Speech by Lord Robertson of Port Ellen, Future of Scotland’s defence-related industries Conference, November 2011.
‘This is a moment of uncertainty for Scotland’s highly successful defence industries. With UK defence budgets constrained and likely to be cut further and with American and European defence budgets also declining rapidly, opportunities for companies dependent on defence contracts will inevitably diminish.
That means that Scottish-based companies, whether they are owned here or, as the biggest ones are, owned abroad will be wondering where the next order will come from or whether existing work will go in the cuts.
This is not a good time for defence related industries and they will have to be smarter and more efficient and more aware of what is needed and essential if they are to thrive or even survive.
What they do not need is another aspect of uncertainty in the constitutional position of Scotland in the European Union and NATO.
No wonder defence companies watch nervously as the debate over whether Scotland will remain part of the UK or becomes a separate country drifts on as the Scottish Government refuses to give clarity on the timing and the nature of a separation referendum.
The stakes are high for a major Scottish industry, and international investors value certainty wherever they are thinking of putting their money.
There is no certainty on whether Scotland would be an automatic member of the European Union – it is perfectly possible that Scotland would be a member of course, but the question remains.
There is no certainty about how separation would affect the split in Britain’s defence budget – like any other country, Scotland’s excellent workforces would no doubt compete hard for contracts, but we would have little influence over the decisions and a London government would understandably favour English and Welsh bids.
There is no certainty about major multinational defence projects like the Joint Strike Fighter, and the Eurofighter/Typhoon, both of which produce significant work for Scotland’s aviation and avionics industries.
But there is one certainty in the Nationalist policies, and one which should worry anyone in Scottish defence.
As things stand today, Scotland would be the first country in history to withdraw from NATO.
It is staggering that the Nationalists still cling to a policy of NATO withdrawal when every non-fringe party in the wider Europe wants to be inside the most successful defence alliance ever.
As Secretary General of NATO I had to deal with a long list of countries desperate to become part of the NATO structure. Today not a single reputable, mainstream party in the 28 countries of NATO advocates withdrawal from the Alliance. The SNP stands in total, inexplicable, ideological isolation, and a proud Scotland must be a part of NATO in the future, independent or not.
This bizarre withdrawal mission would have profound effects on Scottish defence industries. The future of defence procurement with restrained budgets will have to lie in more collaboration with more pooling and sharing of capabilities and resources. The economics of austerity will drive this common-sense solution and it will all have to be done through NATO and its agencies.
A separate Scotland, outside of NATO, will place itself and its companies outside the framework for future orders and beyond the organisations which will make the critical defence and investment decisions.
Wherever I go in the world, and wherever I have been in my various roles, I take great pride in talking Scotland up, but I am equally sure that where I think bad decisions are being made, I will speak up.
So I say that taking Scotland out of NATO is a recipe for Scotland’s marginalisation and job destruction and even its prospect should concern the thousands of Scots whose jobs depend on defence.
We have some of the most talented defence workers anywhere in the world, and surely they deserve to play on the international stage.
But I also know that I will probably be hounded for saying what I think…
To point out the folly of an anti-NATO policy and the profound consequences of it for our country is not to ‘talk Scotland down’ as the Nationalists constantly cry.
It is not anti-Scottish to point out the unmistakable nitty-gritty consequences of going down the separatist road.
Nor is it ‘scaremongering’ to state the stark facts as they are publicly known.
I say all of this because I love Scotland, and care deeply about its future.
Those who really talk and do Scotland down are those who refuse to spell out the very live consequences of this dithering on Scotland’s constitutional future. The damage to be done to Scotland by exiting NATO is clear and potentially devastating to parts of our economy.
Scottish industry has a right, as have the Scottish people, to know what this policy of separation really means in the factories and offices of our country. The twisting and weaving on the question to be asked in the referendum and what secession it will mean in practice is an unforgivable burden to put on Scottish jobs. Nowhere is that more true than for the thousands of people employed in Scotland’s defence related industries.’
