Oral Answers to Questions Debate

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Department: Ministry of Defence

Oral Answers to Questions

Kevan Jones Excerpts
Monday 23rd April 2018

(6 years ago)

Commons Chamber
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Gavin Williamson Portrait Gavin Williamson
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My hon. Friend makes a very important point about the international nature of our defence industry. We have to be looking more and more at how we can develop partnerships with international businesses and, when we are looking at procurement decisions, how we can deliver not just best value for the MOD, but the very best for jobs here in the United Kingdom.

Kevan Jones Portrait Mr Kevan Jones (North Durham) (Lab)
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What discussions has the Secretary of State had with the Treasury about the awarding of contracts? The Treasury takes the view that the lowest price is the best way forward but, in many cases, money will come back to the Treasury straightaway in tax and national insurance contributions, so should not that be taken into account when we award contracts?

Gavin Williamson Portrait Gavin Williamson
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The hon. Gentleman raises a very thoughtful point about how we approach the whole defence procurement argument with regard to the real benefits to UK plc. We should start to look at this. There are different approaches in various countries, and Germany’s approach is quite different from the United Kingdom’s. We need to think about what lessons we could learn as a Government and what approaches we can adopt.