Defence: Industrial Strategy

Lord Sterling of Plaistow Excerpts

Monday 27th February 2017 Lords Chamber

[Earl Howe]

My Lords, I can reassure the noble Lord in that regard. The Government remain committed to the principles we set out in our 2012 White Paper, National Security Through Technology, including promoting open competition. We will be refreshing our defence industrial policy very much within that framework.

[Lord Sterling of Plaistow (Con)]

My Lords, I totally agree with the comments of the noble Lord, Lord West. There is a big difference between cost, which this country has got so used to using as a measure, and value for money. What has been lacking for many years—I know the noble Lord, Lord Levene, feels very strongly about this as well—is a long-term relationship with industry. You cannot expect people to employ engineers, and get thousands of subcontractors and universities involved without long-term relationships. Does the Minister agree that that is a way forward? After all, the United States of America, Russia and China all have huge sovereign industry and it certainly seems to serves them well.

[Earl Howe]

My Lords, I agree with my noble friend that part of the work we have to do, and are doing, is looking at how we can optimise the strategic interaction between the Ministry of Defence and industry, including how we make defence a more attractive customer for people who do not traditionally supply to the MoD, such as small and medium-sized enterprises. It is about creating simpler processes and a more competitive UK supply chain. Of course, we would like to source from companies and organisations in this country, but we have to make it as easy as possible for them to deal with us.