UK Defence Industry: Procurement

Marcus Fysh Excerpts

Wednesday 22nd June 2022 Westminster Hall

[Fay Jones]

I completely support my hon. Friend’s point, and I am delighted that Compact Orbital Gears in my constituency works closely with MIRA in his constituency. That is the type of arrangement that the Government should be facilitating, and I fully endorse his words.

I firmly believe that, as my hon. Friend pointed out, that if we support the UK’s small and medium-sized enterprises and harness our international influence, the UK has the potential to be the defence marketplace for our NATO partners. We have the intellectual prowess and manufacturing capability to become the hub for defence innovation globally. I understand from Charcroft Electronics that it has seen an increase in trade with our European partners due to its profile in UK markets, and it is looking to expand its production due to demand. To quote its director, orders from German and UK customers

“have gone through the roof”,

and it is at capacity until the end of next year.

Charcroft has demonstrated to me that there is a clear sense of security in a country knowing that its parts are not stored or being built abroad, and therefore potentially subject to disruptive geopolitical shocks. It is harnessing its influence at home and abroad to work closely with other UK defence businesses and those in our neighbouring countries. It is engaging in research and development for future defence programmes. Charcroft’s success is obvious and well deserved, and I am grateful to the Government for committing to supporting SMEs across the UK via the SME action plan, so that we can improve engagement and ensure that the whole defence supply chain is guaranteed the quality and service delivered by our UK businesses.

While I commend Charcroft, Compact Orbital Gears, and other businesses across Wales that are supplying the defence sector, there are limitations on procurement in UK defence. To continue the success and development of those businesses, we need to ensure that our skills-based economy is up to scratch, so that it matches our intellectual capacity. It is apparent that there are limitations on growth due to the difficulty in hiring highly skilled individuals in rural areas. I welcome the Government’s commitment to investing in our defence sector, and recognise their commitment to apprenticeships, which will combat skilled jobs shortages. I understand from ADS Group, a trade organisation for companies in the UK defence sector, that around 5,000 apprentices are employed in that sector. That is evidence of a budding workforce.

However, in constituencies such as mine, the picture is different. There are myriad reasons for that; in rural communities, problems include inaccessibility and a lack of connectivity. Charcroft told me that despite its best efforts,

“apprentices are hard to come by.”

We need to be committed to nurturing our home-grown talent, so that we can strengthen our defence industry, and so that businesses can expand and develop easily without that anxiety.

[Mr Marcus Fysh (Yeovil) (Con)]

Does my hon. Friend agree that the new medium helicopter programme is a very good example of how we can support skills development, and the sustainment of those skills—particularly design skills—in the defence manufacturing sector? My college in Yeovil works closely with Leonardo to provide apprenticeships in exactly the sorts of areas that my hon. Friend is describing, and if the MOD becomes the reference customer, there is a massive opportunity for major export business to be done off the back of that in future. That would sustain jobs throughout Wales and the south-west, as well as the wider UK.