On the defensive
From Nick Prest
Sir: Writing as someone who has been in a senior position in the UK defence industry, I do not recognise the picture painted by Richard North (‘Europe is costing us a bomb’, 15 October) of a UK government policy of ‘Europe first’ in defence procure ment. Where he cites particular decisions on armoured-vehicle programmes as evidence of this policy he has simply got the facts wrong.
The UK approach is, broadly, to source from UK companies when the right equipment is available at sensible cost. When it is not, the MoD looks mainly to the US, but also to Europe, for allies with advanced technology to fill the gap. Which way to go on an individual project is a function of cost, technical performance, risk, employment and industrial considerations, and a desire to keep some balance between transatlantic and European commitments.
In this sense UK policy on defence procurement is a microcosm of broader national policy, which is precisely not to choose between US and European destinies. Nothing discomfits Whitehall more than the idea that it might one day have to. Until now this has been a broadly sensible policy in defence procurement.
The real and interesting question is whether it will continue to be. Because of rising costs and shrinking budgets, especially in research and development, the UK is increasingly looking overseas for defence technology. But the US relationship is an unequal one. We need their technology much more than the Americans need ours. As a result the US is loth to share key aspects; for example, critical software for the Joint Strike Fighter. Without this the UK does not have sovereign use of a system which could be fundamental to national security.
For all the difficulties in funding and efficiency that afflict European co-operative programmes, it is at least possible to establish true reciprocity in technology exchange. But while Continental firms are consolidating in Europe, UK firms are focusing their expansion efforts mainly on the US market. In the long run, this, combined with the UK government’s commitment of resources to transatlantic programmes, may make it more difficult for the UK to participate as a full partner in European defence technology development. Then we may not get what we need from either flank. In the words of the Swahili proverb, ‘He who rides two horses breaks his backside.’ Nick Prest
Former chairman of Alvis plc and the Defence Manufacturers’ Association, London W11
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