ORAC
7th Feb 2006, 07:41
US snubs Blair over Rolls-Royce engine deal
Tony Blair's credibility was dealt a fresh blow last night after the Prime Minster failed to persuade President Bush to award a crucial engine contract for the world's most expensive warplane to Rolls-Royce. Despite intense lobbying from Downing Street, the US Government excluded Rolls-Royce's $2.4bn (£1.36bn) contract to develop an alternative engine for America's Joint Strike Fighter (JSF) from its latest defence budget.
Rolls-Royce refused to comment on reports that 340 workers will be redeployed or made redundant as a result of the decision. Half the jobs involved are in Indianapolis, with the rest at the group's Bristol plant.In a statement it said it was "very disappointed" but that it would try to revive support for the plans in the Congressional debate on the budget.
"The programme marked an important step forward for collaboration between the US and the UK defence sectors, beside the far-reaching benefits of having competing engines on the JSF," it said. "The financial impact, if we do not succeed in reinstating it, will be spread over many years into the future. It is also perhaps worth noting that we will still be expecting significant revenues from the JSF programme." Rolls-Royce is expected to comment further at its preliminary results on Thursday.
Britain is contributing $2 billion to the £150 billion JSF project, which also involves BAE Systems.
CBI director-general Sir Digby Jones attacked America's decision as "short-term cost-cutting" which sent out "all the wrong signals" about America's attitude to collaboration on aerospace and defence projects. He added: "That's not a great message to send to your most loyal international business partner and best friend in an uncertain world. I thought better of America's attitude to the UK.".................
Tony Blair's credibility was dealt a fresh blow last night after the Prime Minster failed to persuade President Bush to award a crucial engine contract for the world's most expensive warplane to Rolls-Royce. Despite intense lobbying from Downing Street, the US Government excluded Rolls-Royce's $2.4bn (£1.36bn) contract to develop an alternative engine for America's Joint Strike Fighter (JSF) from its latest defence budget.
Rolls-Royce refused to comment on reports that 340 workers will be redeployed or made redundant as a result of the decision. Half the jobs involved are in Indianapolis, with the rest at the group's Bristol plant.In a statement it said it was "very disappointed" but that it would try to revive support for the plans in the Congressional debate on the budget.
"The programme marked an important step forward for collaboration between the US and the UK defence sectors, beside the far-reaching benefits of having competing engines on the JSF," it said. "The financial impact, if we do not succeed in reinstating it, will be spread over many years into the future. It is also perhaps worth noting that we will still be expecting significant revenues from the JSF programme." Rolls-Royce is expected to comment further at its preliminary results on Thursday.
Britain is contributing $2 billion to the £150 billion JSF project, which also involves BAE Systems.
CBI director-general Sir Digby Jones attacked America's decision as "short-term cost-cutting" which sent out "all the wrong signals" about America's attitude to collaboration on aerospace and defence projects. He added: "That's not a great message to send to your most loyal international business partner and best friend in an uncertain world. I thought better of America's attitude to the UK.".................