Scotland such expenditure is only 4.3 per cent. of the UK total—half our population share. Does he believe that that expenditure is too much, too little or about right?

Dr. Moonie

I thank the hon. Gentleman, who speaks for the Scottish National party, for unintentionally promoting me, but alas, I am still an Under-Secretary, not a Minister of State.

I have no doubt that we would spend more on procurement in Scotland if there were more companies there producing goods that we could buy. If the hon. Gentleman considers shipbuilding—the major Scottish industry that supplies us—he will notice that we have been generous in our spending on the Clyde. Of course, defence spending is not just about procurement; in Scotland, a substantial proportion of such money is spent on Faslane, Lossiemouth in his constituency and Leuchars, which is near my own.

John Robertson (Glasgow, Anniesland)

As my hon. Friend has said, work has been brought to the Clyde through the type 45. Will he join me in congratulating the taskforce on its efforts to secure employment for those on the Clyde who unfortunately became unemployed? Can he also explain why the contracts for the type 45 have yet to be signed?

Dr. Moonie

I can certainly say that the Clyde shipyard's taskforce has made a useful contribution to the debate on the Clyde's future. I can assure my hon. Friend that the contracts for the first six type 45 destroyers are still being negotiated. Placements are due shortly and the programme is on time.

Mr. Nick Hawkins (Surrey Heath)

The Minister is aware from his recent and welcome visits to my constituency that it has a large military involvement. On procurement issues, he is also aware that there is considerable concern about the demolition of previous Army barracks. Will he meet me and a delegation of my constituents, who are worried about certain procurement decisions relating to the choice of demolition contractors for some of those projects?

Dr. Moonie

I am certainly prepared to take an interest in that matter. If the hon. Gentleman writes to me with the details, I shall be happy to contact him.

Mr. Stephen Hepburn (Jarrow)

Is the Minister aware that the average age of a skilled worker on the Tyne is 50? If we are to save the shipyards as a strategic asset for the UK, we need to put MOD orders in UK yards. Will he confirm that that will be the policy, and assure us that he will not revert to the stupid policy that put £400 million of taxpayers' money and hundreds of shipyard workers' jobs into Germany?

Dr. Moonie

I can assure my hon. Friend that I am well aware of the problems regarding skilled labour. In common with long-standing defence policy, all warships will be constructed in this country.