Lord Beamish
Main Page: Lord Beamish (Labour - Life peer)Department Debates - View all Lord Beamish's debates with the Ministry of Defence
(2 years, 3 months ago)
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Mr Wallace
They will certainly be integrated in British yards, and a significant proportion will be built there. Let us have a look at what the bidders say; I have not yet seen the bids. As the right hon. Gentleman absolutely points out, British defence is dependent on British manufacturing, but British manufacturing is dependent on exports. If we are going to export our defence, as with Typhoon aircraft, Boxer and many of our exports, we often have to collaborate with international partners, because if we close the door on them, they are not going to buy British kit.
Mr Kevan Jones (North Durham) (Lab)
The Defence Secretary has just said that social value will be taken into consideration when awarding contracts. I have asked numerous parliamentary questions of the Department to try to quantify that; I have had no answer. I have asked the National Audit Office this question; it does not seem to know what is being used by the Department. Could the Defence Secretary clarify exactly what social value means, in quantifiable terms, when awarding contracts? It was clearly laid out in the excellent report that the right hon. Member for Ludlow (Philip Dunne) did a few years ago.
Mr Wallace
In strategy documents such as the national shipbuilding strategy, we pledged a minimum 20% weighting for social value with naval ships. Social value is one of the weightings that we put on the contract. All contracts are obviously different from what we are seeking to buy, but within the weighting for social value, on which 20% of the total award is based, we can consider inequalities or the economic factors that I referred to earlier. I make sure that those factors are in there, and that they are adhered to. It is incredibly important.