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tv   Defense News With Vago Muradian  ABC  September 27, 2015 11:00am-11:31am EDT

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britain is america's closest ly. is anovative e industry that major export player. the camera and government s increased defense spending and will allow the defse ministry to keep p what money it sasaves. alll eyes are on the ongoing strategic defense and security review that will shape u.k. priorities. we were in london for the defensand secuty equipment international exhibition. tou.k. officiaials say a robustt defense capabilitis keyed to britain's prosperity for job
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creaeationinnovation, and future competitiveness. it also annoced mod will regain effor on exportingg the left then taken over from the u.k. trade and invtment department, which will continue to overseether defense. billion dollars inin defense and $5.2 billion in security systems. while in london, the official partner met with britain ministers -- britain's minister of defense. upportsgovernment itself goes through pendum swing it is a primary responsibility for the major totforms, going to shift these defensive security organizations within this ministry to the ministry of
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dense. we will take a leading role in helping u.k.k. based tourist. me comex weapon opportunities. >> there have been some recent defes and oversee successes. it has been refeferred to more of a commercial roroute. this i mean the uk's going to look at these in a government to government terms? >> i welcomed the news fromm kuwait. thats the third nation in the gulflf to join. the short answer is we are looking at way in which
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government can play a part in these major campaigns. we haven't been quite as explicit as we might be on putting some 10 of reassurance wrap around these transactions. >> it is a quiet period as you guys work toward that. what is thnature of the >> wetional questions? reassess the threat environment inhich we are operating. we are halfway through at the moment. exercise.jor righght across allll government departments but particularly in
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defense. we inherited more an 100% of our budget commitment. had to make some fficult decisions through that review. a lord equipment plan which provides structure and funded commitment through that, as well as some ahead room. basinet o with a which is way dferent and mucuch more posive in howe are approaching this review. the threat environment h has changed over the lalast five yes as well. so we're lookingng at the threas in different ways. help inuly to commit the united kingdom to the
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2% of gdp spent on the nato target. spendo commit to the 20% of budget, which i am responsible for. itakes is the only country in the worlwho is meeting those three international commitments and coming toto the aid commitmt in proving support to syrian refugees today. that putss us in the security review and an much better place to start with. looking at what opportunities there may be for meeting those threats in the future and taking advantage of the other commitment given by the treasury. inefficiencies can be reinvested within the department to meet some of the priorities that will emerge from this review. >>hehereas the deputy chief f of
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staff that set the last review is bas on emotion and tararget data. how do you address that? areou going to be able to back up the since -- back of t the decisions -- back up theecisions you make? throughve been working this -- working at this throughout thehe year. this is a bottom-up driven exercise. we arere looking at the opportunities to meet ose threatfrom each of theommand and being reviewed at the center. some decisions will be made, which arinformed by the work that has been done over this year. i think it is a very round ground -- aa well grounded document. i wod expect so. -- areme take you to
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they going to have a stronger role for british industry? if you look a at this show, the reason why british industry has been so successfuls the investment that has gone over the decadedes of proceings. ere isoncern is ththat there is and is that there is't as much investment in british capabilities g going forward. >> we have made it clear as a government we can only ve a strong defense wita strong economy. theme of how do we demonstrate much what we are already doing andow we can do more. we see that defense exports are good for the u.k. economy. they encourage eater interoperabilility they cld lead toosts from r own cability.
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tore are gogood reasons encourage and promote defense exports. >> comoming
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>> although brita has innovative and attractive products, many in government woworry the country spendining o litt on defense e science and technology.. $600 milli annually.
