Rail Manufacturing: Job Losses

Baroness Beckett Excerpts

Tuesday 16th April 2024 Commons Chamber

[Huw Merriman]

I thank my hon. Friends the Members for Mid Derbyshire (Mrs Latham) and for Derby North (Amanda Solloway) for the amount of work that they have put in to press us, privately but firmly, to ensure that we are working on this issue, given their concern as constituency MPs. I could not credit them enough for the amount of work that has gone in on their side, and for doing it sensibly—and that includes those in Derby council, to whom we are grateful. I believe that this is the way to approach the matter. The number of meetings that we have had, the cross-departmental taskforce that is in place and the sheer number of hours that the officials have put in have all led us to a point where we very much hope to be able to provide a solution. The matter is complex—there are legal challenges and these types of contracts often end up in litigation, so we have to be careful with the process—but we are keen to find that solution. I thank my hon. Friends for their work.

[Dame Margaret Beckett (Derby South) (Lab)]

I was disappointed and sorry to hear what the hon. Member for Mid Derbyshire (Mrs Latham) just said, because, as she knows perfectly well, there has been a substantial amount of cross-party working on this issue over many months and years. Given that the factory is in my constituency, I find it a little disappointing that, although I am told that there have been many meetings between the Secretary of State and local Conservative members, at no point have he or his office chosen to involve me.

However, that does not matter at all; what really matters—and what I find most difficult about this whole issue—is that, over the years that I have been in this House, we have had so many of these conversations about failing industries. We ask what are the prospects for the future, and there is a struggle and, as always, an argument between those who want to look to the long term and those who want short-term financial savings. This is not an industry in which that is the problem. In the longer term, there will be millions of pounds’ worth of orders for rolling stock, because rolling stock renewal is needed right across the country, as everybody in the rail industry is aware. It is an industry with prospects and an ongoing, realistic vision of secure, high-value and high-reward jobs, yet one in which Government inaction is, I am afraid, putting those jobs at risk, particularly, as was said moments ago on both sides of the House, in the supply chain.

[Huw Merriman]

I thank the right hon. Member for the points she has raised. The discussions have been cross-party: the leader of Derby council has worked very closely with the Department to try to broker a solution. I will take away her point about meetings; I do not have that information to hand, but I will ensure she gets the meeting she has asked for.

The point I was making was that the comments from the Labour Front Bench do not help matters at all. This is a sensitive, commercially and legally challenging situation that we are trying to find a way through. We cannot find contracts just for one train manufacturer: we have four, and it has to be an open process, otherwise the matter ends up in court. Despite that, we are doing everything we can to find the right orders for those train manufacturers. As well as the letter I have written to all of the manufacturers, specifying the tender pipeline that is to come, the Secretary of State has written to all the entities that finance train operators, making the point that they should bring forward matters that they can see. That will help with refurbishment, as well as new rolling stock.

--- Later in debate ---

[Huw Merriman]

I can give my hon. Friend that assurance. He is absolutely right; this is a complex matter, and it is important that we get it right. We are working with Alstom, with the council, and with all other parties.

I should just correct the record: I am very happy to take up this issue with the right hon. Member for Derby South (Dame Margaret Beckett), but my understanding is that she met the Secretary of State for an hour on 25 March, which she said she had not.

[Dame Margaret Beckett]

indicated assent.

[Huw Merriman]

That is correct—good. I am glad I have got that on the record.

My hon. Friend the Member for Darlington (Peter Gibson) is absolutely right. This matter is complex and challenging, but I can tell you, Mr Speaker, and the House that the Secretary of State is working at full pelt on this matter with Alstom. I am hopeful that a solution will be found that will demonstrate all of that hard work.

Oral Answers to Questions

Baroness Beckett Excerpts

Thursday 14th December 2023 Commons Chamber

[Guy Opperman]

As the hon. Gentleman knows, a substantial amount of electrification is taking place. He will also be aware of the city regional sustainable settlement, which will provide significant investment in the north.

[Margaret Beckett (Derby South) (Lab)]

10. What steps he has taken to support rail manufacturing at Alstom in Derby.

[Mr Speaker]

Margaret Beckett is not here. Will the Secretary of State answer the question as though she were, so that I can call the shadow Minister?

Great British Railways Headquarters: Derby’s Bid

Baroness Beckett Excerpts

Wednesday 27th April 2022 Westminster Hall

[Margaret Beckett (Derby South) (Lab)]

It is a great pleasure to serve under your chairmanship, Mr Efford. My colleague from Derbyshire, the hon. Member for Mid Derbyshire (Mrs Latham), has done a brilliantly comprehensive job of making the case for Derby to be the home of the headquarters. She has left very little for anyone else to say, but I will pick up on one or two points.

