AEROSPACE bosses have denied redundancies in Lancashire have been caused by an exodus of jobs overseas.

John Weston, the chief executive of BAe Systems which has military aircraft factories at Samlesbury and Warton, and John Rose, chief executive of Rolls Royce, which has an aero-engine factory at Barnoldswick, told MPs at Westminster that some "out-sourcing" was inevitable and necessary to protect the firms' competitiveness.

They were being cross examined by the House of Commons Trade and Industry Committee against a background of 2,000 imminent job losses in BAe Systems military wing and proposed employment cutbacks of 1,000 at Rolls Royce.

Mr Weston said that out-sourced work represented only a "tiny proportion" of his firm's business, although he admitted that it had 15,000 direct employees overseas.

Mr Rose, whose company has on third of its workforce overseas mainly in the United States, said this was vital to ensure that it won contracts from foreign governments said this was good for Rolls-Royce.

The American Department of Defence was its biggest customer, he revealed.

Reacting to criticism from Labour MPs Bob Laxton and Roger Berry, Mr Rose said the long-term future of the company was dependent on it staying competitive.

He said the vast majority of out-sourced work went to UK suppliers and said: "We need to maximise operations here to have a profit and if we can be more successful by out-sourcing then it is a good thing. There will be no jobs if we cannot sell a product at a profit."

"We are creating a greater pool of job opportunities -- it does not all appear in the United Kingdom but the greater amount will be. What we are trying to do is create a bigger pie."

Bristol MP Mr Berry accused Mr Rose of "staggering complacency" but Ken Maciver, Chairman of the Society of British Aerospace Companies and General Manager of US-based TRW Aeronautical Systems which owns Lucas Aerospace, there was no exodus of British jobs overseas.

He warned that UK firms would be squeezed out of the market if they did not fight to be competitive.

He added:"The reality is this industry has been very successful in comparison with other industries in Britain but that is not without pain."

At the meeting the three bosses warned that without more government help the industry in the UK could wither away and with working going overseas to foriegn competitors.

Ribble Valley Tory MP Nigel Evans last week warned of a jobs meltdown in East Lancashire because of repeated announcements of redundancy including BAe Systems, Rolls Royce, and hundreds more in the motor components industry and other sectors.