Time running out to secure BAE Systems jobs

Mar 16 2010 by William Green, The Journal

MINISTERS have been told to give a £1bn defence contract to Tyneside or risk damaging Britain’s defences.

Senior Labour MP Jim Cousins issued the stark warning as time runs out to secure hundreds of jobs at the BAE Systems factory, on Scotswood Road, in Newcastle.

American rival General Dynamics is reportedly set to grab the £1bn contract for Scout armoured vehicles with delays to the refit of the Warrior armoured vehicle already leaving local BAE workers facing an uncertain future.

Defence Minister Quentin Davies, a former Tory who also hit the headlines over his expenses, is expected to a make an announcement within days.

BAE has launched a last-ditch bid to change Mr Davies’s mind by declaring it could consolidate work in Newcastle, cancelling 400 planned redundancies and creating 400 more jobs. Newcastle Central MP Jim Cousins has now joined efforts to secure the future of the plant, which is currently in the neighbouring Tyne Bridge constituency but will move into his Parliamentary seat after the General Election.

He said: “This armoured vehicle contract is absolutely critical to the survival of BAE Systems and if this goes elsewhere, then there is a danger that the British armoured vehicle manufacturing industry would be lost for good.

“And that cannot be in the interest of Britain or fair competition and I would hope, because we haven’t yet had the announcement, that the Government take that very, very seriously in terms of the placing of this contract.”

Tyne Bridge MP David Clelland said he was “fighting” the region’s corner.

The Conservatives urged ministers to delay any decision. A spokeswoman said: “Big contracts like this should not be given now when we are weeks away from the election and a defence strategic review is going to be held whichever party wins.”