GKN deal poses a risk to our hi-tech research, warns ex-chief of RAF

A FORMER head of the RAF and two ex-defence ministers yesterday piled the pressure on ministers to act and protect the future of engineering giant GKN.

Air Chief Marshal Sir Michael Graydon warned of the ‘danger’ of losing vital aviation research carried out by the firm over decades in a sell- off to ‘asset strippers’ Melrose.

He said there should be a strategy in place similar to those implemented in countries such as France which prevent predator firms launching hostile takeover bids on defence companies.

The 259-year-old firm makes components for Typhoons, currently flying over Iraq and Syria, and for F- 35 stealth fighter jets which will be a vital part of our future defences.

Sir Michael, a former chief of the air staff, said that he could not envisage a scenario in which Melrose would endanger the F-35 contract.

But he said he was concerned about the research and development programmes carried out by GKN over the decades and the impact this could have on the country if they are lost.

He said: ‘Where I think the danger lies is with the research and development that GKN would have undoubtedly carried out over the years – in terms of in hi-tech fields, not just in aviation – and that may well be something that will be lost, and that would worry me. We are already not spending enough on research and development in this country and if we were to lose GKN then we would be worse off.’

He said there should be a defence industrial strategy in place which would stop such hostile takeover bids and ensure certain equipment is produced in the UK.

Sir Michael said: ‘It is jobs in the country, it is jobs where it matters. If we had a proper defence industrial strategy where we had absolutely established what was in our interests to retain, and ensure we kept the capabilities in this country, we would be in a better place.’

He said Labour had tried to do this when in government but such a strategy was never implemented.

Ex-defence ministers yesterday urged Melrose to clarify its position on the future of GKN.

Tory MP Mark Francois, a defence minister until May 2015, said: ‘GKN is a key supplier to both the MoD and the Pentagon on programmes such as the Typhoons, the Airbus A400m and particularly now the F-35 programme.

‘The jewel in the crown in GKN’s portfolio is its aerospace division, and the Secretary of State for Defence, Gavin Williamson, has been seeking assurances to the company about its future intentions for this division. Given the work that it does touches on our national security, it is vitally important the fate of this division is clarified by Melrose as soon as possible.

‘To lose the aerospace division would be a potentially fatal blow for GKN.’

Former defence minister Andrew Murrison said: ‘Melrose bosses need to say how they will create value, not just extract it for themselves to the detriment of a great British company and its workforce.’

Officials in the Ministry of Defence are currently pulling together an ‘evidence pack’ to see if there are national security grounds to block the deal.

Mr Williamson is concerned about the plans but Business Secretary Greg Clark has indicated he has no objection to the deal in principle.

The Defence Secretary now has just weeks to mount a strong case for why the firm cannot be sold to Melrose.

Sources in the Department for Business, Energy and Industrial Strategy said: ‘This is really in Gavin’s hands now. It’s up to the MoD.’