Oral - Implications Of Airbus’s Power 8 Announcement On Employment And Investment In Wales

Further to my written statement issued on 1 March, Power 8 is about Airbus making itself more competitive against Boeing.

Airbus UK employs around 13,000 people, split roughly equally between Filton and Broughton, and including around 1,500 contractors. It is responsible for the design, development and manufacture of wings on all Airbus types as well as the integration of all wing systems, including the fuel systems and landing gear.

The job cuts at Broughton are, of course, regrettable, but the losses will be through natural attrition. The Power 8 decisions made by EADS/Airbus are commercial in nature and its plans to become more efficient are in the UK’s long-term interests.

I am pleased that the UK, through its Broughton and Filton plants, will remain the Airbus centre of excellence for wings and that Broughton will become the core site within Airbus for final wing assembly. It is the only one in the UK that will be designated as a core site, which is a huge vote of confidence in Broughton, its management and its workforce. For the new A350 XWB, that means that the UK will be responsible for the overall design and engineering of the wing at Filton and that wing assembly will be carried out at Broughton.

UK research and technology funding for Airbus has risen substantially recently and forms the basis for continued wing leadership. That funding has come from the Department of Trade and Industry, the Welsh Assembly Government and from English development agencies through the DTI-led technology programme. This represents an annual UK Government funding rate of £14 million for Airbus-led research, and the project of major relevance to Broughton is the integrated wing project, with total funding of £17 million.