The hon. Lady covered this ably in her remarks, as did my hon. Friend the Member for Nottingham South (Lilian Greenwood), but I particularly want to stress that there is much to be said about the tremendous history of rail in Derby. It is something in which the whole community takes great pride. However, we are not just about the history of rail. The present and the future of rail also have a very strong base in Derby. That is the key point that I would like to leave with the Minister. There are other places with much past connection to rail, but I do not think there is anywhere else that has the unique combination of history, strength, community understanding, skills and families who have all lived with rail right across the city and its environs.

As the hon. Member for Mid Derbyshire said, Alstom has the only facility in the United Kingdom—it has been the only facility for some time—that goes all the way from design to production of new rolling stock. As the Minister will know, Alstom, in partnership with Hitachi, is providing the rolling stock for Crossrail and for HS2, so Derby is both looking to the future and to delivering now.

The word “partnership” is very familiar to Derby, as it is in partnership with other places across the country—Hitachi is also in partnership in the north-east—and within our city and community. There is tremendous community spirit and co-operation in the whole business sector in the locality of Derby.

As the hon. Lady has pointed out, we are very much a transport hub; we are not just a rail hub. Toyota is based in the constituency of the hon. Member for South Derbyshire (Mrs Wheeler), Rolls-Royce is based in my constituency, and a collection of people are working constructively together all the time. The hon. Member for Mid Derbyshire touched on the rail forum, which now has some 300 companies from across the UK. I am sure that the Minister will find herself invited, if she has not been already, to various functions in the rail industry, and she will find that a concentration of people are in or have come to Derby and that the spirit of partnership that we all need is very much present.

Reference has been made to the importance and strength of our geographical location, which makes it is easy to travel to places such as Cardiff. As well as the north-south connections, and although there is weakness in the east-west links to Birmingham and so on, people rarely highlight the impressive fact that CrossCountry trains, which run between Inverness and Penzance, run through Derby. In the near future, the Joint Committee on the National Security Strategy will visit the Met Office in Exeter, and I shall come home on the train, from Exeter straight through to Derby. Geographically, therefore, Derby is an extraordinarily convenient place. It deals with both the present and the future of rail.

As has already been highlighted, there is a great concentration of skills, knowledge and experience in the community, among the existing and the potential workforce, but more than that there is opportunity. There is training and a rail-specific educational engagement programme, run in partnership with Rail Forum Midlands. Those developments can all be of benefit to Great British Railways.

On the issue of whether enough, or any, civil servants are being brought out from the centre into our locality, it is a constant source of astonishment to me that Derby is not recognised more readily as an attractive environment for those who would come to work in the headquarters. We have an extremely competitive housing market—that may not please everybody, but it is certainly true—particularly for people who might be coming out from the centre. We have excellent facilities and, of course, we have on our doorstep one of the most beautiful national parks in England.

Derby has a great deal to offer and has an immensely strong sense of community. It is a community that looks outwards and is welcoming. I have experienced—perhaps the Minister has, too—places with a strong sense of community, but it is directed inward: “If you haven’t lived here for 60 years, you don’t really belong.” Derby is not like that. Even if people have been there only five minutes, we will treat them as if they and their grandparents before them had been there all their life. It is a very warm and welcoming place, where such new employment would be welcomed and could thrive.

As has been touched on, there is the whole question of research and development for the future. The plethora of companies that operate in and around Derby makes it a home of real innovation. For my part, I have a great attachment to the manufacturing industry and, within that, a particular attachment to innovation. We do not devote nearly enough attention to innovation, but it is where Britain has a great track record. It has been said that, under successive Governments, far too often we innovate but do not follow through—other people exploit our innovation. We certainly have the innovation and we should, I hope, focus more on how it can be exploited in future.

The hon. Member for Mid Derbyshire also commented on support from across the local business community—not just rail-related business, but the whole business community in Derby and Derbyshire, which works well together on all kinds of projects. As I recall, we have support from Tarmac, which has quarries up in Derbyshire, serviced by rail, where it produces aggregate needed for the housing programme. Its efficient operation is dependent on the facility of rail. Right across the piece, therefore, we see an opportunity. The support should be there to develop rail to the maximum advantage, with a real interest in and pressure for research and future development.

