Contract battle over aircraft order

The Ark Royal will be replaced by the new carriers

The application deadline for firms competing to make two new aircraft carriers closes on Wednesday.

Bae Systems, which has a yard in Barrow,Cumbria, and the French company Thales are competing for the £10bn contract.

Terry Waiting, leader of Barrow Borough Council, said there could be long-term implications if the order went to the French firm.

He said: "If Thales get the order no-one will come to the UK to have ships built here when they see that we have our own ships built by foreign companies.

'British skills'

"They are more interested in the systems that are going into the ships rather than the hulls."

Mr Waiting, spokesman for the Future Aircraft Carriers Campaign, said: "If Bae gets the order then British skills will be retained."

The contract to build the carriers is worth about £3bn, and another £7bn to maintain the vessels.

The two 950-feet-long, 60,000 tonne aircraft carriers will be the biggest British warships ever built.

HMS Invincible is being withdrawn from service

The ships will replace the Royal Navy's three existing carriers, Illustrious, Invincible and Ark Royal.

Both Bae and Thales have said they will create or sustain 10,000 jobs in the UK if they win the order.

Jonathan Walton, director of government naval programmes at Bae Systems Marine, said: "We have a very strong commitment to the North West region, employing 19,000 people at five major sites.

"So what is good for Bae in terms of orders is necessarily good for the North West."

He said the Barrow yard could build parts of the carriers and also fit them out.

'Large programme'

John Howe, vice-chairman of Thales UK said: "We have been talking to shipyards.

"We are anxious if we win the contract we will put out the work on the basis of a competitive process.

"This will be a very large programme which will create a lot of work in the UK."

The Ministry of Defence is due to announce the winning bid next year, with the ships coming into commission in 2012 and remaining in operation until 2050.