Foreign sales are used to justify spending billions on GCAP
What is notable about public statements made by domestic prime contractors is that there is no bold talk of taking on foreign competitors, beating them on their own turf and teaching them a lesson on how to win. Why?
Because the inescapable fact of the matter is that dominant players in the UK’s defence industry, the Select Few, haven’t got the guts to go up against all-comers in an international contest which might end up revealing what many informed people know to be the unspoken truth – that they are hopelessly uncompetitive on account of not having had the prior experience of entering open competitions, in the main, because UK governments of all persuasions have pursued a policy of gifting a steady stream of uncontested, single-source defence contracts to these indigenous contractors on a preferential basis, for as long as anyone can remember – under cover of a sham, make-believe competition. This, despite repeatedly claiming that it is government policy to procure military equipment for the Armed Forces through fair and open competition.
Yet one of the reasons put forward by producer interests to justify spending huge amounts of public money on new military equipment programmes like GCAP is that subsequent foreign sales to international customers will serve to offset the inordinately high outlay on initial design & development work, which is all too common on these type of procurement programmes – as is the recurring problem of persistent delays and cost overruns.
But how is the domestic defence industry going to export newly-designed equipment if it doesn’t enter competitions run by foreign governments in the first place?
The answer lies in the lack of ambition on the part of these usual suspects. Whereas they publicly let it be known that they want to export their products worldwide, their undeclared intention, which is central to their extractive business model, is to focus exclusively on exploiting HM Treasury to the fullest extent possible. Repeatedly perpetuating the line that spreading the design & development costs across multiple customers to get better value for money for UK taxpayers is only a ruse to persuade the government to take that all-important, purchasing and investment decision in the first place.
Which would explain why products developed in this millennium, such as the 54 Watchkeeper unmanned aerial reconnaissance drones which have cost taxpayers £1.12bn, have failed to attract even a single export customer.
On this basis, it can be said with confidence that GCAP will do no better!
@JagPatel3