HC Deb 13 May 2003 vol 405 cc166-8W
Mr. Hancock

To ask the Secretary of State for Trade and Industry pursuant to the Answer of 28 April 2003,Official Report, column 106W, on Iraq (Reconstruction), what discussions the Government have had with EU partners on equality of treatment in bidding for contracts to aid the reconstruction of Iraq; and if she will make a statement. [112124]

Ms Hewitt

As I have made clear in this House and to the US authorities, we expect UK companies to play a significant role in the redevelopment of Iraq. We will continue to discuss with companies the best way of ensuring that their expertise is put to full use. In this context, we have established an Industry Working Group, which will act as a channel of communication to industry in our work to help companies access opportunities. We are also planning to hold a joint seminar with the US authorities in London in late May, which will present an excellent opportunity for UK companies to meet key US departments and contractors.

It is clearly important that there is a level playing field for companies who are interested in participating in the redevelopment of Iraq. We have made this clear to the US authorities. The Government have had no discussions with EU Partners on this issue.

Mr. Hancock

To ask the Secretary of State for Trade and Industry pursuant to the answer of 20 April 2003,Official Report, column 106W, on Iraq (Reconstruction), which British companies have been invited to tender for contracts for the reconstruction of Iraq; what the process is for bidding for contracts; who decides the criteria for inclusion in the tender list; how many contracts have been let; what each contract is for; what the value of each contract is; what the overall budget for the reconstruction of Iraq is; who has contributed to the budget; and if she will make a statement. [112125]

Ms Hewitt

We expect UK companies to play a significant role in the redevelopment of Iraq. In the shot-term US funding is likely to be the main source of opportunities for UK companies. Full details of the US contracts are available on US Government websites. There is no overall agreed budget for the reconstruction of Iraq. We are in close contact with the US authorities and others about financing the reconstruction.

Andrew Natsios of USAID has confirmed to me that UK companies will be allowed and indeed encouraged to hid for US funded sub-contracts. We have agreed with the US authorities to hold a joint seminar in London in late May. This demonstrates US interest in ensuring that UK companies are involved. While we expect UK companies to bid for and win contracts, companies are not obliged to inform us if and when they have done so.

Mr. Hancock

To ask the Secretary of State for Trade and Industry pursuant to the answer of 20 April 2003,Official Report, column 106W, on Iraq (Reconstruction), what the process for decisions on awarding contracts to companies for the reconstruction of Iraq is; who makes the final decision; and if she will make a statement. [112126]

Ms Hewitt

In the short-term US funded contracts are likely to be the main source of opportunities for UK companies looking to get involved in the redevelopment process in Iraq. Under US law, only US companies can be awarded primary contracts. However, the law has been relaxed to allow UK companies to bid for sub-contracts. It will be for the prime contractors to decide on the awarding of sub-contracts. We will continue to work with companies to ensure that they are as best placed as possible to participate in the redevelopment process.