Defence and Security Industrial Strategy

Lord Liddle Excerpts

Wednesday 24th March 2021 Lords Chamber

[Baroness Goldie (Con)]

The last point the noble Lord alluded to is very important. Yes, I agree, and we hope that that indeed will be the consequence of the application of this strategy in practice.

On the other issues to which the noble Lord referred, again, early, close engagement between MoD and industry will go a long way to achieving the clarification he seeks. Certainly, introducing intellectual property strategies into the MoD’s acquisition processes for defence programmes to better incentivise and manage risk will also go a long way towards addressing some of the points he raises.

[Lord Liddle (Lab) [V]]

My Lords, I welcome the integrated review and the defence papers that have come from it; that shows a willingness to engage in long-term thinking. My concern is that the emphasis on sovereign capability comes up against our long history of overspending on defence procurement and the difficulty of controlling programmes. What is the Government’s attitude towards common European defence procurement as a means of securing greater cost-efficiency? Why is it that in Europe we are ending up with two separate attempts to produce a next-generation future combat air system? Would it not make more sense to go for a single common approach? In the past, the financial viability of UK defence business has often been secured by arms sales. Do the Government recognise that in future, this is likely to come up against lots of ethical foreign policy and human rights concerns?

[Baroness Goldie (Con)]

The strategy lays out a clear basis for how we will engage not just with our companies at home but with potential suppliers abroad. At the end of the day, we want a quality product providing what our Armed Forces need at a price fair to the taxpayer. Internally, we will be very clear about the pricing structures for these products. Equally, we are very clear that, if we are going abroad or dealing with an international provider, we will monitor and scrutinise that closely. We will be guided on a case-by-case basis as to what we need, who best can provide it and whether it needs to be regarded as a strategic imperative or to have operational independence, in which case it will almost certainly be with a UK provider.