Research decline puts future defence at risk

16:03 GMT, February 3, 2010 A|D|S, the UK’s AeroSpace, Defence and Security trade organisation today welcomed the launch of the Government’s Defence Green Paper and Strategy on Acquisition Reform as a crucial step towards delivering an SDR.

As the supplier of equipment and support to the UK’s armed forces the defence industry can only make the right investments in technology and skills with the right strategic direction on where investment should be targeted. Acquisition Reform is vital to ensuring the UK gets best value from its defence spending and A|D|S believes industry can aid Government with their drive for efficiency, especially through more outsourcing.

A|D|S is pleased that the green paper acknowledges that emerging nations are increasing defence research investment. However, this is in a context where the MoD has already cut early stage research investment by 23 per cent over the last 3 years. Technological development and investment in future capability goes to the heart of future military capability and therefore our international relations and much of the content of the report. A|D|S is therefore disappointed not to see a question posed by the Green paper on whether investment in research and technology is at the right level. ADS will be calling for the level of research investment to receive greater priority in the SDR process.

The Strategic Defence Review must answer the question of what Britain’s future role in the world will be and a refreshed Defence Industrial Strategy must be an integral part of that process. The SDR should also provide strategic direction for international co-operation including industrial partnerships.

The Green Paper is helpful in setting the framework but the SDR will not be completed until after a general election. Industry is concerned about decisions that are already being taken which are eroding the ability of industry to deliver future capability.

Rees Ward, CEO of A|D|S, said:

“We welcome these reports as a first step towards the much needed Strategic Defence Review. The absence of a refreshed strategy since 1998 has been to the nation’s detriment and has forced industry to take short term decisions. Industry is glad to see that strategic decision-making will receive greater priority with SDRs becoming a regular occurrence in the political calendar.

“R&T has been cut by the MoD by 23 per cent over the last three years. This decision has been made outside the SDR process and puts at risk our future capability. A|D|S is pleased the Green Paper recognises the importance of research investment, but is concerned that these cuts are allowing emerging nations’ capabilities to outstrip our own.

“A refreshed Defence Industrial Strategy is a priority for the defence and security of the nation and must be part of the SDR process. Currently there is a great fear that the UK will end up prepared for current conflicts, and not those of the future – an SDR that is based on the strategic and security needs of the nation, rather than just budgetary constraints will resolve this issue.

“The UK Defence industry is an important part of the UK’s manufacturing base, providing 10 per cent of all UK manufacturing jobs and contributing to economic wealth through exports worth over £5bn.

“There are over 300,000 employees of the defence industry pioneering new, more cost-effective methods for procuring, maintaining and upgrading military equipment so that they can protect our country and our global economic interests – and it is through men and women - like these - and their endeavours that the defence industry is aiding the UK’s economic recovery.”


UK Defence and Security sector facts

• Employs over 300,000 people across all regions of the UK • Consists of 9,000 companies of all sizes across the country; • Has more small and medium sized enterprises (SMEs) than France, Germany, Italy, Spain and Norway combined; • Had a turnover of around £35 billion in 2008; • Exports on average £5 billion per year; • Supplies 10 per cent of all manufacturing jobs in Britain; • Has 13 out of The Times’ top 100 most sought after graduate employers (2008), more than in IT, legal or retail; • Accounts for 5.6 per cent of Government spending (£38bn), compared to 13 per cent on education (£88bn), 17.7 per cent on health (£119bn) and 28 per cent (£189bn) on social protection; • Generates 1.6 new jobs elsewhere in the economy for every new job created in the defence industry; • Exports are at the rate of four times more per worker than the automotive sector and is 15 per cent more productive than the UK manufacturing average; • Delivers better value for money over the life of defence equipment and ensures that the country retains vital skills with which to support British armed forces in the field.


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Related article:

UK Ministry of Defence sets the big questions for Strategic Defence Review
http://www.defpro.com/news/details/12938