(1) Atc Lasham, St Athan (2) Job Losses At Mod Establishments In Wales

ATC Lasham, St Athan

I understand that ATC Lasham has advised its workforce that it is considering withdrawing from St Athan and although we have not been formally advised by the company, regrettably, we expect they will not be seeking to renew their current lease from MoD, of the Twin Peaks building, when it expires in May 2007.

Members will recall that ATC Lasham, which specialises in civil aircraft maintenance, opened new maintenance facilities at St Athan in November 2005 to carry out modifications to large passenger jets.  The shortness of the lease reflected the fact that, the MoD may need to relocate the VC10 maintenance work into Twin Peaks within 2 years if the Super-hangar was required for the Defence Training Review.  To maintain business continuity, the company have advised that they cannot wait for a decision on DTR and there are no other hangars at St Athan currently able to accommodate large aircraft.

We have offered new premises to ATC Lasham but the company has said it is not able to accept the rental level that we are required to charge.

I can assure Members that we are doing everything we can to support ATC Lasham and secure their future at St Athan.  

We are maintaining our contact and will continue to work with the company and the MoD to try and find a resolution.

The facilities and quality of the workforce at St Athan are second to none and we are continuing to work hard to secure a strong future for St Athan. The Assembly Government has a long term vision for developing an aerospace business park at St Athan and to this end efforts are continuing to attract new commercial and military businesses to locate at St Athan.  The level of interest in St Athan from potential investors remains strong and we are currently in negotiation with a number of potential commercial occupiers.  I remain optimistic that new jobs will continue to come to St Athan.

In addition, the Assembly Government is strongly supportive of the Metrix consortium’s bid to bring the Defence Training Agency to St Athan. If Metrix is successful in winning the MoD’s Defence Training Rationalisation contract, it is expected to create over 5000 direct and indirect jobs and contribute approximately £58 million per annum to the local economy for the next 25 years.  A decision by the MoD on the preferred bidder is expected in the next couple of months and we have been working closely with Metrix to identify their training and infrastructure requirements.  

Job losses at MoD bases

Over the past two years, the MoD have announced rationalisation plans which will lead to closure of  the Defence Aviation Repair Agency at St Athan and MoD stores at Llangennech.  

The transfer of fast jet maintenance work from DARA St Athan to RAF main bases will result in the loss of over 1000 jobs at St Athan by April 2007.  Team Wales partners are assisting, wherever they can, with alternative employment opportunities and retraining for those affected.  I am aware of the current legal challenge by AMICUS regarding the alleged breach of TUPE regulations.  This is a matter for the Ministry of Defence as employers but we are keeping in close touch with DARA management on developments.

The MoD intends that VC10 work stream will remain at St Athan as part of plans to put the work to the market; this is expected to retain about 350 jobs at St Athan.  My previous statements dated 21 September 2004, 9 and 25 November 2005 and 24 January 2006 outlines how Team Wales partners are assisting those affected, the work underway in conjunction with MoD to encourage new aerospace and other complimentary uses for the St Athan facilities,  and our future development plans for St Athan.  

The MoD announced in July 2005 that the Defence Storage and Distribution Centre at Llangennech will close by 2008.  Our current understanding is that there are likely to be 220 posts lost by December 2007.

I understand the decision to close the Llangennech facility has been taken against the background of securing improvements in operational efficiency and flexibility in the supply chain to ensure the most cost-effective support to our front line forces.   My officials and I have been assured by the MoD that they will work to minimise compulsory redundancies, but of course cannot rule them out at this stage.  In the event of compulsory redundancies, we will, together with Team Wales partners, and of course the MoD, do everything possible to help those affected to find alternative employment or training opportunities in what remains a buoyant labour market.

We will also be examining the potential future uses for the Llangennech site, which given its proximity to the M4, is potentially well placed for a wide range of commercial and industrial uses.   By acting in this way I would hope that we can minimise the long term impact of this closure, both on the individuals affected and the wider local community.

Finally, I am aware of media reports about possible redundancies at Babcocks at RAF Valley in Anglesey.  My officials are maintaining contact with the company and the MoD, and we will continue to monitor developments.