Select Committee on Defence Written Evidence


Memorandum from MBDA Missile Systems

  1.  MBDA Missile Systems very much welcomes the announcement of the Government's White Paper on Defence Industrial Strategy, judging it as a very necessary and eagerly awaited addition to the 2002 Defence Industrial Policy White Paper. The Company also welcomes the recognition given to the importance of the UK Defence Industry and the way in which its key strategic technologies and capabilities contribute to the widely acknowledged effectiveness of UK armed forces in operations around the world. Indeed, we have congratulated the Minister for Defence Procurement and his team on producing, so speedily, such a comprehensive piece of work that will hopefully prove a watershed in UK Defence Acquisition.

  2.  MBDA, in conjunction with the MoD, put considerable effort into producing a substantive proposal to help inform the drafting process for the White Paper. We therefore welcome it as a positive step on the road towards establishing a sustainable UK Complex Weapons industrial capability, providing affordable military capability to the UK Armed Forces for the future. We are particularly pleased that the importance of the sector and the need to retain appropriate sovereignty over its vital contribution to the military capability chain has been recognised.

  3.  However, the challenge now of course is to implement the Strategy in time to avoid seeing UK Complex Weapons industrial capability going into decline and, as the paper acknowledges, time is short. The way ahead for this sector requires greater clarity when compared to other sectors. No industrial leader has been identified, nor an MoD champion. The White Paper proposes the establishment of a joint MoD and UK multi-disciplinary industrial team (ref B7.51) that will, in turn, establish an effective working strategy. However, there are neither details of this forum nor, most importantly, of the authority it will be given to drive through the changes required, not only across industry but also within the MoD. Such authority is essential for successful implementation of DIS in this sector.

  4.  From the industrial perspective, we believe that there is a clear leadership role for MBDA, which has 68% of "on-contract funding" for above-water complex weapons. In anticipation therefore of being asked to take such a lead, we had already started, ahead of the publication of the paper, the process of engaging some of the other identified industrial players in the sector. Our position as a quadri-national European company also puts us in a unique position to work with the UK's European partners, whilst we would welcome the opportunity to similarly engage non-European/non-UK players.

  5.  As potential leaders of an industrial team working together with the MoD, we would look forward to open dialogue and to agreeing the route maps in both the Research and Development and Capability domains which we believe will be required if we are jointly to achieve the required affordable military capability with improved through-life support. To that end, tempering of competition in certain circumstances is most welcome and we would also look to agree mechanisms with MoD, and other appropriate Government Departments, to demonstrate long-term value for money.

  6.  We also judge that it would be significantly beneficial to the successful implementation of the Defence Industrial Strategy for a degree of cross-sectoral information exchange that allows the sharing of best practice. We believe that industry and MoD need to work together to devise a mechanism for such an exchange, giving full consideration to commercial and IPR sensitivities.

  7.  Within this process we recognise the fundamental requirement for industry to also play its part in meeting the challenges, both in terms of re-structuring and of behaviour. Clearly, we would look to take these issues forward with our industrial colleagues, but in the meantime we have already started a substantive pan-European MBDA cultural change and realignment programme which is intended to better prepare ourselves to engage in the open dialogue and other new ways of working which the paper sets out.

  8.  In summary, there is no doubt that the Defence Industrial Strategy White Paper presents a timely and unique opportunity for the UK to enable a sustainable and affordable Complex Weapons industrial capability. Within MBDA, we certainly recognise this and we intend fully to play our part in the ongoing processes, both by re-shaping our business model to meet the new paradigms, and, particularly, in the early establishment and leadership of a joint team. Much will depend on the latter and particularly the authority it is given to take action. It will certainly need to have made very positive progress within six months if vital engineering industrial capability is not to go into irreversible decline, and with it, UK sovereignty over Precision Effects, such a vital element of the military capability chain. We don't see that as being in the national long-term interest.

  9.  Finally, MBDA would be happy to attend the Committee in order to provide oral evidence, should that be required. If that were to be the case we would field Guy Griffiths, MBDA's Chief Operating Officer (Operations).

January 2006





 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2006
Prepared 10 May 2006