HC Deb 01 March 2004 vol 418 cc608-9
12. David Cairns (Greenock and Inverclyde) (Lab)

What contributions the defence industry made to the UK economy in the last year for which figures are available. [156740]

The Minister of State, Ministry of Defence(Mr. Adam Ingram)

The UK defence industry is a major contributor to the economic well-being of the UK, employing directly and indirectly around 300,000 people and turning over some £15 billion per annum. It also, of course, plays a vital role in providing our armed forces with the equipment that they need.

David Cairns

My right hon. Friend will be aware that in my constituency the defence sector is incredibly important, both in terms of those providing capability at Coulport, Faslane and the Royal Maritime Auxiliary Service Clyde, and for those who work in defence manufacturing in the upper Clyde shipyards, among other places. Does that not demonstrate the importance of defence spending throughout the country, and highlight the fact that any reduction in that spending would not only put the defence of the realm at risk but have a devastating effect on UK plc?

Mr. Ingram

Absolutely. My hon. Friend will be only too well aware of the impact that the defence sector has in Scotland. The figure that I gave was for the whole United Kingdom, but the Ministry of Defence has placed almost 2,000 contracts in Scotland, with a total value of about £2 billion—slightly more than the amount of the cuts envisaged by the Conservative party.

Dr. Vincent Cable (Twickenham) (LD)

As there is a need to maintain an absolutely clear distinction between our competitive, efficient defence producers and the consumer—that is, the taxpayer—why have the Government given permission for the retiring head of defence procurement to work, within months, for one of the leading defence contractors?

Mr. Ingram

Because, I can only assume, that person conformed to the regulations and rules that apply to those in such circumstances.

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