Defence Equipment and Support
Debate between Mark Hendrick and Nick Harvey(11 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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Nick Harvey
Of course, competition laws dictate the ability of any Government to grant contracts to onshore suppliers. Our first and foremost consideration is to equip the armed forces with what they need. Our second consideration is to ensure value for the taxpayer. If, having ticked both those boxes, it is possible to ensure a healthy and thriving defence industry in the UK, so much the better. We like to give contracts to British suppliers when possible, but there are competition laws and our hands are tied.
Mark Hendrick (Preston) (Lab/Co-op)
The Minister proposes a procurement model that allows the Government to buy off the shelf from any company, whether or not it is British. He will be aware that BAE lost the Typhoon contract and that a French company has preferred-bidder status. If we are not prepared to give preferred-bidder status to British companies, why should other countries do so?
Nick Harvey
Clearly, it would be foolish not to consider buying things off the shelf that meet the requirements of the British armed forces. However, I repeat that clear competition laws determine the circumstances in which we can award preferred-bidder status. In many cases, we are unable to do so.