[Lilian Greenwood]

No one understands Derby and its history as well as my right hon. Friend. Does she agree that one thing about Derby and the east midlands is the importance of freight? Derby brings not only that knowledge of rail infrastructure and rolling stock, but interaction with freight customers, which is important because they can sometimes be forgotten in the focus on passengers. Freight is important in our region, historically because of quarrying, and increasingly with the rail freight hub and proximity to the East Midlands airport, which is a huge freight airport. That brings a thinking that is unique in the country.

[Margaret Beckett]

My hon. Friend is absolutely right. It is slightly unfortunate that there is no better link at present, because, as she says, East Midlands airport is the freight airport, in particular for freight from the United States. It is very much an airport linked to freight. That gives us an opportunity to develop strengths and partnerships that might not have been fully developed so far. Again, that is an opportunity to innovate and develop support for the future.

I do not want to take too long or to simply repeat everything said by the hon. Member for Mid Derbyshire. However, I hope that we will convince the Minister and those organising the programme for Great British Railways that nowhere in the UK is better suited to house its headquarters—to everyone’s advantage—than the city of Derby. The massive support that the city and its environment can provide for the establishment of the headquarters will very much play in our favour.

--- Later in debate ---

[Mrs Latham]

Today’s debate was about quality rather than quantity, probably because of the late night in the main Chamber last night.

The Minister will be aware that we have worked cross-party to provide the information for the bid. In Derby, we work cross-party a lot for the benefit of the city and the surrounding area. It is important on such matters, which are not party political, and we do it for the benefit of all our citizens.

The Minister will not be aware that some years ago, when Bombardier—now called Alstom—was threatened with closure, 10,000 people marched from Derby to show the strength of feeling in the city. That is how much rail is embedded in Derby. As the right hon. Member for Derby South (Margaret Beckett) said, different generations of families in Derby have worked in the rail industry, so it is in the city’s DNA and in people’s veins in Derby to work in this absolutely amazing industry on all fronts; every single front is covered.

[Margaret Beckett]

I do not want to detain Members, but when the hon. Lady mentioned that march it struck me that—this is quite true—there are not many occasions when I have found myself marching, in a crowd of people all chanting to bring pressure to bear for the right outcome, alongside the Conservative leader of the council and Conservative MPs.

[Mrs Latham]

That absolutely shows our cross-party work in Derby when it matters to the city, and this question really matters to Derby. People will see the passion in Derby when we get through to the second round of the competition, and when my hon. Friend the Minister comes to visit the different bidding cities she will come across the passion for the rail industry in Derby. That is why it is another piece of the jigsaw for the city to embed Great British Railways in Derby, because the people working in that industry and that HQ will learn from those people in the city who are steeped in the history of the railways. Having said that, I know that this is about the future, not history. We have the history, as the Minister knows, but this is a question of the future. She talked about the six pillars that the bidding cities will be judged on and we have every one of them. Indeed, that could be our bid.

I am sure that the Minister will look forward to coming to Derby in the second round of the competition so that she can see for herself how passionate people in Derby are about getting GBR to the city. It is also about levelling up and Derby ticks every box when it comes to that.

I thank the Minister for her response to the debate.

Question put and agreed to.

Resolved,

That this House has considered Derby’s bid to host the headquarters of Great British Railways.

Oral Answers to Questions

Baroness Beckett Excerpts

Thursday 14th February 2019 Commons Chamber

[Ms Ghani]

I am well aware that my right hon. Friend has been a doughty and particularly inquisitive Member of Parliament on behalf of her constituents on HS2. She knows that there is a set budget to deliver HS2, and we must not forget the benefits it will bring across our country, demolishing the north-south divide and building a fairer country. This is more than a transport project; it is a transformative project linking eight of our 10 cities and investing in the midlands and the north of our country.

[Margaret Beckett (Derby South) (Lab)]

Does the Minister recognise that while all that she has just said gives some reassurance, these continued rumours about HS2 raise concerns for companies like Bombardier in my constituency, which has a joint bid with Hitachi for the rolling stock? Can she say anything further to reassure such companies?

[Ms Ghani]

The right hon. Lady makes a valid point. So often, we lament that parliamentarians do not deliver long-term projects and that we do not invest in our country or our skills base, but that is what HS2 is doing. I ask Members to desist from undermining one of the largest European infrastructure projects, which will transform our country, and to think about the extra benefits this will bring to the midlands and the north. We are continuing to work with the HS2 programme. That was in our manifesto and that of the Labour party, and it is important to note that every time the Bill has come to the Floor of the House it has gone through.

