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DEFENCE I OFFSET

Jarosław Kruk 

TRANSFORMATION OF POLISH ARMS INDUSTRY, MILITARY VARIETIES – ANOTHER ACT OF THE PERFORMANCE

09/07/2013

Despite of the announcement, there is no decision concerning the consolidation of the Polish defense industry. In the current political situation, with a clear decline in surveys of PO, making decision regarding the consolidation of the defense industry around Bumar – “pardon” – Polish Defence Holding is unrealistic. The leader of the opposition clearly standed for the independence of HSW. In my opinion, the political situation indicates that any decision-even minimally unpopular– will not be taken.

The media activity of Mr. Wojciechowski was recently visible. He was asking politicians: why discussions about the consolidation of the arms industry are held without the participation of the private sector? In addition, he described plans of WB aimed to purchase the shares of HSW. It is impossible to deny the rightness of the opinions of the President of WB Electronics. This private part of the defense industry is developing well, an it has in its acquis the innovative products. The introduction of private capital to such company as HSW, with contractual safeguard of the Treasury’s interests at the same time and safeguard of interests related to country’s security would be very beneficial for the sector. We should only develop procedures and agreements which might guarantee to Polish companies which supply to the Armed Forces the most advanced solutions in the field of battlefield management, etc. “sensitive” solutions for protect these companies against sudden shift to foreign investors as a result of transactions, for example, related to the activity of various investment funds. Then, in key solutions for the defense, they might appear quite unexpected players. I will write about this probably in my next articles.

During the activity of PHO we can notice positives symptoms, specially in the field of export – rightly criticized by editor Mr. Hypki in the Report of May. Cenzin, PHO are well – I hope it begins to think seriously about going back to some traditional markets. I keep my fingers crossed and I observe attentively their actions. Unfortunatelly, I will not write about that, because the situation doesn’t allow it.

Technical dialogues concerning anti-aircraft and anti-missile systems were launched. According to the information 14 deliverers notified  their participation. According to the statement  of General Waldemar Skrzypczak for “Rzeczpospolita”- dated 9 June – until the end of September MON will present a recommendation to governmental authorities. Next General added that the purchase of strategic missile systems will have political character. At this point, I am going to use the expression “luckily”, even although I do not feel too much esteem for our exaggerated political class. Our army in terms of equipment has a colonial tradition. There is a feeling that we have to use up what we have and then buy new equipment. Editor Mr. Juliusz Ćwieluch has similar conclusions in his article published in “Polityka”. I hope that our politicians will start to think about the interests of our economy and their decisions will help to ensure that Polish arms industry could produce independently and integrate the equipment which could enjoy huge popularity.

So, at least half of the contract should be entrusted to Polish companies, whereas we should buy from foreign partner what we don’t produce ourselves, for example AA missiles. Our economy’s interest should be in the first place. It is important to look at the costs associated with the life’s cycle of the product, not just at a one-off expense. Since all politicians started to talk about innovation as the basis for the future development of Poland, so maybe they will start to treat seriously their words (is it possible?) and thus they will choose those companies which offer the transfer of technology and production to Poland, which is connected at the same time with giving access to the source codes, etc. The construction of missile defense should be the basis for an innovative economy in the arms industry. Militaries should only set the parameters against which targets and which aims should combat p.ex rockets called Isk etc.

Against whom, it is well known, although political correctness do not allow to say it directly. We have to remember that even our allies may have objectives or subjectives difficulties in supply of additional missiles, replacement of codes and, additionally, it costs a lot.

We can not count on the fact that army representatives will act with the consideration for economy’s interest. Especially after the tender for JET “they forgot” about obligation of the deliverer concerning the service of the jet plane in Poland. I will not mention here other issues, such as lack of offset. Despite many, besides contradictory statements in the press of the Minister Skrzypczak, in which he is saying that the Defense Ministry focuses its action on the fact that our defense industry has been the main beneficiary of the modernization, the activity of the Ministry is not satisfactory. Personally, I hope that this “contradiction” is the result of deliberate strategy of the General.

 

 

 

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