Oral Answers to Questions

Peter Luff Excerpts

Monday 15th April 2013 Commons Chamber

[Mr Hammond]

Of course, cuts in defence budgets, not only in the UK but in the United States and, in fact, in nearly all developed countries, have presented huge challenges to defence industries. At the same time, many of their traditional export customers have developed their own defence manufacturing and even design and development capabilities. We are trying to work with the defence industry to give it greater visibility of our forward intentions, and to work with it to design greater export ability into its projects.

[Peter Luff (Mid Worcestershire) (Con)]

I congratulate my right hon. Friend unreservedly on his success in the herculean task of balancing the defence budget, but does he agree that if we are to keep that budget balanced, one of the things that has to change is the status of Defence Equipment and Support? Can he share with the House any clear indication of when he will announce his intentions in respect of that organisation?

[Mr Hammond]

My hon. Friend is right. [Interruption.] The right hon. Member for East Renfrewshire (Mr Murphy) correctly guesses that the announcement will be made shortly; “in the spring” and “before the summer recess” also spring to mind. My hon. Friend is right that if we are to deal effectively, and in a way that protects the best interests of the taxpayer, with large corporate entities which are able to scour the world for the top talent, we must be able to match them man for man across the negotiating table.