A|D|S, the UK's AeroSpace, Defence and Security trade organisation yesterday commented on the signing of a defence treaty between UK Prime Minister David Cameron and French President Nicholas Sarkozy.

Ian Godden, Chairman of A|D|S, said:

As the natural partner to both Governments, with an existing strong element of cross-Channel co-operation, the UK-based defence industry welcomes today's treaty. This agreement may well prove crucial to both retaining and developing future capabilities within Europe by ensuring sustained investment in research and technology (R&T) - to deliver the next generation of programmes for our armed forces. The alternative, buying off the shelf from the US, is often not the appropriate solution for our troops and this development ensures that future governments will retain a choice of suppliers both UK-based and from overseas that meet the needs of our armed forces.

The UK is number one in Europe and second only to the US worldwide in terms of global defence exports market share. The UK defence sector employs over 300,000 people, generates more than £35 billion per year to the UK economy and last year our defence exports were worth £7.2 billion. Retaining a manufacturing base of this scale in Britain will sustain this economic strength for the long-term and ensure a continued competitiveness in the global market to meet the aims of the Government to grow our economy through exports.

Joint R&T programmes that lead to collaborative procurement programmes can be an efficient way of delivering capabilities to our armed forces that might not be affordable on a purely national basis. The conditions for co-operating with French industry have never been better. Both countries are seeking to sustain capabilities which they could otherwise not afford. Our R&T budgets are of similar size and we are engaged in similar operations which require similar capabilities. We look forward to joint programmes that will benefit from the efficiencies that flow from larger scale purchases and sustain skills and technology.

Rees Ward, Chief Executive ADS

The UK defence industry is a crucial partner for the Government if it is to achieve its aims around support to the Armed Forces and the Force 2020 vision, on economic growth and on exports. Without sufficient investment in the UK sector the industry will be unable to develop new battle-winning products onshore specific to our own Armed Forces as well as products for export.  There is great potential for development of the fragmented UK security market, and we support proposals for Government and industry to work together more effectively to support national security and promote economic growth.

The UK defence industry supports over 300,000 jobs and generates an estimated £35 billion per year to the economy.  It represents 10 per cent of UK manufacturing and exported £7.2 billion of products in 2009.  The wider security sector supports around 600,000 jobs and is poised for strong global growth thanks to the innovative, world-leading and proven equipment and capabilities that it develops.

The UK industry is a crucial partner for the UK Government to achieve its military and economic aims and the Green Paper offers an excellent opportunity to suggest ideas to the Government about reforms and improvements to deliver additional benefits for our troops and security authorities.  This will also benefit the taxpayer through providing increased value for money and enhanced public protection.  We welcome the open attitude in which this consultation has been carried out and we look forward to further discussions with the Government on how industry can help in the future.

In the industry's view the White Paper that will follow this Green Paper should describe how the UK's national security policy can both underpin the nation's defence and bring broader value to our economy, including how Government policy can contribute to advanced manufacturing and engineering, to the skill base and to British exports.

The experience of the defence and security sectors as well as their excellence in products and services is recognised both at home and by other nations.  The UK is number one in Europe and second only to the US worldwide in the defence exports market with a 21 per cent market share.  Furthermore, the innovative and proven UK security sector is primed for global growth providing the correct climate is delivered by the Government.  UK industry is also a world leader in providing engineering and training support services through innovative contracts and partnerships that demonstrably reduce MoD costs and have great potential as an export model in their own right alongside equipment sales.

Industry believes that the Government would gain through assessing the economic benefits of the UK defence and security supply chain as well as the unique strategic value of the industry to the nation and to UK national security.

A|D|S is the trade organisation advancing the UK Aerospace, Defence, Security and Space industries. A|D|S was formed from the merger of the Association of Police and Public Security Suppliers (APPSS), the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC) in October 2009. A|D|S also encompasses the British Aviation Group (BAG).

In a written ministerial statement to Parliament announcing the publication of the National Security Strategy, the IK Prime Minister said today:

"The United Kingdom faces a complex array of threats from a myriad of sources. The National Security Strategy describes the strategic context within which these threats arise, and how they may develop in the future.

