Defence Industrial Strategy
Encyclopedia
The Defence Industrial Strategy (DIS) is a United Kingdom
government policy which was published as a white paper
on 15 December 2005. The purpose of the DIS is stated to be to ensure that the UK armed forces are provided with the equipment they require, on time, and at best value for money. This is achieved through the maintenance of sovereign capabilities, i.e. the capabilities of UK companies in key defence areas.
The DIS is structured into three parts. Part A outlines the strategy, part B reviews the UK defence industry, and part C describes the implications of the DIS and how it is to be implemented.
The DIS builds upon the Defence Industrial Policy published in 2002 and the Strategic Defence Review
of 1998. UK defence procurement was radically changed by the government of Margaret Thatcher
- cost plus contracts and "national champions" were abandoned in favour of competitive tendering. This made the UK defence procurement market the most open in the world and in contrast to the European continent and America. The DIS reverts back to the concept of "national champions" to maintain vital capabilities, as identified by the Ministry of Defence
"to maintain appropriate sovereignty and thereby protect UK national security." The Defence Industries Council warned in 2004 that the continuation of a totally "open market" approach would see the UK "lose almost completely the strong industrial base that has supplied our armed forces. UK sovereignty could be threatened."
The DIS has been widely seen as confirming BAE Systems
as the UK's "national champion". Of the key industrial capabilities which must be maintained several are dominated by BAE, including naval vessels and submarines, armoured fighting vehicles (over 95% of the UK’s AFVs are BAE products), fixed-wing aircraft, general munitions (with the exception of certain "niche capabilities abroad") and Network Enabled Capability
(defined as C4ISTAR
in the DIS). After the publication of the DIS BAE Systems CEO
Mike Turner
said "If we didn't have the DIS and our profitability and the terms of trade had stayed as they were... then there had to be a question mark about our future in the U.K."
The year after the release of the DIS the government released the Defence Technology Strategy which takes forward some of the themes introduced in the DIS. This document discusses where science and technology research should focus on to deliver the capabilities identified in the DIS. An updated version of the DTS is expected to be published by the Defence Technology Innovation Centre (DTIC) in 2008.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
government policy which was published as a white paper
White paper
A white paper is an authoritative report or guide that helps solve a problem. White papers are used to educate readers and help people make decisions, and are often requested and used in politics, policy, business, and technical fields. In commercial use, the term has also come to refer to...
on 15 December 2005. The purpose of the DIS is stated to be to ensure that the UK armed forces are provided with the equipment they require, on time, and at best value for money. This is achieved through the maintenance of sovereign capabilities, i.e. the capabilities of UK companies in key defence areas.
The DIS is structured into three parts. Part A outlines the strategy, part B reviews the UK defence industry, and part C describes the implications of the DIS and how it is to be implemented.
The DIS builds upon the Defence Industrial Policy published in 2002 and the Strategic Defence Review
Strategic Defence Review
The Strategic Defence Review was a British policy document produced by the Labour Government that came to power in 1997. Then Secretary of State for Defence, George Robertson, set out the initial defence policy of the new government, with a series of key decisions designed to enhance the United...
of 1998. UK defence procurement was radically changed by the government of Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
- cost plus contracts and "national champions" were abandoned in favour of competitive tendering. This made the UK defence procurement market the most open in the world and in contrast to the European continent and America. The DIS reverts back to the concept of "national champions" to maintain vital capabilities, as identified by the Ministry of Defence
Ministry of Defence (United Kingdom)
The Ministry of Defence is the United Kingdom government department responsible for implementation of government defence policy and is the headquarters of the British Armed Forces....
"to maintain appropriate sovereignty and thereby protect UK national security." The Defence Industries Council warned in 2004 that the continuation of a totally "open market" approach would see the UK "lose almost completely the strong industrial base that has supplied our armed forces. UK sovereignty could be threatened."
The DIS has been widely seen as confirming BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
as the UK's "national champion". Of the key industrial capabilities which must be maintained several are dominated by BAE, including naval vessels and submarines, armoured fighting vehicles (over 95% of the UK’s AFVs are BAE products), fixed-wing aircraft, general munitions (with the exception of certain "niche capabilities abroad") and Network Enabled Capability
Network Enabled Capability
Network-enabled capability, or NEC, is the name given to the United Kingdom Ministry of Defence intent to achieve enhanced military effect through the better use of information systems towards the goal of "right information, right place, right time – and not too much".NEC is envisaged as the...
(defined as C4ISTAR
C4ISTAR
In military usage, a number of abbreviations in the format C followed by additional letters are used, based on expanded versions of the abbreviation C2 - command and control.C2I stands for command, control, and intelligence....
in the DIS). After the publication of the DIS BAE Systems CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
Mike Turner
Michael Turner (businessman)
Michael John Turner CBE is the former Chief Executive Officer of the aerospace and defence company BAE Systems.-Early life:He attended Didsbury Technical High School on School Lane in Didsbury...
said "If we didn't have the DIS and our profitability and the terms of trade had stayed as they were... then there had to be a question mark about our future in the U.K."
The year after the release of the DIS the government released the Defence Technology Strategy which takes forward some of the themes introduced in the DIS. This document discusses where science and technology research should focus on to deliver the capabilities identified in the DIS. An updated version of the DTS is expected to be published by the Defence Technology Innovation Centre (DTIC) in 2008.