THE Ministry of Defence (MoD) has come under fire following BAE Systems’ announcement that it is to shed a third of the workforce at a North-East armoured vehicle plant.

Having announced 50 job losses at its Newcastle plant in April, the defence company yesterday said it had increased that number by 167 to 217.

BAE said that after a further review, following the MoD’s publication of its armoured fighting vehicle sector strategy, the present size of its business did not “match” its predicted orders.

Last night Robin Fox, managing director of Northern Defence Industries – which represents more than 200 defence contractors in the North of England – blamed the MoD for not bringing projects to design and build military equipment to the market more rapidly.

He said: “It is very sad news, although not unexpected.

“Clearly it is a symptom of the MoD not making decisions on some of the bigger programmes.”

Originally, BAE said it was cutting 500 jobs, including the 50 in Newcastle, and closing sites in Guildford, Leeds, and Telford.

Now another 90 jobs are to go, and while the three sites will still close, nearly 150 jobs are to be transferred from Telford to a new centre in Donnington.

It means the Newcastle plant in Scotswood Road, which employs 650, will bear the brunt of the job losses.

BAE Global Combat Systems Vehicles managing director Jan Soderstrom said: ‘‘These job losses, while regrettable, are absolutely necessary and reflect the reality of the market we are operating in today.

“The size and structure of the business does not match our predicted order intake.”

He added: “We will work with affected employees to provide training and help find new roles inside and outside the company.’’ Mr Fox believed the BAE cuts would have an effect on the supply chain, which involves a significant number of North-East companies.

He said it was an “absolute farce” that some big decisions on procurement projects had been put off by the MoD.

He said: “I am finding it very frustrating at present.

“The Government needs to try and stimulate the economy, particularly in manufacturing and engineering, that is a key part of the economy.”

Mr Fox said that could be done. “By actually procuring some of these key programmes, the MoD has been looking at for a number of years, using them to maintain and sustain British jobs and keep the work in the UK.”

He added: “If we start to lose jobs it won’t just be shop floor jobs, it will be higher level design jobs. We will lose them, they won’t come back and we will end up being unable to produce in the UK some of the things we have a tradition of producing such as the armoured vehicles at Scotswood Road.”

Bernie Hamilton, national officer of the Unite union, said: ‘‘We have serious concerns about BAE Systems’ and the MoD’s strategy for the building of vehicles for the Army. These job cuts will affect Britain’s capability to build and maintain military equipment.

‘‘The Government’s recently published strategy to use the MoD’s Defence Support Group organisation will compound the problems for future vehicle technology in the UK.’’ BAE said the job cuts will be phased, with the changes completed by the end of next year.