Defence Industry: Scotland

Jamie Stone Excerpts

Tuesday 30th April 2019 Westminster Hall

[Ged Killen]

I absolutely agree with the hon. Gentleman. I will touch on that point later in my remarks.

Although we must continue to support shipbuilding, the UK and Scottish Governments must focus on diversifying and deepening the defence industry in Scotland to ensure that there will always be a base for the high-skill and high-value roles associated with the industry—that is eminently achievable. Scotland is well placed to be a home for a variety of new industries. With strong universities and a history of manufacturing and design excellence, we are ideally placed to take advantage of the large demands of the UK’s defence. This debate gives Members the opportunity to discuss future high-growth areas and draw attention to the advantages of increasing diversity in the defence industry. For my part, I will touch on two high-growth areas: space and land vehicles.

Glasgow in particular has become a pioneering centre for the deployment of microsatellites, producing more satellites than any other city outside the United States. As future defence concerns rely increasingly on the gathering and analysis of information, significant space assets will be vital to the day-to-day operations of the armed forces in both military and non-military operations.

The space sector has huge potential for future growth. Year-on-year growth in the sector has been five times greater than in the wider economy since 1999, and the sector has tripled in value since 2000. Each new job in the space sector adds £140,000 of added value per employee, and the overall sector receives 36% of turnover from exports.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The high-quality satellites that are built in Glasgow are superb, and will be launched from my part of the world. Does the hon. Gentleman agree that Britain has a great business opportunity to build a lot of satellites for allied countries for their own defence, and that if we get going now, we can steal on a march on the world?

[Ged Killen]

The hon. Gentleman is absolutely right. As a satellite hub, companies in Glasgow have produced huge volumes of satellites. Two companies, Alba Orbital and Spire Global, have between them put around 100 satellites in orbit, and Spire Global makes one new satellite per week. The recent go-ahead for the spaceport in Sutherland, as well as Glasgow’s growing microsatellite industry, perfectly places Scotland to take advantage of new investment and infrastructure.

Investment from the MOD will be a major factor in the successful development of space and satellite technologies. Any investment will naturally lead to a build-up of skills and will spill over into the civilian sector. I would therefore be grateful if the Minister indicated the role that the upcoming strategic defence and security review will have in supporting the development and expansion of the space industry in Scotland, and what representations he will make to ensure that that vital high-growth sector is not overlooked. The industry is highly competitive and, as the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) said, it is vital that the UK takes a lead.