HC Deb 04 June 1998 vol 313 cc313-4W
Mrs. Ewing

To ask the Secretary of State for Defence what percentage of defence manufacturing contracts in the United Kingdom in terms of the(a) number and (b) value of contracts were undertaken for (i) the United Kingdom Government, (ii) other EU states and (iii) states outside the EU in the years 1991–92 to 1997–98. [43412]

Mr. Spellar

The information is not available in the form requested, butUK Defence Statistics 1997—Table 1.5 gives net expenditure for equipment procurement for production and repair and spares for 1997–98 of £7,173 million as an estimate of the value of manufacturing contracts placed by UK Government in total. Statement on the Defence Estimates 1996—Figure 8 shows that the proportion of equipment expenditure over the previous five years in the UK and on collaborative projects was 91 per cent. of the total equipment expenditure. UK Defence Statistics 1997—Table 1.13 shows exports of defence equipment (deliveries) for 1996 to NATO and other Western European countries at £1,055 million and to other countries at £2,347 million.

Mrs. Ewing

To ask the Secretary of State for Defence (1) what EU rules and regulations govern the competitive tendering of defence procurement contracts by his Department; [43414]

(2) what EU rules and regulations govern the competitive tendering of defence procurement contracts by member state Governments of the EU; [43413]

(3) if defence procurement contracts in all EU member states are open to competitive tendering to manufacturing companies in other EU member states. [43415]

Mr. Spellar

Procurement contracts for Defence goods and services in all EU member states are open to competitive tendering by companies in other EU member states, in accordance with the four EC Directives:

The Directives have been implemented in UK law by Regulations made by the Treasury under Section 2(2) of the European Communities Act 1972, as follows:

  • The Public Supply Contracts Regulations 1995 (SI 1995/201)
  • The Public Works Contracts Regulations 1991 (SI 1991/2680)
  • The Public Services Contracts Regulations 1993 (SI 1993/3228).

The fundamental principles of the Directives are that there should be an equal opportunity to bid for work without discrimination on grounds of nationality, that the award criteria should be stated clearly at the outset, and that there should be transparency in the award decision.

There is an exemption under the Directive for those goods and services to which the provision of Article 223 of the Treaty of Rome apply.

Forward to