This snapshot, taken on 22/07/2004, shows web content selected for preservation by The National Archives. External links, forms and search boxes may not work in archived websites.
Department of Trade and Industry
TEXT ONLY | SITE INDEX | FEEDBACK | CONTACT GO
GO GO GO

DEFENCE INDUSTRIAL POLICY

The Secretaries of State for Trade & Industry and Defence announced the Government's new Defence Industrial Policy on 14 October 2002. The new policy strikes a balance between the need for the right equipment for UK armed forces at the right price and the need to retain certain defence capabilities within the UK. The policy is the result of close consultation with the industry and across Government. The key policy conclusions and Government commitments are:

  • We will be more transparent and inclusive, from the early stages of a procurement project, about the factors that affect acquisition decisions.
  • Open and fair competition is the bedrock of procurement policy, but we will not use the competitive process where it doesn't offer long-term advantage.
  • We will continue to seek freer access to overseas markets. We aim to improve the international flow of defence information and technology, and to help the UK defence industry to compete fairly in other markets. We will set up a defence exports and market access forum to address these issues.
  • We will better target and work more closely with industry on research and technology.
  • The UK defence industry embraces all defence suppliers that create value, employment, technology or intellectual assets in the UK. This includes both UK companies and overseas companies in the UK.
  • We will implement our defence industrial policy in consultation with industry. We will review implementation of the policy within one year.

The policy is set out in more detail in a Government paper published by the Ministry of Defence. Click here (166Kb)

DEFENCE INDUSTRIAL POLICY ANNUAL REVIEW

On 13 November 2003 the Government published its first annual review of Defence Industrial Policy. Overall, the review welcomed the encouraging start that has been made to implementing the Policy while recognising that much remained to be done.The main outputs recognised in the review were:

  • establishment of a joint government/industry defence industrial policy implementation action plan covering acquisition, market access, research & technology, skills, supply chain and health of the UK defence industry. Joint
    government/industry mechanism to deliver it;
  • government/industry defence acquisition workshop held in September 2003 agreeing upon 13 outputs for priority implementation, including de-risking of programmes, closer government/industry working at concept stage of procurements, and taking an incremental approach to acquisition;
  • publication of revised guidance for Integrated Project Team Leaders (who procure defence equipment for the armed forces) to reflect Defence Industrial Policy;
  • establishment of Defence Technology Centres; and     
  • to continue reviewing Defence Industrial Policy implementation on an annual basis.

The Secretary of State for Trade & Industry said:

“Defence Industrial Policy is helping to retain and create new high skilled manufacturing jobs in the UK. It is improving the co-ordination between Government, Industry and universities on civil and defence research and technology. This is helping the UK defence industry make the right choices now so it is at the cutting edge when procurement decisions are made in the future. I am determined that there remains a constructive dialogue between all the key players so we can maximise the economic benefit to the UK from our defence expenditure”.

For a copy of the document. Click here