The Committees' review of the
legislation
5. Because we knew that the Government's review of
export controls was scheduled for 2007 we decided to start work
on our own review in the autumn of 2006 with the objective that
our Report should assist the Government's review. We reviewed
the 2005 Annual Report on Strategic Export Controls[11]
and the Quarterly Reports[12]
for 2006 together with the operation of the Export Control Act
2002 and the secondary legislation made under the Act. The review
has provided the main focus for our work this year. In reviewing
the legislation we have gone back to the Scott Inquiry into the
Export of Defence Equipment and Dual-Use Goods to Iraq and Related
Prosecutions,[13] the
conclusions of which helped frame the considerations behind, and
debates on, the legislation. We have also focused on the development
and operation of the system of strategic export controls put in
place by the Export Control Act 2002, which have been in full
operation since April 2004. We have outlined our approach at chapter
3 and our conclusions and recommendations which are our response
to the Government's review of export controls are principally
at chapters 4 to 8.
6. We conclude that the Export Control Act 2002
has provided a sound legislative basis for controlling and regulating
the UK's strategic exports but with gaps and shortcomings. The
challenge of increased globalisation of the defence industry,
the fast pace of technological development, changing proliferation
patterns and procurement methods for weapons of mass destruction
(WMD) programmes and the threat from terrorists suggest to us
that the 2002 Act may not surpass the record of its predecessor,
the Import, Export and Customs Powers (Defence) Act 1939, to remain
on the statute book for over 60 years without extensive amendment.
We expect the current legislation will need to be reviewed, and
possibly amended, regularly.
7. As well as the process of taking oral and written
evidence on policy and the operation of the legislation, we have
continued to explore issues raised by particular licences; we
have, for example, assessed whether there has been any inconsistency
in the issuing and refusal of licences to a particular country
and whether other licence approvals or refusals for which the
rationale is not obvious have been determined in accordance with
the EU Code of Conduct on Arms Exports and the National Export
Licensing Criteria.[14]
This process is detailed and, necessarily, confidential. We have
drawn on the information received to make points on policy issues,
and will keep certain cases under review.
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