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Defence investment 'should be maintained in recession'

Investment in the defence industry should be maintained despite the financial crisis, the sector’s trade body warned today.

The Defence Industries Council (DIC) raised concerns that the recession could provide an “excuse for short-term budget-led exercises”.

The warning from the DIC’s chairman, Mike Turner, came ahead of the publication of two reports outlining the economic benefits of the industry.

Mr Turner told the BBC Radio 4 Today programme: “The financial crisis could well be an excuse for short-term budget-led exercises, which, frankly, concerns us.

“It not only jeopardises the defence and security of our country but diminishes the influence of our country at the top table of the world and - very importantly from our point of view - the capabilities of our Armed Forces and the capabilities of our wealth-generating defence industrial bases.

“That’s why we are so determined to stimulate an informed debate about the future and importance of the UK defence industry.”

The sector employs more than 300,000 people and generates around £12 billion every year, he said.

The reports, published by the DIC and consultancy Oxford Economics, will make policy recommendations on defence, security and industry issues.

This was posted in Bdaily's Members' News section by Ruth Mitchell .