Digger which will save lives and jobs; Factory's deal hailed as vote of confidence.

Byline: Adrian Pearson Regional Affairs Correspondent

HUNDREDS of North East jobs will be safeguarded after BAE Systems won a pounds 300m Government contract.

The deal was last night hailed as a vote of confidence in the region's engineering skills.

Engineers on Tyneside will build the army's latest armoured digger for use in some of the world's most dangerous conflicts.

The 60 Terrier vehicles will help troops remove obstacles and clear routes.

Workers at the Vickers site in Newcastle have been expecting the announcement after years spent preparing the diggers and working on similar vehicles. No new jobs are expected to be created, but BAE said the contract would help secure many jobs both at the site and further down the supply chain during the recession.

But workers at the factory will still have to wait on further Government announcements regarding future vehicle production before knowing for sure how safe many of the Vickers jobs are.

Tyne Bridge MP David Clelland last night welcomed the news.

He said: "This is excellent news, it is a big order. It is good news for both the North East and BAE systems on Scotswood Road. It secures employment for the future and will be a big boost for the apprenticeship scheme.

"I'll be seeing them when the minister arrives and discussing what other support can be offered in the future.

"It is a vote of confidence in our engineering skills in the region.

"A pounds 300m order may not be a big issue for the company nationally, but in Tyneside it is great news and I think it will offer a lot of security, some certainty, for workers at Vickers."

Work will start next year on the 30-tonne vehicle, which has a two-man crew sitting in an armoured cabin and can be switched to remote control when needed.

Defence ministers say they want to see the vehicles introduced by 2013, following earlier design modifications to make the vehicles mine-proof.

Mike Sweeney, communications manager at BAE Systems, said the company had been expecting the decision to move forward with production .

He said: "We welcome the minister's announcement and our focus at the moment is gearing up to move from the demonstration phase to production so we can get this highly-capable vehicle to the front line as soon as possible."

And the news was last night backed by Minister for the North East Nick Brown, who said it was a "significant announcement" for the Tyneside workforce. The Newcastle East and Wallsend MP said the pounds 300m would have a big impact on other regional businesses.

Durham-based company Astrum will be one of those benefiting as a key supplier for the new vehicle, with staff providing track and castings.

Defence Minister Quentin Davies said: "Terrier will be a hugely powerful and versatile machine like a cross between an armoured vehicle an excavator and a loader.

"I am pleased to confirm this order for our highly skilled Royal Engineers who provide vital battlefield support to the infantry and frontline troops.

"Designed in Leicester and integrated by BAE Systems in Newcastle, the order is also good news for British industry as over 90% of the manufacture will be supported by companies from across the country, demonstrating the great level of skills and workmanship we have in the UK."

CAPTION(S):

IN ACTION The BAE Systems Terrier digger that will safeguard jobs in the North East.