HC Deb 28 January 1986 vol 90 cc447-8W
Dr. Godman

asked the Secretary of State for Defence to what extent, in reaching defence procurement decisions, he takes account of the implications of the phasing and distribution of orders for the ability of individual yards to maintain the integrity of their design and production teams at a level conducive to the making of competitive bids for future orders; and if he will make a statement.

Mr. Lee

It is not our policy to place orders in advance of the requirement or to advance orders to match shipyard capacity. Our policy is to place orders wherever practicable by competitive tendering, although we might need to take account of wider and relevant factors. In the specific case of conventional submarines we believe that there will be satisfactory competitions in the future.

Dr. Godman

asked the Secretary of State for Defence if he will specify the non-commercial factors which are used to decide between rival tenders for procurement orders which are otherwise broadly competitive with each other; and if he will make a statement.

Mr. Lee

The Government's prime consideration is seeking the best value for money for the defence budget. Other considerations are described in defence open government document 83/01.

Dr. Godman

asked the Secretary of State for Defence what is his policy towards the participation of foreign-based or substantially foreign-owned companies in competition for (a) defence procurement contracts generally, and (b) contracts for naval ships or submarines; and if he will make a statement.

Mr. Lee

Our general policy on procuring the equipment which the armed forces need for their tasks was set out by my right hon. Friend the Prime Minister in her reply to the hon. Member for Great Grimsby (Mr. Mitchell) on 13 January at column517.

Within this overall policy, each requirement is examined on a case-by-case basis. In general, a foreign-owned firm with a comprehensive and established capability in this country is regarded as part of British Industry. As I said on 13 January, at column 525, it is not the Government's policy to place orders for warships overseas.