house of commons defence committee

house of commons defence committee

House of Commons Defence Committee Report

18 February 2005

The House of Commons Defence Committee has published a report outlining the areas it investigated during 2004. These included defence procurement, export controls and a review of the Government?s 2003 White Paper, Delivering Security in a Changing World.

Defence Procurement

Since 1998 the Defence Committee has been regularly monitoring the progress of key defence equipment projects to assess the impact of policies and initiatives on procurement. They reported that the total forecast costs at the end of March 2003 of the top 20 defence equipment projects was some ?52 billion. It was also estimated that during 2002-03 these projects experienced in-year cost increases totalling ?3.1 billion and on average they will be delivered a year and a half late.

The Committee found that only one of the seven principles underlying Smart Acquisition had been implemented in full. The Chief of Defence Procurement had instituted a fundamental overhaul of the initiative and the Committee indicated that they would be seeking regular reports on its progress.

The Committee also examined the implementation of the Defence Industrial Policy which was launched in October 2002. They found that the Policy had led to an improved dialogue between industry and Government, although practical implementation of its core principles was patchy.

The Committee continued its close interest in trade issues and expressed its disappointment that the US International Traffic in Arms Regulations (ITAR) waiver had not yet to been secured.

Strategic Export Controls

The Defence Committee, alongside the Foreign Affairs, Trade and Industry, and International Development Committees continued its task of examining strategic export controls. The Committee expressed concerns about the European Union's role in export controls; and the recent changes in the United Kingdom's strategic export control legislation and the defence industry's difficulties with its implementation.

Looking Forward

Following the General Election a new Committee will have to be established, but the current membership has signalled that it should return to a range of issues including procurement, expenditure and the future structure of the Armed Forces; as well as developments in the role of European Union in defence matters and international cooperation in defence and security issues.

The Committee's report can be viewed on the House of Commons website.

For further information, please contact SBAC Government Relations and Policy.

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Notes to Editors:

The SBAC is the national trade association representing suppliers to the civil air transport, aerospace defence and space markets operating in the UK economy. It represents over 800 member companies, assisting them in developing new business globally, facilitates innovation and competitiveness and provides regulatory services in technical standards and accreditation.