1

Defence Industry – Plus some thoughts …George McGuire, CSCGeneral Manager Land & Maritime QinetiQ Australia

Two Quotes

“The society that separates its scholars from its warriors will have its thinking done by cowards and its fighting by fools.”

Thucydides (460-395BC)History of the Peloponnesian War

“…those who govern ought not to be lovers of the task? For, if they are, there will be rival lovers, and they will fight.”

Plato (427-348BC?)The Republic

2

My Bucket List Extract

Number 37

Use quotes from some very old dead men at a major seminar in the presence of Rear Admiral James Goldrick (the man of many historical quotes – some of which I never understood!)

3

THE

Defence Industry – Searching for the Right Balance

Industry Policy“Of course the national defence landscape is littered with defence industry statements heavy laden with declarations of noble vision and ambitious intent. They arrive with a flourish of drums and trumpets while ethereal choirs sing their praises and promise a new Jerusalem for Defence industry.”Geoffrey Barker, AFR, 25 Nov 2015

Probity & Competition – easy to hide behind, hard to generate value for money outcomes when falsely worshipped/interpreted: “We have had significant evidence from industry and other commentators that the current reliance on a ‘one size fits all’ competition policy and the use of complex procurement contracts does not produce the best results from domestic and international industry. It also adds significant cost and time for all participants and encourages unrealistic costing to be included in the decision-making process.” First Principles Review – Page 36

4

Defence Industry – A Fundamental Input to Capability?

• Industry Supports Defence and should not be considered a FIC in its own right

• Today every FIC is already supported by Industry

5

Defence Industry

Pers

onne

l

Org

anisa

tion

Colle

ctive

Tr

aini

ng

Maj

or

Syst

ems

Supp

lies

Faci

lities

&

Trai

ning

Are

as

Supp

ort

Com

man

d an

d M

anag

emen

tDefence Capability

QinetiQ UK – Essential ‘Above the Line’ Capabilities in Industry

QinetiQ maintains conducts nationally significant tasks for MoD and Industry and the capability underpinned by true partnering contracts such as: •Long Term Partnership Agreement (LPTA) – 25 years from 2001

•Maritime Strategic Capabilities Agreement (MSCA) – 15 years from 2008

•Materials And Structures Capability (MAST) – 3 years from 2013

6

QinetiQPre-Agency

UK Government Owned Commercial Company

1940s 1991 2001

DRA/DERA The Agency Years

Operating ‘Across’ the Line: A mature UK Enterprise View

7

QinetiQ & Type 26 Global Combat Ship – Specialist Technical Service for MoD and BAE

Continuous Shipbuilding – Capability Outcome Debate is Needed

“The debate is not on whether the Navy is to be rebuilt and expanded. Rather it is now on ‘how’ we achieve the recapitalisation of Navy.”Chief of Navy, VADM Tim Barrett, AO, CSC – ASPI 25 Nov 2015James Goldrick’s notion of that we are on the verge creating a 5th Generation Navy endorsed by CN Barrett at ASPIWhat should the future surface combatant force operational concept be?•4 x Task Groups of 4 ships: 2 ASW biased (dual hangar), & 2 AAW biased (BMD?) per TG and 3 replenishment ships to support them

• “the Admiralty had demanded six ships; the economists offered four; and we finally settled on eight” Winston Churchill

• SM6 and increased Wedgetail AEW&C force with Cooperative Engagement Capability as Task Groups will operate well outside JSF range in many instances

What About Manning? Change the paradigm – The present system is broken. • Give seagoing personnel their time back. Learn from Merchant Marine, FIFO workers. After 50

days away 0.75 days leave per day at sea?

8

Reflecting on the 1914 Royal Navy

“We had competent administrators, brilliant experts of every description, unequalled navigators, good disciplinarians, fine sea officers, brave and devoted hearts; but at the outset of the conflict we had more captains of ships than captains of war.”

Winston Churchill, 1918

9

© Copyright QinetiQ Limited 2015 QinetiQ Proprietary

Questions?

10

A National Enterprise – Industry work jointly in Govt Framework

QinetiQ Managed UK Weapons Science and Technology Centre

•Research and Testing to support procurement

•76 partners

•Delivering innovation

11