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Defence cuts 'threatening security'
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21 January 2008
The Society of British Aerospace Companies (SBAC), representing more than 2,600 firms, said the industry was facing the prospect of having to lay off workers while the armed forces would be left short of vital equipment.
The warning came after the Ministry of Defence's defence management board met on Tuesday to consider proposals to cut or delay equipment projects in order to balance the books. The MoD said that no decisions had been made.
However, the Chief of Defence Material, General Sir Kevin O'Donoghue, told the Commons Defence Committee last month that all 19 major equipment projects could be affected as a result of the review.
He said that the last time he could remember spending constraints on the forces being so tight was in the late 1970s when the Government was struggling under restrictions imposed by the International Monetary Fund.
SBAC chief executive Ian Godden expressed concern that decisions taken now could have long term consequences for both the forces and industry.
"We are very concerned that the Government is about to make short term decisions to balance their books with insufficient regard for the industrial consequences or impact on long term value for money. The Government's Defence Industrial Strategy was set up to prevent this from occurring," he said.
"Other nations recognise the threats that they face and are steadily increasing the amount that they allocate to defence. We are asking our armed forces to do more with less," he added.
Shadow defence secretary Liam Fox said that the problems were the result of Gordon Brown's neglect of the forces.
Liberal Democrat defence spokesman Nick Harvey said that the spending problems underlined the need for a new strategic defence review looking at all the forces' capabilities and commitments.
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