Oral Answers to Questions Debate

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Department: Ministry of Defence

Oral Answers to Questions

Andrew Gwynne Excerpts
Monday 14th January 2013

(11 years, 3 months ago)

Commons Chamber
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Philip Dunne Portrait Mr Dunne
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I was pleased that my hon. Friend was able to accompany me on my visit to the firm in his constituency to which he referred. I have been appointed the SME champion in the Ministry of Defence. Where possible I am seeking to raise the emphasis on procurement —both direct and through our prime contractors—towards SMEs, given the source of innovation that they so often provide. The next SME forum, which I shall be chairing shortly, will focus its activities on how we can improve export prospects for SMEs.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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Notwithstanding the Minister’s answer that he is an SME champion in the MOD, does he not see it as incompatible with his Government’s default position to buy off the shelf rather than seek greater exports from British industry? Will he commit to giving extra effort and support to UK sovereign companies?

Philip Dunne Portrait Mr Dunne
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As the hon. Gentleman will appreciate, some larger procurements within the MOD cannot, by definition, be directed towards SMEs—the contract size is such that if it were awarded, the company would cease to be an SME. That said, the White Paper published in February last year made a specific pledge towards open procurement and to encourage the purchase of matériel through competitive process. That is the best way to maintain a fit industrial base in this country that is capable of exporting and winning orders through competition. Alongside that was a commitment to increase the proportion of goods purchased from SMEs.