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Fears over BAE moving abroad

A DEFENCE minister has conceded that relations were strained with BAE Systems, Britain's biggest arms contractor, and the Government would be powerless to prevent the company moving abroad.

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Procurement Minister Lord Bach has admitted to MPs there had been 'difficulties' with BAE.

He said he could not guarantee that BAE would stay in Britain but stressed his 'belief' it would continue to play 'an important and leading role' in UK defence manufacturing.

BAE called its relationship with the MoD 'strong' with some 'robust exchanges', and said there was no suggestion of moving abroad.



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