British medals made in France: Dudley MP hails Government U-turn

The announcement, branded the 'right move' by the MP, comes after Paris-based Arthus-Bertrand was set to become the first foreign company to make Queen's Honours awards after being handed a Government contract for 'medals and insignia framework'.

Mr Austin raised the issue in Parliament this week after he was contacted by furious West Midlands-based medal makers.

They were alarmed to hear their business was being given to a foreign firm.

The move had also sparked concern among veterans from across the Black Country. But the Government appears to have performed a U-turn after David Cameron was quizzed over the decision by Dudley North MP Mr Austin in Parliament.

During Prime Minister's Questions on Wednesday, Mr Cameron admitted he had no knowledge of the contract. Yesterday, a spokesman for No10 said no contract had been awarded to a French firm.

Mr Austin said: "It is extremely good news if the Government has confirmed none of the medals will be made in France.

"Some of the best medal manufacturers in the world are based in Birmingham's Jewellery Quarter. The idea of giving business to a foreign firm to make British medals is just ridiculous.

"This issue was raised by medal manufacturers and I thought it was only right to bring it up in Prime Minister's Questions.

"It seems the Prime Minister was not aware this was happening. This is the right move and I know the craftsmen in Birmingham and people involved in charities and other volunteer organisations that get awarded these medals will be delighted."

John Deane, aged 79, president and treasurer of the Dudley Royal Air Force Association, said: "If French medals were being made in the UK there would be uproar over there, so it is only right the Government has gone back on its decision."

Arthus-Bertrand was initially awarded the contract after a tendering process to become official suppliers of medals to Cabinet Office branch The Crown Commercial Service.

The deal involved manufacturing 20 British medals, including the Distinguished Service Order which is awarded for outstanding leadership in military service and the Commander of the Order of the British Empire (OBE).

Eight companies were chosen as 'recognised medal manufacturers' by the Cabinet Office last week. Seven of them were British and include 331-year-old Birmingham-based Toye, Kenning and Spencer.

It is thought that the Government will be able to scrap the deal by arguing that they have the right to protect regional medal manufacturers.

A No. 10 spokesman said that no French firm had not yet been awarded a contract, adding that ministers had recently amended the rules on the allocation of Government contracts.

The changes allow the Government to take account of local impact when contracts are awarded, the spokesman said.

Veterans were left furious when the original decision came to light. Joe Davies, a veteran of the D-Day landings with the 12th Royal Army Service Corps, said he was glad that common sense had prevailed.

"It is good to see that someone in authority has spoken up over this," added Joe, aged 93, from Wolverhampton.

"The idea of passing work outside of the country that could be done here is ridiculous. I would commend Mr Austin for bringing this point up and getting the Government to change tact."

Tory MP Colonel Bob Stewart, who holds the DSO for his service during the Bosnian conflict, said: "Thank God common sense has prevailed. We must give British people British medals."

And Labour leader Jeremy Corbyn also joined the argument, blasting the Government for 'failing British workers'.

"Using British expertise to make our own medals would be a small but worthwhile use of public procurement to support our shrinking industrial base," he added.

Arthus-Bertrand won the contract through a tendering process to become one of eight official suppliers of medals to Cabinet Office branch The Crown Commercial Service.

Bosses at the firm signed a deal last week to manufacture 20 British medals. The Government said the £1.3 million contract was put out to tender in a bid to encourage competition and value for money.

Arthus-Bertrand sales director, Jean Charles Rocher, said he was disappointed over Downing Street's apparent about-face.

He said: "We competed fairly and we offered the very best quality at a very good price but just because we are not English now they want to fire us."

Mr Rocher refused to rule out a legal challenge over the decision.

Under EU competition law the Government has no powers to stop foreign firms bidding for its contracts.