National Shipbuilding Strategy

Debate between Mark Pawsey and Michael Fallon

Wednesday 6th September 2017 Commons Chamber

[Sir Michael Fallon]

I think the hon. Gentleman is probably faintly embarrassed by the scale of our commitment to the Clyde and of the investment there.

The hon. Gentleman asked me a serious question about the affordability of the equipment programme more generally. Yes, part of the equipment programme will have to be funded through the efficiency savings that we in defence have to realise and put back into the equipment programme. That means being more efficient, modernising our processes—for example, getting rid of barracks and land we no longer need—and continuing to work more effectively. All of that gain will go back into the equipment programme and help to fund the frigate that his constituents are building.

[Mark Pawsey (Rugby) (Con)]

I welcome the Secretary of State’s announcement, particularly the commercial latitude of his Department in procuring a vessel that can compete in export markets. The issue of procurement has been raised many times by Members. Will he confirm that the high UK content of the vessels means that the cost will not be affected by the depreciation of the pound post-Brexit and that there will be benefits across the UK, including for manufacturers of propulsion systems, such as GE Energy in my constituency, which, incidentally, is as far from the sea as one can possibly get?

[Sir Michael Fallon]

It might be far from the sea, but it is a very important firm and a key maker of the propulsion systems we will need. Of course, by definition, the higher the British content of these frigates, the less the price will be affected by the depreciation of sterling, but I will not speculate as to where the level will eventually settle.

Oral Answers to Questions

Debate between Mark Pawsey and Michael Fallon

Thursday 20th December 2012 Commons Chamber

[Mary Macleod (Brentford and Isleworth) (Con)]

8. What steps he is taking to increase the number of small and medium-sized enterprises which export to international markets.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

Exporting is a key part of the Government’s plans to return the economy to sustained and balanced growth. That is why we have increased funding to UK Trade and Investment in the autumn statement—an extra £140 million over the next two years—enabling UKTI to double the number of small and medium-sized firms supported from 25,000 to 50,000 by 2015.

[Mark Pawsey]

Automotive Insulations is a supplier to the motor industry based in my constituency and has increased turnover from £3 million to £14 million over the past few years, expanding its business to supply European motor manufacturers as well as those based in the UK. The current advice and support from UKTI is to focus on fast-growing markets outside Europe, but does the Minister agree that starting to export is a very big step for a small or medium-sized business and it is often easier to start exporting by supplying to our closest neighbours?

[Michael Fallon]

I congratulate Automotive Insulations on its extraordinary success over the past few years. Of course for an automotive company it may make sense to start with helping to penetrate the European supply chains, but in due course it may want to look further afield. In the end, this is a matter for the company to decide, but of course it is for the Government to provide help and advice.