HC Deb 08 June 1989 vol 154 cc230-1W
Mr. Churchill

To ask the Secretary of State for Defence how he proposes to ensure continued competition for defence-related research and development work between the wholly-owned laboratories of GEC and those in which they will have a 50 per cent. share following the acquisition of the Plessey Company by GEC Siemens.

Mr. Sainsbury

If the merger were to proceed, the Ministry of Defence would expect to retain competition for research contracts and would involve GEC, GEC/Siemens and other companies, whenever it was appropriate.

Mr. Churchill

To ask the Secretary of State for Defence what measures are being taken by his Department to safeguard the national interest in the event that, following their acquisition of the company, GEC and Siemens will jointly own Plessey's research and technology facilities.

Mr. Sainsbury

The Monopolies and Mergers Commission report accepted that if the merger were to go ahead it would be necessary for GEC and Siemens to give certain undertakings to meet the requirements of national security. These are currently under negotiation. Because of their nature, they were not made public in the M MC report and I cannot elaborate further.

Mr. Thorne

To ask the Secretary of State for Defence what measures he proposes to ensure that competition continues for the supply to the United Kingdom of the JTIDs system in the event that GEC and Siemens succeed in acquiring the Plessey Company.

Mr. Sainsbury

The Monopolies and Mergers Commission recommended that GEC and Siemens should undertake to ensure that access to the technology and the licences for production of JTIDS equipment be available on terms satisfactory to the MOD, to competing companies designated by the MOD. Negotiations are continuing to secure such an undertaking.

Mr. Thorne

To ask the Secretary of State for Defence what measures he proposes to ensure that national security is safeguarded when JTIDS information is more widely disseminated in order to maintain competition for the supply of the system to the United Kingdom.

Mr. Sainsbury

There are well established procedures for safeguarding national security when sensitive classified information is released to companies. These procedures will, of course, apply in this case.

Mr. Thorne

To ask the Secretary of State for Defence (I) what safeguards are being sought from GEC for the supply to the United Kingdom of the JTIDS system in the event that GEC and Siemens succeed in acquiring the Plessey Company;

(2) what safeguards are being sought from GEC/ Siemens for the supply to the United Kingdom of the JTIDS system in the event that GEC and Siemens succeed in acquiring the Plessey Company;

(3) what safeguards are being sought from Siemens for the supply to the United Kingdom of the JTIDS system in the event that GEC and Siemens succeed in acquiring the Plessey Company.

Mr. Sainsbury

The Monopolies and Mergers Commission recommended that GEC and Siemens should undertake to ensure that access to the technology and the licences for production of JTIDS equipment be made available on terms acceptable to the MOD. An undertaking is being sought from GEC and Siemens to this end. Negotiations are continuing and it would be inappropriate to comment further.