HC Deb 19 September 2002 vol 390 cc328-9W
Mr. Wray

To ask the Secretary of State for Defence if he will make a statement on the future of UK military aircraft manufacturing in Britain; and what measures are being taken to maintain and expand the industry. [72935]

Dr. Moonie

The United Kingdom military aircraft sector is efficient, innovative and highly competitive, and with these qualities it has very strong potential for success in the future. Given the importance of the industry for the supply of equipment to our Armed Forces, not to mention its role as a significant employer, the Government has of course a close interest in its success. The industry already benefits from a large programme of Ministry of Defence work on projects including JSF, Eurofighter, Nimrod, A400M and Apache. Future programmes such as the Future Strategic Transport Aircraft project are also likely to result in a significant programme of work for UK companies. And we will continue to take industrial factors into account within the medium of our competitive procurement policy.

The Government is committed to investing in defence research and technology in partnership with industry, which is crucial in sustaining a viable and competitive industrial base long-term, while focusing more effectively on areas where we achieve best return and where UK industry can be world class. We have also recently extended the tax breaks that are available to companies investing in research and technology.

We will also continue to pursue vigorously the importance of liberalising defence trade and technology flows between our allies. We give strong support to the industry's bids for export orders, and we also welcome inward investment bringing high-value skills and technologies into the UK industrial base.