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How will defence policies be used to help economic growth in an independent Scotland?

The priority for defence procurement will be to ensure Scotland’s security. However, like all countries, Scotland will get the best deal on any defence requirements by competing for contracts in both domestic and export markets.

Scotland does not currently get value for money in defence procurement as part of the UK. For example, for defence work awarded within the UK for reasons of national security, Westminster Government statistics show that the MoD has committed just £3.17 billion to Scotland of a total UK spend of £60 billion over the five years to 2011/12 – a shortfall of about £1.9 billion on what would have been an appropriate share.

Source: Scotland's Future, Scottish Government, November 2013.

Will Scottish Governments in an independent Scotland be able to protect defence industry jobs?

Yes. Following a vote for independence, the Scottish Government and its agencies Scottish Enterprise, Highlands and Islands Enterprise and Scottish Development International will continue to support Scotland’s indigenous defence industries in existing, new and emerging markets.

We plan to make sure we have all of the defence capabilities we need. Our policy is for Scotland to work in partnership, build the necessary alliances and work with international agencies – such as the NATO ‘Smart Defence Initiative’ – which will allow Scotland to align our defence requirements with the collective needs and priorities of NATO allies.

The Scottish Government expects that the proportion of the budget allocated for procurement of single use military equipment will be at least equivalent to that currently allocated by the Westminster Government (14 per cent in 2012/13).

In addition, many of our defence sector companies are already successfully competing in international markets and will continue to grow their business in their traditional areas of expertise and in developing areas of business. For example, whilst refit and ship repair is still core work for Babcock Rosyth, the company is currently enhancing its position within the offshore energy and marine services markets, such as the £30 million order that BP placed for 70 subsea structures in January 2013.

The Scotland Institute’s paper on ‘Defence and Security in an Independent Scotland’ outlines key areas in which the Scottish Government can help the diverse defence industries in Scotland to grow, including through investment in R&D, support for our niche strengths in high technology areas such as defence electronics, and science and innovation funding to maintain our global reputation.

Source: Scotland's Future, Scottish Government, November 2013.

Will Scottish shipyards and other defence sectors have Scottish defence contracts to bid for?

Yes. If in government in an independent Scotland, we will prioritise the procurement of four new frigates, preferably through joint procurement with the rest of the UK. Two of these will be ordered in the first parliamentary term of independence and when built will bring the number of frigates in the Scottish Navy to four (the two new frigates as well as the inherited Type 23s). The Scottish Government believes that is the appropriate number of frigates in the longer term, and will order the further two frigates in time to replace the Type 23s when they are retired from service.

Scotland’s shipyards are amongst the most competitive and technologically advanced in the world. The MoD recognised this by awarding BAE Systems in Glasgow the £127 million contract to work on the initial design for the Type 26.

Defence companies are used to working within changing international parameters, and will continue to do so within an independent Scotland. The Scottish Government’s plans for a transition to independence aim to ensure the minimum of disruption, however, while new departments, regulatory frameworks and systems are put in place.

Source: Scotland's Future, Scottish Government, November 2013.

What would be the impact of independence on existing MoD contracts awarded to Scottish based companies?

Independence will not impact on existing contracts, as contracts are offered to companies, not countries. Companies have been awarded contracts on the basis of their ability to deliver quality products within required timescales and budgets. The MoD places contracts with companies in Korea – there is no reason that it would not do so with companies in Scotland.

Source: Scotland's Future, Scottish Government, November 2013.

Could Scottish companies bid for MoD contracts after independence?

Scottish companies will be able to bid for any MoD contracts that are put out to competitive tender so UK military orders could, and should, still come to Scotland. Scotland’s indigenous and global companies have the expertise to win UK and worldwide orders. There is also nothing in article 346 that would prevent the Westminster Government placing contracts exempt from EU Procurement rules in Scotland.

Source: Scotland's Future, Scottish Government, November 2013.

What would an independent Scottish Government do to support Scottish companies to win contracts in export markets?

Scottish shipyards have proved time and again that they have the skills, expertise and flexibility to build and maintain complex warships for the international market. We aim to increase Scottish opportunities and jobs through independence. There is no reason that Scotland would not attract a healthy order book.

Defence companies are strongly supported in Scotland: Scottish Enterprise provides funding for a great number of development programmes, and Scottish Development International provides targeted product support into new and emerging markets. Independence would not change this.

Many partners use manufacturing and design from other countries. For example, shipbuilders across Europe often receive orders from foreign countries – French companies make ships for Russia; a UK company has made frigates for Malaysia; Westminster has recently given a contract for MoD vessels to a Korean company. This Government’s priority is to make sure that any company based in Scotland can compete in global defence markets.

Source: Scotland's Future, Scottish Government, November 2013.

How will Scotland develop its own national security regulations?

Defence is among the most regulated of all industrial sectors, with security an important element. The Scottish Government is committed to working with NATO, the EU and the United States on key issues relating to intelligence, technologies and military/ industry relations through a period of transition. We will negotiate on behalf of the interests of Scotland’s companies to ensure arrangements are in place which support them in winning defence contracts.

Source: Scotland's Future, Scottish Government, November 2013.

Defence is among the most regulated of all industrial sectors, with security an important element. The Scottish Government is committed to working with NATO, the EU and the United States on key issues relating to intelligence, technologies and military/ i

There are many Scottish-owned or based companies that have a long track record of working with the MoD on sensitive contracts and are already designated as ‘List X’ sites. This means that they have the necessary security clearance to hold information with a security marking of confidential or above.

The Scottish Government will negotiate with the Westminster Government to ensure that these arrangements continue and enable work to continue on contracts vital to the security of the Scotland and the rest of the UK.

Source: Scotland's Future, Scottish Government, November 2013.

What other departments would Scotland require to support defence industries?

Scotland’s defence companies spend a great deal on research and development (R&D), as would be expected in a country known for its innovation and engineering excellence. To support this work we intend that the government of an independent Scotland will take forward work currently undertaken at a UK level to maximise the impact of science and technology for the defence and security of Scotland, including independent advice on our R&D programmes.

Source: Scotland's Future, Scottish Government, November 2013.