As reported in ‘they work for you’:

Ben Wallace (Wyre and Preston North, Conservative)

I think that I am on the slow line, Mr Speaker. I warmly welcome my right hon. Friend’s announcement today about High Speed 2. As a good northern girl, she will know that the north of England does not start and stop at Leeds and Manchester. On the route map published today, it seems that High Speed 2 on the north-west line extends further north than Manchester, perhaps to what looks like Preston. Will she give serious consideration to ensuring that Preston is included in phase 2, so that Lancashire and one of the hubs of British manufacturing get direct access to the south?

Justine Greening (Economic Secretary, HM Treasury; Putney, Conservative)

I am delighted to tell my hon. Friend that places such as Preston will gain from phase 1, in terms of connectivity between the west coast main line and HS2. I am as passionate as he is about ensuring that his area has excellent railway links, and we are looking at developing the HLOS2 proposal for shorter and medium-term funding in our railways. I have no doubt that he will continue to represent his constituents’ needs to us as powerfully as he just did, and I will continue to pay very close attention to them.

The main speaker was David Davis who raised points about the betrayal of a long history successful work at the Brough plant. That the Hawk still has prospects for sales and that much of it is being offered to overseas companies in ‘offset’ deals to gain more sales. Also the point was raised that BAE had made the error of selling off its commercial aircraft interests which had often taken up the slack when defence orders are slow. A plea to slow the rate of redundancies at Brough was raised.

There was also talk about the terms in the ‘yellow book’ which represents the trading agreements between government and industry. This relates to guaranteeing jobs to maintain capability and covers who pays for redundancy costs. It seems the government pays in this case. Some MP’s think BAE is exploiting this.

Others mentioned large overspends that need to be reduced and ensuring the ability to satisfy future projects.

Each MP spoke. It seemed reading the debate that very little was said that hasn’t been said a dozen times. It is perhaps unusual for redundancies at one company to secure so much time for discussion and it left me wondering what was achieved. At the end there was a resolution which might mean more in politics than it does when reading it. This says;

That this House urges BAE Systems to act to preserve the UK’s defence production skills base and, as a recipient of enormous resources over many years from the UK taxpayer, to deploy those resources in such a way as to protect the nation’s manufacturing capability.

Or it seemed;  Carry on as planned,  if what you make costs more and what you can offer is limited by inflexibility then you reduce the chance to sell it, and so could lose more jobs.

It could be argued that to preserve jobs the government should place contracts that pull work forward or create new research. In the current climate this seems unlikely.

An overview of defence as a whole could read as follows. Over the years the UK aircraft industry has consolidated to a few plants and BAE has changed from an aircraft company to one that delivers systems with a large part in the US. Also the number of projects has declined and it appears that the UK is likely to become an aircraft ‘part’ manufacturer. With UAV’s potentially creating work but it isn’t clear how that will evolve. The alternatives come with large bill. Perhaps a measure of the UK’s decline over the years coupled with increased complexity and the range of military options from tanks to submarines, UCAV’s and very expensive electronics, counter-measures, surveillance and cyber-warfare. Where to focus? Which elements to play a major part in?  Off the shelf, licence build, direct purchase? A lot to consider.  Let’s hope we can maintain a viable aircraft industry producing whole aircraft rather than a bit player. Today we might not be optimistic. Only the French put national glory and maintenance of capability on an equal pedestal to financials e.g. Renault, Airbus, TGV, Nuclear Power, Ships.

The aircraft industry has been recognised as one that generates large export earnings through products and services over long periods of time.  Aircraft also contain a wide range of sophisticated equipment that provides high technology business and employment all over the country and these items are also exported. The business fosters close relationships and partnerships with other countries of all sizes that often leads onto other business, particularly infrastructure, as well as demonstrating a capability to participate in future high technology international ventures. Investment in aircraft projects provides the likes of BAE, Rolls Royce, Martin Baker, Marconi with the foundation for their products. There is a lot to lose without care.

Read the full debate on the website ‘they work for you’.

http://www.theyworkforyou.com/debates/?id=2011-11-24a.472.1&s=speaker%3A11668#g475.0

Warton and Samlesbury are hit by a slowdown in Typhoon deliveries which has been agreed with Germany, Italy and Spain. Also by a slowdown in the build up of the US led programme, the F35.

The Brough site is Hawk related and a union representative said on the BBC that Hawk work will be moved to Warton which they are going to resist. The company has stated it is negotiating ending manufacture at Brough which will leave structural testing at the site.

In the last few years there have been a number of reductions at the Preston area sites. The Jaguar and Harrier taken out of UK service. Nimrod scrapped. Some Tornados mothballed. Previously defence work has been consolidated at Warton as other sites closed and export orders kept the workforce numbers high. As Tornado and Typhoon have peaked and F35 work delayed some reduction seems inevitable.

Yet BAE has often cut numbers locally and sometimes taken them back within a couple of years. Whether this will happen again is questionable although there are a number of potential orders such as Typhoon for India. Also the company declared the job reductions as ‘potential’ so there is perhaps optmistically  some scope for movement of staff and new work which may reduce actual redundancies.

For the future the company are working on unmanned aircraft and prototypes have been built. Questions will be asked about what comes after Typhoon and fits above the F35, if anything.  The US has long wanted to be the monopoly supplier to Europe’s Air Forces. A ‘super project’ like the F35 ordered by almost every western air force will no doubt be proposed to see off the capability of the UK. Although it might be expected the French will continue their full range of aircraft and air vehicle manufacturing capability and perhaps they are the people to use as an example or logical partner.

