Flying_Padre
18th Jul 2001, 22:19
posted July 18 in the Guardian
The government is expected to cause a row tomorrow by awarding a long-delayed £1.7bn contract for new digital battlefield radios to a Canadian company.
Computing Devices Canada (CDC), a unit of US defence group General Dynamics, is believed to have fought off a last-ditch effort from Franco-British company Thales to win the Bowman contract from the ministry of defence.
The feared outcome will come as a bitter blow to Thales chief executive, Denis Ranque, who paid £1.3bn for Racal last year and has cited government approval for his efforts to build his UK operations into a genuine competitor to BAE Systems.
Thales had promised to create 3,000 jobs while TRW, a US bidder that was at one stage front-runner, and CDC are both planning to create more than 1,000 posts, the latter in south Wales. Thales is now likely to shed up to 500 jobs instead at Bracknell and Harrow.
The ministry of defence decision, according to industry sources, will effectively export British jobs to north America and deprive Britain and Europe of expertise in the field of military communications - which they have, until now, dominated.
But Roger Lyons, leader of the MSF union, said tomorrow's Commons statement would reaffirm the MoD's "commitment to the maximum amount of added value and technology jobs for the UK".
The Bowman contract to replace ageing battlefield radios that were so defective they could be overheard by the Serbs during the Kosovo war, became a byword for cost over-runs and delays, prompting the MoD to sack a BAE-led consortium chosen to supply it last year.
Racal was part of the consortium and that, sources said, was a factor in Thales's reported failure to win the contract. Both the US and Canadian groups offered systems that are proven in service - unlike Thales, which had hoped to win £800m in export orders over 10 years.
Mr Ranque said Thales was the only one of the three bidders to be totally UK-based and that Britain would lose an important military capability if its north American rivals won.
Along time in coming - perhaps this is the start of the government placing a contract in order to get the best product rather than going for the cheapest option and a jobs for votes winner........ May be it's time to look beyond British Waste of Space or Wastelands?????
The government is expected to cause a row tomorrow by awarding a long-delayed £1.7bn contract for new digital battlefield radios to a Canadian company.
Computing Devices Canada (CDC), a unit of US defence group General Dynamics, is believed to have fought off a last-ditch effort from Franco-British company Thales to win the Bowman contract from the ministry of defence.
The feared outcome will come as a bitter blow to Thales chief executive, Denis Ranque, who paid £1.3bn for Racal last year and has cited government approval for his efforts to build his UK operations into a genuine competitor to BAE Systems.
Thales had promised to create 3,000 jobs while TRW, a US bidder that was at one stage front-runner, and CDC are both planning to create more than 1,000 posts, the latter in south Wales. Thales is now likely to shed up to 500 jobs instead at Bracknell and Harrow.
The ministry of defence decision, according to industry sources, will effectively export British jobs to north America and deprive Britain and Europe of expertise in the field of military communications - which they have, until now, dominated.
But Roger Lyons, leader of the MSF union, said tomorrow's Commons statement would reaffirm the MoD's "commitment to the maximum amount of added value and technology jobs for the UK".
The Bowman contract to replace ageing battlefield radios that were so defective they could be overheard by the Serbs during the Kosovo war, became a byword for cost over-runs and delays, prompting the MoD to sack a BAE-led consortium chosen to supply it last year.
Racal was part of the consortium and that, sources said, was a factor in Thales's reported failure to win the contract. Both the US and Canadian groups offered systems that are proven in service - unlike Thales, which had hoped to win £800m in export orders over 10 years.
Mr Ranque said Thales was the only one of the three bidders to be totally UK-based and that Britain would lose an important military capability if its north American rivals won.
Along time in coming - perhaps this is the start of the government placing a contract in order to get the best product rather than going for the cheapest option and a jobs for votes winner........ May be it's time to look beyond British Waste of Space or Wastelands?????