To ask Her Majesty’s Government whether they will initiate an inquiry into the military and security implications of the failure of statutory safeguards concerning the sale and exports of false bomb detectors in the case of James McCormick.
My Lords, there was no failure of statutory controls as these objects were not subject to export control because they did not contain controlled materials and/or technology. The previous Government introduced a control on the export of these devices to Iraq and Afghanistan in January 2010 in response to concerns about the risk to the security of UK personnel through the use of these devices in Iraq. This is essentially a case of fraud and is subject to legal proceedings.
I am grateful, if somewhat surprised, by the Minister’s Answer. This was a fraud that went on over four years at a cost of about £60 million. To the mind of many of us, it was not fraud: rather, it was treachery, treason and potential manslaughter. Does the Minister agree that there is a stench of conspiracy or corruption, or is it merely incompetence? If so, what had military intelligence, MI5, MI6, export control and all the other agencies to do with that? This con trick could have cost the lives of our soldiers. Does that concern the Government? If the Minister does not feel that he can give me a full answer now, will he perhaps write to me and place a copy of that fuller response in the Library?
My Lords, the noble Lord asked a number of questions. I will try to answer as many as I can. Failing that, I would be very happy to write to the noble Lord. The UK defence industry contributes £35 billion to our wider economy, provides more than 300,000 jobs and makes a contribution of about £2 billion to our Exchequer. It is a crucial industry. With regard to the defence industry being corrupt, the defence industry, like many other industries, makes a very valuable contribution to the British economy, particularly through its export of defence equipment. This issue cropped up in mid-2009—that is when the department became aware of it—and hence we brought in the control in January 2010.