§ Mr. McNamaraasked the Secretary of State for Defence if he will make a statement concerning the offset agreements with the United States of America on the Trident programme.
§ Mr. ButlerThere is no offset agreement. Given the strategic nature of the project, there was no question of guaranteeing United Kingdom industry a specific proportion of the work. The industrial participation arrangements negotiated when the UK decided to purchase the Trident II missile do, however, permit United Kingdom industry to compete for Trident II subcontracts, in support of both United States and United Kingdom requirements, on equal terms with their United States counterparts.
§ Mr. McNamaraasked the Secretary of State for Defence how many British firms have made bids for component work on the Trident programme.
§ Mr. ButlerUp to the end of June 1984, the last period for which we have data, 107 United Kingdom firms had been invited to bid for contracts on the United States Trident II programme. Of these, only 37 made bids.
§ Mr. McNamaraasked the Secretary of State for Defence how many contracts have been won by United Kingdom companies and which contracts for component work on the Trident programme; and what is the estimated value of these contracts collectively and individually.
§ Mr. ButlerTwenty six contracts on the United States Trident II programme have been placed with 21 United Kingdom firms for a wide variety of products ranging from those requiring basic engineering skills to those incorporating high technology. The estimated total value of these contracts is just over $14 million. Many of the contracts are for initial quantities with potential follow-on orders. It is not the practice to give details of individual contracts.
§ Mr. Douglasasked the Secretary of State for Defence if he will give details of the number and value of orders secured by United Kingdom contractors for the Trident II missile system and the percentage of total orders coming to the United Kingdom to date.
§ Mr. ButlerI refer the hon. Member to the answer given earlier today to the hon. Member for Kingston Upon Hull, North (Mr. McNamara). Information on the percentage of total orders coming to the United Kingdom is not available.
§ 50. Mr. Berminghamasked the Secretary of State for Defence what are the estimated annual running costs, as opposed to the procurement costs, of the Trident system.
§ 30. Mr. Ashtonasked the Secretary of State for Defence what are the estimated annual running costs, as opposed to the procurement costs, of the Trident system.
§ Mr. HeseltineI have nothing to add to the answer that I gave to the hon. Members for Bolsover (Mr. Skinner) and for Jarrow (Mr. Dixon) on 24 July at column807.
423W
§ 31. Mr. Wallaceasked the Secretary of State for Defence if he will give the latest estimate of the cost of the Trident missile system.
§ 43. Dr. Marekasked the Secretary of State for Defence if he is yet able to announce a revised cost for the Trident programme.
§ 46. Mr. Douglasasked the Secretary of State for Defence what is the current cost of the Trident programme; and what estimate he now makes of the amount of equipment included in the programme which will be purchased in the United Kingdom.
§ 59. Mr. Hunterasked the Secretary of State for Defence what is the latest available estimated cost of the Trident programme.
§ Mr. HeseltineI refer the hon. Members to the answer that I gave earlier today to the hon. Member for Workington (Mr. Campbell-Savours).
§ 53. Mr. Kirkwoodasked the Secretary of State for Defence whether the recent public expenditure review has affected his calculations on the ability to finance the Trident II missile system.
§ Mr. HeseltineThe Trident programme, in line with all Defence programmes, is under review as part of the annual recosting exercise.
§ Mr. Geoffrey Robinsonasked the Secretary of State for Defence what efforts were made by his Department to procure contracts for United Kingdom firms on the Trident II programme.
§ Mr. ButlerThe agreement enabling United Kingdom firms to compete for sub-contract work formed part of the arrangements for the purchase of the United States Trident II (D5) weapon system programme signed in March 1982.
My Department subsequently established an office in London in order to advise British industry how best to approach the programme. Working closely with the major United Kingdom trade associations, an inaugural briefing was staged in London in May 1982 with United States participation and under the chairmanship of my predecessor. Further industry briefing sessions were made throughout 1982 including at the SBAC Farnborough 1982 Air Show and at local offices of the Department of Industry.
In June 1982, at the Ministry of Defence's request, a "Guide for Potential Sub-contractors" was published by the United States project office advising firms how to seek sub-contracts on the Trident programme, and listing the specific points of contact in the United States. It is estimated that 1,500 United Kingdom firms have been made aware of the programme, the majority by direct briefing.
Negotiations between my Department and the United States Government have successfully removed many of the barriers which frequently deter United Kingdom defence manufacturers from marketing in the United States. Most notable was the United States agreement, exceptionally, to waive the International Traffic in Arms Regulations.
As the participation programme has developed the MOD has maintained a close contact on opportunities open to United Kingdom firms with the United States prime contractors, and has arranged for them to send representatives to the United Kingdom in order to assess United Kingdom firms' capabilities.
424WThe programme entered the full scale engineering development phase in October 1983 and the selection of sub-contractors is expected to be largely complete by the end of 1985. The office set up in London continues to offer advice and assistance to United Kingdom industry and will be closely monitoring the progress of our firms.