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Speech: Defence Minister James Cartlidge DSEI 2023 Keynote Speech

Ministry Of Defence

September 12
13:15 2023

Its a really important time to be hosting DSEI.

Weve recently published our Defence Command Paper Refresh.

Weve got a new Defence Secretary and the international environment is more complexand dangerous than ever before.

Yet the companies in this room, as thestrap line of this great exhibition puts it, are powering progress.

So first I want to applaud all the fantasticfirms behind the firepower. You are a Defence capability in your own right.

And in the past eighteen months youve been at the forefrontof support for Ukraine.

Delivering the vital capabilities needed to push back the merciless Russian invader.

Whether state-of-the-art missiles or hundreds of thousands of rounds munitions.

But, and this is an issue that is consistently raised with my constituents and parliamentary colleagues, just as we do that, we must make sure we continue ramping up our sovereign UK munition production.

So Im pleased to say that earlier today we announced a 130 million contract which finalises an order totalling 410 million which will significantly increase the production of critical defence stocks of 155mm artillery stocks, 30mm medium calibre rounds and 5.56mm ammunition.

As well as bolstering the British Armys heavy munitions stockpile, they will enhance the Armys latest weapons systems and satisfy the increased demand for small arms ammunition.

This isnt just good news for our capability.

As a result of this 410 million contract, an additional machining line will be set up in Washington, in Tyne and Wear and a new explosive filling facility will be established at Glascoed in South Wales, which I look forward to visiting very soon, all in all, creating hundreds of new jobs across the United Kingdom.

Its yet another example and reminder that the contribution of our Defence sector to our nation is as much about prosperity as it is security.

In fact, last year, as I said in Oral Questions yesterday, this sectorsupported more than 200,000 British jobs directly andindirectly.

Not to mentiontens of thousands of apprentices learning the skills for the future.

And together Defence binds our Union. Whether its frigates in Scotland. State-of-the-art satellites in Northern Ireland.AJAX vehicles in Wales or Typhoons in England. In truth, once you add in supply chains, British-made really does mean across the whole country, like the Type 45, made in Shipyards in Glasgow and Portsmouth.

So I began by thanking our industry colleagues in general but I want thank our superlative SMEs in particular.

Some of whom Ive already had the pleasure to engage with on their stand. I was a founder of an SME myself before I came into Parliament, so I know how hard it can be to get that initial breakthrough.

But just last Tuesday at MSPO, Polands equivalent of DSEI, I met a huge range of Defence SMEs who were successfully exporting around the world and I look forward to meeting many more on the stands in London this week.

Ladies and Gentleman, as you follow the discovery trails that criss-cross this exhibition, youll be guided by pastmasters in subwaveandwireless communication, machine learning and medical devices,autonomoussystems andDeep AdaptiveIntelligence to name but a few.

Proof positive that Britain isnt just world class at developing platforms but brilliant at engineering the stuff under the bonnet, as we say. The stuff that gets the show on the road.

And the fact isif were going to respond to the pace of change were seeing in Ukraine, where new technologies are being adapted in a matter of weeks, weregoing to need this sort of innovation.

Sourcingthe100 solutions that can stop the 100million threats in itstrack.

Exploitingnovel technologies.

Adopting, in particular, more agile acquisition processes. A particular priority for me given my ministerial responsibilities.

And upgradingweapons systems, as we say, on the fly.

And perhaps in particular, acceptingthe 80 per cent solution is better than a 100 per cent solution delivered too late to make a difference.

Thats why I am happy to announce at DSEI today that we will be bringing forward an Uncrewed Systems Strategy in the coming months. Its hugely important. It will help accelerate UK Armed Forces access to uncrewed systems and rapidly equipping them with innovative technology across air, sea and land.

At the same time, we must do more to tap into our SME talent base.

Our recent Defence Command Paper Refresh backed up by 11 billion of additional investment into defence over the next five years - outlined our intentions.