Oral Answers to Questions

Baroness Beckett Excerpts

Thursday 20th March 2014 Commons Chamber

[Mr McLoughlin]

I have met hon. Friends and other hon. Members from the Hull area to discuss the representations they have made. I am very pleased to be able to announce today that I can make available the £2.5 million to take this project up to GRIP 3—governance for railway investment projects. That notification will be going to Network Rail and I will write to colleagues today to tell them that I am making the money available.

[Margaret Beckett (Derby South) (Lab)]

Although we all welcome investment in Network Rail, does the Secretary of State think that it is acceptable that the procurement programme for traffic management is going forward before a full and independent review can establish whether £1 billion of savings is possible?

[Mr McLoughlin]

The right hon. Lady has written to me on this matter, and I have not only corresponded with the company concerned and other interested Members, including my hon. Friend the Member for Mid Derbyshire (Pauline Latham), but visited the company. Anna Walker, who chairs the Office of Rail Regulation, has written me a letter showing how it will investigate the points that have been made by DeltaRail.

Oral Answers to Questions

Baroness Beckett Excerpts

Thursday 23rd February 2012 Commons Chamber

[Margaret Beckett (Derby South) (Lab)]

The Secretary of State will know that there is great interest in the city of Derby in the decision that she has to make about the procurement of eVoyager trains for Cross Country. Can she update the House on that?

[Justine Greening]

I believe we are making good progress, and the right hon. Lady will be pleased to hear that I am meeting Bombardier later today.

Oral Answers to Questions

Baroness Beckett Excerpts

Thursday 12th January 2012 Commons Chamber

[Justine Greening]

I was not aware of the proposals relating to dormice, although I very much welcome them. I have had many representations from people in that region about the importance of the scheme. We are considering them very carefully now, and I hope that we can announce our final decision on the scheme shortly.

[Margaret Beckett (Derby South) (Lab)]

Is the Secretary of State aware that, although there is a welcome on both sides of the House and in the city of Derby for her decision on the Southern contract, and indeed hope for her decision on eVoyager, the real touchstone of the Government’s approach to rail procurement will be the handling of Crossrail and, in particular, whether its financing is handled as was the Thameslink project? I know she has that in mind, and I hope that she can give us a favourable answer on it today.

[Justine Greening]

I am very pleased that the right hon. Lady has welcomed the deal that was struck between Southern and Bombardier. I had her in my thoughts on the day of the announcement, because I know how much difference it makes to the city that she represents. I assure her that I take incredibly seriously the negotiating process, ensuring that it is fair for all people involved including bidders such as Bombardier, and I will now work very closely over the next months and years with all people who want to bid for the important Crossrail procurement and ensure that that is fair. We have seen that when Bombardier bids for contracts, as it does, it can be successful.

Oral Answers to Questions

Baroness Beckett Excerpts

Thursday 10th November 2011 Commons Chamber

[Mr Speaker]

I call Michael Connarty. He is not here. Margaret Beckett.

[Margaret Beckett (Derby South) (Lab)]

May I welcome the Secretary of State to her new responsibilities and assure her that her welcome will be much warmer, particularly across Derbyshire, if she makes an early decision on the eVoyager project—converting 57 vehicles from the CrossCountry fleet to dual power—and awards the contract to Bombardier?

[Justine Greening]

I would say two things to the right hon. Lady. First, I was in contact with Bombardier in my first three days in this role because I recognise the issues raised across the House. She is right that tenders are coming up in which Bombardier could participate, and I have no doubt, and very much hope, that it will want to bid for them. Secondly, I recognise the issues arising from the procurement process within Government, and we are working with the Department for Business, Innovation and Skills to consider how we can take those matters further.

Train-building Industry

Baroness Beckett Excerpts

Tuesday 12th July 2011 Westminster Hall

[Margaret Beckett (Derby South) (Lab)]

I congratulate the hon. Member for Amber Valley (Nigel Mills) not only on securing the debate, but on his excellent speech. In fact, my only criticism would be that he has left the rest of us with not very much to say. He has, effectively and well, used all the ammunition. Significantly, I think I am right in saying that—perhaps not so unusually in this Chamber, but unusually in this place in general—almost every hon. Member present is not here to attack or disagree. We are all here for the same purpose: to raise the concerns so ably set out a moment ago by the hon. Gentleman. If the Minister’s Department and her ministerial colleagues were nurturing the illusion that this is a decision that would go away, that might be an error.

