British defence jobs could be under threat if Scotland votes to become independent, the head of one of the largest suppliers to the UK military has warned.
Jean-Bernard Levy, chief executive of French defence group Thales which employs 7,500 people in Britain, said the company could reassess its commitment to the UK if Scotland breaks away following a “Yes” vote in the referendum on September 18.
“It is very difficult to make any sort of predictions, (but) it is clear that if it is cut off from Scotland, the rest of Great Britain will have fewer resources to devote to defence and this will inevitably lead us to re-examine our industrial framework,” he told Reuters.
“There would be questions over the capabilities we keep in the UK and there would also be questions over the facilities we maintain in Scotland,” he said.
Thales operates out of 35 locations in the UK, including its optronics facility at Govan in Glasgow which makes submarine periscope systems and employs about 500 staff. Last year the company had revenues of about £1.3bn in Britain.
Speaking on the sidelines of a defence conference in France, Mr Levy said secession would create “uncertainty” for the group whose expertise in intelligence, surveillance, target acquisition and reconnaissance means it helps equip almost every major platform used by the UK’s armed forces.
“It is a major uncertainty. It would inevitably mean a freeze in investments, and we would have to reflect before making further investments in the light of the shrinking of the UK,” the chief executive said.
“What’s clear is that a group like Thales aims to have as its base for investment countries with ambitions and an amputated Britain without Scotland would create questions for us.”
*While an independent Scotland could affect jobs in the sector, analysts at Investec said the current worries over the referendum are creating a buying opportunity for investors in Rolls-Royce, a major supplier to defence industry.
BRITISH defence jobs could be under threat if Scotland votes to become independent, the head of one of the largest suppliers to the UK military has warned.
Jean-Bernard Levy, chief executive of French defence group Thales which employs 7,500 people in Britain, said the company could reassess its commitment to the UK if Scotland breaks away following a “Yes” vote in the referendum on September 18.
“It is very difficult to make any sort of predictions, (but) it is clear that if it is cut off from Scotland, the rest of Great Britain will have fewer resources to devote to defence and this will inevitably lead us to re-examine our industrial framework,” he told Reuters.
“There would be questions over the capabilities we keep in the UK and there would also be questions over the facilities we maintain in Scotland,” he said.
Thales operates out of 35 locations in the UK, including its optronics facility at Govan in Glasgow which makes submarine periscope systems and employs about 500 staff. Last year the company had revenues of about £1.3bn in Britain.
Speaking on the sidelines of a defence conference in France, Mr Levy said secession would create “uncertainty” for the group whose expertise in intelligence, surveillance, target acquisition and reconnaissance means it helps equip almost every major platform used by the UK’s armed forces.
“It is a major uncertainty. It would inevitably mean a freeze in investments, and we would have to reflect before making further investments in the light of the shrinking of the UK,” the chief executive said.
“What’s clear is that a group like Thales aims to have as its base for investment countries with ambitions and an amputated Britain without Scotland would create questions for us.”
