HC Deb 02 March 1995 vol 255 cc686-7W
Sir Michael Neubert

To ask the Secretary of State for Defence whether it is his policy to retain a manufacturing capacity for sonobuoys in the United Kingdom.

Mr. Freeman

All sonobuoy requirements are subject to competition where this is feasible, and foreign competitors are not excluded. Our policy is to obtain best value for money in defence procurement while satisfying the requirements of the armed forces.

Sir Michael Neubert

To ask the Secretary of State for Defence if he will place the same restrictions on foreign companies bidding for United Kingdom defence contracts as would apply to British companies bidding for similar contracts in those countries; and what the present position is in this respect with regard to sonobuoys and bidders from France and the United States of America.

Mr. Freeman

The Government's policy when procuring defence equipment is to aim for best value for money, wherever possible through the use of international competition for defence contracts. We prefer not to impose restrictions on potential bidders, not least because, if we were to protect our own defence market, this would undoubtedly invite retaliation damaging to United Kingdom defence exporters. Therefore, there are no restrictions on French and United States companies bidding for UK sonobuoy contracts. We continue to strive, through bilateral and multilateral channels, for greater mutual access to defence markets and, where appropriate, seek proposals for UK industrial participation in work let to overseas companies. We take into account a refusal to expand reciprocal rights.