HC Deb 15 May 1978 vol 950 cc58-62W
Mr. Maurice Macmillan

asked the Secretary of State for Defence (1) how many people were directly employed upon defence or defence-related projects in the aerospace equipment manufacturing and repairing industry as defined under minimum list heading 383 of the standard industrial classification in January 1978; and in which regions was the greatest concentration of such employment;

(2) how many people were directly employed upon defence or defence-related projects in the ordnance and small arms industry as defined under minimum list heading 342 in January 1978; and in which regions was the greatest concentration of such employment;

(3) how many people were directly employed upon defence or defence-related projects in the motor vehicle manufacturing industry as defined under minimum list heading 381 of the standard industrial classifications in January 1978; and in which regions was the greatest concentration of such employment;

(4) how many people were directly employed upon defence or defence-related projects in the shipbuilding and marine engineering industry as defined by minimum list heading 370 in January 1978; and in which regions was the greatest concentration of such employment;

(5) how many people were directly employed upon defence or defence-related projects in the scientific instruments and systems industry as defined under minimum list heading 354 in January 1978; and in which regions was the greatest concentration of such employment;

(6) how many people were directly employed upon defence or defence-related projects in the radio, radar and electronic capital goods industries as defined under minimum list heading 367 in January 1978 and in which regions was the greatest concentration of such employment;

(7) how many persons were directly employed upon defence or defence-related projects in the chemical industries defined under minimum list heading 279 in January 1978; and in which regions was the greatest concentration of such employment;

(8) how many persons were directly employed upon defence or defence-related projects in the radio and electronic components industry as defined under minimum list heading 364 in January 1978; and in which regions was the greatest concentration of such employment;

(9) for each job directly created by an order for defence equipment in the ordnance and small arms industry, defined under minimum list heading 342, how many jobs does he estimate are created indirectly through multiplier effects;

(10) for each job directly created by an order for defence equipment in the aerospace manufacturing and repairing industry, defined under minimum list heading 383, how many jobs does he estimate are created indirectly through multiplier effects;

(11) for each job directly created by an order for defence equipment in the scientific instruments and systems industry, defined under minimum list heading 354, how many jobs does he estimate are created indirectly through multiplier effects;

(12) for each job directly created by an order for defence equipment in the shipbuilding and marine engineering industry, defined under minimum list heading 370, how many jobs does he estimate are created indirectly through multiplier effects;

(13) for each job directly created by an order for defence equipment in the radio, radar and electronic capital goods industry, defined under minimum list heading 367, how many jobs does he estimate are created indirectly through multiplier effects;

(14) for each job directly created by an order for defence equipment in the chemical industries, defined under minimum list heading 279, how many jobs does he estimate are created indirectly through multiplier effects.

(15) for each job directly created by an order for defence equipment in the radio and electrical components industry, defined under minimum list heading 364, how many jobs does he estimate are created indirectly through multiplier effects;

(16) how many persons does his Department estimate were indirectly employed upon defence or defence-related projects in the radio and electrical components industry as defined by minimum list heading 364 in January 1978; and in which regions was the greatest concentration of such employment;

(17) how many persons does his Department estimate were indirectly employed upon defence or defence-related activities in the chemical industries included under minimum list heading 279 in January 1978; and in which regions was the greatest concentration of such employment;

(18) how many persons does his Department estimate were indirectly employed upon defence or defence-related projects in the radio, radar and electronic capital goods industries as defined under minimum list heading 367 in January 1978; and in which regions was the greatest concentration of such employment;

(19) how many people does his Department estimate were indirectly employed upon defence or defence-related projects in the ordnance and small arms industry as defined under minimum list heading 342 in January 1978; and in which regions was the greatest concentration of such employment;

(20) how many persons does his Department estimate were indirectly employed upon defence or defence-related projects in the shipbuilding and marine engineering industry as defined under minimum list heading 370 of the standard industrial classifications index in January 1978; and in which regions was the greatest concentration of such employment;

(21) how many persons does his Department estimate were indirectly employed upon defence or defence-related projects in motor-vehicles production industry as defined under minimum list heading 381 of the standard industrial classifications index in January 1978; and in which regions was the greatest concentration of such employment;

(22) how many persons does his Department estimate were indirectly employed upon defence or defence-related projects in the aerospace manufacturing and repairing industry as defined under minimum list heading 383 of the standard industrial classifications in January 1978; and in which regions was the greatest concentration of such employment;

(23) how many people does his Department estimate were indirectly employed upon defence or defence-related projects in the scientific instruments and systems industry as defined under minimum list heading 354 in January 1978; and in which regions was the greatest concentration of such employment.

Dr. Gilbert

The information is not available in the form requested. Following is the available information:

Direct Employment

Estimates of direct employment in the defence industries are not, in general, broken down by specified minimum list headings, but by the wider orders of the standard industrial classification. The estimates for 1976, the latest year for which figures are available, are as follows:

Region Minimum List headings under which there are major defence contractors in the Region
Scotland 383, 370, 354
Northern 370, 381, 383
North-West 383, 342, 381, 370, 354, 367, 279, 364
Yorkshire and Humberside 383
Wales 364
West Midlands 383, 342, 381, 370, 354, 367, 279, 364
East Midlands 383, 381, 354, 367, 364
South-West 383, 354, 367, 364
South-East 383, 342, 381, 370, 354, 367, 314

Indirect Employment

It is not possible to estimate with any confidence the indirect employment effects of defence equipment purchases from particular industries, because, until the relevant results of the 1974 Census of Production become available, the spending pattern of individual industries can only be assessed by reference to out of date information. The studies we have undertaken indicate that, for each job opportunity directly generated by defence equipment expenditure, approximately one further job opportunity is generated indirectly. This very broad estimate may change when better data becomes available.

SIC Order Employment (rounded)
VI Metal Manufacture 3,000
VII Mechanical Engineering 20,000
VIII Instrument Engineering 8,500
IX Electrical Engineering 44,000
X Shipbuilding 23,000
XI (1) MLH 383 Aerospace 81,000
(2) Other Vehicles 9,000
XII Metal Goods 1,500
190,000

These estimates are subject to unquantifiable, but probably quite large, margins of error. They can reasonably be used to support only a general conclusion that about 200,000 job opportunities are generated directly in the defence industries by United Kingdom defence equipment expenditure.

Comparable figures for employment generated by overseas sales of defence equipment are not available. In general, it is estimated that a further 70,000 job opportunities are generated by such sales.

The method of calculating employment estimates does not permit any regional breakdown of these estimates. Regions in which major defence contractors are located are as follows:

Multiplier Effects

Expenditure on defence equipment is likely, as is any other government expenditure, to increase employment by multiplier effects, but no separate assessments for defence are available. The multiplier effects are on employment in the United Kingdom.

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