A COUNTY councillor has criticised Sellafield after a contract loss resulted in a west Cumbrian firm axing jobs.

Whitehaven-based Romar Innovate Ltd announced 16 job losses, pay cuts and a move to smaller premises after missing out on the lucrative £11 million contract.

Sellafield Ltd say the deal to supply Personal Protective Equipment (PPE) has saved the tax-payer over one million pounds.

And a Sellafield spokeswoman said Arco, the national firm which won the contract, already has a "strong Cumbrian presence" and will create 10 jobs.

But Councillor Tim Knowles said the decision shows that Sellafield's plans to award contracts to local companies is flawed.

He said: “This a is a classic example of how Sellafield’s plans to procure contracts locally are not working.

“Romar is one of the finest examples of local entrepreneurship over the last three decades. The business has grown from a small startup to a major business which supplies companies across the country."

“For what I understand to be a relatively minor difference in price, west Cumbrian jobs are being sacrificed and another national company is simply going to have a shop front in West Cumbria."

A Sellafield spokeswoman responded: "Sellafield Ltd is owned by the UK taxpayer and we have a duty to seek value for money in the contracts we let.

"Romar won two out three PPE contracts, including the value-added manufacturing element, and therefore remains an important supplier to Sellafield.

"While we are unable to publicly disclose the detail of commercial bids, the difference in the price for lot 1 of the PPE contract was several hundreds of thousands of pounds per year, meaning the fair and open procurement process will save the tax-payer over one million pounds."

She said Arco has a strong Cumbrian presence in Carlisle, and has pledged to create 10 new jobs in west Cumbria and to source products from the local supply chain where possible, offering extra opportunities to firms like Romar.

She added: "It is always disappointing when a local company loses out and we are committed to working with the community to ensure any negative impacts are minimised."