Sovereign Defence Capability: Meggitt Takeover

Debate between Lord Lee of Trafford and Lord Callanan

Wednesday 15th September 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord knows me well, and I would love to engage in debate with him on this issue—because of course he is wrong—but I cannot comment on the specifics of this case. Whether the Secretary of State takes the decision to intervene is a quasi-judicial matter.

[Lord Lee of Trafford (LD)]

My Lords, going somewhat wider, is not the failure by UK investors properly to value many quality companies in the defence sector, such as Meggitt, Ultra and possibly Cobham in the past, the real reason for the spate of takeovers? In this regard, does not the abject failure of television to cover stock market investment and our hugely important savings and investment industry bear some responsibility? With financial education so lamentable, does this not explain why thousands sadly leave money in the bank, earning zero interest, when they could put some into a company of the stature and strength of, say, Legal & General, which offers a dividend yield of 6.5%?

[Lord Callanan (Con)]

I know of the noble Lord’s campaign to raise awareness of the important work and value of private UK companies, but as I mentioned in my Answer to the noble Lord, Lord West, we value trade and investment into the United Kingdom. We believe in an open trading environment, and that is why the noble Lord, Lord Rooker, is wrong. We cannot just exist on an individual basis, not taking account of trade in the rest of world. We are proud to be one of the largest sources of inward investment in Europe, and long may that continue.