Skynet: MPs pushed to back Portsmouth Airbus jobs and not accept 'lowball' US space satellite bid

Pressure is mounting on the government not to accept a ‘lowball’ American bid for constructing space satellites - which would cost hundreds of jobs in Portsmouth if accepted.

Answers were sought in the House of Commons on Monday (October 19) about the future of the SkyNet 6WSS space satellite contract. Prime minister has two options to consider for the £2.4bn contract; one from one of the largest employers in the city, Airbus, and another from the US-based defence giant Lockheed Martin.

The News, backed by Portsmouth City Council leader Steve Pitt, has written an open letter to Mr Burnham urging him to choose the Airbus deal, with the satellites being built in the city and Stevenage for decades. With around 600 employees at Airbus in Anchorage Park already working on SkyNet 6A, fears have been raised by unions and politicians about job losses if the Lockheed Martin deal is chosen.

The company has promised build a new factory in Durham if their bid is successful, which it says would provide 400 jobs, but these roles in the north of England would come at the cost of those in the south. Liberal Democrat defence spokesman James MacCleary questioned why the government would consider handing over a British controlled system to the US.

Speaking in parliament, he said: “Ukrainian forces were left exposed to Russian attacks after the US President acted to restrict access to starshield, showing that The White House is acting to pressure American companies to inference in allied military operations. It’s important that we have sovereign control of satellite communications in facing the Russian threat.

“Now the government is reportedly considering a lowball American bid to operate Skynet, a system conceived during The Cold War to guarantee British sovereignty over military satellite capability. This threatens hundreds of jobs in Portsmouth, a great military city still reeling from the loss of shipbuilding.

“The government talks about buying British and strengthening sovereign capability, and here we have a proven world-leading system operated by a European company. Can he explain to me and the people of Portsmouth why he’s considering handing the operation of this critical sovereign capability to the US.”

Defence secretary Wes Streeting said he could not comment on a live procurement process, as the bid is still under consideration. He added: “To be very clear, we take sovereign capability and control very seriously.

“After what was a challenging week for relations between the US and Ukraine, the United States has, does and continues to provide vital support to them through intelligence sharing, procurement and diplomacy. My US counterpart Pete Hegseth was keen to thank the UK for our leadership on Ukraine. That would suggest that they know what side it’s on.”

The SkyNet contract will see upgrades made throughout the defence network and a replacement for SkyNet 5. Two geostationary satellites being produced to provide secure communications into the 2040s and beyond. As previously reported, the expected deadline for the procurement decision is the middle of November.

Labour MPs in the north of England have been lobbying for the government to back the Lockheed Martin deal. Portsmouth North MP Amanda Martin, and Stevenage MP Lee Bonavia - both Labour - have written to the prime minister to choose the Airbus agreement.

The SkyNet decision was brought up during defence oral questions in parliament. Backbench politicians have to submit a question in the random ballot. Mrs Martin aimed to raise issues but was not selected.

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Speaking after parliament, she told The News: “We need to back British industry, protect skilled jobs and make the most of the manufacturing expertise we already have in this country. "I have been clear in my support for Airbus because I know what it can deliver here in Britain.

“Airbus has a proven track record to deliver the expertise, facilities and skilled workforce to design, build and manufacture advanced satellites in the UK. Portsmouth is a vital part of that capability and we should recognise and build on the strengths we already have. I have been working with others, speaking to Ministers, and am in constant contact with Airbus to secure Portsmouth's future.

“Ultimately, this is about securing the future of British manufacturing and ensuring that Portsmouth continues to play a leading role in our space and defence industries. We already have a company with the capability to design, build and manufacture these satellites here in Britain, supported by an experienced workforce and an established supply chain. We should make the most of that capability and give it the opportunity to continue delivering for the UK.”