Scrutiny of Arms Export Controls (2009): UK Strategic Export Controls Annual Report 2007, Quarterly Reports for 2008, licensing policy and review of export control legislation - Business and Enterprise Committee Contents


  Examination of Witness (Questions 60-62)

IAN PEARSON MP, MR JOHN DODDRELL AND MS JAYNE CARPENTER

21 JANUARY 2009

  

  Q60  Chairman: That will also go down as a "Bercow comment".

  Ian Pearson: I am told that we are aiming for April, so that is going to be pretty quick, but obviously we wanted to seek to consult with people to make sure that it is helpful in terms of those who want to use it as well.

  

  Q61  Chairman: Thank you. My final question is that the Committee have on a number of occasions suggested that the Government carry out some research on the effectiveness of the export control system, purely as good practice. The last time we suggested this, the Government's response to the Committee was that the Government was still considering commissioning a study but was basically looking into that. Is that still under consideration? Are there any terms of reference? Where are we now?

  Ian Pearson: Yes, it is under consideration. I would like to see it happen. I have discussed it with officials in the run-up to appearing before you today and I think there is a good case that this is an acceptable use of public funds. There are some figures that get bandied about at the moment in terms of non compliance which worry me, because I do not think that they reflect the reality. On specific facts and figures, because I think it might be helpful to the Committee, Her Majesty's Revenue and Customs regularly retain dual-use goods at the frontier to establish whether the necessary licences are in place, and in 2007, on the figures I have, HMRC detained goods at port on 969 occasions. On 88% of these occasions goods were found not to require a licence at all, but of those that did require a licence only 25% or 3% of the overall total required a dual-use licence. These figures suggest a much smaller problem than some of the figures that have been bandied around previously. When it comes to the specific point, I do think that it would be a sensible use of public money to have a study that looked at non compliance in the dual-use sector. Whether the Committee were thinking about a wider study I do not know, but specifically with regard to the dual-use sector I think this is an area where we should be commissioning some research.

  

  Q62  Chairman: Thank you very much indeed, Minister. I would like to thank you, Mr Doddrell and Ms Carpenter for coming to our Committee. We have raised a number of questions and there will be other questions no doubt that we will wish to write to you about. Particularly on the earlier discussion, you will appreciate the concerns that the Committee has about the Government's policy in that area and so any response on those issues as quickly as possible would be very much appreciated.

  Ian Pearson: We will certainly endeavour to do all that we have said we will do during this Committee Stage. Thank you, as always, for the courteous way in which you have probed me and my officials in this area. As I say, just as a parting comment, I do believe that we have one of the best export control regimes to be found anywhere in the world. That is not to say that it cannot be improved. I think through scrutiny these things can be improved, and we appreciate the work of this Committee and its predecessor the Quadripartite Committee in helping us do just that.

  Chairman: Thank you.





 
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