Early day motion tabled by primary sponsor Alan Williams (Labour), on Friday, 4 March 1994, in the House of Commons. It is signed by 59 members in total.

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PRICING OF ARMS EXPORTS

That this House notes allegations made to The Times that the price at which GEC exports defence equipment to Malaysia via GEC Marconi (Projects) Malaysia (GMPM) can virtually double when it leaves GMPM; notes that GMPM, with a handful of purely administrative staff, is unlikely to carry out processes which explain the marked-up price; asks for an explanation of this two-tier pricing system, especially how it affects the tax liability for GEC in the United Kingdom, from those taxpayers GEC has received ??millions in export support; observes that it must leave GMPM with massive profits in Malaysia; notes that in the case of the GEC contract seen by The Times the payment of nearly ??200 million for radar and communication was to be made in a cocktail of Malaysian Ringitts, US$ and ?? sterling; asks if ECGD support was given to GEC for its exports under the Memorandum of Understanding with Malaysia, and for its input to the Pergau Dam project; asks if the Ministry of Defence's special Defence Export Sales Organisation is aware of the dual pricing system and has considered its significance for United Kingdom price or on the GMPM price; also asks if Britain is receiving full commercial exploitation levy for products for which Government money was provided for research and development; and asks how widespread these practices are amongst companies receiving aid from the taxpayer; and also asks on which of these figures the United Kingdom's counter-trade commitments are based.

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Secondary information

Type

Early day motion

Reference

753 

Session

1993-94

Subjects

Export credit guarantees UK Export Finance Prices Malaysia GEC Marconi Projects Malaysia

Link

View this Early day motion on www.parliament.uk