HL Deb 19 November 1986 vol 482 cc230-2

2.43 p.m.

Viscount Hanworth

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government if, in deciding whether to accept the Nimrod early warning system, they will have regard to the fact that this acceptance will encourage GEC's plans for selling similar systems overseas.

The Minister of State for Defence Procurement (Lord Trefgarne)

My Lords, the overseas sales potential of airborne early warning systems based on the Nimrod mission system avionics will certainly be a factor in the decision. But the major considerations in our evaluation of the two surviving candidates in our airborne early warning competition remain the ability of each to meet the Royal Air Force's pressing operational requirement and the comparative costs.

Viscount Hanworth

My Lords, I thank the noble Lord for that reply. Will the noble Lord agree that there is little chance of selling our products overseas unless we buy them ourselves? Will he further bear in mind that GEC has put up £25 million and that already its answer and its development seem as though it will meet the requirements? Finally, will the noble Lord say when a decision is due on this issue?

Lord Trefgarne

My Lords, I hope that the noble Viscount will not mind if I do not say anything that would anticipate the outcome of the competition which is now in its final stages. However, I can say that we hope to announce the outcome of this competition by the end of the year.

Lord Irving of Dartford

My Lords, will the noble Lord bear in mind when he makes the decision that the Government have spent £1 billion of taxpayers' money developing the system, and that it will supply jobs for about 2,500 people, with additional activities for a great many more over a long period of time? However, will the noble Lord acknowledge that, now that the difficulties have been ironed out, this aircraft system has not only considerable export potential but offers a system performance comparable with AWACS at a lower cost? Finally, as the noble Viscount, Lord Hanworth, has said, will he bear in mind that the purchase of AWACS will severely affect the competitiveness of British industry in many related areas and make the United Kingdom more dependent on imports for the future and less capable of bidding for exports?

Lord Trefgarne

My Lords, again I am afraid that I am inhibited in answering the noble Lord's questions in any substantive way, as I was when answering the questions of the noble Viscount, Lord Hanworth. However, I can assure the noble Lord that all the relevant considerations will be taken into account.

Lord Gisborough

My Lords, will my noble friend also bear in mind that the technology of the British system is up-to-date at this moment, whereas the AWACS system is some nine years out of date?

Lord Trefgarne

My Lords, I can only repeat that we shall take into account all relevant considerations.

Lord Avebury

My Lords, bearing in mind the urgency of the operational need mentioned by the Minister, can the noble Lord give the date of entry into service of the two systems remaining in the competition?

Lord Trefgarne

My Lords, we anticipate that the system upon which we eventually decide will come into service in the early 1990s.

Viscount Mersey

My Lords, is my noble friend aware that, should we choose its system, Boeing has promised 40,000 extra jobs in this country? Perhaps I may probe my noble friend a little as to the nature of those jobs. Will they be genuine new jobs or will they be jobs which would already have occurred in this country with companies such as Racal and Ferranti, which might be withdrawn if we do not buy the American system? In short, are the Americans making us an offer or are they making us a threat?

Lord Trefgarne

My Lords, I am aware of the information which has been published by Boeing, to which my noble friend refers, but I would suggest that he should address detailed questions about that information to Boeing.

Lord Avebury

My Lords, I asked the Minister whether the two systems would come into operation on the same date. Is it possible that if one of them is chosen, it would be in squadron service earlier than the other?

Lord Trefgarne

My Lords, I am sorry to be slightly evasive, but we are in the final stages of the competition. The sort of points which the noble Lord is putting to me are points which we shall have to consider and reach a view on during the final stages of this competition. Therefore, I hope that the noble Lord will forgive me if I do not go further.