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28 October 2011, 13:18
Axing nearly a thousand jobs at BAE in Brough will have four times the impact on unemployment as previously thought, MPs have been told.
The posts are set to go at British aerospace giant BAE Systems, which claims shedding workers will help maintain competitiveness and ensure its long-term future.
But the Commons heard each of the skilled roles supports another four jobs in the community.
Labour MP Mark Hendrick (Preston) said: "As well as the contribution BAE makes directly, many of the jobs in Lancashire depend on it.
"It has been independently estimated that each aerospace job creates four or five related jobs in the supply chain.
"That means there is a multiplier effect in terms of unemployment and therefore the economic picture is far worse than the headline figure would suggest.''
Opening a short debate on BAE's "devastating blow'' to Lancashire's economy, Mr Hendrick urged the Government to boost support for the firm and British industry.
He added: "Britain will not recover from the global economic crisis without a strong manufacturing base.''
Enterprise Minister Mark Prisk said the Business Department appreciated the huge impact the job losses would have on the regional and national economy.
He said: "While a decision of this nature is a commercial issue for the company, it is absolutely right the Government should do all it can to help those affected. The Government is determined to take the necessary action both to support the individuals and to ensure UK defence and manufacturing businesses prosper over the long term.''