Defence deals raise job hopes

The Meteor was the winner in the contract battle

The UK Government has promised that Scotland will benefit following an announcement on two major defence contracts.

Defence Secretary Geoff Hoon has revealed that a £1.5bn order for air-to-air missiles to arm the new Eurofighter aircraft will go to the Matra BAe Dynamics European consortium Meteor.

In another long-awaited announcement, he also told the House of Commons of proposals to order 25 European Airbus A400M transport aircraft, produced by the Airbus Military Company at a cost of £3.5bn

The A400M aircraft will provide the RAF with its own strategic "heavy lift" aircraft in the long term, said Mr Hoon.

Eurofighter: Providing job hopes

The Eurofighter missile order has raised hopes that Edinburgh and Fife will share in the 1,200 jobs guaranteed or created by the Meteor system.

An estimated 50 jobs will become available in Edinburgh - where the air to air missile's guidance system will be manufactured.

The order follows intense rivalry between European consortium Matra and American led consortium Raytheon.

Raytheon, which employs 650 people at its Glenrothes factory, still has a contract to supply Eurofighter until the new missile comes into service.

Scotland Office Minister Brian Wilson said the contracts offered benefits for Scotland.

He said: "I am delighted that an estimated 4,600 jobs will be created or safeguarded following the MoD's announcement of orders for heavy lift aircraft and a missile system for the Eurofighter.

'High skill jobs'

"Whilst it is too early to give exact figures, many of these jobs will be in Scotland."

Mr Wilson said he was confident BAe at Prestwick would benefit from the Airbus order, as it was one of the three sites which would receive extra work.

"These jobs will be long-term, high skill jobs that will generate further indirect employment," he said.

"BAe Systems estimates that direct and indirect employment could total 10,000 new jobs across the UK.

"I am sure, therefore, that all in Prestwick and the whole of Ayrshire will be delighted with this news."

Reacting to the announcement of job losses and the scaling down of the early warning system at RAF Buchan, Mr Wilson said it was necessary as the air force needed to react to technological changes and seek efficiency savings.