DEFENCE Secretary Malcolm Rifkind tookthe unusual step of over-ruling
his Accounting Officer to order British helicopters and save thousands
of jobs in a #1200m deal, it emerged last night.
A decision to buy a purely American fleet of Chinook helicopters would
have saved the taxpayer #300m.
However, the Government decided that the need to safeguard jobs and
retain a UK helicopter manufacturing industry was more important.
Consequently, the RAF is to get a mixed fleet of 22 Westland EH101s
and 14 Boeing Chinooks.
The long-awaited decision -- strongly opposed by senior RAF officers
and civil servants -- was warmly welcomed by MPs of all parties,
Westland and its workforce.
Mr Rifkind revealed he was forced to issue a directive to his
accounting officer, Dr Malcolm McIntosh, the Chief of Defence
Procurement, before the deal could proceed.
Dr McIntosh objected to the planned purchase on the grounds of value
for money.
The need to set up an EH101 support infrastructure from scratch meant
it was much more expensive than the Chinook, as the RAF already operates
a 32-strong fleet.
Boeing, which agreed to place work to the value of the contract with
British industry, had offered to double that deal to 200% the value of
the contract if just the Chinook was chosen.
Mr Rifkind, who stressed there were precedents for issuing directives
to accounting officers, said: ''He looks at the very narrow sense of
value for money ensuring the least expensive way of meeting a
requirement.
''But there is the need to ensure our armed forces have the helicopter
lift capability required; second, the necessity to retain a military
helicopter manufacturing capability in the UK and third, we look at the
wider employment and industrial benefits that flow.''
Dr McIntosh eventually concluded the overall benefits outweighed the
costs.
The Government has already invested some #1500m in the development of
the EH101 family, central to Westland's comprehensive design and
manufacturing capability.
Mr Rifkind said it had excellent export potential in both its military
and civil variants, from which the Government would derive substantial
benefit through the levy on sales.
''Our decision demonstrates the confidence that we have in this new
British aircraft,'' added Mr Rifkind.
First deliveries would be in 1999 and the announcement would increase
the military's medium support helicopter capacity by some 70%.
''It will help to secure the future of the UK helicopter design and
manufacturing capability and so strengthen the UK aerospace industry,
which provides important opportunities for UK suppliers as well as
technology and skills both within and outside the aerospace industry.''
He said a number of countries had expressed serious interest in the
EH101.
Shadow Defence Secretary David Clark said: ''We very much welcome the
announcement, for the Labour Party has always championed the Westland
EH101. We think the news today is important, not only for the armed
forces but also for the UK defence industry.''
It was ''absolutely vital'' that the UK maintained its
helicopter-building capability, added Dr Clark.
Liberal Democrat leader Paddy Ashdown, whose Yeovil constituency
includes the main Westland plant, declared: ''This order, though late
and less than originally promised, is nevertheless very welcome.
''It is a vote of confidence not only in the aircraft, but also in the
workforce and the management that have produced it.''
He said the decision opened up the possibility of wider use for the
EH101, which could become a Nato standard.
The order will help safeguard 6000 jobs at Westland and thousands more
at 200 sub-contractors, including Rolls-Royce, Lucas and GEC-Marconi.
It was received with a mixture of relief and rejoicing in Yeovil, home
base of the helicopter manufacturer.
News of the deal was delivered to the Westland factory by Roger
Freeman, the Defence Procurement Minister.
Addressing several hundred employees in the EH101 assembly hall, he
said: ''It is important we retain in the UK and here at Westland the
capability of designing and manufacturing helicopters, both civil and
military.''
Sir David Lees, chairman of Westland parent GKN, said he was delighted
by the announcement.
''This is very good news for Westland. We have always been convinced
that the EH101 was the right aircraft to meet the needs of the RAF.
''There is considerable interest in all variants of the EH101 in the
Middle and Far East, where a vigorous marketing programme is already
under way.
''This latest order, together with civil certification by the British,
Italian and US authorities last November, will further strengthen our
position.''
The Mayor of Yeovil, Tony Fife, was ''delighted''.
He said: ''It is splendid news but long overdue. Westland is
fundamental to the economic being not only of Yeovil, but of south
Somerset and north Dorset.''
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