Mr. O'NeillTo ask the Secretary of State for Defence what conditions regarding the nationality of sub-contractors are included in his agreement with Royal Ordnance plc for the supply of 80 per cent. of his Department's requirements for explosives, propellants and ammunition.
§ Mr. SainsburyThe agreement includes standard contract conditions which require RO plc to inform us in advance of any direct overseas expenditure likely to be incurred and to obtain approval, prior to purchase, for products manufactured overseas valued at more than £100,000.
Mr. O'NeillTo ask the Secretary of State for Defence what assessment has been made of the effect of an increase in the geographical concentration of Royal Ordnance manufacturing facilities on their vulnerability to attack in time of war.
§ Mr. SainsburyWe understand that Royal Ordnance is reducing the number of its sites in order to improve the efficiency of its production. Our aim is, however, to increase the proportion of work going to competition in the ammunition field and this will open up opportunities to other United Kingdom companies to enter the ammunition business at the same time as achieving better value for money for the tax payer.
Mr. O'NeillTo ask the Secretary of State for Defence what assessment has been made on the effect of the recent Royal Ordnance plant closures on the wartime production capability of Royal Ordnance.
§ Mr. SainsburyThe possible maintenance of reserve capacity in Royal Ordnance ammunition factories was considered well before the sale of Royal Ordnance to British Aerospace. Whilst we will continue to consider the retention of specific manufacturing capabilities on a case by case basis with the company, we do not believe that the individual plants concerned are, of themselves, an indispensable part of the United Kingdom defence industrial base.