BAE Systems and EADS

Debate between Lord Craig of Radley and Lord Marland

Wednesday 10th October 2012 Lords Chamber

[Lord Marland]

It is important that BAE Systems, as an independent organisation, now delivers a strategy and business plan to satisfy its shareholders in terms of its future. As a Government, we will be looking very closely at that because we are obviously highly dependent on the company for our defence support. However, this is a terrific British business. It is not a business that we should question. It turns over £19 billion and is therefore of significant value to the economy. It makes £1.6 billion profit, which is of significant value to the taxpayers, and employs some 35,000 people. We look to hear from BAE on this matter, but I thank the noble Lord for this very topical Question at a very apposite time.

[Lord Craig of Radley]

My Lords, is this outcome entirely satisfactory from the Government’s point of view?

[Lord Marland]

The Government have been totally clear all along. It is up to the two companies—and countries, for that matter—to decide whether this is a suitable engagement. We also have to remember that EADS is a big employer in this country. It is responsible for the Eurocopter, which is very important to our defence needs. It employs 17,000 people and is therefore a significant independent company.