CONFIDENTIAL
CONFIDENT I AL
INDUSTRIAL AND EMPLOYMENT IMPLICATIONS
71. At present we estimate that the numbers employed in the
defence industries on contracts placed by the Ministry of Defence will
be reduced by about 10,000, or about 4 per cent of the total, over
a five-year period. This is a broad estimate which takes account
of expected improvements in productivity as well as the future
content of the equipment programme. It will be some time before
the adjustments to our equipment proposals are fully reflected in
the workload of firms or factories. The reduction will fall
unevenly, affecting some firms and localities more severely than
others. Among the main firms are Westlands at Yeovil and the Small
Engine Division of Rolls Royce at Watford, both of which will be
affected by the cuts in requirements for helicopters.
A reduction
in the planned rate of delivery of the MRCA for the Royal Air Force
will affect the production of British Aircraft Corporation in
Lancashire, and of Rolls Royce at Bristol and Coventry which is
responsible for the RB109 engine. Reductions in the numbers of
in-service aircraft will affect Hawker Siddeley Aviation at
anchester and Bitteswell and Rolls Royce at Fast Kilbride and
Coventry. The conventional armaments industry is not likely to
suffer much change in employment. The shipbuilding industry
however, will be given less work. The exact implications for each
firm cannot be assessed until forward equipment programmes have
been revised in detail. However, the main firms likely to be
affected have been notified of the probable consequences so that
they can study the implications, and consult their employees.
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CONFIDENTIAL
CONFIDENTIAL