Sovereign Defence Capability: Meggitt Takeover

Lord West of Spithead Excerpts

Wednesday 15th September 2021 Lords Chamber

Asked by

[Lord West of Spithead]

To ask Her Majesty’s Government what assessment they have made of the impact of a takeover of Meggitt by Parker-Hannifin on the United Kingdom’s sovereign defence capability.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, we welcome trade and investment where it supports UK growth and jobs, and which meets our legal and regulatory requirements while not compromising national security. Where we believe there are concerns, we raise them, and where we need to intervene, we will. The Government continue to monitor the situation closely. However, commercial transactions are primarily a matter for the parties involved. It would therefore be inappropriate to comment on the potential consideration of this or any other case.

--- Later in debate ---

[Lord West of Spithead (Lab)]

My Lords, I thank the Minister for his Answer. I thought that the Government had made very clear that they feel sovereign capability in these high-tech areas is hugely important for the nation, certainly in defence terms. We have now seen a succession of takeovers of highly capable British firms with a lot of high-tech workers and a huge amount of intellectual property by primarily American groups that are not primarily defence firms. Although promises have been made, I am afraid that, in terms of keeping the firms in being and running them as they were, those promises do not seem to have been kept. This is extremely worrying. Is there some way more than he has already described of ensuring that we do not lose high-tech jobs, that these firms are not broken up and that we keep a controlling interest? Is there, for example, any sense in having a golden share?

[Lord Callanan (Con)]

The noble Lord is tempting me down a path down which I cannot go. The United States is a valued trade partner and a large source of inward investment in the UK. UK and US officials work closely together to protect against any hostile foreign investment that threatens our shared security. We have a shared interest in keeping important defence suppliers in safe hands.