Fears are mounting for the way forward for a West Nation helicopter manufacturing unit and its 3,000-strong workforce as the federal government drags its heels on a much-anticipated £1 billion defence contract.
The Yeovil web site, owned by Italian defence large Leonardo, had been relying on the so-called New Medium Helicopter (NMH) programme to switch the RAF’s ageing Puma fleet.
Regardless of the Ministry of Defence confirming final month that the prevailing Pumas might be retired subsequent March, it has but to award a contract to safe their successor. Leonardo presently stands as the only real bidder after Airbus and US rival Sikorsky withdrew from the working, however extended delays have sparked concern that ministers may abandon the mission altogether.
Business insiders and union leaders warn that scrapping the NMH contract could be a extreme blow to UK aerospace, with Leonardo’s Yeovil manufacturing unit doubtlessly going through a extreme downturn. Some speculate that the federal government’s looming defence overview may result in cost-saving measures, resembling substituting Pumas with different present helicopter sorts—like Chinooks—slightly than ordering a brand new fleet.
Sharon Graham, Normal Secretary of Unite, not too long ago met Defence Secretary John Healey, urging him to press forward with a choice to safeguard the extremely expert roles at Yeovil. “We have heard the government’s warm words for the defence sector; now we need concrete action,” Graham mentioned. “Any further delay would be disastrous for these workers and the long-term future of this factory.”
Defence Procurement Minister Maria Eagle provided little reassurance when pressed in Parliament. Whereas there are presently no plans to change the unique NMH tender, Eagle indicated that an appraisal course of would proceed into subsequent yr, after which any contract would require authorities approval.
With the Chancellor, Rachel Reeves, centered on trimming public spending, the destiny of the NMH deal hangs precariously within the steadiness. An trade supply described the environment as considered one of uncertainty: “No one can be sure whether the contract will go ahead. Replacing Pumas using Chinooks would be a stretch, but in a climate of tough choices, it might seem more attractive to the Treasury.”
Airbus, which had as soon as promised to construct a brand new helicopter meeting web site in Wales if it received the contract, deserted the competitors earlier this yr, accusing the MoD’s phrases of failing to ship adequate industrial returns. That left Leonardo the one remaining bidder with its AW149 design.
The MoD had initially deliberate to amass as much as 44 helicopters, however this determine is now believed to have been lower to round 25, together with six H145 Jupiter plane not too long ago bought from Airbus to cowl operations in Cyprus and Brunei.
The Chancellor has indicated that no last choices on defence spending might be made till after the forthcoming defence overview. Nevertheless, she has pledged to extend defence expenditure to 2.5 per cent of GDP over time. For now, Britain’s aerospace employees in Yeovil face a nervous wait, as the federal government weighs their futures towards the calls for of tighter budgets and shifting priorities.
