HC Deb 16 January 2003 vol 397 cc811-2
10. Mr. John Wilkinson (Ruislip-Northwood)

What discussions her Department has had with the Ministry of Defence on the British aircraft industry. [90942]

The Minister for Employment Relations, Industry and the Regions (Alan Johnson)

The Department maintains a close and regular dialogue with the Ministry of Defence on industrial matters relating to major defence procurements and defence industrial policy. Inevitably, those discussions have, where appropriate, touched on the British aircraft industry.

Mr. Wilkinson

Is not the Minister's Department concerned at the inordinate delays in introducing into service in the Royal Air Force the Eurofighter, the A400M and the new tanker aircraft? Or perhaps the Secretary of State for Defence just does not care because British Aerospace, the main participant, is not British in his eyes.

Alan Johnson

The hon. Gentleman asks about three specific projects, which we are extremely concerned to bring to fruition. From his great experience of the issues, he will know that they are not entirely under the control of the British Government. Indeed, we are waiting for the German Government to come into line on the A400M. We very much care about the aerospace industry, in particular about BAE Systems, which is why I am due to receive the interim report of the innovation and growth team report on aerospace next week from Sir Richard Evans. I think that that will map the future for aerospace in this country.

Mr. Peter Pike (Burnley)

Does my hon. Friend accept that it is not just the big players in the aerospace industry, such as BAE Systems and Rolls-Royce, that are dependent on Ministry of Defence work? Many highly skilled aerospace businesses in constituencies such as mine also depend on the contracts being given to the British aerospace industry.

Alan Johnson

Of course I accept that point. My hon. Friend knows full well that we have the biggest defence order book for the past 50 years, which provides a tremendous opportunity for British companies—including small and medium-sized enterprises in the supply chain generally, some of which are in my hon. Friend's constituency.

David Burnside (South Antrim)

BAE Systems is the biggest producer of aircraft parts and aircraft in the United Kingdom. Does the Secretary of State for Trade and Industry agree with the Secretary of State for Defence that, through its ownership, BAE Systems can no longer be classified as a British company? For example, in the decision between Thales and BAE Systems on the contract for the two aircraft carriers, would not awarding the contract to Thales, which has a major contributor in Harland and Wolff in Belfast, be a more patriotic choice for the British defence industry?

Alan Johnson

We have just agreed a defence industrial policy between the Ministry of Defence and Department for Trade and Industry that has been widely welcomed and which makes it absolutely clear that we are looking for value for money for the British taxpayer. BAE Systems is a British-controlled company in terms of the competition for two 55,000—tonnes carriers. Whichever contract is successful, it will mean jobs and prosperity for British workers—but that contract must be awarded on a proper competitive basis.