BAE Systems Military Air & Information Sites: Job Losses — House of Commons, 2017-10-10
Topic: Defense
Claire Louise Perry (Conservative, Centre-right): I know that the Government, and indeed all of us, are disappointed to hear the news that BAE Systems is considering reductions of up to 1,400 staff in its military air and information business, 375 in its maritime services division and 150 in its applied intelligence business. This is a concerning time for those working for BAE Systems, particularly in the run-up to Christmas. That is why I can assure the hon. Gentleman that the Government stand ready to support fully those affected. Indeed, colleagues across the Ministry of Defence, my Department and others are reviewing what support we can offer the company as it goes through this process. Of course, the Department for Work and Pensions is also standing by to provide whatever advice or support is required I would like to set out three main points. First, I will provide an update on the process; secondly, I will explain the rationale for the changes; and thirdly, I will set out what the Government are doing to support BAE Systems and this vital sector with our business. The company will now enter a 30-day statutory consultation process, and no final decisions will be taken about the level or type of redundancies until that process is complete. The Government will continue to work with BAE Systems to ensure that compulsory redundancies are kept to a minimum, and the company assures us that the reductions will be managed on a voluntary basis as far as possible. I emphasise that, as is usual in such cases, the DWP rapid response team is engaged and standing by, ready to deploy. It is incredibly important that the skills that people in the workforce have built up are retained in the UK industry as far as possible. That is why we will be using the talent retention system that was designed by my Department, working with the sector, to ensure that vital skills are not lost to the UK I turn now to the rationale for the announcement. The House should be absolutely clear that BAE Systems has taken this decision as a result of normal business practice. The decision is the result of internal restructuring and a drive to transform its business so that it can continue to be one of our most efficient and effective companies, generating export orders across the world. This is not related to any UK defence spending decisions. [Interruption.] Labour Members can shout all they like, but I hope that we can avoid getting politics into this. It was very striking how during conference speech after conference speech Labour Members—not the hon. Members opposite me, for whom I have great respect—went out of their way to criticise the industry that we are talking about. I suggest that we calm down and think about the people affected and what we can do to support them. In the last year, the Ministry of Defence has spent almost £4 billion with BAE Systems, as part of the £18 billion—half of which is spent in the manufacturing sector—that we spend across Government buying products and services from UK industry. We continually bang the drum and lead the charge for our world-leading defence industry right across the globe, maximising export opportunities for companies such as BAE Systems and the thousands of people employed in their supply chains. Indeed, only last month the Defence Secretary signed a statement of intent with Qatar to buy 24 Typhoons and six Hawks from BAE Systems. This is extremely positive news, and it demonstrates continued confidence globally in Britain’s defence and aerospace industry. We will continue to work with BAE Systems to maximise opportunities for the Typhoon and the Hawk training aircraft, and the Type 26 global combat ship, in markets such as Saudi Arabia, Indonesia, Belgium, Finland, Canada and Australia In conclusion, we absolutely understand that this is a worrying time for those affected. We are determined to do all we can to support BAE Systems’ future export opportunities, and I stand ready to meet workers, unions or MPs who are concerned about the potential impact of the announcement in their constituencies.