Defence Budget and Transformation

Christopher Pincher Excerpts

Monday 14th May 2012 Commons Chamber

[Mr Hammond]

I am glad to tell my hon. Friend that that is already happening. We are increasingly entering into availability contracts where the whole-life costs of the project are taken into account and capability is delivered in the most efficient way.

[Christopher Pincher (Tamworth) (Con)]

My right hon. Friend’s announcement is good news for the taxpayer and will give certainty to our armed forces personnel. Will he say a little more about how it will build certainty among the lower reaches of the procurement supply chain—the small and medium-sized enterprises—who have suffered historically from budgetary uncertainty and do not have the luxury of waiting around for Government and prime contractor decisions?

[Mr Hammond]

We are committed to supporting the role of SMEs in the supply chain. I visited some SMEs involved in defence equipment very recently and they are among the most innovative and flexible parts of the industry. The changes we have already announced will assist them and I have pledged to look at how we can give them greater certainty that when they invest their own money in developing technologies, we can give them the highest possible level of assurance in advance that they will be able to export those technologies and not find that they have developed a white elephant.