Defence industry calls for more support

2nd Sep 2009 08:22

The defence sector can be used as one of the UK's 'paths out of recession' as well as continuing to ensure the safety of the country, a report from the industry said as it urged the government to set out its commitment to the sector.'As the economic frailties of the British economy become more apparent there has perhaps never been a better opportunity to harness the full potential of our world-class defence and security industrial base and use it as one of the paths out of recession,' Mike Turner, chairman of the Defence Industries Council and former chief executive of the defence giant BAE, said. 'This will not only provide skilled jobs it will also promote economic growth, it will also help to balance our economy and enhance our nation's defence against the growing threats - on our own streets and throughout the world.'The report was launched at a press conference that was also attended by the current chief executive of BAE Ian King and the chief executive of its peer Qinetiq.The report recommended a reaffirmation of the Defence Industrial Strategy.'A clear statement is required of what capabilities the Government considers are important in these respects, and what it wants to maintain in the UK industrial base,' it said.It also recommended further reforms of the procurement process, greater focus on research and technology and more emphasis on government support for exports.The report said that heeding recent calls for the defence budget to be cut would be counterproductive and pointed out that the defence budget was set at £38bn for 2009/10, compared with £88bn for education, £119bn for health and £189bn for social security.Turner called on the government to spend another £2bn on defence a year.In July, business secretary Peter Mandelson said defence spending would be exempt from cuts under Labour if they win re-election, unlike under the Conservatives who did not name defence as one of the two areas to be spared any cuts if they win the next election.