'Girlie bars'
Posted: Thu Mar 30, 2006 3:53 pm
Mail on Sunday
November 13, 1994
$ 1M BONUS TO BEAT BRITAIN EXCLUSIVE;
Ex-Thatcher aide in US bid for RAF contract $ 1m
Adrian Lithgow,Political Editor
A FORMER political aide to Margaret Thatcher is on a huge 'win bonus' to secure a ?1.5 billion RAF contract for the United States at the expense of British jobs.
His firm's fee is believed to be as much as ?750,000 if US giant Lockheed beats British Aerospace in the huge battle to replace the RAF's 80 Hercules transport planes.
Last night Labour called for the sleaze-probing Nolan Inquiry to inves-tigate the role of top lobbyist David Boddy, a former Tory Party communications director who, The Mail on Sunday has discovered, is behind the Americans' bid to secure the biggest defence deal for years.
He heads a hugely influential Westminster lobbying firm, Market Access International, and is playing a crucial behind-the-scenes role in convincing top officials and Ministers to buy American. And next week Opposition MPs will table Commons questions about Lockheed-sponsored trips by British diplomats, Defence officials and RAF officers to its base in Georgia, where British guests are said to have relaxed in their spare time at night clubs and a 'girlie bar'.
Lockheed is desperately keen to replace the ageing Hercules C-130 heavy transport planes it supplied to the RAF with its improved version, the C-130J. But the US has rejected it and rival BAe claims it falls far short of the standards of its own Euro-project, the as yet unbuilt Future Large Aircraft. Lockheed's sales team stresses the C-130J's advantages. At ?25 million each they are comparatively cheap and they could be delivered in 1997. The early date has added importance because of fears among Defence planners that the Treasury might claw back available funds if a final decision is delayed. BAe's FLAs would cost ?40 million for delivery in 2002. But they would come with state-of-the-art avionics, and have the vital ability to carry larger Army equipment. And because of their longerrange, fewer would be needed. And BAe fears that unless the Government is committed to the FLA, not only will the country lose an additional 7,500 aerospace jobs, but its standing as an international manufacturer will be fatally damaged.
MPs want the most controversial defence deal since the Westland Affair to be decided on its military and economic merits - not by the skills of West-minster's highly-paid professional lobbyists.
Industry speculation has put Mr Boddy's fee at between $ 1 million and $ 2 million, but last night the senior lobbyist dismissed the latter figure. 'We generally take fees which is certainly what we are doing on this contract,' Mr Boddy said.
'There is also a commission payment if there is success. But these rather fanciful figures are in the minds of other people.'
Lockheed's vice chairman, Al Hansen, in London to oversee the company's bid strategy, refused to discuss his firm's relationship with MAI.
'Market Access do not get a special commission deal and if they did I wouldn't tell you,' he said.
'I don't think these are the sort of questions I should respond to. They are a consulting comp-any. We use them on all of our deals.
'I think you are asking a lot of inappropriate questions. These are int-ernal company dealings.'
Lockheed has vigorously denied being involved in a bribery scandal when it sold five C-130Js to Egypt five years ago.
But the revelation that a Westminster-based firm is directly working against the interest of a major British company has raised serious concern in Parliament.
It follows a recommen-dation by the Ministry of Defence's Equipment Approvals Committee for an initial order from Lockheed of ten C-130Js.
The decision will have to be ratified by Ministers before it gets the final go-ahead.
Shadow Defence Procurement Minister Derek Fatchett has written to Defence Secretary Malcolm Rifkind asking him to clarify his depart-ment's rules in
relation to lobby firms.
And he has asked him to refer to the Nolan Inquiry the way Lock-heed has approached the tender, which has inc-luded hiring senior RAF staff, contributing to RAF benevolent funds, sponsoring events and entertaining MoD personnel in the US.
'This affair, particularly when there is such an important decision at stake for British industry, raises again concern about the role of lobbyists,' Mr Fatchett, MP for Leeds Central, said.
'I feel strongly it is time for the Minister of Defence to issue clear guidelines and I think the Nolan Committee should be looking at this case in terms of its own investigation into the role of lobbyists.
'It is outrageous for a bonus to be offered in this way when Britain's technological future and British jobs are at risk.'
France, Spain, Italy and Germany are already committed to the FLA, and if they go ahead alone BAe's wing-manufacturing contribution will be handed to a German firm.
That in turn would put a massive question mark over BAe's continuing presence in Airbus Industrie, which could well turn to the German firm to make wings for the Airbus as well as the heavy transporter.
