Supplementary memorandum submitted by
BAE SYSTEMS following questions raised during the oral evidence
session on Tuesday 23 January 2001
1. The figures for the proportion of the Company's
total aerostructures manufacturing represented by offset and offload
This question, asked by the Hon Lindsay Hoyle
MP, was specifically related to the Samlesbury and Warton sites.
In a recent briefing to the national trade union officers, they
were told that some 900 manufacturing jobs had been put out to
sub-contract from the Warton unit, of which 60 had been placed
2. The Company's approach on managing the
environmental impact of the industry and its view on the Climate
BAE SYSTEMS recognises that protection of the
environment requires industrial activity to be conducted in a
sustainable manner. With increasing environmental legislation
and a growing culture of environmental care, we recognise that
having sound environmental management systems is a priority.
BAE SYSTEMS has chosen the international environmental
standard ISO 14001 as its benchmark for environmental practice
throughout the organisation. The Company is currently three years
into a programme which aims to see all of the Company's UK sites
achieve this management standard. The programme is currently on
target with some 10 sites achieving certification in 2000.
The Company has also developed a "Cleaner
Performance" strategy aimed at achieving financial and environmental
savings by reducing energy consumption, minimising waste and encouraging
more efficient use of materials and resources.
The Company's environmental initiatives are
well supported by its employees and it is recognised that without
their participation many of the improvements could not be made.
Through this employee involvement there has been an eagerness
by many members of staff to support local environmental projects.
A Company focus has now been achieved by engaging the Community
Service Volunteers (CSV) to help identify and co-ordinate local
projects for our employees to tackle.
In terms of product environmental policy, a
corporate policy has been argued which states "The environmental
impact of BAE SYSTEMS products shall be as low as reasonably practicable
throughout their life-cycle".
A framework document has been agreed and is
now being rolled out into the businesses. Its purpose is to ensure
that appropriate reviews are conducted at each stage of the product
life-cycle to assess the environmental impacts, and to ensure
that appropriate controls are implemented.
3. Climate Change Levy
Although the theory is that the Climate Change
Levy process will be revenue neutral, the impact on competitiveness,
growth and jobs has not, in the Company's view, been adequately
addressed nor have the cost benefits of the programme yet been
The Company has doubts as to whether
fiscal measures are likely to have an overall effect on energy
There is probably a need to develop
a longer-term policy framework beyond 2010, linked to a coherent
plan based upon a hierarchy of least cost options, thus allowing
industry to make the long term planning and achieve investment
in value adding schemes.
There is a need for Government to
establish a long-term Sustainable Energy Policy. Combined Heat
and Power (CHP) schemes may offer a long-term potential, but at
the moment in the main, for the aerospace industry, these are
not viable. Further incentives may be needed in order to enhance
these alternative technologies.
There will also be a need for more
attention to be paid to the promotion of renewable energy sources
therefore making them more widely available to industry as an
alternative to fossil fuels.
Overall, the Company believes that a climate
change agreement should be opened up to as many industries as
possible including the aerospace industry. The restriction of
needing to be included in the IPPC (Integrated Pollution Prevention
Control) framework is, it is believed, restrictive.
4. The Hon Lindsay Hoyle MP said that apprentice
turn out, presumably in the Preston area, had fallen over the
last few years and that in the toolroom at BAE SYSTEMS Samlesbury,
toolmakers had reduced from 140 to 65.
The total number of young people recruited into
the Warton unit, which includes the Warton and Samlesbury sites,
over the past 10 years is 1,571 plus the graduates in 1990-95.
The total number of technicians, craft and business apprentices
and graduates recruited in the Warton unit, which includes Samlesbury,
for the years 1990-2000 are as follows:
||These figures exclude Graduate recruitment (1990 to 1995)
|1991||50||These figures exclude Graduate recruitment (1990 to 1995)
|1992||49||These figures exclude Graduate recruitment (1990 to 1995)
|1993||50||These figures exclude Graduate recruitment (1990 to 1995)
|1994||61||These figures exclude Graduate recruitment (1990 to 1995)
In the year 2000 we recruited more craft apprentices than
in any other year since 1990.
Over the period 1998 to 2000, the Company has recruited nearly
3,000 young people into the business. It intends to continue to
invest heavily in bringing new blood into the Company with a planned
intake of over 1,000 young people for 2001 across the whole of
the UK BAE SYSTEMS activity.
The Company's Technician and Craft Apprentice schemes continue
to play a major part in the recruitment figures with over 300
per year across the business, confirming our commitment to Manufacturing
and the development of Manufacturing Skills. It is also worth
pointing out that the young people on our sites have access to
Open Learning Centres, allowing them to enhance their skills on
an on-going basis.
5. Toolmakers at Salmesbury
The Hon Lindsay Hoyle MP stated that the number of toolmakers
at Salmesbury had been reduced from 140-65. The actual figures
are as follows:
In early 1998, the number of toolmakers was 75. This had
grown to 111 by June 2000 through apprentice completions and external
and internal recruitment in response to increases in the Eurofighter
workload. Planned reduction (detailed below), coupled with the
further intake of apprentices, means that the year 2001 planned
and actual headcount is 69. The numbers were reduced due to the
1. There was a shortfall in strategic work for the toolmakers.
2. The customer demanded cost reductions in tool manufacture.
3. There was a shortage of skilled workers for Eurofighter
4. There was a severe shortage of engineers, a traditional
route for toolmakers' progression.
All the toolmakers have been redeployed within the Warton
Unit or, in a small number of cases, have left on voluntary redundancy
Mr Hoyle also asked about the Company's business in Poland
and Romania in the context of offset work.
As far as Poland is concerned, the Company is marketing the
Gripen and Hawk aircraft, as well as upgrade work on current Polish
equipment. In Romania, the Company has sold military equipment
with other contracts in prospect. In his evidence, Mr Weston explained
the rationale for this offset work.
9 February 2001