First, well be listening more. Since becoming Defence Minister, Ive made it a top priority to engage UK Defence SMEs as much as possible. Holding my first SME forum in Northern Ireland at the start of Armed Forces week and the next one in Wales to be held later this month.

And I know from feedback from SMEs that one of their major causes of concern is environmental, social and governance rules. ESG, as we call it, ESG rules arent bad, per say, but have been applied wholly, misguidedly in relation to defence. Penalising Defence companiesin a multitude of ways - from facing more expensive finance to being denied basic banking facilities.This comes from Northern Ireland, my first SME forum company there told me theyd been denied a current account because they operated in Defence.

So you only need to look around to appreciate that Defence isnt the enemy. Thesector pays back double it creates jobs and keeps us safe.

It benefits Britain.

Ive said what SMEsdont want. But what they dowant is to be given the respect theydeserve. Because this is a good, moral cause in here, we are securing peace, defending our nation and our allies.

So a second key aspect of the Command Paper involvesidentifying the sub-contractors and SMEs that are of strategic importance to Defence and bringing them closer into the fold.

Well be recognising the importance of these companies by involving them systematically through the Defence Suppliers Forum and bylaunching a new supplier development programme.

These initiatives will makeit easier for UK-based SMEs - inside the Defence sector or outside it toparticipate in MOD projects. Theyll have more than a foot in the door. Theyll have a seat at the table.

Finally, werehelping great British companies small and large by going big on exports.

Given were here at Excel at DSEI I dont need to make the case that the UK isa major defence exporter. Last year we sold 14 billion worth of defence and security kit. But with the skill and talent at our disposal, Im convinced we can do even better.

So were adopting an activist approach. Reinvigoratingour whole of government response.Re-establishing a Defence Exports Inter-Ministerial Group uniting Defence and Trade at the highest levels and driving changeforward.

And were going to be unapologeticabout the benefits of exports. Its not Defences awkward cousin. Exports enhance industry, our economy and our diplomacy too.

But actually, most important of all, if replenishment is an issue, that means we need a demand signal and the biggest demand signal you can have, the better, and that means aggregate demand being bigger and that means UK demand, and exports from UK companies. We simply dont have a big enough market otherwise to ensure we get that level of supply.

So, in future, exports wont be a Defence after-thought but written into our acquisition DNA.

Wewill considermarket opportunities at an earlier stage as the Defence Command Paper Refresh said we will make exportability integral to acquisition from the outset whilst intensifying support to vital export campaigns and inspired innovative companies.
We will utilise our UK Defence and Security Exports global market knowledge to share data acrossWhitehall.

And wewillstart to consider new projects value to our partners worldwide, as well as for our own economic needs.

Above all, we willlook beyond themere the transactional.The nations I speak to are asking for deeper, more meaningful bilateral partnerships. Partnerships that support capabilities through life and help develop smarter and leaner industrial bases in keyregions.

And the UK has an amazing amountto offer. If you look around us today, there are a thousand and one reasons to partner with Britain. World class capabilities. World class companies. World class skills. Were a nation thatdoes what it says and is trusted around the world.

Take AUKUS. Our partnership with Australia and the US already two years old - thats giving us much more than next generation nuclear submarines but a massively enhanced industrial base. Or consider GCAP where were working with Japan and Italy - not just to develop a future fighter but unleash a revolution in advanced manufacturing.

I want to help more of the countries that need us most. So today I amannouncing the creation ofa new coordination hub called the Partnerships Office for Strategic Defence Exports.

Drawing cross-Whitehall and industrial expertise together to prioritise and resource export opportunities. It willoversee the delivery of our brand new, business-backing, brand-Britain, Government-to-Government offer: UK Defence Partnerships.

Defence Partnerships will be nation-to-nation, with exports at their core but they will usethis foundation of trust to bolsterbilateral collaboration whether beefing up jointindustrial capacity, integratingsupply chains or cooperating more closely on critical mineral access.

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