http://thescotsman.scotsman.com/letters.cfm?id=114892007

Labour has overseen massive erosion of British-owned defence contractors

Irrespective of whether one supports independence or not, the response 
of the Labour government to the SNP's proposals on defence is hypocritical.

More so than under any previous government, the erosion of British, let 
alone Scottish, ownership of defence contractors and suppliers has 
accelerated sharply. At the same time, the willingness to let contracts 
to overseas companies has increased to the extent that a United 
Kingdom-owned firm being awarded a major Ministry of Defence contract is 
now headline news.

In the last week alone, Smiths Industries sold its aerospace business to 
the United States company, General Electric, and over the last few years 
a number of other companies have been bought up without a murmur from 
Westminster. This includes, of course, the BAe Systems units in 
Edinburgh, which were bought by Finmeccanica, the Italian company which 
also owns Westland Helicopters, and, surprise, surprise, it still 
supplies the MoD.

And Qinetiq, the former MoD research organisation, which was bought by 
the US private equity company, the Carlyle Group, has (along with other 
overseas companies) recently been awarded a £16 billion contract to 
train UK service personnel.

In fact, when BAe Systems let slip recently that it was considering 
moving its headquarters to the US and becoming a US company, the 
procurement minister, Lord Drayson, said the government wouldn't stand 
in the way of such a move. That comment exemplifies how little 
industrial patriotism means in government circles.

There are other similar tales of the ease with which British defence 
companies have been bought over without so much as a murmur from the 
government and its predecessors. In fact, BAe, Rolls-Royce, Cobham and 
Ultra are the last four major defence firms left. All the others, 
including Plessey, Thorn EMI, Marconi, Pilkington Optoelectronics and 
Racal have been snapped up by oversea buyers such as Thales, of France, 
or Siemens, of Germany.

It is also worth mentioning that a number of US companies also operate 
in the UK, including Lockheed Martin and Boeing. Both do very nicely 
thank you on the back of MoD contracts.

It is, therefore, nonsense to suggest as the defence minister, Adam 
Ingram, has that a UK government would completely reverse its policy on 
procurement and suggest that projects such as the proposed new aircraft 
carriers or any other vessels would not be built on the Clyde, simply 
because Scotland will no longer be part of the Union.

If the price is right, this government would buy from anywhere without a 
second's hesitation, provided the skills and knowledge are of the right 
quality. As far as the Clyde yards are concerned, that's something 
Scotland can absolutely guarantee.

DICK WINCHESTER
Old Rayne
Aberdeenshire

This article: http://thescotsman.scotsman.com/letters.cfm?id=114892007

Last updated: 23-Jan-07 01:01 GMT

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