Hon. Adam Butler: Yes, Sir.
Hon. Adam Butler: I agree that the operational requirements of the RAF must have priority, but, as I have made clear today and previously, there are many other considerations. I hope that we shall be able to make a decision reasonably soon, and preferably before the next round of Defence questions.
Hon. Adam Butler: I hope that the RAF will not be the laughing stock of anybody, whether it has an aeroplane that is designed in Brazil, Switzerland, Australia or the United Kingdom. There are many considerations to take into account. Relations with Brazil are important to Britain, as are relations with Switzerland, Australia and many other countries.
Hon. Adam Butler: I assume that the hon. Gentleman has in mind the memorandum of understanding relating to the FH 70 and Tornado programmes. The answer is yes.
Hon. Adam Butler: The memoranda of understanding and present circumstances show that for different reasons the balance of advantage lies with the United Kingdom in respect of both the FH 70 and Tornado programmes at the moment.
Hon. Adam Butler: I have the feeling that naval debates have a touch of freemasonry about them. I thank all those right hon. and hon. Members who have taken part in this one, and I thank especially my hon. and learned Friend the Member for Colchester, North (Sir A. Buck) for his welcome to me. I cannot but be impressed by the quality of the speeches to which I have listened, but I shall be commenting on their...
Hon. Adam Butler: My right hon. Friend quite rightly takes me to task. I was not treating the subject flippantly. I was involved in some of the discussions within Government on this matter some four years ago, so I know something about it. Perhaps the fact that we are taking so long to decide shows the deep importance and complexity of the matter. My right hon. Friend knows perfectly well that if it was a...
Hon. Adam Butler: My hon. Friend gave me notice that he would raise that point. In view of the time and the number of other matters with which I must deal, I shall say nothing other than that he is right. There have been problems of delay with Skynet, but there is no doubt about the importance of satellites for communication in the defence and maritime areas. I hope that we can reinforce what is currently...
Hon. Adam Butler: Initially, the report is for Ministers. Much of the information in it might be classified and it would be impossible to publish it. My right hon. Friend and the Department of Transport will consider whether an expurgated version should be made available. Normally such reports are advisory and one would not expect them to be made public.
Hon. Adam Butler: The hon. Members for Dunfermline, West (Mr. Douglas) and for Clackmannan (Mr. O'Neill) mentioned Challenger. It is common knowledge that difficulties have arisen in the saturation diving system. Since it was impossible to rectify the failures in situ it was decided to redesign and simplify the system. The value of the pipework removed was under £l million. A replacement programme has been...
Hon. Adam Butler: I shall have to check that. The main subject of today's debate was defence expenditure, within that, naval expenditure, and the impact which the cost of Trident might have on that expenditure. My right hon. Friend the Minister referred to the considerable increase in real terms in expenditure over the past five years under Conservative Administrations. I resent the Opposition castigating us...
Hon. Adam Butler: The answer is no. The hon. Gentleman will recall that the tenders expired and the orders again had to be put out to tender. These are being examined, and I hope that we shall be able to announce them before the end of the year. With only two ships involved, it is clear that one or two yards will be disappointed. The decisions have many implications for naval capacity and jobs in different...
Hon. Adam Butler: Perhaps I may debate the exchange rate with the hon. Gentleman on another occasion. I wish to deal with one further main point—the cost of naval ships and related equipment. Whether the naval budget grows or shrinks and whatever happens to the defence budget as a whole, we must make the best use of the resources available. My hon. Friend the Member for Bristol, East (Mr. Sayeed), who has...
Hon. Adam Butler: Various representations on this subject have been received, including those from my hon. Friend.
Hon. Adam Butler: I am aware of the concern at BA Woodford, and I can confirm that the deep servicing of Nimrod will be put out to competition. The matter is being considered very carefully. We need to identify whether companies are likely to be able to undertake the work and obtain the necessary security clearance. Therefore, it is taking us some time to reach the point at which contracts will be put out.
Hon. Adam Butler: I have not received representations on that subject.
Hon. Adam Butler: It is hoped to announce a decision around the turn of the year.
Hon. Adam Butler: As my hon. Friend would expect, the usual criteria will apply, and they will include the operational performance of the aeroplane. It must meet the needs of the Royal Air Force. However, we shall take into account the issue of jobs in the United Kingdom, examine sales prospects and international relations and many other considerations.
Hon. Adam Butler: In regard to the second part of my hon. Friend's question, I cannot add to what I said in my second answer. I am glad to say that all four contenders have a high level of United Kingdom manufacturing content.
Hon. Adam Butler: As the hon. Gentleman knows, I am very sensitive to Shorts' position, but I shall remain completely objective in regard to this selection. The number of jobs involved in any order will be conditioned by the initial order from the RAF and by the prospect of overseas sales.
