Government "ready to sign Typhoon deal"
THE Government is set to approve the latest order of the Eurofighter Typhoon after dragging its heels over cost worries.
The decision is good news for BAE System’s sites at Warton and Samlesbury near Preston, where around 2,500 workers are directly involved in making parts for the jet.
The Treasury and parts of the armed forces had argued that the order was unaffordable, but Gordon Brown has ruled out cancelling the work because of the cost to jobs and damage to the UK’s reputation as a reliable European partner.
Mr Brown has come under pressure from its partners – Germany, Italy and Spain – to stop holding up the third production run by making an overdue £1.4bn payment. Failing to meet the deadline could cost the UK £500m in penalties.
The commitment, after months of speculation over the future of the programme, is understood to have followed an intervention from business secretary Lord Mandelson who argued the case for UK jobs.
Under the terms of the contract the UK is obliged to buy 88 aircraft from the third run. Cancelling the order altogether could have cost the UK £2bn in penalties.
Military hardware manufacturer BAE Systems, one of the region’s biggest employers with around 12,900 staff, is now waiting for confirmation of the latest orders which should come this week.
