Jobs joy at Vickers as BAE Systems secure £300m defence deal

Mar 27 2009 by Adrian Pearson, The Journal

Boss wants more military work kept in the UK

BUSINESS leaders in the region have urged the Government to do more to make sure vital military contracts stay in the UK.

Robin Fox, managing director of Northern Defence Industries, made the call at a major conference yesterday.

Mr Fox said more than 20,000 jobs in the region depend on Ministry of Defence contracts and the business is crucial in helping the companies to survive.

However, defence work could play an even bigger role in the recovery, if less was sub-contracted to foreign firms, in the hope of saving money.

But now the NDI has suggested the Government guarantee that a percentage of the work stays in the UK.

Mr Fox also called for the MoD to cut delays and other inefficiencies that cost jobs, claiming the defence industry can play a major role in lifting the region and the rest of the UK out of recession.

He said: "The defence industry is worth £2b-a-year and 20,000 jobs in the North. It is keeping many companies afloat in the recession.

"Defence work in general terms in the UK but specifically in the North East could be a major part in the process of recovery for the economy. I think the Government could focus on a policy of putting more work in the UK, rather than allowing the market to take it outside the UK."

The calls were made at the start of the NDI annual conference at the Marriott Hotel, in Gosforth, Newcastle, which is being attended by around 200 business leaders, politicians and Government officials.