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Fears that Oakdale’s General Dynamics could miss out on £3bn military contract

Business, News | | Published: 09:27, Thursday January 25th, 2018.

General Dynamics’ Piranha 5 is a contender for the MoD’s Mechanised Infantry Vehicle programme
General Dynamics’ Piranha 5 is a contender for the MoD’s Mechanised Infantry Vehicle programme

Politicians from Labour, the Conservatives and Plaid Cymru have united to press home Wales’ case for a £3 billion Ministry of Defence order.

A recent report in the Daily Express suggested that defence companies such as Oakdale-based General Dynamics could be set to miss out on MoD plans to buy new armoured vehicles.

An unnamed military source told the Daily Express: “It has been heavily rumoured that the government will buy Boxer from Germany and British industry is concerned it won’t get a chance to compete.

“Defence ministers have had repeated opportunities to say in the House of Commons that this will be openly competed but they seem reluctant to do so.

“When the defence budget is under such pressure, why would you not want to compete the programme and let British industry save the Government hundreds of millions of pounds?”

Dawn Bowden, the Assembly Member for Merthyr Tydfil and Rhymney said Wales needed to be given every chance to secure the contract and the resultant jobs.

She said: “I was pleased to co-ordinate a cross party letter to Prime Minister Theresa May from 23 Assembly Members asking the UK Government to give every opportunity to Wales and UK based companies to construct the new Mechanised Infantry Vehicle (MIV).

“I see this story is in the news so feel it appropriate to comment that as Assembly Members we hope the MoD will give companies such as General Dynamics an opportunity to compete for, and secure these important jobs.”

She added: “This will be a significant investment by the MoD and holds the potential for many well-paid jobs in a range of occupations. Let us hope that every opportunity is taken to secure these jobs in Wales and the UK.

“The decision to be made by the MoD about the MIV could be a vital economic boost. It is important that the UK Government helps to secure these jobs as we face a number of economic uncertainties over the coming years both here in Wales, and across the UK.”

The cross party letter was signed by Welsh Labour, Welsh Conservative and Plaid Cymru AMs and was also copied to UK Defence Secretary Gavin Williamson.

Tory MP David Davies, chairman of the Welsh Affairs Select Committee, said: “This is a multibillion pound contract which will support thousands of jobs so we should do everything possible to ensure those jobs stay in Britain.

“At the very least companies like General Dynamics, based in Wales, should be given every opportunity to compete for the tender to build these vehicles.

“Given its importance to South Wales, I have already raised the issue with the Defence Procurement Minister and I am seeking a meeting with Defence Secretary Gavin Williamson.”

An MoD spokesman said: “No decision has been taken at this stage and our approach remains to encourage open competition wherever possible.”

1 thought on “Fears that Oakdale’s General Dynamics could miss out on £3bn military contract”

  1. Richard Williams says:
    Friday, January 26, 2018 at 01:45

    The leaders of this country need their heads read. There are some weapons and weaopn systems that are much cheaper bought ‘off ther shelf’, Trident missiles are one such system. The small amount we need precludes spending the money on research and development to produce our own and there is virtually no chance of export orders because of non proliferation agreements.

    Armoured vehicles are not in this category and all that will happen if we buy from abroad is that we become reliant on a foreign country for replacement, spares, etc of something we can produce ourselves. We meantime lose the domestic cabability to produce light armoured vehicles. We also lose any chance of export orders should we produce a good product. Not long ago we exported huge numbers of main battle tanks, Centurion, Chieftain and Challeger. Good for our balance of payments and good for our domestic companies. Ditto ship building. If we buy from abroad all this is thrown away, not only does it cost our nation money but we lose the skills, factory space and jobs – madness! Before anyone points out that General Dynamics is Americam owned; I do know. But the men and women who make the vehicles are British and the factory is in Wales.

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