HC Deb 14 December 1989 vol 163 cc821-2W
Mr. Clelland

To ask the Secretary of State for Defence what part the Defence Exports Services Organisation has played in offset banking arrangements involving the American company General Dynamics; and what is the nature of the arrangements.

Mr. Alan Clark

The Defence Exports Services Organisation has negotiated an industrial participation (offset banking) memorandum of understanding with General Dynamics. The purpose of the MOU is to encourage General Dynamics to offer British defence industry opportunities to bid for a share of the work on all its major defence programmes. The value of orders placed will be "banked" by General Dynamics for subsequent use, in part, to satisfy future offset obligation, imposed by the MOD when making any future purchases from the United States company.

Mr. Clelland

To ask the Secretary of State for Defence what was the involvement of the Defence Exports Services Organisation in the tour of Britain by the American company General Dynamics; and what support and assistance has been given in this venture by his Department.

Mr. Alan Clark

The Defence Export Services Organisation in association with the DTI, various regional development authorities and local chambers of commerce organised a series of seminars and presentations given by General Dynamics as part of its marketing strategy to obtain more suppliers from the United Kingdom defence industry in support of all its major defence programmes. The DESO participated to the extent that it also briefed companies on how they could qualify to bid for work under the industrial participation (offset banking) MOU which the MOD has with General Dynamics.

Mr. Clelland

To ask the Secretary of State for Defence when he last met representatives of the American company General Dynamics; and what was discussed.

Mr. Alan Clark

My right hon. Friend has held no formal meeting with General Dynamics and, at the present time, has no plans to do so. Officials have met the company to discuss possible future orders for tanks for the British Army.

Mr. Fatchett

To ask the Secretary of State for Defence whether he or his officials have held or plan to hold any meetings with General Dynamics about future orders for tanks for the British Army; and if he will make a statement.

Mr. Alan Clark

My right hon. Friend has held no formal meeting with General Dynamics and, at the present time, has no plans to do so. Officials have met the company to discuss possible future orders for tanks for the British Army.