Defence |
RECOMMENDATION | COMMENT |
7. A specialist unit within The Scottish Office Industry Department should be charged with being the focal point co-ordinating support for the Scottish defence industry in export markets as well as in the UK. | Scottish Development International, formed in October 2001, is taking forward the trade development role previously delivered by Scottish Trade International. It provides targeted support on a one-to-one basis to companies in all sectors including defence. |
8. The various Scottish defence companies must ensure that their local MSPs are properly and adequately briefed on important issues. | The Executive will leave the onus on defence companies to make the decision to brief MSPs on important issues. |
9. No unacceptable tax or legislation burdens to be imposed, making Scottish companies non-competitive. | See 19 |
10. Suitable credit funding and/or assistance to be in place, including Regional Selective Assistance when, and if necessary. | Regional Selective Assistance already supports businesses in the defence sector. |
11. The MSPs to be kept informed by the Scottish Civil Service on the Defence employment statistics of the Scottish scene, and potential problem areas. | Information on the numbers of people employed in the Defence sector in Scotland is available from the Defence Analytical Services Agency, Ministry of Defence. This information is published on an annual basis. Arrangements are in hand to make this available to MSPs through SPICE in summer 2002. |
12. The undoubted latent talent in science and engineering provided by the Scottish universities
and Technical Colleges should not be overlooked, and must be encouraged to order to obviate inevitable skills shortages found out too late. | The Executive has participated in the Roberts Review of the Supply of Skilled Scientists and Engineers in the UK. The interim findings of the review were published in November 2001 with the final report published in April 2002. A Science Strategy for Scotland, published in August 2001, gave a series of commitments to developing the talents and opportunities of those studying science in post-school education.
As one of our policies to tackle skills shortages, the Executive has asked the Enterprise Networks to set up a Future Skills Scotland unit. This unit was established in July 2001 and meets our current Programme for Government commitment to develop new approaches to understanding the Scottish labour market, identify skills shortages and better match skills supply to demand. |
13. Scotland has earned an excellent reputation in the international arena for innovation and technology. Much of this has stemmed from the research and development within the defence sector. It is important that the necessary research funding continues to flow into Scotland to invest in future technologies, thus retaining R&D activity that ensures that the operational advantage for the UK services is maintained and that the potential export opportunities are enhanced. | Defence is a reserved matter. However, the Executive and Scottish Enterprise maintains regular and close contacts with the Ministry of Defence and its associated agencies including the Defence Diversification Agency whose role is to encourage the cross-fertilisation of technology between civil and defence industries and in so doing enhance the competitive edge of UK industry.
The Executive's Science Strategy for Scotland, launched in August 2001, emphasised the need for maintaining a strong science base fully connected to UK and international activity and funding sources. Over the lifetime of the Parliament, public spending on science in Scotland will be around 1.7bn and the Executive's funding will have increased by 15% in real terms. |
14. Falling UK opportunities for defence equipment has led the Scottish defence industry to be much more reliant on the export market. Exports are vital in ensuring that the companies are able to invest in future technologies. Many foreign governments overtly or covertly support their defence companies making them unfairly competitive in the export market. MSPs need to understand that this is the reality of competing in the international defence market place. Scottish defence companies need Government support in areas such as ease in gaining export licences. It is vital for exports that we receive matching Government support as applies in foreign countries. | The regulation of international trade is a reserved area. However, the Scottish Executive works closely with the Scotland Office and DTI in respect of the impact that export controls and other related issues have on companies in Scotland.
The Defence Export Services Organisation (DESO) provides assistance to British defence companies. Their mission is to maximise legitimate UK defence exports in co-ordination with industry. UK-wide performance has improved over the latter half of the 90s despite a steadily declining market. Successive Satisfaction Surveys of the UK defence industry have revealed that DESO assistance played a significant role in achieving 75% of business.
Unfortunately, DESO are unable to provide a breakdown of export sales orders between Scotland and England. |