HC Deb 04 November 1998 vol 318 c586W
Mr. Collins

To ask the Secretary of State for Defence if his Department(a) has counted, (b) currently counts and (c) plans to count Rolls-Royce sales of aero-engines to Boeing as a legitimate offset purchase for the purposes of offset agreements between his Department and US weapons manufacturers; and if he will make a statement. [56475]

Mr. Spellar

[holding answer 26 October 1998]: Before adopting a policy of Industrial Participation, IP, for defence procurement in 1990, the MOD counted the sale of aero engines from Rolls-Royce to Boeing as part of our offset agreement with the company. We are currently considering a claim from Boeing for IP credits for aero engine components supplied by Rolls-Royce. This, and any future Rolls-Royce sales of aero engines and components, must conform with the IP agreement existing between the MOD and the offshore company.