Guidance

Minutes of meeting: 10th December 2013

Updated 13 May 2014

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Defence Suppliers Forum Exports Sub Group: Record of Meeting held on 10th December 2013

1. Those present:

Co-Chairs

  • Richard Paniguian – UKTI DSO

  • Alan Garwood – BAE Systems

Industry

  • David Hansell - MSI Defence Systems

  • Paul Everitt - ADS

  • Allan Cook – Selex ES

  • Andy Wilkins – Rolls Royce

  • Paul Stanley – MBDA

  • Geoff Hoon – Agusta Westland

  • Mark Rowson - Thales UK (representing Dean Mason)

  • Robin Southwell – EADS UK

  • Stephen Ball – Lockheed Martin UK

  • Ian Milne – Northrop Grumman UK (representing Andrew Tyler)

Government

  • Simon Cholerton - UKTI DSO

  • Alan Malpas – UKTI DSO

  • Nick Ayling – Cabinet Office

  • Tim McDonnell – MOD

  • Daniel Harrison – BIS (representing Huw Walters)

  • Edward Bell – ECO

  • James Hughes – FCO

Secretariat

  • Rob Bain – UKTI DSO

  • David Lines – UKTI DSO

2. Item 1: Introduction

1, Richard Paniguian welcomed the sub group members to the meeting, especially those new members attending for the first time. The record of the previous meeting was approved. The review of the sub-group Terms of Reference had been completed by the Co-Chairs. The revised Terms of Reference had been circulated to the group and were now approved.

3. Item 2: 2014 Objectives for the DSF Exports Sub-Group

2, Paul Everitt reported on the proposed 2014 objectives for the sub group, which were approved. The MoD study on Foreign Military Sales (FMS) and the Defence Growth Partnership (DGP), in particular the International Business element, were areas the sub group would wish to be aligned and coordinated with. It was reported that the main aim of the DGP is to address by means of new ideas and initiatives any barriers to growth for the defence sector and create a sustainable UK industry.

4. Item 3: Report back on DSF Main

3 (a). Through Life Support (TLS) next steps RP reported on the discussion at DSF Main on TLS and that industry should work to improve the customer experience or future export opportunities may be diminished and the reputation of the UK might be damaged. Industry members acknowledged that as the supplier of the equipment it has the lead responsibility for delivery of high quality and consistent TLS to the customer, however TLS solutions would unlikely ever to be ‘a one size fits all’, as the range of overseas customers, expectations and in-country skill set to support expensive complex capabilities and systems varied. TLS is not just a UK issue; competitor countries are similarly affected. Customers were getting better at understanding TLS requirements (for example, timely delivery of spare parts) however it was difficult to justify on cost grounds having a large stock of expensive spares. More work could be done to share best practice amongst UK industry. It was said that TLS is becoming seen in the industry as a pre-requisite part of the strategy to win a deal. It was proposed that adopting a Code of Practice, which would include a requirement for a credible TLS package from industry before getting HMG support for an export campaign, was considered. Industry members also suggested that implementing a regular process of active checking for TLS issues to provide scrutiny of industry performance post contract signature may be possible and this concept should be further explored.

Action: ADS to establish an Industry TLS Best Practice Forum (by early 2014)

3 (b), Defence Equipment Groups (DEGs) Alan Malpas (AM) outlined for the group the background to the DEGs that have been established with India, Pakistan, Oman & Kuwait. It was agreed that work to determine if it would be helpful to establish DEGs with further countries would be taken forward.

Action: DSO to explore establishing new DEGs in Middle East and SE Asia (by early 2014)

5. Item 4: Ministerial Working Group on Defence & Security Exports

4, Nick Ayling (NA) gave the group an overview of the Ministerial Working Group (MWG), which had been established to align the pan-government effort in support of defence and security exports to best effect.

6. Any Other Business & Date of Next Meeting

5, No other items of business were raised. The Secretariat would consult members on a suitable date for the next meeting scheduled for February 2014.

Rob Bain UKTI DSO 13 December 2013