Oral Answers to Questions

Ben Howlett Excerpts

Monday 29th February 2016 Commons Chamber

[Mr Dunne]

My hon. Friend speaks magnificently not only for his constituents, but for the largest UK defence contractor, whose main centre of engineering innovation is in his constituency. I congratulate him on that and applaud him for it.

[Ben Howlett (Bath) (Con)]

Given that Ministry of Defence procurement operates under European law, what assessment has the Minister made of a potential exit from the European Union on UK SMEs that rely on MOD contracts?

[Mr Dunne]

As my hon. Friend knows, the UK defence and security industry is the largest in Europe. As the default position, we continue to place contracts on the basis of open competition. EU procurement directives apply to our procurement, which means that EU contractors are eligible to compete for our contracts in the same way as UK and other international companies, other than when we declare an article 346 exemption for warlike stores, which accounts for about 45% of our procurement.[Official Report, 2 March 2016, Vol. 606, c. 5MC.]