BAE Systems (Lancashire)

Debate between Lord Walney and Mark Hendrick

Thursday 27th October 2011 Commons Chamber

[Mark Hendrick]

I agree. Although the enterprise zones are a welcome addition to Lancashire, they are a sticking plaster to try to cover the running sore that the job losses have become in Lancashire. The announcement of 1,400 job losses is a devastating blow.

A key area of development at the Warton and Samlesbury sites is the manufacture of the Eurofighter Typhoon jet. It recently flew its first major combat mission, serving in the skies over Libya to help the national transitional council in its war against Gaddafi, which is testament to the need for the aircraft. The production work is taking place in three tranches. Tranches 1 and 2, involving the production of 384 Typhoons, are now complete, and include 144 jets ordered by the previous Labour Government, with the remainder going to our European partners. The Labour Government also signed up to tranche 3A, which is the subject of the current defence cuts. The coalition Government are now planning to halve the UK’s tranche 3 order. BAE will cut its production from 61 to 36 jets annually, resulting in thousands of job losses. How can the Government justify massive cuts to our defence industry when the economy is edging towards recession? These cuts go too far, too fast and are resulting in the slowdown in production of the Typhoon aircraft.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

I congratulate my hon. Friend on securing this debate. Is he aware that the disappointment and support for those workers is shared throughout the north-west, not least because of the synergies in the defence industry in that region? Is he also aware that Barrow shipyard is an example of how the submarine supply chain could be damaged as companies that supply the Typhoons lose orders and their workers are put under threat?

Military Aviation Industry

Debate between Lord Walney and Mark Hendrick

Wednesday 15th September 2010 Commons Chamber

[Mark Hendrick]

I accept that there has been a loss of jobs in manufacturing, but that trend has continued since the 1960s under Governments of both persuasions. I say that as an engineer rather than as a politician. As technology advances, computers can do many jobs that humans used to do, and a section of an aircraft that used to be made of 100 parts can now be made of two or three. I would not try to be party political on manufacturing. Nobody did more to defend jobs than the previous Labour Government. Every contract that could be given to British Aerospace, which is now called BAE Systems, was given to it, and order books were full. We were looking forward to decades of further production at the company, so we will not take any lessons from the Conservatives.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

My hon. Friend’s point about general manufacturing is important, but does he agree that defence industry manufacturing has been completely different from much of the rest of the picture? Defence manufacturing has been a strength in the past 10 years, especially given the number of jobs that have been created. The danger is that we could lose capacity over the next decade and the capability to lead the world in a range of areas, including, of course, shipbuilding.

[Mark Hendrick]

My hon. Friend makes a very important point. We are not here to talk about aircraft carriers, but they are important to the future of both Warton and Samlesbury. Manufacturing the two aircraft carriers in places such as Barrow would support many industries in the north and north-west, but they are under consideration in the strategic defence review. Bluntly, if the carriers do not go ahead, the need for the aircraft to go on them will be called into question, as will our share of the F-35 joint strike fighter programme. We are currently guaranteed 12 to 15% of those contracts with Lockheed Martin. The Government are sailing close to the wind when it comes to maintaining our share of that work unless a commitment is made to the aircraft carriers.

We are playing for high stakes, because at threat is the future of Britain as a defence manufacturing nation. We have lost a lot of consumer manufacturing to the likes of Germany, Japan and China, and it is essential that we maintain our expertise and technological base in defence manufacturing. Otherwise, not only will the jobs and livelihoods of people in the north-west economy suffer, but the nation will suffer, because we will not punch the same weight or have the same GDP. We will be a much poorer nation as a result. Aerospace is the jewel in the north-west’s economic crown.

On the strategic defence review, the Typhoon programme is extremely important. Exports are important, as is take-up by the four partner nations in that programme. Before the general election, I was disappointed to see the Liberal Democrats make it plain that they would not continue tranche 3B of the Eurofighter Typhoon, against the wishes of many in the north-west. It is a disgrace that so many Liberal Democrats can take a view that threatens so many jobs in the north-west, especially when so many were silent on the issue during the election, especially my opponent in Preston. The Labour Government signed up to tranche 3A, so we showed our commitment, and I call on the Government to show their commitment not only to Typhoon, but to the aircraft carriers, the design and preparation for which are well under way.

The skills of a generation of the work force at Warton and Samlesbury will be put at risk. Last year, 200 jobs went at Samlesbury, leaving only 4,200 jobs. The hon. Member for Fylde mentioned the figure of 5,000, but 4,200 is the actual figure—a loss of more than 25%. The situation is similar at Warton. I do not want to see anyone lose their job, but it is surprising that executive jobs have not been greatly affected. Only one executive job will be lost over both sites, which seems unbalanced.

The announcement that 1,000 jobs will be lost across the country in BAE Systems is a tragedy, but I shudder to think what the strategic defence review will reveal after November when it is completed. That announcement may be just the tip of the iceberg of job losses, and the Government will rue the day if they make significant cuts and these major programmes disappear, as those decisions will be reflected at the ballot box at the next general election.