PARLIAMENTARY EARLY DAY MOTION
DEFENCE INDUSTRY SUPPORT (10 October 2004)

That this House calls for greater recognition of the problems undermining the United Kingdom's defence industry; notes that European defence companies have the unfair advantage of being at least partly owned by the state as evidenced by the Italian defence company, Finmeccanica's attempt to underbid in the competition for the Ministry of Defence Hawk Trainer Jet, disadvantaging the United Kingdom owned BaE Systems plant in Brough, further notes that although 3,000 United Kingdom defence jobs were safeguarded when Brough was successful, the Finmeccanica bid was undoubtedly buoyed by the 37 per cent. stake the Italian Government has in the company, observes that similar protectionism is operated in almost every other 'open tender' situation, including the United States Administration, propping up their indigenous defence industry by absorbing developmental costs and by licensing new technology, which they refuse to allow to be exported; notes with regret that this is compounded by the tiny in real terms increase in defence expenditure in the United Kingdom compared to that of other government departments; acknowledges that many of the United Kingdom's most successful manufacturing sectors, such as aerospace and shipbuilding, feature within the defence portfolio; believes that it is therefore vitally important that the United Kingdom does not hinder its competitive, intellectual and technical advantage through its own tendering process; and calls upon the Government to align its procurement policy with the Defence Industrial Strategy.

Sponsored by:
Sir David Crausby (Labour)