Letter from Rt Hon Baroness Ann Taylor
PC, Minister for Defence Equipment and Support
I am writing to inform you of details regarding
the Government's intent to review and update the Defence Industrial
Strategy (DIS). I know that the House of Commons Defence Committee
(HCDC) has provided both support and challenge throughout the
development and review of the original DIS, a process which I
welcome and hope will continue in the future.
As you will be aware, the DIS was first published
in December 2005, and represented a large step forward in how
government related with the defence industry to meet the needs
of our armed forces. The DIS is an important part of Government
policy, and I would like to reaffirm our commitment to the DIS,
and to ensuring that it remains relevant, challenging and up to
date through the publication of an updated DIS (DIS v2.0). I would
like to take this opportunity to outline the progress we have
made since DIS, to describe how the document is taking shape,
and to update you on the proposed publication timetable.
Since 2005 there has been considerable progress
in implementing the DIS. MoD has established dedicated teams to
drive forward implementation in each sector; has put in place
strategic partnering agreements with industry in the Helicopter
and Fixed Wing sectors which aim to put more equipment into the
front-line, utilise resources more efficiently and drive industry
transformation. A review of MoD acquisition systems and processes
led to the creation of Defence Equipment and Support which will
provide a unified approach to the through life procurement and
support of equipment. A Defence Technology Strategy, published
in October 2006 is now being implemented, and I recently announced
development of the Defence Technology Plan, which will provide
clear direction to the research and development (R&D) community,
allowing industry and academia to better direct investment in
defence science and technology.
DIS v2.0 will build on these successes and will
ensure that the DIS remains current, credible and challenging
to all parties and that it continues to provide a coherent and
long-term perspective on the Department's industrial strategy.
My intention is to amend material to reflect changes in policy
or circumstances, to reflect the developments in acquisition reform
between Government and industry, and to provide greater depth
on a number of issues touched on in the original DIS.
DIS Version 2.0 will focus on the development
of more agile acquisition systems which can rapidly deliver the
needs of our Front Line; it will reinforce the importance of innovation
in the delivery of defence solutions including the role of small
and medium sized enterprises; and it will be clear on our need
for operational sovereignty and the way we will work with Allies
to achieve this. It will also to set out our latest commercial
thinking including the way we will work with industry to achieve
value for the taxpayer. I also want to reflect achievements during
the first two years of DIS; and offer a series of milestones and
targets for the coming two year period which will drive continued
transformation both with the government and within industry.
As with the original strategy, DIS Version 2.0
will be a Command Paper, led by MoD and subscribed to by the Treasury
and the Department for Business, Enterprise and Regulatory Reform.
Throughout the development of DIS Version 2.0, consultation is
taking place with Industry, using the National Defence Industries
Council (NDIC) and its sub-groups as the preferred mechanism,
as well as recognising the role that individual trade associations
play in ensuring engagement with Small and Medium Enterprises
(SMEs). We are also engaging with key Allies and Trade Unions.
I am determined that DIS v2.0 should offer the
clarity on our future strategy that Industry is looking for and
that it reflects a realistic view of our assumptions and plans.
Although the original intention was for DIS v2.0 to be published
in December I am convinced that it would be more appropriate for
the strategy to be aligned to the ongoing planning round and am
therefore in the process of reviewing the publication date to
reflect this. Industry has indicated support for this approach.
This course of action meets the commitment made
by my predecessor to the HCDC to review the DIS in every spending
round period. Once the DIS v2.0 has been published and presented
to parliament, I would welcome the opportunity to update the Committee
on the direction and progress of our Defence Industrial Strategy
and would expect the Committee to take evidence around that time.
To facilitate this I will ensure that I keep you informed of the
publication timetable so that a suitable session can be scheduled
in line with the launch of DIS v2.0.
DIS provides the foundation from which enduring
capabilities can be sustained to support the front line; it remains
a Defence priority.
20 November 2007
| 
