Oral Answers to Questions

Debate between Andrew Stephenson and Peter Luff

Monday 19th December 2011 Commons Chamber

[Andrew Stephenson (Pendle) (Con)]

12. What steps he is taking to support research and development of military capability in the aerospace sector.

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

I am committed to providing sustained support for science and technology across all aspects of defence. The Ministry of Defence has and will continue to invest in the aerospace sector, developing capability and undertaking research into new ideas. As part of that ongoing investment, I am pleased to announce today that we have placed a £40 million four-year research contract with BAE Systems to explore critical technologies and key systems integration for the UK’s next generation of highly capable air systems. The future combat air system research contract is expected to include significant benefits for the wider UK supply base.

[Andrew Stephenson]

I thank the Minister for that answer and, in particular, for the good news about BAE Systems. However, many companies based in Pendle and Lancashire are small and medium-sized enterprises. Will the Minister say a little more about what he is doing specifically to support SMEs in the aerospace sector?

[Peter Luff]

We have plans to do more to help SMEs and I had hoped to announce them in the White Paper that I was due to publish this month, but the pressure of Christmas business has delayed that until the new year. I can assure my hon. Friend that there will be good news in that for the SME sector and I also reiterate what I said in my original answer: the future combat air system contract will bring real benefits to small and medium-sized enterprises in the UK, including, I am sure, in my hon. Friend’s constituency.

Oral Answers to Questions

Debate between Andrew Stephenson and Peter Luff

Monday 10th October 2011 Commons Chamber

[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 ---

[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.

Oral Answers to Questions

Debate between Andrew Stephenson and Peter Luff

Monday 13th September 2010 Commons Chamber

[Andrew Stephenson]

On Saturday I visited Euravia, a company that repairs and overhauls aircraft engines, which is located in Kelbrook in my constituency, for the presentation of the Queen’s award for enterprise in the international trade category. Does the Secretary of State agree that high-tech manufacturing jobs play a vital role in our economy?

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

It is difficult not to agree with that very important statement. I agree entirely with my hon. Friend. Of course, defence manufacturing jobs play a particularly important part in the high-tech end of manufacturing. We will bring forward a defence industrial and technology policy Green Paper later this year, which I hope will underline the importance of that issue.