§ Mr. CollinsTo ask the Secretary of State for Defence if his Department(a) has counted, (b) currently counts and (c) plans to count Rolls-Royce sales of aero-engines to Boeing as a legitimate offset purchase for the purposes of offset agreements between his Department and US weapons manufacturers; and if he will make a statement. [56475]
§ Mr. Spellar[holding answer 26 October 1998]: Before adopting a policy of Industrial Participation, IP, for defence procurement in 1990, the MOD counted the sale of aero engines from Rolls-Royce to Boeing as part of our offset agreement with the company. We are currently considering a claim from Boeing for IP credits for aero engine components supplied by Rolls-Royce. This, and any future Rolls-Royce sales of aero engines and components, must conform with the IP agreement existing between the MOD and the offshore company.