MP’s launch inquiry to examine state of the defence industry in Wales

The Welsh Affairs Committee has launched an inquiry to examine the state of the defence industry in Wales, with a focus on defence manufacturing and cyber security.

The inquiry will investigate the importance of the sector to the Welsh economy, trends in defence spending, and the role of the UK Government in promoting the defence sector in Wales.

The committee will also look at how businesses can benefit from available opportunities and the relationship between Wales-based prime contractors, Welsh academic and research bodies, and the development of new defence technologies.

The inquiry comes amid concerns that a decrease in investment from the Ministry of Defence (MOD) could erode the prominence of Wales’ defence sector.

The number of jobs and smaller businesses in the sector has declined in recent years, and MOD spending in Wales has fallen by £300 million since 2018.

The committee is keen to examine the reasons underlying these trends in defence spending and explore ways to ensure that the defence industries in Wales thrive.

There are over 160 companies supporting the defence sector that are based in Wales, from Airbus to Raytheon in Broughton, St Asaph based Kent Periscopes and Qioptiq.

Wales’ defence sector is further enhanced by the Ministry of Defence’s Defence and Electronics Components Agency (DECA) based in Deeside, which has a £0.5 billion contract with the US Department for Defence.

Welsh Affairs Committee Chairman, Stephen Crabb, said:

“From maintaining fighter jets to hosting one of the most advanced aircraft surveillance and intelligence systems in existence, in Wales we have a ground-breaking defence sector that is routinely punching above its weight.

“However, MOD investment in Wales has decreased, as have the numbers of jobs and SMEs in the Welsh defence sector. ”

“Over the course of our inquiry, we will be considering the future opportunities and challenges to ensure defence industries in Wales – from defence manufacturing to cyber security – thrive.”

“The defence sector is a major employer and helps support local economies across our nation and it is in all our best interests to support Wales’ defence prowess.”