Job Losses at the Defence Aviation Repair Agency, St Athan

Most Members will be aware that, at 9 a.m. today, the Ministry of Defence announced the loss of some 550 jobs at the Defence Aviation Repair Agency facility at St Athan in the Vale of Glamorgan. Many of these job losses were not unexpected. That DARA would need to make efficiencies to become even more competitive in a tough market is a recognised fact, but this does not make the announcement any more welcome or any less of a blow to those directly affected. Although final confirmation of the job losses will not be available until the consultation process with the unions is complete, Team Wales stands ready to assist.

There are two main components to the job losses. Some 360 of the losses announced by the MOD today relate to the repositioning of DARA following its establishment as a trading fund on 1 April 2001. These form part of project Red Dragon, to which I will return. The losses were largely expected as a consequence of DARA being required to operate on a more commercial basis and of the efficiency gains from the more rational layout inherent in the Red Dragon single hangar building. A further 190 jobs at DARA, St Athan have been lost as a result of the decision by the MOD that maintenance work on Harrier jets be carried out in future at RAF Cottesmore. This decision forms part of the end-to-end review of logistics being undertaken by the MOD to provide defence logistics support from industry to the front line, taking account of the Royal Air Force’s need for servicemen and servicewomen to have direct experience of repair work, while DARA has a mostly civilian workforce.

The decision on the Harrier maintenance support work was taken earlier than expected for RAF operational reasons. The appraisal of the future location of this Harrier-related work forms part of a wider review of locations for maintenance being undertaken by the MOD. We will keep in touch with the Ministry of Defence on this.

The First Minister discussed this announcement yesterday with Adam Ingram, the Minister of State for the Armed Forces in the MOD, and with Archie Hughes, DARA’s chief executive, earlier today. The First Minister has been assured that the MOD and DARA remain totally committed to project Red Dragon, which I will discuss in a minute. Losing the Harrier upgrade work is not an indicator regarding workstreams such as Tornado, Jaguar, DC10s and so on.

My immediate concerns, and those of Members, I am sure, are with those directly affected by this announcement. The Welsh Development Agency, which leads on project Red Dragon, will be leading the Team Wales response. My officials met yesterday with the main players, including the WDA, ELWa, Job Centre Plus and Skills Wales. These organisations will be liasing with DARA management and unions to do all that they can to ameliorate the consequences of the losses.

Project Red Dragon was established to consider issues concerning outdated facilities and site infrastructure at St Athan. The project has three principal elements: first, a rationalisation of the MOD’s continued requirements for the site; secondly, the building of a state-of-the-art aircraft maintenance facility for DARA; and thirdly, the creation of a world-class aviation business park by the WDA.
The projects are independent but mutually supportive, with DARA’s new build a cornerstone upon which the WDA’s aerospace centre of excellence will be constructed. A key element of DARA’s commitment to the facility is the construction of a modern and efficient maintenance facility to accommodate forecast future market requirements. The building will provide 20,000 sq m of support workshops and office facilities, and 45,000 sq m of hangar accommodation. With a roof span of 66 metres and a working height of 14 metres, the hangars have been designed to allow for flexibility and can accommodate up to 48 Tornado-size aircraft bays. This leading-edge facility will incorporate the latest technology from a design to facilitate the attainment of the very highest standards of quality and productivity.

The WDA completed the acquisition of a 125-year lease of RAF St Athan on 14 August 2003. It is looking to submit planning applications shortly to redevelop the site as a commercial and military aerospace park, with total public sector investment in the order of £50 million. The development at St Athan is seen as crucial to maintaining the existing south and south-east Wales aerospace cluster. If successful, it would create 5,000 additional high-quality jobs over the next 10 years. A strong commercial partnership is developing between the WDA and DARA, which is the key to the future of DARA and the success of the aerospace park.

More generally, Wales is well placed to capitalise on growth in the aerospace industry, with around 10 per cent of the maintenance, repair and overhaul sector in the UK currently located in Wales. The same is true of six of the world’s top 20 aerospace companies, including Airbus, BAE Systems, General Dynamics, General Electric, Raytheon, Thales and, of course, British Airways.

To conclude, I fully understand and recognise that today’s announcement by the MOD will be unwelcome for all in the Chamber. Our sympathies are with those directly affected at St Athan, and I assure Members that the Welsh Assembly Government and its agencies will do all that is possible to help those being put out of work. We will continue to work with the WDA, MOD and DARA to ensure the long-term success of the aerospace sector in south-east Wales.