'Don’t sell Portsmouth down the river!': 'Deeply alarming' Skynet wait as hundreds of Airbus jobs at risk
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The deadline to award the multi-billion pound space satellite deal is looming
Andy Burnham is being urged to ‘not sell Portsmouth down the river’ by awarding a multi-billion pound contract elsewhere - a decision which risks hundreds of jobs in the city.
It comes as an anxious wait remains to see which company will be awarded the £2.4bn deal, with fears it could be handed to a US-based defence giant who will instead create jobs in the north east of England.
Leader of Portsmouth City Council Steve Pitt and Liberal Democrat prospective parliamentary candidate candidate Charlie Murphy are the latest to have written to the prime minister to push him over the Skynet space satellite contract urging him “to step in”.
It follows a similar plea from Portsmouth MP Amanda Martin to the award the contract to the Portsmouth-based company Airbus, with hundreds of jobs on the line.
The latest letter comes amid reports in The Times that officials at Defence Digital prefer the bid from American-giant Lockheed Martin, but Mr Burnham is blocking the decision amid fears of cuts.
Mr Murphy said: “He came to Portsmouth and promised opportunities for our city on defence reindustrialisation. Two months later, his government is looking to snatch around 2,000 jobs from our area and hand a sensitive contract to an American company. He cannot sell Portsmouth down the river for 500 jobs in the north. He must keep his promise to our city.”
As previously reported by The News, Airbus and Lockheed Martin are battling over the SkyNet 6 WSS space satellite contract. The former is one of Portsmouth’s largest employers, having overseen space satellite construction for years. Around 600 employees at Anchorage Park are already working on Skynet 6A. The firm also holds a strong presence in Stevenage, Hertfordshire.
Lockheed Martin is promising to build a new factory in Durham if its bid is successful. It is believed that roles gained in the north of England will come at the expense of those in Portsmouth, with specialist engineers most likely moving to the area to meet demand. The agreement will also see part of the manufacturing process take place in the United States.
In the Liberal Democrat joint letter, Cllr Pitt and Mr Murphy said: “It is deeply alarming to hear of a delay to your Government’s decision on its military satellite contract, and it is shocking that work may be taken from Airbus in Portsmouth at the cost of up to 1,000 jobs, and a further 1,000 in the supply chain.”
“The alternative to these 2,000 jobs around Portsmouth is a promise of 500 jobs in Durham in the north of England. Don’t overlook Portsmouth as you seek to invest in the north.”
The News and Portsmouth City Council previously sent a letter to the prime minister urging him to back Airbus. A war of words has ensued in the House of Commons. Northern MPs are lobbying on behalf of Lockheed Martin. Guillaume Faury, chief executive of France-headquartered Airbus, is doing the same alongside Ms Martin and Labour MP for Stevenage Kevin Bonavia.
The SkyNet contract will see upgrades made throughout the defence network and a replacement for SkyNet 5. Two geostationary satellites being produced to provide secure communications into the 2040s and beyond. The expected deadline for the procurement decision is the middle of November.
Amanda Martin, Portsmouth North MP, said: “I have been urging the Government to back British jobs here in Portsmouth by awarding Airbus the contract. We all saw the impact of losing shipbuilding in our great city. Portsmouth and Stevenage have the workforce, skills and community we need to deliver this project.
“If we are serious about reindustrialising Britain, we've got to nurture that talent and go further to strengthen our sovereign manufacturing capability. I will always stand up for good quality jobs here in Portsmouth."
Concerns have been raised over the sovereignty of the space satellites if Lockheed Martin is chosen. Ukraine has seen access to Elon Musk’s Starlink system slowed down as conflict with Russia intensified, given Donald Trump’s recent cosy remarks with Vladimir Putin.
The letter said Lockheed Martin is close to the Trump administration, which has proven to be “volatile and unreliable”. It continued. “Handing the contract for our military satellites to a US prime contractor risks undermining your reindustrialisation agenda, Britain’s sovereignty and our defence industrial base.”
The Times reported that the decision was made to choose Lockheed Martin, and the choice now rests at No. 10 for approval. Political sources told The News that no decision has been made.
An Airbus source told The Times: “If the MoD hands this £2bn contract to an American prime, the business case for sovereign UK space manufacturing collapses. It will inevitably lead to the complete closure of the Stevenage satellite facility and gut the Portsmouth operations, wiping out 3,000 highly skilled British jobs.”
On a recent visit to HMNB Portsmouth, Mr Burnham promised to reindustrialise the city and give it the same attention as the north of England. Pledges have also been made to back British jobs where possible.
Many Airbus employees are members of Unite the union. A source told The Times the Lockheed Martin deal relies on a “fantasy factory” that may never materialise.
General secretary Sharon Graham said: “Unite has been pushing this Labour government from the start to ensure that it makes good on its promise to invest in British industry and buy British in defence. Our members at Airbus have designed, made and launched the MODs Military Satellites for over 20 years.
“This has created a critical mass of skills, IP, expertise & infrastructure that is a real asset to UK. Of course, we need the reindustrialisation programme and that needs investment from government. Of course, I’d be happy to see 2,000 new jobs in Newcastle and I’m sure the PM would too.
"But even if the jobs promised by the Americans did materialise in five years (after they have built a new plant, got security clearances and established a supply chain) it would still be a net loss in UK manufacturing jobs and a hammer blow for the British space industry.”
A Lockheed Martin spokesperson said factory concerns and jobs were overblown. “Lockheed Martin UK, a British company, will establish facilities to develop an ecosystem alongside our regional partners in northeast England to provide the UK with a sovereign space capability,” they added.
An MoD spokesperson said: “This is an ongoing procurement process and no final decisions have been made. Both of the UK-based bidders are subject to full evaluation of their proposals and must offer satellites that are assembled, integrated, and tested in the UK.”