12 Apr 24. Lifting MoD spend on NI-made goods – MPs to take evidence from industry and experts
Evidence session
Defence Spending in Northern Ireland
Wednesday 17 April 2024, 09.30, Committee Room 15
Watch live on Parliamentlive.tv
MPs on the cross-party Northern Ireland Affairs Committee will hear evidence from Leslie Orr of the defence trade association ADS and security think tank RUSI’s Professor Trevor Taylor as it explores how to lift defence spending in Northern Ireland.
The Ministry of Defence (MoD) spends a smaller sum per person on hardware and services from Northern Ireland than it does from almost anywhere else in the UK, £100 per head compared to Scotland’s £380. This is despite the presence of giants like Harland and Wolff, Thales, Spirit AeroSystems and many smaller firms which represent 95% of NI’s defence companies, according to written evidence from ADS. Just £2 million of MoD cash was spent on these SMEs in NI, compared with £1.4 billion UK-wide.
Meanwhile, RUSI have identified the defence industry as ‘providing opportunities in economically deprived areas’ for employment and training. Northern Ireland has historically had lower levels of employment and capital investment.
MPs will ask about the barriers to expansion of defence spending in Northern Ireland, the opportunities, and what policies would help to harness them.
Witnesses
- Leslie Orr, Director, ADS NI;
- Professor Trevor Taylor, Director of the Defence, Industries & Society Programme at Royal United Services Institute (RUSI).
House of Commons and House of Lords Hansard Written Answers
Anti-satellite Weapons: Expenditure
Question for Ministry of Defence
Maria Eagle
Labour
Garston and Halewood
Commons
To ask the Secretary of State for Defence, how much his Department has spent on space integrated battlespace in each financial year since 2019-20.
Answer
James Cartlidge
Conservative
South Suffolk
Commons
Answered on 3 April 2024
The Space total spend on equipment costs by financial year is as follows:
FY Total spend (million)
2021-22 £8.511
2022-23 £13.786
The Space delivery team total spend on operating costs by financial year is as follows:
FY Total spend (million)
2021-22 £2.421
2022-23 £4.683
The Space team, which was stood up in March 2021, is a specific project team in DE&S and the figures above represent the total spend of that team. The figure does not represent the total spend on all space projects across Defence.
Chinook Helicopters
Question for Ministry of Defence
John Healey
Labour
Wentworth and Dearne
Commons
To ask the Secretary of State for Defence, with reference to his Department’s press release entitled Capability boost for UK’s global military operations as contract confirmed for new Chinooks, published on 14 March 2024, what assessment he has made of the potential impact of the foreign exchange rate on the value of the contract for new Chinook helicopters.
Answer
James Cartlidge
Conservative
South Suffolk
Commons
Answered on 3 April 2024
The Foreign Military Sales agreement with the US Government is denominated in US dollars in common with all such cases. The forecasted cost of the programme is based on the most up to date exchange rate predictions from Defence Economics. The risk of future foreign exchange exposure will be mitigated by the Department’s use of forward purchasing arrangements.
Chinook Helicopters
Question for Ministry of Defence
John Healey
Labour
Wentworth and Dearne
Commons
To ask the Secretary of State for Defence, with reference to the press release entitled Capability boost for UK’s global military operations as contract confirmed for new Chinook, published by his Department on 14 March 2024, what the cost is of the 14 new Chinook helicopters.
Answer
James Cartlidge
Conservative
South Suffolk
Commons
Answered on 2 April 2024
The Chinook Extended Range Programme has an Approved Budgetary Level of £1.5 billion. Final costs will be subject to the conclusion of negotiations with the US Government and Boeing, and variance throughout the life of the programme in common with all FMS cases.