Sir Gerald Howarth (pictured) – previously in charge of international security strategy – warned against allowing UK engineering giant GKN to fall into the hands of asset-strippers Melrose without assurances over its future
The sale of engineering giant GKN could leave Britain’s military reliant on other countries, a former defence minister said yesterday.
Sir Gerald Howarth – previously in charge of international security strategy – warned against allowing the firm to fall into the hands of asset-strippers Melrose without assurances over its future.
He said the UK’s place as leaders in aerospace ‘must not be imperilled by financial spivs whose only interest is in making a quick buck’.
It came as GMB, the union for automotive and aerospace engineering workers, called on the Government to block the hostile takeover.
Another ex-defence minister Sir Julian Brazier, a former SAS reservist, and Labour’s defence spokesman Nia Griffith also called for action.
Ministry of Defence officials are pulling together an ‘evidence pack’ to see if there are national-security grounds to block the deal.
Defence Secretary Gavin Williamson is said to be concerned about the sale of the 259-year-old firm – which makes components for the F-35 fighter jets – to Melrose.
He will present a dossier of issues to Business Secretary Greg Clark over the next few weeks.
He said the UK’s place as leaders in aerospace ‘must not be imperilled by financial spivs whose only interest is in making a quick buck’. Pictured: GKN company headquarters in Redditch
Sir Gerald said: ‘Gavin Williamson is absolutely right to oppose the Melrose acquisition of GKN Aerospace unless cast-iron assurances are given that Melrose will maintain the business and invest in new aerospace technology and that they will not seek to dispose of the business without prior approval from the Ministry of Defence.’
The former Tory MP also referred to comments by ex-RAF head Sir Michael Graydon warning of the ‘danger’ of losing vital aviation research carried out by the firm.
He said: ‘Sir Michael Graydon is also correct that we need to maintain advanced capability in the UK because without that sovereign capability we risk depending on others, particularly the US, which would mean we would run the risk of losing operational sovereignty.’
Sir Julian said: ‘I think it is extremely worrying.
‘The defence industrial base cannot be an entirely free-market matter.
‘The fate of a company that plays such an important role in the defence industry must be of considerable importance to the MoD.’
He said he was concerned Melrose had no history in the defence industry and it may not be able to properly exploit GKN’s cutting-edge research.
Meanwhile Miss Griffith warned that the F-35 programme was ‘vitally important’ and any takeover must not affect costs or delay delivery of equipment.
She said: ‘We remain very concerned about the takeover deal and the potential impact that this could have on our national security capabilities.’
GMB has also called for Mr Clark to intervene after allegations that short-term investors potentially influenced the decision to sell by shareholders.
Ross Murdoch, the union’s national officer, said: ‘Allowing the short-term gain of speculators to influence the future of one of Britain’s oldest engineering firms sends a harsh message to GKN employees – profits come before their job security.
‘Greg Clark must stop this deal before it damages the UK economy further.’
Ministry of Defence officials are pulling together an ‘evidence pack’ to see if there are national-security grounds to block the deal. Pictured: GKN headquarters in Redditch
The Business Secretary said that the decision over whether to block the takeover of GKN will take weeks.
At Vauxhall’s plant in Luton yesterday, Mr Clark said he was yet to receive evidence from the Defence Secretary or other related agencies.
He said: ‘The shareholders have voted on who they want to see running GKN and I now have a responsibility – a quasi-judicial responsibility – to consider whether an intervention is justified on this.
‘The security authorities are making their assessments.
‘Once they have completed that – and that’s in their hands – they obviously want to do that meticulously and thoroughly.
‘Then they will advise me and at that point I will make a decision but I haven’t had their assessment yet.
‘GKN is a very important business and I think one of the reasons why it has attracted so much interest through this takeover is it is in sectors that are growing and expanding.’