Oral Answers to Questions

Lord Campbell of Pittenweem Excerpts

Monday 11th June 2012 Commons Chamber

[Nick Harvey]

The way the EU rules work is that if a Government declare something to be warlike, they can claim an exemption from the EU competition rules on the basis of national security. In the case that the hon. Gentleman describes, those contracts would be non-warlike and would be subject to normal competitive rules. Scottish companies would have to win against global competition.

[Sir Menzies Campbell (North East Fife) (LD)]

Can the Minister confirm that in the allocation of naval contracts and defence expenditure in general in Scotland, he will give no credence whatsoever to the notion that such expenditure should be governed by something approaching the Barnett formula—an idea which is as naive as it is risible, not least because it ignores strategic objectives, fails to take account of differing geographical levels of threat, and of course, from Scotland’s point of view, ignores the location of industrial capacity?

[Nick Harvey]

I can confirm for my right hon. and learned Friend that the Government would be governed by no such notion. Scotland does well out of defence at the moment; it has one of the UK’s three naval bases, it will have one of the UK’s three RAF operating bases and it has an Army brigade. Those who would seek to change that situation should spell out what it would look like under a separate arrangement.