The government has moved to reassure workers at BAE Systems in Lancashire that the business has a strong future in the North West.

It follows the aerospace giant's decision to sell off its aerostructures division which has premises at Samlesbury, near Preston.

About 400 jobs are expected to be lost as a result of the move, although compulsory redundancies have been ruled out.

Defence Minister Lewis Moonie told the House of Commons the firm's decision was a commercial move but promised the government would monitor developments.

'Orders going ahead'

He said: "We will be keeping a very close eye on what's going on in the business to make sure that our interests in the North West are not adversely affected."

Mr Moonie also confirmed the government would go ahead with the full order for the Typhoon aircraft.

Earlier, Blackpool South MP Gordon Marsden (Lab) reminded Mr Moonie that the government had given BAE orders worth hundreds of millions of pounds.

He added that workers were concerned the proposed sell off would mean the loss of a pool of some 400 skilled workers who were "potentially key to the defence business".

Fylde MP Michael Jack (Con) said the company was his constituency's biggest employer and called on the government to drum-up new orders in the near future.