Yeovil MP Adam Dance has urged the government to end ongoing uncertainty over Leonardo's role in delivering new helicopters for the Ministry of Defence (MoD).
Leonardo has been the sole bidder for more than a year for a £1bn contract to deliver the Ministry of Defence (MoD)’s new medium helicopter programme - with the company warning it could pull out of Yeovil if the contract was not awarded, costing 3,300 local jobs.
In his most recent intervention on the subject, Mr Dance used a parliamentary debate to urge the government to end the uncertainty and award the contract, protecting jobs in his constituency and the UK's wider security.
The government has given assurance that Leonardo's final offer will not be allowed to "time out" at the end of March, and more information would be provided as soon as possible.
Opening the Westminster Hall debate on Wednesday (February 11), Mr Dance explained: "After retiring the Puma from service last year, the UK currently has a capability gap.
"We have no medium-lift helicopter ability for our armed forces, which means there is a clear requirement for helicopters to transport troops, equipment and supplies over long distances and difficult terrain on a wide range of missions.
"Although we hear a lot about the future of warfare, in the age of drones and even greater technology development, crewed helicopters are still key to a joint force that will allow our military to respond effectively to the ever-growing threats we face.
"We have a gap that needs to be filled. That is what the new medium helicopter programme is for.
"As the last remaining bidder for the £1bn contract, Leonardo is ready to fill that gap by offering the AW149 helicopter, built at the home of British helicopters in my constituency.
"here is one bidder in a contract; that is a win, win, win.
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"It fulfils a capability requirement, will help to boost defence spending and modernise our armed forces.
"It will provide investment in the British jobs and apprenticeships in Yeovil, which is what the prime minister told me he is determined to deliver.
"By contrast, not awarding the contract is lose, lose, lose, particularly for my constituency."
Mr Dance said that Leonardo pulling out of Yeovil would cost not only more than 3,000 skilled jobs directly, but jeopardise around 12,000 jobs within the regional supply chain - putting a £320m dent in UK GDP.
He added: "It will be the death of my town. Local businesses have told me that they will shut overnight if Leonardo goes.
"House prices will fall and young people trained in Yeovil will leave."
Edward Morello, who represents the neighbouring West Dorset constituency, concurred: "Many people who work at the Leonardo site live in my area and commute.
"The company is responsible for providing training and apprentice opportunities for thousands of my constituents.
"Unless the government starts to show that they are serious about speeding up procurement in the defence sector, we will lose vital industries, such as those that secure our ability to make helicopters, as well as thousands of businesses in the supply chain that support them."
Defence minister Luke Pollard MP (who represents the Plymouth Sutton and Devonport constituency) said the government was looking at the "whole programme of defence spending" to ensure British jobs were supported and that the wider public were getting value for money.
He said: "We need to fundamentally rewire defence and build a stronger, more lethal military, which can deter and, if necessary, defeat, those who threaten us. As such, we are looking at the whole programme of defence spending.
"I cannot announce a decision on the new medium helicopter programme today, but I can assure him that we will announce that decision as soon as possible as part of the defence investment plan.
"I am acutely aware that the contract decision is of great consequence, not to just Leonardo and its workforce at Yeovil but the wider community.
"As a fellow south-west MP, I can assure him that the importance to the wider region is not lost on me.
"We will not allow the decision to time out. He is right that the best and final offer price has an expiry date, but we have committed as a government that we will not time out."
Mr Pollard said MoD staff were "working flat out" to deliver the defence investment plan, but added he would "prefer to get it right to getting it done quickly".
He went on to say that he had been "engaging closely" with Leonardo's UK management throughout the process, and had "stressed throughout that the company remains a vital strategic partner to UK defence".
He said: "We inherited a procurement system that was overcommitted, underfunded and fundamentally unsuited to the threats that Britain faces today.
"Reforming, refinancing and restructuring that programme for a new generation of warfare is a challenging task but a necessary one, and it is one that we are tackling methodically and thoroughly.
"Since the general election, we have signed 1,100 major defence contracts as a government, and 84 per cent of those have gone to British companies.
"I want to see more of our rising defence budget spent with UK firms, and that includes international firms that are based in the United Kingdom, creating jobs and growth opportunities."
Following the parliamentary debate, Mr Dance and Somerset Council leader Bill Revans have jointly written to defence secretary John Healey MP to request further updates and assurance on the contract.
Mr Revans said: "We recognise the importance of the aerospace sector to Somerset and the role the Yeovil site plays in supporting skilled employment.
"We have written to the secretary of state to request clarity on the timing of the new medium helicopter decision, so that local organisations and the workforce can plan with confidence."
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