My Lords, the nature of the world we live in means we have to have adequate defence and security provisions. Ensuring that the necessary procurement can continue effectively after our departure from the EU is clearly essential. These regulations are designed to ensure that, so I support them, but I wonder, as did the noble Lord, Lord Thomas of Gresford, why the opportunity has not been taken to draft some new and more easily comprehensible regulations than these. As the Minister tried to explain the changes that are being made and the tidying up that is being done, I sympathised with her plight: these are a real hotchpotch.
It had been my fervent hope that, after leaving the EU, the UK would seek the closest possible alignment with EU regulations, thus allowing, effectively, a continuing membership of the single market that has been such a boost to our industry. That is not the Government’s policy. I believe the decision will undermine the UK’s economy, but it is clearly important that, in the new, post-Brexit world, the UK nurtures its industrial base. The defence and security industry is a valuable contributor to that. The research and development that goes on in many of our defence businesses feeds into valuable innovation in companies in many other sectors. We need to help that in the future. Can the Minister tell us how much we are going to be able to place our own industry at the forefront when it comes to procurement? To what extent will we still have to offer contracts to the EU and beyond? Are we able to make it clear that our shipbuilding industry is the one we wish to nurture?
The noble Lord, Thomas of Gresford, referred to state aid. Can the Minister explain exactly what the position is on state aid? Many of us are confused at the moment as to why it is such a stumbling block in EU negotiations. Any elaboration she could give would be much appreciated.
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