§ 13. Mr Ian Liddell-Grainger (Bridgwater)If he will make a statement on the procurement of ordnance by the armed forces. [120554]
§ The Minister of State, Ministry of Defence (Mr. Adam Ingram)The majority of conventional ammunition is procured under a framework partnering agreement with Royal Ordnance Defence, which covers the supply of ordnance and ammunition sub-systems, including propellant. Other weapons are procured on the basis of smart acquisition procedures to obtain the best value for money for the taxpayer, meet the requirements of the armed forces, and ensure security of supply.
§ Mr. Liddell-GraingerBAE Systems faces a situation in which General Dynamics and other companies are looking to acquire ordnance provision. What will the Minister do about the security of supply of the procurement of ordnance in this country, given that it could be owned in future by an American company? Are there any plans to deal with the problem if that were to happen?
§ Mr. IngramI have given an earlier indication about how we would have to deal with such matters. We would have to look into the likely arrangements in the event of 705 a merger, amalgamation or takeover and its consequent impact on the national interest. Matters would have to be dealt with at that time, based on the new relationships between the companies.