2. What recent assessment he has made of the defence industry in Wales; and if he will make a statement. (136386)

The defence industry is a significant contributor to Wales and the UK’s economy, contributing more than £22 billion of annual revenues, of which £5.4 billion is from exports. Companies such as General Dynamics, EADS and BAE Systems ensure that the defence industry makes a vital contribution to the economy in Wales.

Notwithstanding attempts to try to intimidate me not to attend Welsh questions, will my right hon. Friend tell me what representations he has received on the research and development of General Dynamics?

I am always extremely grateful—as I am sure the entire House is—to see my hon. Friend take such an interest in Welsh matters. In November I visited EDGE UK, which is part of General Dynamics, and I was tremendously impressed with its exciting research and development programme. It is an excellent example of a part of the defence industry that is benefitting Wales hugely.

The Royal United Services Institute think-tank produced a paper demonstrating that 40p of every pound spent on a UK-based—indeed, a Welsh-based—defence contractor brought 40p back into the UK economy. Will the Minister ensure that the Treasury and the Ministry of Defence understand the importance of supporting our Welsh defence industries so that we can also support the UK economy?

The Wales Office and the MOD are keenly aware of the importance of the defence industry to the economy of this country, and the hon. Lady is right to say that it makes a significant fiscal contribution. That is why I was extremely pleased to visit EDGE UK last year and see it making such a huge contribution to the economy in that part of Wales.

The MOD has disclosed that on safety grounds it has ruled out Devonport as a suitable relocation site for Trident following Scottish independence. Is the Secretary of State as surprised as I am that the First Minister is making a case for Milford Haven, when the MOD has not undertaken any safety assessment of the casualty rate in south-west Wales following a strategic attack or a Trident-related accident?

I think the MOD is extremely satisfied with the facilities offered to the Trident fleet and Faslane, and expects to be based there for the foreseeable future.