It's a battlefield

In all wars there are winners and losers.

Unfortunately, for Leicestershire the losers of the battle to win a multi-million pound contract to make light tanks for the British Army are 260 highly-skilled workers in Braunstone Frith.

BAE Systems today announced the closure of its Scudamore Road factory, while at the same time the Ministry of Defence (MoD) said US rival General Dynamics (GD) had won the £500 million deal to build the armoured vehicle.

The MoD named GD as its preferred supplier for the programme in March. It's likely BAE had been working hard behind the scenes to try and persuade the new coalition Government its plans were better than GD's. The firm, after all, spent five years and £50 million developing the Future Rapid Effect System (FRES) vehicle.

This programme had originally been worth £4 billion, but has now been broken up and may be reduced in size again as part of the defence spending review.

But the new regime was not prepared to change a decision made by the Labour Government. This, together with new Government's decision to the delay the upgrade of 450 Warrior armoured troop carriers until the spending review has been completed, resulted in today's announcement.

Meanwhile, defence minister Peter Luff announced the £500 million contract signed with GD had safeguard hundreds of jobs in south Wales and would create 200 new posts over the next few years.

It is likely some of these jobs will be filled by workers from the BAE site in Leicester.

All this comes in the same week as Hinckley sock maker HJ Hall lost out on a MoD contract to supply British armed forces to a firm in Northern Ireland which makes its socks in China.

A miserable few days on the business battlefield for Leicestershire firms.

FURTHER UPDATE: Tanks for nothing

As we reported would happen last week, the Ministry of Defence yesterday handed the tank contract to US firm General Dynamics, putting the future of BAE Systems in Leicester, and 300 skilled jobs, in doubt. Click on link below;

http://www.thisisleicestershire.co.uk/news/Failure-win-Ministry-Defence-contract-puts-Leicester-jobs-risk/article-1936556-detail/article.html

Tanks for nothing

Another week, another cutting-edge Leicester business being threatened with closure thanks to the Government.

Today, we revealed the BAE Systems site in Braunstone Frith, which employs 300 people, could be put in jeopardy if the defence contractor does not win a £4bn contract to create 1,300 hi-tech tanks for the British Army.

The site is renowned for its development of military equipment, but its future would be put in doubt if the contract is given to US rival General Dynamics, which, according to the national press, it will be. The Ministry of Defence has declined to comment.

Managers and staff at the site responded angrily to the reports, which are thought to be based on a well placed leak in either the Government or military.

This latest example of Government action threatening skilled Leicester jobs has once again sent an election-conscious Labour politician ducking for cover. Last week, Leicester South MP Sir Peter Soulsby failed to respond to my request for a comment on the H Beesley story (see below), despite it effecting a business in his constituency.

Today, Labour's parlimentary candidate for Leicester West, Liz Kendall, has not responded to my email and no one was answering the telephone at her office (the answer machine did not appear to be taking messages and there is no mobile phone number on her website). The factory is based in this constituency.

Current Leicester West Labour MP Patricia Hewitt has urged the MoD to reverse its decision. But these are rather shallow words when they come from someone who is about to retire from Parliament.

Whether Liz or any of her staff will call back tomorrow, we'll see. But with an announcement on the tank contract due in the next few days, events may overtake - or should that be roll straight over - her.

(In the interest of political balance, I must say I've also not yet received a response from the Conservative candidate for Leicester West, Celia Harvey, who I understand is an officer the Territorial Army).