The annual Seawork exhibition and conference took place at the Mayflower Park, Southampton between Tuesday 13 and Thursday 15 June 2017.

Once again DIT DSO led on UK government help at the exhibition. They were able to offer UK companies a wide range of advice, information and support aimed at increasing overseas defence and security sales.

DIT DSO’s principal customers were UK SMEs, who received informal advice or attended pre-booked appointments to meet DIT DSO experts to discuss more specific export opportunities.

HM government zone stand

The stand was manned throughout by the DSO Small Business Unit and the Military Export Support Team. They were joined at the show over the 3 days by a number of DIT DSO colleagues from the regional directorates and high growth team.

The stand also had a senior Royal Naval presence on all 3 days to engage with:

• visiting overseas naval officials
• colleagues from the Ministry of Defence (MoD)
• UK companies

Access to the stand was also extended to Department for International Trade (DIT) colleagues from the regional international trade and MoD business advisory teams.

Seawork

Seawork International is the largest and fastest growing commercial marine and workboat event to be held in a working port. This annual conference and exhibition is in its 20th year and is an important fixture on the DIT DSO exhibition programme.

The show itself largely focuses upon civil and commercial maritime sales. This provided DIT DSO with an excellent opportunity to engage with new potential customers and to showcase the possibilities and benefits of diversifying into the overseas military market.

Examples of the range of kit that military colleagues have helped to sell in the past provided an attractive draw to the stand. This helped potential exporters understand just how wide and diverse the overseas defence and security markets can be.

DIT DSO hope to have started a good number of UK companies on a new journey into international trade.

The undertakings – put in place in 1999 – require BAES as the prime contractor to, where possible, allow other contractors in the defence industry access to its resources for the purposes of a Ministry of Defence (MoD) programme.

A group of independent panel members at the Competition and Markets Authority (CMA) has now advised the Secretary of State for Business, Energy and Industrial Strategy (BEIS) that changes of circumstances mean they are no longer appropriate. This follows a comprehensive review and consultation on the proposal they be removed.

The review looked at 4 defence sectors (warships, submarines, combat aircraft and munitions) and found that there have been relevant changes of circumstances. For example:

• the MoD has moved away from a competitive procurement process and made better use of long-term exclusive agreements and alliances;
• BAES has sold or closed its businesses in several sectors; and
• the capabilities of other defence contractors have developed such that any potential reliance on BAES has diminished.

This has meant a smaller role for the prime contractor model where competing suppliers might need to use the undertakings to facilitate access to BAES’ resources. The group’s view is that there is also little prospect of this situation changing in the foreseeable future.

The CMA began reviewing these undertakings in July 2016 after a request by BAES. The undertakings were originally given by British Aerospace plc (now BAES), to the then Secretary of State for Trade and Industry, following its merger with the Marconi Electronic Systems business of General Electric Company plc, in 1999. Following Office of Fair Trading (OFT) reviews, the Secretary of State released BAES from most of the undertakings by 2007.

The remaining undertakings were designed to allow other actual or potential prime contractors to compete for contracts where they might need to sub-contract BAES’ resources. BAES has also been obliged to appoint a compliance officer to ensure this requirement is met. The group has now advised that BAES should be released from these remaining undertakings.

The Secretary of State for Business, Energy and Industrial Strategy will now consider this advice and is expected to make a decision shortly.

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