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Union attacks Hammond over defence industry jobs
01 June 2012
News emerged yesterday that BAE systems planned to close a site in Newcastle-upon-Tyne which currently manufacturers the Terrier vehicle. The company, which is also set to axe jobs in other parts of the country, said they had no prospect of new armoured vehicle manufacturing after 2013, when the Terrier contract ended.
Unite, the UK's largest trade union, said a lack of a defence industry strategy had contributed to the proposed job losses, which union chiefs will now campaign to save.
The union's national officer, Ian Waddell, said the lack of a strategy for the defence industry was "putting highly-skilled jobs at risk and bringing economic misery to areas, such as Newcastle, that have already been battered by the government's austerity programme".
"Philip Hammond needs to get a grip of defence procurement policy and provide a blueprint to safeguard future jobs and skills for this industry," he said.
"There is a desperate need for a defence industrial strategy where the government clearly lays out its plans for defence spending, allowing industry to plan and invest with confidence."
Waddell said BAE job losses were the result of "no plan and no visibility", which had created a "culture of short-termism".
But according to reports, Defence Secretary Philip Hammond said the government had already set out its plans.
"The MoD now has a fully funded equipment programme that will see the UK award industry £160bn worth of contracts over the next 10 years, including £5.5bn on new and upgraded armoured vehicles," he said.
"We have set out the steps we are taking to support industry, and are promoting exports, increasing opportunities for smaller firms and investing in new technology."
HAVE YOUR SAY
02 June 2012
The devil will be in the detail. How much of the £5.5bn will actually stay in, and benefit the UK?? Just how much of it is money which actually goes overseas?? How many pesetas (sorry .. speuros) does each ASCOD II hull built in Spain cost??
Norman - UK
03 June 2012
But there *is* a strategy for UK defence procurement and has been since 2010. That strategy, as both Hammond and his predecessor have delineated, is cutting the budget to enable the gambling-banker-generated deficit to be paid off. This has resulted in many programmes being cut to the bone and further. The UK can not afford a coherent defence strategy, and will never be able to again. Blame Labour, Thatcher's deregulation of the financial markets, whatever. It doesn't matter to the beancounters. Options, "Choices", Mantell Protocols, and a host of other euphemisms - cut, cut and cut again, but don't put in changed processes for Value For Money - cut first, just get rid of people and armed forces' capability. We'll sort out the mess later - maybe. Or if we lose the lection we can carp at the opposition unfortunates left with our mess.
AlMiles - Bristol, UK
06 June 2012
Regretfully, the evolving impression I get rergarding BAE is that it relies too much on government contracts to guarantee it's income; closing units that are not in 'immediate' receipt of such a contract. Where is the agressive attempt to find new markets? For instance, Portsmouth is of such a size that it would appear ideal for contructing OPV/IPV for 3rd countries. I know there have been a few problems with Oman, and earlier Trinidad contracts (not all directly of BAE making), but these serve to improve the product over time if the concepts are persevered with, surely? As for 'growth', BAE seems to rely on using it's financial muscle to take over other companies that have come up with a good product. Overall, BAE seems blinkered.
Gavin Gordon - Chichester