Lord Coaker (Lab)

First, we recognised the sensitivities around the deletion of Watchkeeper and they were a consideration. In terms of operations, the decisions around decommissioning were made in a way that would not compromise operations. The chiefs were clear to us that operations would not be compromised by any of the decommissioning taking place. The point about the national armaments director is an extremely important one. The national armaments director is to give greater strength to the idea that we need to rebuild our arms industry and ensure that the stockpiles we have are of sufficient size to meet the threats of the future. In doing that, the relationship with the defence industry—whether the primes or the smaller companies—will be important. The important point is that it is not to be something that is in the interests of the shareholders but something that we need to discuss, which is that it is to be in the national interest and in the interests of our international alliances. That is what is important to us all. We have to have an armaments director which drives forward an arms industry which gives us the weapons and stockpiles we need. In answer to the point from the noble Baroness, Lady Smith, I have not seen the Financial Times article with respect to the European defence industrial strategy, but that is certainly something we have been discussing with our European friends.