Uniforms (Hansard, 27 May 1993)

§ Mr. Nicholas Winterton
To ask the Secretary of State for Defence what specific steps are taken to ensure that overseas suppliers of service uniforms purchased by the armed forces are not in receipt of hidden subsidies; and if he will make a statement.

§ Mr. Aitken
It is our policy to encourage the development of a more open international market in defence goods through Government-to-Government negotiations, although it would not be practicable or cost-effective to investigate every potential supplier for hidden subsidies. Over 90 per cent. of my Department's contracts for clothing and textiles are placed with United Kingdom companies, though the nationality of subcontractors is a matter for the company concerned.

§ Mr. Nicholas Winterton
To ask the Secretary of State for Defence what percentage of the value of all contracts for the supply of service uniforms are currently placed with(a) British and (b) overseas suppliers.

§ Mr. Aitken
In financial year 1992–93, 91 per cent. of contracts for the supply of clothing for the armed forces were placed with British suppliers and 9 per cent. with overseas suppliers, including the EC. So far in the present financial year 1993–94, 97.6 per cent. of the value of all contracts for the supply of clothing for the armed forces has been placed with British suppliers and 2.4 per cent. with overseas suppliers, including the EC.

§ Mr. Nicholas Winterton
To ask the Secretary of State for Defence if he will make a statement indicating his Department's policy on the placing of contracts with overseas suppliers of service uniforms; and if he will make specific reference to the criteria by which value for money and strategic considerations are assessed.

§ Mr. Aitken
Over 90 per cent. of contracts for the supply of service clothing are let to British companies. Overseas suppliers could be invited to tender if they achieve admission to the defence contractors list or if they apply via theOfficial Journal of the EC bulletin. Orders are rarely placed with companies overseas.
Value for money from the defence budget is assessed through a system which includes contractor registration, quality assessment and the evaluation of offers with particular reference to price and delivery. Strategic considerations apply to only a small range of items, generally of a warlike nature, and are addressed through the selection of a limited number of companies which are to be invited to tender for the requirement.