Consultation
30. The
Implementing Arrangements are fundamental to the scope and effectiveness
of the Treaty. Until they are agreed, it is hard to judge to what
extent the Treaty will reduce the barriers to US/UK defence exports.
But the consensus of our industry witnesses was that the outcome
was likely to be an improvement on the current arrangements. As
Ian Godden, Secretary of the DIC and Chief Executive Officer of
the SBAC, said, "there is nothing that is going to be worse
than today".[51]
31. In its written evidence, the DIC expressed the
wish that, "to safeguard against any unintended consequences",
the Government should "look to share with Industry the emerging
draft implementation arrangements at the earliest possible opportunity,
so that we can offer considered advice".[52]
We asked our witnesses from industry whether they had been satisfied
with the consultation that the Government had carried out on the
Treaty. Mr Godden believed that the Government had shared as much
as it could, given the confidential nature of the Treaty negotiations.
He was satisfied, from contact with his 260 members, that "they
feel consulted and they feel they understand what is going on,
but clearly they have not seen sight of implementation issues".[53]
32. The Government envisaged that, once the negotiations
on the Implementing Arrangements had been completed, there would
be a Memorandum of Understanding between the two Governments which
would not require further ratification. The Government drew a
distinction between the Memorandum of Understanding entered by
the two Governments (which might have to be kept confidential)
and the requirements placed on industry as a result of this Treaty
(to which industry would have public access).[54]
In its oral evidence the Government explained that it was:
still in discussion with the US on exactly the form
in which we will place those implementing arrangements to either
the Senate or to the Committee here. Clearly, we are prepared
to share that. Of course, the difference isand there will
be concerns by industry on whether or not we need to share those
as wellthe implementing arrangements set out the commitments
between the two governments are not necessarily the commitments
which we place directly to industry. We will, of course, share
and work up in detail with industry the exact requirements which
need to be put in place with them. So, clearly, those will be
done in detail with those who will be affected by this.[55]
33. The Minister indicated that she was keen to keep
us "fully in the picture" on the progress of the negotiations
on the Implementing Arrangements and would be content for us to
receive an informal briefing from officials on the latest negotiating
session in Washington.[56]
We expect
the Government to keep us fully informed of the content of the
Implementing Arrangements and of the progress of implementation
of the Treaty, once it is brought into force.
34. We take assurance from the comments that industry
made in oral evidence that it has, within the limitations of the
process, been kept informed by the Government of negotiations
on the Treaty and on the Implementing Arrangements. We
recommend that the Government continue to keep industry as informed
as it is able within the constraints of the negotiating process
on the Treaty, and that, once the Implementing Arrangements are
agreed, the Government ensure that industry is fully involved
in discussions on the practical implementation of the Treaty.
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