"It describes Britain's place in the world as an open, outward-facing nation whose political, economic and cultural authority far exceeds our size. Our national interest requires our continued full and active engagement in world affairs, promoting our security, our prosperity and our values.

"Our objectives are a secure and resilient United Kingdom, and shaping a stable world. In pursuit of these goals, our highest priorities are tackling terrorism, cyber security, international military crises and national disasters such as floods and pandemics.

"We will draw together and use all the instruments of national power to tackle these risks, including the Armed Forces, diplomats, intelligence and development professionals, the police, the private sector and the British people themselves.

"The National Security Strategy, together with the measures in the Strategic Defence and Security Review, will enable us to protect our security and advance our interest in the world."

Editor's note : You don't say.....

Ian Godden, Chairman of A|D|S, (the Aerospace, defence and security trade organisation) said:

"The Government has identified within its new National Security Strategy the broad range of security risks that face the country and against which the nation and its citizens must be protected. We welcome the strategy and the incorporation of wider security aspects alongside the defence elements of the Strategic Defence and Security Review. These include the country's approach to cyber-security, international terrorism, serious organised crime and energy security. These wider elements are important parts of the National Security Strategy and we believe that the security industry has many roles to play in meeting these challenges.

"Security and resilience is a sector that can also benefit the country's economy. The UK has strong industrial capabilities and there is great potential for these to produce increased exports and an expanded industrial base in the UK. A closer partnership between Government and industry will help to deliver national security objectives but it will also help to fulfil the economic potential of a potentially world-leading sector. The global security market is growing and is estimated to be worth around $140-180bn annually. Industry and Government share the goal of a major uplift in the performance of UK security exports with the Government playing a similar role in security to that played in relation to defence exports.

"Industry looks forward to further developing its dialogue with the Home Office, Cabinet Office and other departments on strengthening co-operation in tackling key threats to national security such as terrorism and cyber attacks. We also welcome the Government's renewed focus arising from the SDSR on the resilience of Critical National Infrastructure (CNI). The security supply community has many roles to play in CNI protection and resilience; especially by supporting the emergency services and the operators of the CNI. The operators are themselves overwhelmingly made up of private sector entities - with capabilities relevant to this crucial element of national security policy."

As the Prime Minister prepard to chair a National Security Council meeting to discuss the options around the Strategic Defence and Security Review Ian Godden, Chairman of A|D|S, the UK's aerospace, defence and security trade
organisation, highlighted the significance of decisions on defence spending

The Government needs to bear in mind that as well as the decision-maker on defence
it is also the customer.  Its decisions have a profound impact on our armed forces
and the 300,000 people who work across the UK in the defence industry to support our
troops.  The defence budget has been relatively flat with little in the way of
increases over the last 20 years while other Government departments have seen their
budgets double or even triple over the same time period.  With our troops constantly
being asked to do more with less, the Government keen to increase exports and
defence able to deliver enhanced returns on investment - a £100m spend yields £227m
in returns - it makes no sense on any level to be cutting investment in defence
because of this knock-on effect on our armed forces and economic recovery.  Defence
is 10 per cent of UK manufacturing and Britain is currently number one in Europe and
second only to the US in terms of the global defence exports market but this
position would be under threat if investment is cut, leading to a dearth of new
programmes to export.

Furthermore, the proposals for a greater reliance on high-technology equipment in
the future do not align with the cuts of over 20 per cent in the MoD research and
technology budget over the last three years - that have already cost hundreds of
high-skilled jobs in the industry.  This budget, of less than 1.4 per cent of the
total defence budget, must be reprioritised within the MoD to deliver the future
capabilities for our armed forces.

There is of course room for reform within the armed forces, the industry and the
MoD to deliver even greater improvements and we are committed to playing a full part
in these changes that will also deliver savings.  But the implications for any
further cuts in defence spending in terms of their impact on our troops, our
national security, our global trading position, our economy and on the long-term
capability of our industry to continue to supply the best possible equipment to our
armed forces cannot be ignored.