Scottish Independence: Defence Jobs Warning

By Alistair Bunkall, Defence Correspondent

Thousands of jobs could be lost in the defence industry if Scotland votes for independence, the Defence Secretary will warn.

Philip Hammond will set out the commercial benefit of the Union as he speaks at an Edinburgh defence technology firm. 

"The Scottish people deserve to know what the impact of independence would be on the jobs and livelihoods of the many thousands of people in Scotland that are employed in the UK Armed Forces or in the defence industry that equips and supports them," he will say.

"Less than a year before the Scottish people go to the ballot box to take one of the most important decisions in the history of Scotland, the SNP's plans remain insultingly vague - a two-page wish list that is neither costed nor credible."

Mr Hammond's speech coincides with the publication of an 86-page consultation paper.

Mr Hammond says thousands of defence industry job would be lost

It concludes that the UK investment and legal exemptions which protect jobs in the defence sector cannot and would not transfer to an independent Scotland.

Companies with a base in Scotland would be exempted from contracts deemed sensitive by the Westminster Government.

It is probable that BAE Systems would close its two Scottish shipyards in the event of independence.

The UK has not commissioned a naval ship to be made outside of UK sovereign territory since World War II for national security reasons and so BAE would likely seek to protect its primary source of work.

More than 12,600 people are employed by the defence industry in Scotland.

The SNP has made it clear that it would not allow the UK nuclear deterrent to remain in Scotland.

However Nato has insisted that Scotland would have to earn its place in the alliance and any Scottish attempts to remove Trident would be viewed in a dim light.

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