Welsh Government to defer defence investment decisions pending new ethical framework

Mark Mansfield

The Welsh Government has said decisions on investment in the defence sector should be deferred until a new ethical framework governing its involvement with the industry is in place.

Enterprise Minister Adam Price announced the move in a written statement, as the government faces growing criticism over its links with the arms industry and its involvement in a major defence summit taking place in Newport.

Mr Price said decisions relating to investment should, “where legally and practically possible”, be put on hold until the framework is published, with all future engagement and investment then tested against it.

The announcement came on the opening day of the Defence Security Resilience Cymru summit at the ICC Wales, which has attracted protests from anti-war campaigners.

The Welsh Government is a co-host of the event alongside Business in Focus, ADS Group and General Dynamics Land Systems.

Campaigners have branded the summit an arms fair and accused the Plaid Cymru government of abandoning positions the party took while in opposition.

Mr Price said initial options for the ethical framework, together with the government’s preferred approach and a consultation, would be published this autumn.

He said: “The Welsh Government is committed to international solidarity and the rule of international law. We have consistently opposed the provision of arms or military support where there is a clear risk that it could be used to commit or facilitate serious violations of international humanitarian law or international human rights law. That position is unchanged.

“Supporting the workers and communities who depend on the sector and upholding our commitments to peace, human rights and international law are not conflicting objectives. This framework is intended to secure both.”

The aerospace and defence industry directly employs around 16,000 people in Wales, according to the Welsh Government, which says it works with the sector and trade unions to protect jobs and investment.

‘Unconditional’

But Mr Price said public support for the industry could not be “unconditional”.

He said: “Welsh Government engagement with support for and investment in the sector should be governed by clear and credible ethical principles. No such framework has previously existed, and this Government committed to establishing one early in its term.”

The framework will cover financial support for individual companies and projects, inward investment activity, trade missions, events and the government’s wider dealings with the defence sector.

It will also establish circumstances in which Welsh Government support will not be provided. Officials are drawing on discussions with other devolved governments and approaches adopted elsewhere, while industry and other stakeholders will be consulted.

The announcement follows weeks of scrutiny of the new Plaid Cymru government’s approach to the defence industry.

Nation.Cymru previously revealed that several senior Plaid figures had criticised arms fairs while the party was in opposition.

‘Indefensible’

Deputy Transport Minister Mark Hooper said in 2019 that “attending an arms fair is indefensible”, while Culture and Sport Minister Heledd Fychan previously described the DSEI arms fair as a “contemptible event”.

Mr Price himself came under scrutiny after attending the Farnborough International Airshow, which Campaign Against Arms Trade has described as one of Britain’s biggest arms fairs.

The Welsh Government said he attended because Farnborough was an important trade event for the civil aerospace sector and met companies including Airbus.

The minister had also previously been advertised as a keynote speaker at this week’s Newport summit but did not attend. Welsh Government civil servants remain involved in the event.

Mr Price said the new framework would seek to support legitimate economic activity and employment while ensuring public support was consistent with the government’s values.

It would also encourage diversification and “dual-use” opportunities, allowing Welsh companies and workers to develop technologies and skills with both civilian and defence applications.

‘Threats’

Darren Millar MS, leader of the Welsh Conservatives, criticised the announcement, warning that it could deter defence investment in Wales.

He said: “With Russia waging war in Europe and warnings about the growing threats facing the UK and our NATO allies, we should be strengthening our defence capability, not putting investment decisions on hold.

“The Welsh Conservatives support increased defence spending and we want to see as much of that additional investment as possible coming to Wales, to support Welsh businesses and create highly skilled, well-paid jobs.

“The Plaid Government’s actions risk sending a message to the UK Government and investors that Wales is hesitant about supporting the defence industry just as major decisions are being made about where increased defence spending should go.”

Mr Millar said he had written to First Minister Rhun ap Iorwerth seeking “urgent clarification” about what Mr Price’s announcement meant.

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