Cross-party interest in this issue has been clear this morning. All the Derby Members here—perhaps almost every hon. Member, as the hon. Member for Broxtowe (Anna Soubry) indicated—have constituents with considerable expertise in the rail industry. The plant in Derby is in my constituency, but we all know from our own constituents, wherever they may live, of the very real astonishment among rail industry aficionados. The people who know and understand, who have experience and expertise, are at a loss to understand and explain the decision, and the hon. Gentleman is entirely right to ask for an explanation.

The hon. Gentleman talked about the weight given to the different elements in the procurement process. Like him, I have seen the references that have been made—I believe that the Secretary of State for Business, Innovation and Skills made one of them. There was a story in the Daily Express over the weekend suggesting that this was a decision based on finance, rather than on the kind of trains in which, as the hon. Gentleman rightly identified, our constituents will be travelling for many a year to come. He identified the fact that in the original procurement process in 2008, the Department reserved the right to hold a funding competition. My understanding is that there were two further opportunities—in March 2010 and January 2011, when further steps were taken in the bidding process—when the Department could have triggered the right, which it had reserved, to look again and separately at the issue of funding, but it chose not to do so. That is a concern to all of us.

The hon. Gentleman asked whether we are looking for a train builder or a bank. As I understand it, Siemens has actually become a bank, which indicates the strength of its balance sheet, but is that what we are looking for? Certainly not, if we are talking about whether there is a future for the train-building industry in this country.

[Heather Wheeler (South Derbyshire) (Con)]

I congratulate my hon. Friend the Member for Amber Valley (Nigel Mills) on securing the debate. We are talking about the future of train building in this country. The decision to make Siemens the preferred bidder is incredibly disappointing for all our constituents who work at Bombardier, but surely the most important thing is the way forward. The chairman of Bombardier is going out to South Africa with the Government to look at securing contracts out there. It is asking the Government to bring forward tube contracts by a couple of years, so that there is a future for train building in this country, and the college is opening up in Derby for rail contracts. We have great expertise in the area, and in the north-west too. That is where we need to go with this conversation. I am sure that, having heard my hon. Friend’s conversation with the Minister, answers will be given, but we want to talk about the future, and the future will be train building in this country.

[Margaret Beckett]

I agree in part with the hon. Lady. I take her point entirely that we are really interested in the future, but let us not overlook the fact that we have barely started. The procurement process has not concluded. All that has happened is that a preferred bidder has been identified and negotiations have been opened. The hon. Member for Amber Valley referred to the intercity express programme contract. In the hands of the Department for Transport, that went to Hitachi, but the contract for that has not yet been signed. Indeed, just before the election the previous Government ordered a review of that contract, and this Government have substantially renegotiated it. We are very far from the conclusion of this bidding process, so although I share the hon. Lady’s view entirely that we should look to the future—I will come to that issue in a second—to secure that future we must not abandon the prospect of changing the present circumstances and the award of this contract.

One concern about the attitude that the company is likely to take relates precisely to the issue of opportunities for the future. If this procurement goes ahead, we may lose the opportunity of an offer made by Bombardier. As I understand it, it has decided at the highest level to establish a worldwide centre of excellence for the design and manufacture of new cars for high-speed trains, for future procurement—of exactly the kind referred to in the debate. Bombardier was prepared to site that worldwide centre of excellence in Derby. That offer was, in effect, thrown back in its face. That concerns me greatly. We would be talking about more jobs—jobs with even higher skills levels than we see now, and with the potential for new technologies. Although I and many in my party applaud what the Cabinet and the Prime Minister said in my Derby constituency about manufacturing, skills and the need to rebalance our economy, the skills base in our city is not just Bombardier; it is also Rolls-Royce. We are a strong manufacturing base, but that base depends on the interaction between those two companies, among others, on the supply chain, and on their ability to work together to establish and maintain that skills base.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

Does the right hon. Lady acknowledge that the Government of which she was a member set the criteria for the procurement, and that there is no way for this Government simply to ignore the Siemens bid and give the contract to Bombardier? We are bound by the criteria and by European Union rules and we cannot simply rip up the process. Is she advocating that we stop the procurement altogether and start afresh? That would delay considerably the Thameslink programme—which we inherited from the previous Government already running 16 years late—and we would still have no guarantee of Bombardier being the winner at the end of the new procurement process.

