Select Committee on Defence Fifth Report


Letter to the Committee from the Transport and General Workers Union on the Proposed Closure of Royal Ordnance Bishopton (21 January 1999)

  I am writing to you on behalf of the Trade Unions representing the 500 employees at Royal Ordnance Bishopton to request that the House of Commons Defence Committee conducts a "snap inquiry" into the decision announced by Defence Ministers in December to award a vital order for the new Modular Charge System (MCS) to a South African company without work-share arrangements for Bishopton, a decision that will mean the closure of the factory unless Ministers agree to reconsider.

  Bishopton is the remaining producer of propellant in the United Kingdom, in particular, multi-base gun propellant, extruded double-base rocket propellant and now the development of triple-base propellant. No Government in 450 years has been prepared to surrender such vital strategic capacity. Indeed, Defence Ministers had hoped to maintain strategic capacity by way of work-share arrangements in the placing of the order for MCS. In the event, they decided on cost grounds not to proceed with work-share arrangements and it is that decision which will now lead to the closure of Bishopton, unless that decision is changed.

  The Royal Ordnance Trade Unions have been strong supporters of the Strategic Defence Review and likewise we have supported collaborative ventures. Neither do we challenge the decision to place the order for MCS with Denel, which best met the technical specification of the Armed Forces. The big issues, as stated above, was where the propellant in MCS would be produced and whether or not Ministers were prepared to pay a premium to maintain vital strategic capacity, together with the continued involvement in a key technology, unique of its kind.

  On Wednesday 20 January, we met with the Secretary of State for Defence. Our discussion was dominated, and rightly so, by the key strategic issues. We enquired what alternative sources of supply were there, could the Government be confident of continuity of supply at all times and, in particular, at a time of crisis and could Ministers be confident on grounds of performance and safety of propellant from alternative sources. On that last point, there has been some unfortunate previous experiences with propellant brought in from abroad.

  In answer, we were told that, whilst several countries produce propellant, only three were perhaps suitable. Civil Servants then admitted that they had not spoken to the companies or governments concerned. They do not know if Bishopton's high standards can be matched by competitor companies. And they do not know if the countries concerned would give a cast-iron guarantee of continuity of supply. They hope, they said, to find alternative sources by way of competition once Bishopton has closed.

  Given that remarkable admission, we asked Ministers to support a "snap-inquiry" by the House of Commons Defence Committee before any final decision is made. Our very strong view is that so vital is a safe and secure supply of propellant to our strategic interests that there must be proper Parliamentary and public scrutiny. Ministers said that they would, of course, co-operate with an inquiry. On the part of the Trade Unions, we would accept the verdict of Parliament's watchdog of Britain's strategic interests, not least because of our confidence in the integrity and track-record of your Committee.

  Finally, we very much hope that the Committee will agree to a "snap-inquiry". It would be irresponsible to shut Bishopton, Britain's only manufacturer of propellant, unless Ministers are confident that the needs of the Armed Forces can be met at all times and, in particular, at a time of crisis. As I told the Secretary of State, it would be quite wrong to ask our Armed Forces to ring "yellow-pages" for propellant once Bishopton has closed.


 
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Prepared 28 May 1999