Defence: Industrial Strategy

Lord Touhig Excerpts

Monday 27th February 2017 Lords Chamber

[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.

[Lord Touhig (Lab)]

My Lords, last Tuesday, Labour’s shadow defence team, together with my noble friend Lord West of Spithead, held a workshop with representatives of some 20 defence companies. The clear message from that event was that a defence strategy was the best way to streamline procurement and give a clear vision for the future to the defence sector. Have the Government had similar discussions with industry experts on the need for such a strategy? If not, may I suggest that they do? They may learn something.

[Earl Howe]

My Lords, I do not think we need to get too hung up on the word “strategy” as opposed to “policy”. The key questions, it seems to me, are how we can make UK industry more competitive, how we can drive innovation, how we can drive skills and, as I have said, how best to ensure that industry can engage productively with government and that government itself is a more intelligent customer. These are the questions we should address and I am sure they are the ones industry wants us to address.