Andy Burnham urged to avoid 'massive mistake' by cutting Airbus in Portsmouth out of Skynet satellite contract
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The government has repeatedly stated that British businesses will be prioritised for high-profile contracts
New prime minister Andy Burnham has been pushed to make the right choice by fully supporting one of Portsmouth’s largest employers.
Pressure is mounting to award the Skynet 6 WSS space satellite contract to Airbus. Unite union general secretary Sharon Graham is concerned that as many as 600 jobs at the company could be at risk if it’s US rival, Lockheed Martin, beats them to the £2.4bn contract.
She said: “Andy Burnham has said he is backing Britain and British jobs. The Skynet WSS contract could be the first test of this. These satellites have been designed and built in Britain for the last 20 years ensuring hundreds of skilled jobs in Stevenage and Portsmouth, as well as thousands more in the supply chain. Handing the British Space industry over to the Americans in the first days of the new government would be a massive mistake, industrially and politically.”
The decision to award the contract has been delayed for several months. Details regarding its future were outlined in the delayed Defence Investment Plan (Dip), but no bids have been accepted yet.
Funds totalling £50m has been set aside to extend the lifespan of the Skynet 5 military communication satellites. It’s due to be replaced by new communications capabilities, including Skynet 6A, which is due to launch in 2027. Industry publication Defence Eye reports that a decision could be made as soon as this month.
It will be used to carry the Ministry of Defence’s (MoD) most sensitive data. Airbus currently produces satellites in Portsmouth and Stevenage. Lockheed Martin has promised to create roughly 500 direct jobs in the north-east of England - via an assembly facility in Durham - alongside another 1,500 jobs in the supply chain.
Chancellor John Healey has made assurances that the government will be buying from British companies wherever possible. Mr Burnham previously made calls to “reindustrialise” Portsmouth’s defence sector and put power into communities and businesses on the south coast of England.
Speaking to reporters during a visit to HMNB Portsmouth, he said: “We believe places can do what Greater Manchester has done. People can build so much more for themselves. I want people to know here that I will fully support all of our communities. There is a big reindustrialisation opportunity here, particularly for defence in Portsmouth. People should expect to see plenty of me.”