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think ldingss nanation s should be spending at least three timemes as much. i ask if s and t investment would be an important part of the strategic defense and security review and whether the government would commit to future increases. another important strand will be innnnovation. it encompasses more than that. as to howral definition much we are spending on pure research, as opposed to some of the seven -- the applied research and development, we are spending more than one million pounds. it is highly unlikely we will be spending -- wewe will be finding innovative ways to deawith these constructive technologies. much will be attitude to what we are doing at the moment. we are increasingly looking to interlock the innovation strategy that the dod talks
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about. >> i want to get the third offset. there is a sense that personnel is an issue that has to be dealt with in the u.k.. the number of troops may need to increase, as well as the compensation for those troops being coidered in a more competitive economy. you u meeting recruiting goals now. penny said, there is going to be a strong focus on personnel. concern that even though you have the budget increase, a lot of that increases going to equipment. it will have to come out of someplace and at me could be for equipment. say the equipment program is going to be protected in this process?
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>> there is equipment -- there is a commitment to deliver a 1% increase. been cap slated in the budget. first time for four years we woululd see an increase in defee spending. some of the choices will be made. one of the other manifesto commitments was the armed forces personnel during this parliament. the military uniform personnel provides reassurance to our armed forces. -- whether there are individual pinch pointnts, there always are. they will vary from time to time.
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different types of capability, whether we need to man up in some areas. this will all come through the reviview. >> that is the critical thing for observers and defense to understand. in the previous parliament we were under pressure to make efficiency savings. what would d happen is this new agreement. they wod be retained within defense. we have the opportunity to decide on how that is spent on priorities. that will give opportunity to grow personnel. priority for is a the pentagon. it is an increasing priority here in the u.k.. as part of developing capabilities and the third offset strategy, which is another thing the united kingdom has been up there with.
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what are some mechanisms you have to cooperate with the united states? i want to get your views on what you think some british abuse on on what the offset strategy should look like. morning withding the work. we are looking to involve e the u.s. and our process so we get where they see continuing cooperation taking us. a big part of that is innovation. how can we contribute to the third offset? take off some of our capability so we can feed into that? that has about 100 projects the jointday with
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work between the u.s. and u.k.. to try to integrated in a more coherent way within the package of measures coming up through our innovation strand, the u.s. is coming up with their offset. >> what about the third offset? how do you visualize what are natoof the things that a partner needs be thinking in ordeder to get to that next revolution? of it stems from how we do things. it is not t all about capability and technology. it is about how we organize ourselves to threats. i just came from the joint forces command theheater.
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by our joint force commander and his team. drive and gathering a use of information through our systems to be more competitive against the threats of today and tomorrow. w we use information as a platform f for defense will be up next, a tough u.k.nalyst on britain's export drive and defense and security review.w. you are watching defense news.
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somehow it felt like everything was moving in slow motion. if i didn't react, things could have gotten messy in a hurry. i mean just got that sweet ride with a great rate from navy federal. i was not about to let anything happen to her. just looking out for my wingman. he's still in training. open to the armed forces, the dod and their families. navy federal credit union. security equipment international exhibition we met with one of britain's leadadindefense from an independent investment reseaearch firm creative one major theme was the brbritish govement's commitment to better support u.k. exports.
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i asked whether he saw meaningful change in how thee government will support defense and security exportsts. process that went on when expoports were effectivy ,eing run by the department effectively t they got defense s ey were very that it understanding the relationshipi. if the uk's like the selling defensive and abroad, the mpany wants the mystery of defense to support it. if thebuy a ship they want retionship with the royal navy. tha.hey couldld just not do
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>> i have to say having travaved to many of the showsn a regular basis, the is always a big brith contingent. do you notice that the needle is moving from the standpoint of each of the service of standing up to do a better job to support these campaigns? >> this has been a grt boon of mimilitary support for this industry. there a are britishervices. thatat is a real set change from two yearago. the army historically has been anti-iustry. almost single-handedly would destroy the industry. got very close to that. they y caot expect to get the support tt they require unless there is a domeic industr
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>> prosperity is onene of the buzzwords of the show. talk more generally. just a platitude or a genuine change in the way t the gogovernment is looking at defee terms of the broader economic ststructure. >> i wou be very happy if ththe partnerships would aid at their current level. politicians are talkinabout national prosperity as being a key part ofherocess f forefense. means there is understanding between political meths. a if you don't support the industry you won't have an industry tt will suprt you.
