Defence Equipment and Support
Debate between Sharon Hodgson and Nick Harvey(11 years, 9 months ago)
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Nick Harvey
I agree with my hon. Friend that we need to maintain sovereign capabilities. I referred a moment ago to competition law, but when there are specific exemptions that enable us to protect national sovereignty for reasons of national security, we will take them. She is right on the research and technology budgets. They will remain an important part of our work. We cannot leave it entirely to the private sector to undertake primary research. It is necessary for the state to stimulate it.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
The Minister may know that I was present on 2 July at the royal opening of the new £75 million BAE System munitions factory in my constituency. It was built thanks to the innovative, 15-year munitions acquisition supply solution contract signed by the MOD back in 2008, and sustains more than 200 jobs. What will happen with such long-term contracts, which are so important to my constituency?
Nick Harvey
Nobody would suggest that everything that occurred under previous systems was not good. Clearly, there are exemplars—some contracts worked well. I am sure the facility in the hon. Lady’s constituency will be a great success and that it will support employment for many years to come, but the fact that we will have a more private sector-rooted procurement body will not have any negative impact on such contracts.