UK launches new defence export group

Support for defence exports will become the responsibility of UKTI Defence and Security Group, a new business group of UK Trade & Investment (UKTI), the Government’s international business development organisation, from 1st April 2008. UKTI Defence and Security Group will be an integrated group within UKTI, made up of civilian and military staff, with continuing strong links to the Ministry of Defence (MOD).

Business and Enterprise Secretary, John Hutton:

The UK has a world-class defence sector, generating exports of around £5 billion a year and amounting to some 20 per cent of the world market. I am determined to ensure this success continues. And in a sector where the key customers are overseas governments the Government has a vital supporting role to play. There are clear benefits to be gained from building on the combined success of the Defence Export Services Organisation and the defence industry, as well as on trade promotion expertise within UK Trade & Investment. We now have an opportunity to enhance the way we offer support to this important sector of the economy.

Minister for Defence Equipment and Support, Baroness Ann Taylor:

As set out in the Defence Industrial Strategy, the Government recognises the important contribution that our defence industry makes to delivering military capability. A UK defence industry that is successful in winning export orders can bring value to defence by helping to maintain key sovereign industrial capabilities and spreading fixed overhead costs and by helping to reduce the price of our defence equipment. The Ministry of Defence will continue to assist with defence exports in support of defence objectives to help ensure the UK’s continued success in a fiercely competitive global market.

Minister for Trade and Investment, Lord Digby Jones:

Defence exports are a major success story for the UK. By bringing our support for exporters, both civil and defence, under the umbrella of UK Trade & Investment we can maximise efforts to bang the drum overseas. The ability to offer a complete package for prospective customer governments, who often seek specialist assistance from UK defence experts, is a real opportunity to help the industry develop a compelling marketing proposition that positions the UK uniquely in the world.

In July, the Prime Minister announced that responsibility for defence trade promotion would move from the Defence Export Services Organisation (DESO), a group of the Ministry of Defence (MOD), to UKTI. Overseen by Cabinet Office, detailed work has been carried out to produce an implementation plan which takes account of the special features of defence exports. The implementation plan includes:

• The launch of a new UKTI Defence and Security Group, with staff who understand the defence and security business and are committed to its success. There will be a regular refreshment of staff from MOD to maintain high levels of defence expertise. The relationship with MOD will be crucial and will be set out in a Service Level Agreement (SLA);
• Fully integrated within UKTI, the unit will operate under the UKTI brand and to UKTI strategic objectives. It will be accountable to the UKTI Board and its head, who will be selected through open competition, will report to UKTI’s Chief Executive;
• UKTI Defence and Security Group will deliver services, to support British industry in securing fair access to legitimate sales opportunities, that are responsive to the needs of overseas customer governments and to industry;
• It will draw on DESO’s track-record of success and UKTI’s expertise in innovative marketing and carefully evaluated trade services, which will deliver a service offering that will be recognisably aligned with Government policy, while recognising and accommodating the specific requirements of the defence sector;
• It will have a global reach combining the wider knowledge and resources of the UKTI network, promoting a UK brand as much as individual defence products and companies;
• Ministerial responsibility will rest with the Minister for Trade and Investment, Lord Digby Jones, with a continuing close role for Defence Ministers;
• The transfer of functions to UKTI provides an opportunity to refresh support for defence exports in a way that emphasises our continuing commitment to the highest business standards, and to the appropriate clarity and transparency. The new organisation will seek to assist the defence industry to become more accountable, demonstrably supporting good governance through an industry code, setting out common standards of good business practice. The SLA (mentioned above) will be published between UKTI and MOD, once the transfer has taken place;
• In line with the Prime Minister’s statement, no changes are envisaged to existing and planned agreements between MOD and other Governments;
• The current export licensing function within DESO will also be retained within MOD and thus be separate from export support activities. And within BERR the separation between BERR export licence functions and trade promotion in UKTI will continue;
• The title “UKTI Defence and Security Group” is provisional, while further work on branding is undertaken;
• The net result of the above will be that approximately 240 posts will transfer from MOD to UKTI.

Source: UK Trade and Investment

To find out how your company can identify and secure defence and aerospace export opportunities, contact Jeffrey Strategic.