Must rule wave of contracts
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, a regional alliance of 200 defence and aerospace suppliers, made the call at its annual conference held in Newcastle.
Mr Fox said more than 20,000 jobs in the region depend directly on Ministry of Defence contracts and its business was crucial in helping the companies survive the recession.
The £4bn contract to build aircraft carriers HMS Queen Elizabeth and Prince Of Wales has provided multi-million contracts for Tees Valley companies - including Stillington-based Darchem Engineering and McGill Services of Billingham.
The carriers timetable has been put back by more than a year, though, to dovetail with the Joint Combat Aircraft which they will carry.
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.
The NDI has suggested the Government guarantee 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: “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.
“It means input in higher levels of technology, secure long-term business and well paid jobs.
“But 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.”
He said such a shift in policy would be a political decision rather than a commercial one, but desperate times called for such a move.
Mr Fox also appealed for more help for small companies to break into the defence industry.
Share
