DEVONPORT dockyard's union leader has accused defence giant BAE Systems of "sabre rattling" in a bid to gain more work from the Government.

Peter Smith, chairman of the industrial trade unions at the yard, was speaking as the firm's chief executive, Ian King, said he could not rule out the closure of Portsmouth Dockyard.

His comments came after it was revealed the firm reported a 14 per cent fall in sales as military spending in the US and UK is cut.

But Mr Smith said he believes the reaction from BAE is merely seeking to secure further lucrative contracts from the Ministry of Defence (MoD).

"It's sabre rattling, it's a plea to get work," Mr Smith said.

"Personally I think they [BAE] are after another contract from the Ministry of Defence.

"Sure if Portsmouth Dockyard closed we would take all the surface ship work.

"It's certainly one to watch but I think it is merely sabre rattling."

Last month a Sunday newspaper reported that BAE was conducting a review of its shipbuilding operations – and that Portsmouth could be one of the likely victims.

The report stated that up to 3,000 jobs could be under threat.

This is despite BAE's shipbuilding section signing a 15-year contract with the Ministry of Defence in 2009 guaranteeing work for the duration.

And Plymouth MPs maintain that Devonport Dockyard remains in a "strong" position regardless of what happens to Portsmouth.

Oliver Colvile, Plymouth Sutton and Devonport MP, said: "I think with the reduction of the amount of money being spent on defence, it does make it difficult for firms like BAE.

"The Government gave a commitment to retain all three naval bases and dockyards and I do hope that will continue.

"I have always argued that Devonport is in a strong position given that we have the nuclear licence."

South West Devon MP, Gary Streeter, said: "There has been a question mark over Portsmouth Dockyard for a few weeks now.

"Clearly there is an issue here but it could be sabre rattling.

"We are not vultures circling above, we do want communities to prosper.

"But of course we would be happy to pick up the pieces should it close."

A spokeswoman for BAE Systems said the firm "did not recognise" Mr Smith's comments.

The spokeswoman also said the firm has a commitment to drive down costs, and that is why the review of the business is taking place.

BAE yesterday said sales fell more than expected to £19.2billion in 2011.

Underlying profits dropped 7 per cent to £2billion.

The defence and security giant, which produces Astute nuclear-powered submarines and is the largest supplier of land vehicles to the US army, said its order book also declined by eight per cent to £36.2 billion and warned that little sales growth can be expected in 2012.

The group said defence spending has reduced in its largest markets – the UK and the US – while it was also hit by a delay in an order for Eurofighters to Saudi Arabia.

Chief executive Ian King said no decision had yet been made on the review of its warships operations, but he added that nothing could be ruled out, including the closure of Portsmouth, which employs 1,500 staff and a similar number of support roles.

He stressed that the review covers its entire warships business, not just its Portsmouth yard.

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