Better Defence Acquisition Debate

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Department: Ministry of Defence

Better Defence Acquisition

Mark Menzies Excerpts
Monday 10th June 2013

(11 years, 5 months ago)

Commons Chamber
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Lord Hammond of Runnymede Portrait Mr Hammond
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In terms of our procurement of weapons systems and of contractor support for weapons systems, the DE&S will work as the agent of the Secretary of State. I am not sure that I can put my finger on the precise function of the establishment mentioned by the hon. Lady, but we have a separate programme to outsource some of the defence logistics and commodity procurement activities, which I mentioned earlier. None of theses plans will be changed by whether DE&S is run in future as a GoCo or as a fully public sector DE&S+ model.

Mark Menzies Portrait Mark Menzies (Fylde) (Con)
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Several thousands of my constituents are employed at BAE Systems in Warton, which is involved in advanced manufacturing of military aircraft. What benefits are they likely to see as a result of today’s announcement?

Lord Hammond of Runnymede Portrait Mr Hammond
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They will see benefits at two levels and a healthier BAES as a result of this announcement. First, large defence contractors, perhaps counter-intuitively, do not relish the lack of a capable interlocutor in their trading partners. They would welcome our beefing up our capability and having higher-skilled, better-paid project managers on our side of the table, because that would drive genuine efficiencies into the process. At that level, we know that the companies will welcome this announcement. Secondly, on single-source procurement, I am confident that over time by incentivising cost-efficiency we will increase the exportability of British defence products, which are an incredibly important part of our high-tech manufacturing industries and help us to sustain jobs at the very top of the curve.