Non-Subscriber Extract
UK government dissolves DESO
By Robin Hughes and Tim Ripley
27 July 2007
The UK government has dissolved the Ministry of Defence's (MoD's) Defence Export Services Organisation (DESO) and has devolved responsibility for promoting and licensing the export of UK military equipment to UK Trade and Investment - the government organisation that supports UK-based companies in the global economy.
A written ministerial statement dated 25 July, entitled 'Machinery of Government: Defence Trade Promotion', states: "The government believes trade promotion for defence exports should be more effectively integrated with the government's general trade support activities, while recognising and accommodating the specific requirements of the defence sector."
"Therefore," the statement continues, "the government will look to move responsibility for defence trade promotion from the Defence Export Services Organisation to UK Trade and Investment."
This, the government argues, "will provide much greater institutional alignment across government and build on the success of UK Trade and Investment; within this framework, account will be taken of the specific features of defence exports, including the continuing role of the Ministry of Defence".
The government said it envisages "no change to existing and planned agreements between the MoD and other governments, which will be continue to be administered by the MoD".
DESO functions that support the UK defence policy and the UK armed forces will, the statement says, be allocated elsewhere within the MoD.
According to the statement, the Cabinet will lead work across the government to develop an implementation plan that will be completed by the end of 2007. Institutional arrangements on replacing DESO will, it says, "come into effect as quickly as possible thereafter".
Derek Marshall, the Society of British Aerospace Companies' (SBAC's) Director of Aerospace Defence and Homeland Security, said: "The SBAC is disappointed by the decision to reallocate the responsibilities of the Defence Export Services Organisation - ending more than 40 years of co-ordination and promotion of defence exports. The SBAC will need to take some time to understand and assess the implications of the new arrangements. It is disappointing that the government did not consult or discuss this approach with industry before making this decision."