Part of the debate – in the House of Lords at 5:46 pm on 10 July 2018.
The noble Lord is eternally optimistic if he expects to get a commitment from me today. He is a realist and will have to listen to my speech—with the permission of the House I will go a little beyond 12 minutes—when I set out what we can and cannot say at this stage. He will know that there are reviews afoot and announcements to be made.
The noble Lord will be aware that my right honourable friend the Secretary of State for Defence has invited Philip Dunne to conduct a review of defence contribution to prosperity, which will be published before the summer Recess. He will also be aware that he is not going to get an answer out of me this afternoon and he will just have to live with that.
As stated in this House as recently as
However, the Government also recognise that budgetary pressures mean that we are unlikely to be able to maintain national industrial capability in every single area of our defence requirements. The Government will consider maintaining industrial capability where that is in the national interest but, in general, they will continue to operate a policy of competition to ensure best value for money, capability and innovation.
The noble Baroness, Lady Smith, wished to take us on to the wider helicopter market in the United Kingdom, and I hope that the noble Lord will allow me briefly to move away from Yeovil. We are proud to have manufacturing capability in other parts of the country. Airbus provides the majority of police and emergency services helicopters and has the largest share of the UK’s civil and military market. Its main base is in Oxford where it modifies and customises helicopters, although the design and manufacture functions are based in France. We are in contact with and have regular discussions with the company. We are also engaging with the aerospace industry in the United Kingdom across both the civil and defence sector interests. The Aerospace Growth Partnership and the Defence Growth Partnership enable government and industry to engage on a formal basis to tackle barriers and unlock market opportunities across these sectors of the economy. As I made clear earlier in my remarks, that engagement is co-ordinated across my own department, BEIS, the MoD and the Department for International Trade.
Lastly, given that the noble Baroness, Lady Smith, mentioned Brexit, I cannot leave the debate without making a brief mention of it. We understand that the negotiations on our future arrangements are leading to a level of uncertainty for all industries. That obviously applies to aerospace as much as to any other. We are working closely with the aerospace industry and we understand the implications and the opportunities that are presented by the departure of the United Kingdom from the European Union. Through our future partnership with the European Union, we want to explore just how our industries can continue to work together to deliver the capabilities that we need.
House adjourned at 6.01 pm.