Oral Answers to Questions

Andrew Stephenson Excerpts

Monday 10th October 2011 Commons Chamber

[Mr Howarth]

Exportability is a key component of all our procurement decisions; we are trying to build in exportability, not only to generate revenue, but to reduce the unit costs of the equipment to our armed forces. I can also tell the hon. Gentleman that we would not be having to make some of the difficult decisions that we are having to make had it not been for the destruction of the public finances by the previous Prime Minister and the shadow Secretary of State for Defence. If they had not destroyed the public finances of the United Kingdom, my right hon. Friend the Secretary of State would not have had to make the difficult decisions that he has had to make.

[Andrew Stephenson (Pendle) (Con)]

4. What progress he has made on increasing the number of small and medium-sized enterprises bidding for defence contracts.

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

This Government value the flexibility, responsiveness and innovation that SMEs bring to defence, which is why we are taking a number of actions to make it easier for them to participate in defence programmes, both as direct suppliers and as subcontractors. We are simplifying our bidding and contracting processes to make them easier for SMEs. I now chair an SME forum for representatives of small businesses, so that they can better understand and respond to the particular issues they face in doing business with the defence community. We will also set out a number of more specific measures in the White Paper that we will publish later in the year on equipment, security and technology.

[Andrew Stephenson]

I thank the Minister for that answer. I recently met Stephen Shepherd of S Dawes Weaving and Chris Blackadder of Howorths Textiles—both are manufacturers in Nelson, in my constituency. Those SMEs are interested in bidding for more work from the MOD. I would be grateful if the Minister could offer them and other SMEs in my area any advice on bidding for and winning more contracts.

[Peter Luff]

I am happy to reassure my hon. Friend, and Mr Shepherd and Mr Blackadder, that we have a cunning plan to help SMEs, as I hope my original answer suggested. For example, we are revising our internal guidance to ensure that SMEs are not rejected at the pre-qualification stage on the basis of rigid turnover-to-contract value ratios. I would be very happy to arrange for Mr Shepherd and Mr Blackadder to meet departmental officials to ensure that they are fully informed of the opportunities they now have.

--- Later in debate ---

[Dr Fox]

I am afraid that the hon. Gentleman has done a grave disservice to my hon. Friend, who never used any such words and has the highest regard for all those sacrifices made in the past.

[Andrew Stephenson (Pendle) (Con)]

T2. Many small and medium enterprises in Pendle are keen to know when the yellow book review will be completed. Is the Minister in a position to update the House on progress?

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

I am delighted to be able to do precisely that; it was published a few hours ago. [Hon. Members: “Read it out!”] It runs to more than 100 pages, so I think that I would be in trouble with the Speaker if I did that. Section 4 is specifically about SMEs. I invite the whole House to pay careful attention to this important document and to take part in the consultation on it.