Preston isn’t the only area with advanced technology development and manufacturing on these aircraft. The engines, radar, electronics, undercarriage, ejection seats all have major UK development and manufacture and are all assisted by a home market which enables their equipment to be chosen on American and other aircraft. A manufacturer not selected on a home project loses mass and credibility. A long term plan for the industry isn’t visible at this time although this isn’t a new situation with aircraft projects being complex and long term.

The previous government planned that £2bn a year would be spent on rail. Crossrail and Thameslink in London would spend that up to about 2017 when High Speed Rail work would start. Yet it seems very unfair that all the investment is going into London while the rest of the country gets London’s old rolling stock as they get new trains. There are 55million people living outside London and the gap in wealth gets larger while more and more money is poured into London – the Olympics being another example. Surely it is time for some equality.  It is said that London is more dependent on rail transport yet it has the only high speed rail line in the country and that goes outside the city to Europe. So London is sucking in people from outside to use its monopoly position. Why should people from the Midlands and the North need to travel to London to go to Europe on the train.

London is currently like a pressure cooker, hemmed in by small hills north and south and nothing of significance crossing those barriers. High Speed Rail will release some of the pressure and it would be expected to shrink the country so that areas well beyond those hills feel the benefits of the London investment effect. On top of that it could release capacity at Heathrow for lucrative international flights rather than domestic ones.

The need for a high speed line is here now, the West Coast Main Line is very busy and increasing train length is only a stop gap. Adding more track will cost as much if not more than a High Speed line.  Building should commence on the full length of line to Manchester and Leeds immediately with a target opening date in 5 years. British engineering companies should be given research funding to develop train technology. Work should also start on improving the track to ensure High Speed compatibility all the way to Scotland. The recession provides a benefit by reducing costs and the project will create jobs.

The UK is still the 7th largest manufacturer in the world but falling although still having some very large succesful companies like GKN. Comparing the UK with China the conclusion was that the jobs moved there because they are simple to do and China can do them cheaply. Our challenge is to keep ahead of the game. Obvious you might say.  Even when the items are made in China it was said that 80% of the added value is retained in the UK. The route being suggested to keep ahead is through niche manufacture like MacLaren cars and other items of sophistication and desire. Next week it’s research and development. Will it be back to Warton, although aero engines, pharmaceuticals and microchips are also big in the UK for R&D.

The Tithebarn plans are now waiting for a legal objection by Blackburn and how confident of it going ahead in good time would we be without the legal objection.  There was mention of knocking down the bus station a couple of weeks ago but you might think they’d build a new one first.  There is also mention of building a tramline and Trampower have drawn a plan for a line along Fishergate linking the bus station with the railway station.  Winckley Square refurbishment and the Flag Market update seem to have gone quiet as well. One thing going ahead is the Preston Guild but it doesn’t depend on any of the above.

It is easy to say we don’t need these changes but it might be short sighted not to plan ahead and start to create what Preston will need to look like in 10  and 20 years. Is fuel going to continue to get more expensive, will we be using more public transport and electric vehicles.  Will shopping move to the internet and city centres focus more on entertainment, eating and leisure or will that move out of town like in the US where many city centres are just office blocks and sandwich bars.

It was recently reported that in the cold winter just passing wind energy was some 20% down due to lack of wind. Even so there is a need for the UK to become more independant of imported fuel as well as setting an example on carbon emissions.  The area chosen isn’t one of great natural beauty and a feature such as this will add novelty. Although the visual impact of large wind turbines isn’t to be ignored as the one at Garstang can be seen from 10 miles away and has dramatic impact when first seen close up. 

The river location is also close to the existing electricity pylons although there is a concern about whether the location is too close to airfields in the area and will effect their navigation aids or aircraft, not forgetting the safety of seagulls. Overall this sounds a good scheme and a more ambitious plan for 9 turbines might be better.

Being close to London these groups are getting a lot of publicity and even the BBC on this morning’s Today programme took sides with the opponents. 

It is understandable that you wouldn’t want a new rail line building close to your house but the project has national implications such as: shrinking the size of the UK, creating additional capacity and relieving existing track, reducing domestic flights, creating an outlet from the pressure on the South East while bringing the north and midlands onto the pan-European high speed routes. 

The government is getting used to people objecting to all their many changes mixing the good with elaborate spurious and exaggerated claims.  Sometimes the government hasn’t got it right but in this case there is a lot of support and both major political parties support the line.  The main negative is that it is taking much too long.

Trials are underway by BT for a national scheme on a much slower timeframe.  Super Fast Broadband is often defined as up to 100MB and uses fibre optic cable either up to the cable cabinet on the end of your road or to your house.  The Lancashire scheme is said to include a variety of technologies appropriate for the areas to be covered.

This sounds a great scheme, not sure how much it will cost users though, and might guess it will be expensive, say £50 a month, for a domestic user.  BT are polling areas on their website and only those places with enough registered potential users are likely to get early roll out.

The LCC website says: ‘Lancashire has a population of 1.16m, 468,868 homes and 40,100 VAT/PAYE registered enterprises.’  That will exclude Blackpool, Blackburn and other unitary councils.

Read Lancashire County Councils plan on their website:

http://www3.lancashire.gov.uk/corporate/news/press_releases/y/m/release.asp?id=201101&r=PR11/0043

BAE SYSTEMS has 35,000 UK employees of which 11,000 work at Warton and Samlesbury.  The portfolio of major programmes locally now includes the Typhoon, Tornado, Hawk, F35 plus Harriers in service overseas. Future unmanned aircraft are in development and collaboration with France has been proposed.  

The job reduction is about 8% locally so not insignificant but whether that many actually leave can depend on many factors such as new work and other consolidation and initiatives.  In addition local suppliers and out-sourcing companies may be effected.   Several million pounds will be taken from the regions economy, not good news for anyone at this time.