After several years, the MSPO has returned to the tradition of meetings between government ministers responsible for Poland’s defence industry and the CEOs of armaments companies. It’s been a long time since they exchanged views so frankly. The historic meeting took place on the first day of the XVI MSPO.

Dariusz Bogdan, deputy minister of the economy responsible for offset projects, reminded listeners that it was a year since the adoption of the strategy for transforming the arms industry. All the tasks the government took on board have been completed. A strategy for further transformation was proposed recently by the management of Bumar. We think this is a very good proposal. We would like to see the Polish arms industry modernize very quickly thanks to this new strategy, and obtain new technologies.

The government has assigned substantial funds for Polish companies. This year alone, we spent PLN 84 million on the Economy Stimulation Plan (PMG). We have finally had some success with the offset programme. An agreement has been signed between Lockheed Martin and WZL-2 in Bydgoszcz. I agree in many things with the critical view of Tomasz Hypki, publisher of RAPORT-wto, but I try to be an optimist. We have learned quite a lot. The amended offset law will finally change our situation.

Bogdan believes Polish companies should merge in order to consolidate their market position. Our industry needs to be increasingly competitive in Europe and around the world.

The deputy minister of national defence, Zenon Kosiniak-Kamysz, thanked the president of Targi Kielce SA, Andrzej Mochoń, for enabling the community to return to these meetings which are so important for the defence sector. Though, he noted, it would be better for them to take place in a quieter atmosphere and not during such an exciting exhibition. That’s why I have proposed that Industry Days be held at the Ministry of National Defence on 4-5 November. This will offer an opportunity to discuss the most important issues calmly. I’d like to see this meeting held every year.

The Armaments Agency will start work next year. It will be responsible for all matters related to developing and purchasing equipment for the Polish Armed Forces.

Without waiting for the system transformations to finish, the defence ministry is making most of its purchases in the Polish arms sector under long-term contracts. This year they will account for as much as 60% of spending, while our goal is 80% of contracts in this system. We are getting there. At the end of June 2008, orders placed with Polish industry reached PLN 2.1 billion, of which PLN 1.3 billion went to military overhaul and production plants.

The final word was spoken by Krzysztof Łaszkiewicz, deputy minister of the Treasury. Ownership changes must result in a stronger arms sector. We have a strategy which we have to implement. There is no alternative. Consolidation is the future. We will talk to foreign companies in future, but on our terms. We will not give foreign entities control over any key armaments factory. We will seek investors, but on partnership terms.

Bumar is key to successful consolidation. The previous management was unable to cope with the task it was given. The current board has proposed a concept compatible with government policy. Now it’s important to have it approved by the three key ministries: economy, national defence, and Treasury. The strategy should be approved by all those interested in early October.

Łaszkiewicz thinks Polish arms companies should follow the best European models (France, Germany). We also need to remember that the military will not buy anything that fails to meet world standards. Obviously, Polish industry is unable to produce everything, to mention aircraft carriers, and partners or even suppliers need to be found in many areas. These have to be exceptions, though.

We have to implement the strategy which has been approved. We cannot afford any further useless discussions. For the Polish military, Polish industry must be the economic base. There is no other option, Łaszkiewicz summed up the meeting to everyone’s applause.