HC Deb 21 April 1998 vol 310 cc556-7W
Ann Clwyd

To ask the Secretary of State for Defence if he will list the export orders obtained for the Challenger II tank to date, indicating the value of (i) each order, (ii) offset commitments entered into as part of each order and (iii) export credits extended to support these orders. [39271]

Mr. Spellar

The value of contracts is a matter for Vickers Defence Systems and its customers. Vickers Defence Systems has, however, publicly stated that it has concluded two export contracts with the Royal Army of Oman for Challenger II in a number of variants; Main Battle Tank, Driver Training Tank and Repair and Recovery Vehicles. The contracts, which included logistics support packages, were valued at £130 million and £100 million.

While there is no contractual commitment to offset, Vickers contributes to the Omani-British Offset Programme.

Export credit guarantees amounting to some 80 per cent. of the value of each contract have been extended or are under consideration by ECGD.

Ann Clwyd

To ask the Secretary of State for Defence what support his Department has provided to Vickers in marketing the Challenger II abroad. [39270]

Mr. Spellar

As part of its normal activities, MOD's Defence Export Services Organisation has supported the sale of Challenger 2 in co-ordination with Vickers. The support has included appropriate provision of advice on the Government's foreign, defence and export control policies, facilitation of, and participation in, discussions with the Omani authorities, including visits and the provision of military, marketing and diplomatic advice.

Ann Clwyd

To ask the Secretary of State for Defence (1) What estimate his Department has made of the relative economic benefits of purchasing(a) Challenger II and (b) the alternative proposed by each of the overseas contenders for the contract taking into account their offset proposals; [39253]

(2) if he will list the final offset proposals indicating the value of offsets proposed (i) in absolute terms and (ii) as a percentage of the contract made by the overseas suppliers who tendered for the contract to replace the Chieftain tank. [39252]

Mr. Spellar

I will write to my hon. Friend and a copy of my letter will be placed in the Library of the House.