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Investment in defence is 'a path out of recession'
11:03, 01 September 2009
updated: 11:03, 01 September 2009
by business editor Trevor Sturgess
The defence industry is calling for more investment in a sector that employs 79,000 people across Kent and the south east.
In a campaign aimed at countering possible cuts in defence spending, two reports were published on Tuesday underlining the importance of the industry to the south east and national economy in terms of security, jobs and engineering excellence.
The Defence Industries Council (DIC) says that 300,000 people work in the sector, with 26 per cent - 79,300 - in the south east, including BAE Systems at Rochester.
One report, produced by Oxford Economics for the DIC, looks at the economic contribution the sector makes to national life while the second, from the DIC itself, examines the support given to the UK’s armed forces by the industry.
Industry chiefs, including Ian King, CEO of BAE Systems, unveiled a report “Securing Britain’s Future and Prosperity” to emphasise the country’s ability to defend itself depends on the capability to produce the equipment needed by the armed forces.
It says a lack of public recognition of the importance of the industry risks overlooking the country’s manufacturing, engineering and service excellence and how it is harnessed to equip and support the armed forces.
The report therefore also aims to reconnect the public with the industry and re-engage them in discussing the wider issue of defence. The DIC says that defence costs every citizen £11 a week, which it claims is relatively modest compared to other government expenditure.
DIC chairman Mike Turner said investment in the industry would be "one of the paths out of recession".
"This will not only provide skilled jobs in the south east, by promoting economic growth, it will also help to balance oureconopmy and enhance our nation’s defence against the growing threat on our own streets and throughout the world."
He added: "We believe that, contrary to the prevailing mood at Westminster, now is the time to consider investing more for our future safety, not less."
The UK defence industry has a turnover of around £35billion, with exports worth around £5billion a year. It accounts for 10 per cent of all manufacturing jobs in Britain, and 5.6 per cent of government spending (£38billion), compared to 13 per cent on education (£88billion), 17.7 per cent on health (£119billion) and 28 per cent (£189billion) on social protection.