§ Mr. ThorneTo ask the Secretary of State for Defence how he proposes to ensure continued effective competition among defence suppliers in the event that, following the proposed acquisition of the Plessey company by GEC/Siemens, these Plessey business areas become wholly-owned subsidiaries of the German company, Siemens.
§ Mr. SainsburyThe MOD's procurement policy will continue to be based on the maximum possible use of competition, involving not only the companies that would result from a merger if it took place, but other defence suppliers. Where the Monopolies and Mergers Commission report has identified specific adverse effects resulting from the proposed merger, it has recommended undertakings to secure a remedy. These are currently under negotiation.
§ Mr. ThorneTo ask the Secretary of State for Defence what measures are being sought to satisfy United Kingdom national security requirements in the event that, following the acquisition of Plessey by GEC and Siemens, Plessey radar and Plessey defence systems become wholly-owned subsidiaries of the German company, Siemens.
§ Mr. SainsburyThe Ministry of Defence gave evidence to the Monopolies and Mergers Commission inquiry on the security issues raised by the proposed merger. The MMC recognised the MOD's concerns in their recommendation that national security undertakings as to the ownership and management of certain activities had to be secured to remedy the adverse effect of the merger. My right hon. and noble Friend the Secretary of State for Trade and Industry placed responsibility on the MOD to secure these undertakings. Negotiations are proceeding, and it would be inappropriate to comment further at this stage.
§ Mr. ThorneTo ask the Secretary of State for Defence what steps he is taking, in view of the highly integrated nature of Plessey's research facilities, to ensure that GEC does not exercise influence over Plessey's radar and defence systems businesses in the event that they succeed in acquiring the Plessey company.
§ Mr. SainsburyThe Monopolies and Mergers Commission report recommended, inter alia, that GEC should undertake not to acquire any interest in or influence or control over the management of the Plessey radar and defence systems businesses. The Office of Fair Trading is currently negotiating to this end, consulting the Ministry of Defence as necessary.