Written question asked by Lindsay Hoyle (Labour) on Tuesday, 13 January 2009, in the House of Commons. It was due for an answer on Thursday, 15 January 2009. It was answered by Lord Davies of Stamford (Labour) on Tuesday, 20 January 2009 on behalf of the Ministry of Defence.

Defence: Procurement

Question: To ask the Secretary of State for Defence if he will bring forward proposals to ensure that a certain proportion of all expenditure on defence procurement is spent on products produced by UK-based companies.

Answer: In considering procurement decisions, the Ministry of Defence needs to ensure that it secures the best equipment available for our armed forces whilst at the same time ensuring value for money for the taxpayer. Open and fair competition is the most effective method of making sure that we achieve this. Therefore, the MOD does not mandate that a certain proportion of all expenditure on defence procurement is spent on products produced by UK-based companies. Furthermore, any such action would be against EU law, which forbids the provision of preferential treatment to any company, except in respect of essential security interests which is covered by Article 296 of the European treaty.

Secondary information