Oral Answers to Questions

Lord Walney Excerpts

Monday 10th October 2011 Commons Chamber

[Mr Howarth]

I thank my hon. Friend for that very challenging question, because this Government have a great deal to be proud of, and one thing we have brought to the business of promoting defence exports is enthusiasm for helping our friends and allies to protect themselves in what is a very dangerous world. I am delighted to be able to tell my hon. Friend that in the past year the UK’s share of the defence export market has increased by 4%, which is no mean feat.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

If the Minister is being so enthusiastic and it is all going so well, can he tell the House why British Aerospace has been forced to cut 3,000 jobs across the north-west and Yorkshire, citing the failure of exports as one of the principal reasons for its decision?

[Mr Howarth]

BAE Systems did not actually cite exports as being one of the problems. What it cited was the fact that it is a multinational company operating in a number of markets where there is pressure on the budgets—its principal market is the United States of America. It may have escaped the hon. Gentleman’s attention, but the US is looking to make defence cuts of $1,000 billion over the next 10 years, and that is affecting us all. However, the good news is that the fact that the US has to make savings means that it may well be more receptive to the sort of products made in his constituency and in others across the United Kingdom.