HC Deb 30 January 1989 vol 146 cc31-2W
Mr. Nellist

To ask the Secretary of State for Defence if he will list in theOfficial Report the precise amounts paid by his Department in the year 1985–86 to (a) The General Electric Co. plc., (b) Rolls-Royce Ltd., (c) British Telecommunications plc., (d) Lucas Industries plc., (e) BTR plc., (f) Austin Rover Group Ltd., (g) Dunlop Holdings plc., (h) United Scientific Holdings plc., (i) Courtaulds plc., and (j) Massey-Ferguson Holdings Ltd.

Mr. Sainsbury

The payments made to each of these companies in the year ended 31 March 1986 in respect of headquarters contracts were as follows:

£ million
The General Electric Co. plc. 800.0
Rolls Royce Ltd. 435.0
British Telecommunications plc. 8.5
Lucas Industries plc. 62.0
BTR plc. 19.0
Austin Rover Group Ltd. 60.0
Dunlop Holdings plc. 14.0
United Scientific Holdings plc. 21.5
Courtaulds plc. 9.0
Massey Ferguson Holdings Ltd. 3.5

Mr. Nellist

To ask the Secretary of State for Defence whether the figures for the value of headquarter contracts awarded to United Kingdom based Ministry of Defence contractors which were used to compile the list shown on page 15 of the "Statement on the Defence Estimates 1988" (Vol. 2) included any payments made by the Ministry of Defence for goods and services which were exported from the United Kingdom; and whether these figures represent the value of contracts signed or the value of goods and services delivered.

Mr. Sainsbury

The figures in table 2.10 of volume 2 of the 1988 "Statement on the Defence Estimates" are based on an analysis of payments made directly by MOD to contractors in 1986–87.

The analysis takes into account payments for many goods and services exported from the United Kingdom. For example, it includes payments for equipment taken abroad for operations or training by the United Kingdom armed services; however, these exports (and the corresponding imports if the items are returned to the United Kingdom) are specifically excluded from the official trade statistics.

The workshare agreements for collaborative equipment projects invariably involve a considerable amount of international exchange of components and assemblies. Where the arrangements provide for HMG to make purchases on behalf of a foreign Government—as is the case for certain items of equipment for the Harrier GR5/AV-8B project. for example—the payments made by MOD to contractors are included in the analysis. However, where funds for collaborative projects are routed through international agencies, the amounts are not included in the analysis of direct payments.

Payments made under sales arrangements, where no MOD money is involved, such as those with the Kingdom of Saudi Arabia, are separately accounted for, and are not included in the analysis.

Mr. Nellist

To ask the Secretary of State for Defence if he will list in theOfficial Report the precise amounts paid by his Department in the year ended 31 March 1988 to (a) Jaguar Cars Ltd., (b) Sandvik Hard Materials Ltd., and (c) Kalmar Climax Ltd.

Mr. Sainsbury

The payments made to Jaguar Cars Ltd. and Kalmar Climax Ltd. in the year ended 31 March 1988 in respect of headquarters contracts were as follows:

£ million
Jaguar Cars Ltd. 1.0
Kalmar Climax Ltd. 1.3
We have no record of any headquarters contracts having been placed with Sandvik Hard Materials Ltd.

Mr. Nellist

To ask the Secretary of State for Defence if he will list in theOfficial Report the total value of headquarters contracts handled by his Department in each of the five years up to 31 March 1988.

Mr. Sainsbury

The value of headquarter contracts placed in each of the four years up to 31 March 1987 is shown at table 2–9 of volume 2 of the "Statement on the Defence Estimates 1988", (Cmnd. 344-II). The value of headquarter contracts placed in the year ended 31 March 1988 was £6,541 million.