§ Mr. SheermanTo ask the Secretary of State for Defence what steps he is taking to ensure that supplies for the British armed forces are, so far as is possible under EU regulations, locally sourced and create local employment. [9482]
§ Mr. ArbuthnotWe aim wherever possible and in accordance with our obligations under EU regulations to purchase all major equipment and services for the British armed forces by competitive tender to secure best value for money for the taxpayer. As a result, over 90 per cent. of our business is awarded to United Kingdom industry. In addition, low-value purchases by MOD units and establishments of minor equipment and services, which are not generally subject to the EU regulations, also make an important contribution to local employment and economies. In 1994–95, expenditure on such local purchases totalled approximately £200 million.