Select Committee on Defence Minutes of Evidence



MEMORANDUM SUBMITTED BY INDIVIDUAL MEMBERS OF THE THE ROYAL AERONAUTICAL SOCIETY (24 MAY 2000)

1.   Decline in core funding from MOD.... Because procurement process is geared to buying whole systems from industry

  Not clear that the one follows from the other, as systems complexity increases so too does the challenge for retaining intelligent customer status over an ever widening field of technology. Inference is that more research is being done in industry, may be so but does not translate to a lessening of the requirement for "strategic" research in Government.

  Nonetheless the argument for increased access to opportunities for commercial exploitation is well taken, the question is will these opportunities fall to NewDERA at the expense of a less favoured and already hard pressed UK aeronautics industry?

2.  Activities to be retained include "integration of world wide science and technology knowledge, the provision of an in-house source of impartial advice and the responsibility for the integration and management of the research programme and international research programme"

  What under these headings is to be retained by the area of aerospace R&T? How many people and in what specific areas of aerospace R&T, do they operate? Current aerospace IRC exchanges hinge on direct lab to lab contacts between active researchers rather than "integrators" (a less polite term for which might be "management overhead") What assessment has been made of the extent to which these direct interactions can be maintained? What assurances in this respect have been received from the UK's aerospace IRC partners?

3.   Reliance vs Core Competence:

  Not clear how core competence differs from "status quo for retained DERA"(ie Trading Fund but with some additional constraints). "Reliance for NewDERA". Would welcome clarification together with indication as to the scope there will be for a continuation of any of the current aerospace IRC relationships supported by the aerospace elements in NewDERA. (Understand bulk of DERA's aerospace capability will be in NewDERA).

  Sir John certainly has "metamorphosed DERA". He has established a "brand image" for the organisation which has gone a long way to compensate for the loss of the "brand image" of the aerospace establishments absorbed into DERA. While many continue to regret that there is now no single UK Government establishment readily and exclusively identifiable as a centre of aerospace technological excellence, DERA is recognised by the community as the single entity encompassing the UK's intramural capability in this area. To which entity will the aerospace industry and overseas aerospace R&T establishments now look for aerospace R&T excellence and to team with as an aerospace R&T partner? If "horses for courses", will not coherence, and thus the value of the UK at an aerospace R&T partner diminish?

  What strategy for maintaining a coherent and influential UK presence among the more focused European and transatlantic aerospace players and their councils has been developed in formulating the Core Competence model? What impact is it assessed as likely to have on the CARAD programme and on NATO aerospace R&T and other collaborations.

4.   3,000 in RDERA, 9,000 in NewDERA

  Given the list of organisations to be retained it does appear that the bulk, if not all, of the aerospace R&T resource contained within DERA will move into the private sector. Aerospace (including military aerospace) is nonetheless a key UK national strategic industry and export earner. To what extent has the need to retain a credible "core competence" in aerospace impacted on the numbers to be retained and what shape will that "aerospace core competence" take? To what extent will the aerospace industry continue to be able to rely on existing partnering arrangements (for instance through extramural air applied research contracted with an independent MOD centre of excellence, through strategic alliances with "RDERA aerospace", via CARAD)? Will "RDERA aerospace" have the critical mass needed effectively to interact with and support the UK aerospace industrial enterprise? In deciding what "aerospace core competence" is to be retained what reference has been made to the national priorities emerging from Foresight and Foreright Action?

5.   Investment Opportunity in the Private Sector

  What analysis has been done of the investment needs of both "RDERA aerospace" and "NewDERA aerospace". What investment priorities have been identified and what level of assurance has business planning in both instances provided that, respectively, the defence vote and private investors will be prepared to support these areas of activity?

  National aerospace assets (engine test facilities, ranges, EMC chambers, wind tunnels, anechoic and environmental facilities etc) are high cost assets often supported overseas on the basis that they are national strategic assets, providing competitive advantage. What arrangements are being considered to consult with industry and the profession on the retention of such assets and the financing arrangements needed to safeguard them?

6.   Reference to NATS PPP

  The issue of aviation safety has been at the heart of concern in relation to the NATS PPP proposal. DERA contains research and test and evaluation capabilities at the heart of assuring military aviation safety. What assessment has been made of the acceptability of moving these elements into the private sector? What safeguards are proposed to ensure that these capabilities are maintained and maintain their independence of supplier and commercial interest? Given the public interest in all aspects of aviation safety why are these areas seen to be less sensitive than Defence Analysis or Chemical & Biological Defence?

7.   Physical/Organisational Separation.

  Aerospace technologies and design are inherently systems undertakings. Technological advances, improvements in systems performance and the maintenance of system integrity are best served by the closest possible integration (both vertical and horizontal). This is particularly evident in the aerospace industry where these considerations have gained seriously in importance as system complexity has grown. This, as well as market globalisation, has driven consolidation in the aerospace industry. First the separation of systems and technology activities, now the further organisational separation of RDERA and NewDERA, seem to run precisely counter to this trend? For aerospace in particular is not than the Core Competence, further separating knowledge from systems integrators and from the underlying technologies that they need to develop, trade off and understand? Will not the now indirect exposure of the leading edge researchers in NewDERA to overseas leading edge defence aerospace developments (eg in NASA and the USAF laboratories) substantially inhibit innovation.

8.   Development of the "Rounded" Aerospace Professional

  Historically the aerospace profession in the UK has benefited substantially from the very wide and deep expertise of those working first in the MOD "National Laboratories", more recently in DERA. This expertise has included substantial direct exposure of these aerospace professionals to overseas classified programmes and personnel throughout their careers. With this kind of exposure now denied to most of the aerospace professionals currently working in DERA will not the UK aerospace community be the poorer?


 
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