Defence: Industrial Strategy

Lord Levene of Portsoken Excerpts

Monday 27th February 2017 Lords Chamber

[Earl Howe]

I agree with the central thrust of the noble Lord’s proposition. As I said, many of the industrial strategy themes, particularly around removing barriers for UK companies to do business with government are well aligned with our refreshment of defence industrial policy. It is all about updating our terms of trade with industry to continue to deliver the best equipment for the Armed Forces at the best value for money, but in a way that supports UK industry to grow and compete successfully. That is the balance we are trying to strike.

[Lord Levene of Portsoken (CB)]

My Lords, I declare my interest as chairman of General Dynamics UK. Many years ago now, I was given the task of unscrambling the defence industrial policy, which was centred on so-called national champions. This policy resulted in significant cost overruns and delay in delivery of equipment badly needed by our Armed Forces. Will the Minister please confirm that the Government have no intention of reverting to that policy and remain committed to the policy of competitive procurement which has served the nation well?

[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.