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i ink that is a veryry positive indeed. from michael fallon all the y down the ministerial -- in the secuty review is s going to b wheer national prosperitity as an overarching driv of how we face these relationships, whether the treasur - it wanted be cheap, low risk. once you start having an isustrial strategy, that going to act as protectionism. who is going to win? the sategic defse security revieww, on the one s e the government has stabilized thee budget and increased it bya tiny amount. another benefit is the treasury
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is allowing them to keep whateveravings. likesame time it looks there are personnel challenges th the mod is trying to dedeal with to increase the number off soldiers, sailors, airmen, recognizing e services have shrunkoo far. trade-offant to see a where the programs will have to be sacrificed in order to ver the manpnpower part ofof the equati that has been shortchaed for a while? of pe idea a that a 2% -- anandudget, suddenlyy there were goingng to be l loadf neequipment broke down. that was itsest. if therere was expert cash, then highwower is going to have a iority. and without having t structure thatnables that quitman n to be employed by the u.k. as a who.
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-- that equient to be employed by t u.k. as a whole. i think will get continual refinement of what we do now, what can be done for 2020. it is a very tough process. dririving been efficiency reforms. a lot of the money ththe department has gotten back throrough efficiency savings.. it looks likike a lot of them ae baed by military services. not saving as mu money. measuresof the thingsgs that the department i already regretting or will reregret more so in the upcoming years? >> i think we have already started seeing that.
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being rolled back. recruit,they start to go up the priority list for the services. recognion that savings can on go so far. >> in order to remedy these, it uld cost youou elsewhere i terms your equipment. >> the budget is relaxed. i think you are going to contue to get vevery close focus on the individual services. a small amount available. expert tells-finance us how new chip cards s that are
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deting s soon wi bmore sere. i a am joined by businessss experts, vice president of services at navy fedal credit union. thehe tand ability shshift takinglace this ococtober,r, thank you for beieg here. difference between the regular debit cards andd credit cards and chip rds? cardsave a chip in bedded in them. when they arused in conjunction with a macne that are e specific to o accept these cards, the transaction is much more secure. it is practically impopossib to clone. a a lot of financial institutios aren't tting theseards into our customers hands as quickly as possisible. do?t should they >> it could potentially have an impact feett of small business owners need to o realize the will be a liability shift this october.
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a small business owner has to look at how many cards or customers are respondingo them. how much fraud they haveve been exposed to in the past. thostwo things should drive the decision.. a great place to start is with the financial institution. >> thank you very mumuch. we will see yonext week. if you have any financial estions se e-mail me. coming up, my notebook.. being detected was not an option. if i was recognized the whole operation was blown. the element of surprise was imperative. wow. he won't even recognize you. seriously. i don't even recognize myself. and thanks to my cacashrewards credit card from navy federal with nevther-expiring rewards it's gonna be a killer honeymoon. woo! maui!!
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boom open to the armed forces, the dod and their families. navy federal credit union.
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defense spendi has allowed the defense ministry to keep what it saves is welcome. it challenges stilremain. increases 260 million dollars annually and almost entirely for equment. unclear whether that is enough andeep programs on track compenensate for eiciency moves that havfallen short of goals. now wrestling witith these issss as it works to position britain for future threats. senior leadeders and t the cou's allies warning oa should -- warning of a shriveled four-speed ruthlesefficiency moves to bolster acquisition account to preserve cutting edge capabilities. now forces are stretched to the breaking point, especially to britain'savy did upcong review must address the reality that armed forces are barely enough to handle peace time operations. much less sustaiain a volvo mea. opportunitty to
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back its rhetoric with resources. failure could lead to stori forces crippled for a generation. thank you fowatching. at defense news for continued coverage of internatational fense andnd a special thanks to the u.k. ade and invevestment department. i wiwill be back next week at te same time. have a great weeeek.
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