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Forum Brief: BAE deal
The government has opted to safeguard thousands of British jobs by backing the BAE Systems bid to build 20 RAF training jets.
The prime minister was reported to have over-ridden the chancellor to approve an order for military jets worth £800 million going to a British manufacturer.
Forum Response: BAE Systems
Mike Turner, chief executive of BAE Systems, said: "We recognise that this has been an important and difficult decision for the government in the context of spending priorities.
"The UK commitment to Hawk will directly secure 2200 jobs across BAE Systems at Brough and 70 companies within the supplier base, reflects the intent of the government's defence industrial policy issued under the authority of the secretary of state for defence and the secretary of state for trade and industry in October 2002 and will therefore be widely welcomed by the UK defence industry.
"We are delighted by this decision - especially for our employees at Brough who will be producing the best advanced jet trainer in the world."
Forum Response: GMB
Kevin Curran, general secretary of the GMB, said: "This is good news for GMB members and for UK manufacturing. I am very pleased that the government has decided to support British manufacturing and British jobs.
"The Hawk contract means job security for our members and work for the wealth-creating sector of the UK economy."
Geoff Hoon, the defence secretary, said: "Hawk 128 is an excellent aircraft. It is the right choice for training the pilots of our future advanced fighter jets and the right decision for our defence industrial capability.
"This is excellent news for BAE Systems, its employees at the Brough factory on Humberside, where Hawk 128 will be designed and built, and for the several hundred people involved in the UK supply chain for the aircraft.
"Over 800 Hawk aircraft are currently in service with some 17 customers. In a highly competitive global market, Hawk variants have won the last three Advanced Jet Trainer competitions and have demonstrated their status as one of the UK's finest exports.
"The future sales prospects for Hawk are extremely bright and I hope this decision will encourage other potential customers to place their orders.''
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