November 13, 1994
$ 1M BONUS TO BEAT BRITAIN EXCLUSIVE;
Ex-Thatcher aide in US bid for RAF contract $ 1m
Adrian Lithgow,Political Editor
A FORMER political aide to Margaret Thatcher is on a huge 'win bonus' to secure a ?1.5 billion RAF contract for the United States at the expense of British jobs.
His firm's fee is believed to be as much as ?750,000 if US giant Lockheed beats British Aerospace in the huge battle to replace the RAF's 80 Hercules transport planes.
Last night Labour called for the sleaze-probing Nolan Inquiry to inves-tigate the role of top lobbyist David Boddy, a former Tory Party communications director who, The Mail on Sunday has discovered, is behind the Americans' bid to secure the biggest defence deal for years.
He heads a hugely influential Westminster lobbying firm, Market Access International, and is playing a crucial behind-the-scenes role in convincing top officials and Ministers to buy American. And next week Opposition MPs will table Commons questions about Lockheed-sponsored trips by British diplomats, Defence officials and RAF officers to its base in Georgia, where British guests are said to have relaxed in their spare time at night clubs and a 'girlie bar'.
Lockheed is desperately keen to replace the ageing Hercules C-130 heavy transport planes it supplied to the RAF with its improved version, the C-130J. But the US has rejected it and rival BAe claims it falls far short of the standards of its own Euro-project, the as yet unbuilt Future Large Aircraft. Lockheed's sales team stresses the C-130J's advantages. At ?25 million each they are comparatively cheap and they could be delivered in 1997. The early date has added importance because of fears among Defence planners that the Treasury might claw back available funds if a final decision is delayed. BAe's FLAs would cost ?40 million for delivery in 2002. But they would come with state-of-the-art avionics, and have the vital ability to carry larger Army equipment. And because of their longerrange, fewer would be needed. And BAe fears that unless the Government is committed to the FLA, not only will the country lose an additional 7,500 aerospace jobs, but its standing as an international manufacturer will be fatally damaged.
MPs want the most controversial defence deal since the Westland Affair to be decided on its military and economic merits - not by the skills of West-minster's highly-paid professional lobbyists.
Industry speculation has put Mr Boddy's fee at between $ 1 million and $ 2 million, but last night the senior lobbyist dismissed the latter figure. 'We generally take fees which is certainly what we are doing on this contract,' Mr Boddy said.
'There is also a commission payment if there is success. But these rather fanciful figures are in the minds of other people.'
Lockheed's vice chairman, Al Hansen, in London to oversee the company's bid strategy, refused to discuss his firm's relationship with MAI.
'Market Access do not get a special commission deal and if they did I wouldn't tell you,' he said.
'I don't think these are the sort of questions I should respond to. They are a consulting comp-any. We use them on all of our deals.
'I think you are asking a lot of inappropriate questions. These are int-ernal company dealings.'
Lockheed has vigorously denied being involved in a bribery scandal when it sold five C-130Js to Egypt five years ago.
But the revelation that a Westminster-based firm is directly working against the interest of a major British company has raised serious concern in Parliament.
It follows a recommen-dation by the Ministry of Defence's Equipment Approvals Committee for an initial order from Lockheed of ten C-130Js.
The decision will have to be ratified by Ministers before it gets the final go-ahead.
Shadow Defence Procurement Minister Derek Fatchett has written to Defence Secretary Malcolm Rifkind asking him to clarify his depart-ment's rules in
relation to lobby firms.
And he has asked him to refer to the Nolan Inquiry the way Lock-heed has approached the tender, which has inc-luded hiring senior RAF staff, contributing to RAF benevolent funds, sponsoring events and entertaining MoD personnel in the US.
'This affair, particularly when there is such an important decision at stake for British industry, raises again concern about the role of lobbyists,' Mr Fatchett, MP for Leeds Central, said.
'I feel strongly it is time for the Minister of Defence to issue clear guidelines and I think the Nolan Committee should be looking at this case in terms of its own investigation into the role of lobbyists.
'It is outrageous for a bonus to be offered in this way when Britain's technological future and British jobs are at risk.'
France, Spain, Italy and Germany are already committed to the FLA, and if they go ahead alone BAe's wing-manufacturing contribution will be handed to a German firm.
That in turn would put a massive question mark over BAe's continuing presence in Airbus Industrie, which could well turn to the German firm to make wings for the Airbus as well as the heavy transporter.