§ Lord Kennetasked Her Majesty's Government:
Whether, before agreeing to any further transatlantic defence industry teamings or mergers, they will conduct an inquiry into the political pressures these full-privatised industries may exert on governments, particularly as to (a) the development of unnecessary, undesirable or inhumane weapon systems; and (b) the promotion of military actions or activities in which these systems may be tested at the taxpayer's expense. [HL3722]
§ The Minister of State, Department of Trade and Industry (Lord Simon of Highbury)If a proposed merger were to fall to the UK authorities for consideration under the Fair Trading Act, the Secretary of State would decide whether or not to refer it to the Competition Commission in the light of advice from the Director General of Fair Trading (DGFT). In formulating his advice, the DGFT takes into consideration representations he receives on competition and other public interest issues.
Proposals for large mergers with a Community dimension fall to the European Commission for consideration under the EC Merger Regulation. The European Commission assesses the effect of the proposed merger on competition.
The EC Treaty permits a member state to take such measures as it considers necessary to protect the essential interests of its national security. Pursuant to this a member state may request a party not to notify the military aspects of a merger to the European Commission. If the UK takes such action the military aspects of the merger may fall to be considered under the Fair Trading Act.