Ethical approach to defence investment won’t lead to job losses, says Adam Price

Martin Shipton

An “ethical defence investment framework” for weapons firms operating in Wales is not incompatible with the creation of more jobs in the sector, according to Enterprise Minister Adam Price.

The Welsh Government has been criticised from both sides of the political spectrum over its approach to the issue, with Reform UK and the Conservatives concerned that such a framework could encourage firms to invest in England instead, while peace activists fear that a green light will be given to weapons manufacturers intent on supplying arms to aggressive countries like Israel.

Mr Price told the Senedd that the Welsh Government was committed to international solidarity, human rights and international law, while recognising the right of democratic societies to defend themselves.

He said Wales already had a significant aerospace, defence and security sector supporting thousands of highly skilled jobs and important supply chains.

Mr Price said: “The world is becoming more uncertain. We are seeing ongoing conflict, including within Europe itself, as well as wider geopolitical instability and increased threats to national security.”

He said industries including cybersecurity, semiconductors, aerospace, advanced manufacturing, autonomous systems and artificial intelligence were part of the wider economic environment, and argued that Welsh businesses and workers should benefit from investment and growth, including through the Defence Growth Deal.

But he said Welsh Government support for the sector could not be unconditional.

“Where the Welsh Government provides support through grants, investment assistance, trade promotion or wider economic development activity, people in Wales rightly expect that support to reflect our values and responsibilities,” he said.

“It’s important that we recognise legitimate ethical concerns while supporting a focus on high-quality jobs that the sector sustains in communities across all parts of Wales.”

Mr Price said decisions on arms exports remained reserved to the UK Government, but ministers in Wales needed clear principles governing their own engagement with the sector.

The Welsh Government is therefore developing an ethical defence investment framework intended to provide a consistent basis for decisions over devolved support.

Mr Price said: “The purpose of the framework is not to exclude the defence sector from engagement with the Welsh Government, nor to duplicate UK export controls or licensing arrangements.”

Officials are engaging with stakeholders and examining approaches elsewhere in the UK as the framework is developed.

Mr Price said it would recognise the role of the defence sector in national security and the economy while introducing additional ethical considerations, including human rights and international humanitarian law.

He added: “This will be a proportionate approach designed to provide greater transparency and assurance without creating unnecessary barriers for businesses operating responsibly, legally and in support of our economy and security.”

Adam Johannes, joint secretary of Stop The War Cardiff, criticised the approach and accused the Welsh Government of seeking to expand the arms industry in Wales.

‘Deeply disappointing’

He said: “We see no appetite for this among Plaid members. It was deeply disappointing that no Senedd Member from Plaid, or indeed any party, challenged this militarist agenda.”

Mr Johannes said there had been cross-party agreement that the defence industry created jobs, but cited Transition Security Project research which he said suggested that twice as many jobs could be lost elsewhere as were created in defence because of how increased UK military spending was being funded.

“Wales should use its influence in world affairs to press for de-escalation, not escalation of global tensions,” he said.

“We are disturbed to see Plaid’s leadership embrace a dangerous new global arms race.”

Mr Johannes argued that money being spent on defence across Europe could instead be directed towards housing, health, education, climate measures and other public services.

He welcomed the prospect of restrictions on Welsh public money going to arms companies supplying countries accused of serious breaches of international law, but questioned how effective the proposed safeguards would be.

“Any commitment that Welsh public money will not go to arms companies supplying Israel or other regimes committing grave violations of international law would be a step forward, and a victory for campaigners,” he said.

“But we have heard such promises before.”

Scottish Government

Mr Johannes claimed a similar commitment by the Scottish Government had subsequently been followed by £5.5m being awarded to arms companies supplying Israel.

He also raised concerns about any reliance on companies declaring themselves whether they supplied particular regimes.

He said: “The global arms trade is one of the most ethically compromised industries in the world. Asking it to police itself is putting the fox in charge of the henhouse.

“If arms companies self-declare, those declarations must be backed by legally binding conditions, and stringent oversight.”

---

Get more trusted Welsh news

Choose Nation.Cymru as a preferred source in Google News to see more of our journalism.