[Margaret Beckett]

I am sorry that the Minister decided that this was a good time to make that party political point, when all of us are present to get her and her Department to change their minds and look afresh at all the implications. We all know from our constituents that there are very real questions about whether the right decision has been made and whether proper account has been taken. We have talked about the financing so far, but we have also touched on whether the vehicle is fit for purpose and whether Siemens—although it is a fine company with a great engineering tradition—has the capacity to supply the trains needed.

I am genuinely quite sad that the Minister made that point. As the storm has arisen, not only in the Derby area but in the north-west and elsewhere, we have been inundated with requests from people throughout the country, with other Members and members of the public asking, “What can we do to help? This is a mad decision and none of us agrees with it.” However, for some days I have had the feeling that, to get the Government off the hook on which they so far seem determined to impale themselves, some have been saying, in effect—I am prepared to exempt the Minister—“If we can palm off the blame for this on to the previous Government, then we don’t need to look again at the decision.” I am sorry, but that will not wash this time, because of genuine concern about how the financing was handled, about the train, about the lost opportunity for new manufacturing in the UK and about the knock-on effect on Rolls-Royce. This is not a done deal.

The hon. Member for South Derbyshire (Heather Wheeler) referred to the chair of Bombardier in the UK going to South Africa with the Prime Minister to promote British exports. I would not blame him for viewing the journey with some irony. In South Africa, they will be travelling on new trains, made by Bombardier for South African Railways, which felt able to award that contract. We can all ask why Bombardier could win that contract, but not one in this country.

We are very much at the opening stage in the process of negotiating the contract. The Government have only recently taken delivery of the McNulty report, which also considers the supply chain; we have hardly touched on that yet this morning, but the implications throughout the country are enormous. Genuinely, I say to the Government that this decision is a mistake. I do not accept the simple case that they have put because, as I pointed out, there were opportunities for the Department to look at the financing, but let me take a step back from that. They can blame it on us if they like, but they must change the decision—that is what matters.

--- Later in debate ---

[Mrs Villiers]

Even if we had designed the criteria, it remains the case that we could not have made the location of the manufacturing process a condition of successfully achieving the contract; that is simply not permitted by EU law. However, I totally deny the allegation that the Government are sitting back and not taking action. I agree that we need to take action to help Derby and Bombardier. The reality is that Bombardier advised the Department for Transport that it expected to make more than 1,000 redundancies, regardless of the outcome of the Thameslink procurement, because several of its orders are about to reach completion. However, whatever the reason for the redundancies, we want to try to help Derby and the surrounding area at this difficult time.

As a result of the review by Bombardier of its UK rail operations, the Business Secretary has set up an economic response taskforce. It will he headed by Margaret Gildea and its remit will be to mitigate the economic impact of job losses at Bombardier, in its supply chain and in local communities. It will draw on representatives from Derby city council, the county council, Derby college and the Skills Funding Agency. Jobcentre Plus will also deploy its rapid response service, to support workers who will be affected. That is in addition to the work on skills that the Government have been involved with in Derby in partnership with Rolls-Royce and Bombardier, and the support that the Department for Transport is giving to the National Skills Academy for Railway Engineering, which my hon. Friend the Member for South Derbyshire (Heather Wheeler) mentioned. We shall do our best to help Bombardier to get the overseas contracts it is bidding for, such as in South Africa. That is one reason why representatives from Bombardier will accompany the Prime Minister on his visit to South Africa, which is coming up.

[Margaret Beckett]

I should not be a bit surprised if those representatives make the point that it will not help them to gain confidence overseas if they cannot get contracts at home.

I want to raise a point that has been made in several quarters, about the job losses. I, too, have seen the letter from Bombardier to the Secretary of State. It makes two things clear, one of which is that, indeed, as no one has attempted to deny, there were temporary, short-term contract jobs that were due to come to an end, which is a pity. However, it is also clear that more than 400 skilled engineers and designers are being made redundant now because of the loss of the Thameslink contract. Also, I know that the Department has been aware for some time, as I hope Ministers have, that Bombardier has made it crystal clear that if it did not get the Thameslink contract, not only would the new jobs not be coming, but those 400-odd would be the start of the process. It is not right for the Minister to pretend that all those jobs were going to go anyway. That is just not true.

[Mrs Villiers]

As I have said, whatever the reason for the job losses, it is important that we should work together to help Derby in this difficult time.

Oral Answers to Questions

Baroness Beckett Excerpts

Thursday 23rd June 2011 Commons Chamber

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I would be entirely happy to do that. It is important that all rail passengers have access to reliable services. The Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker) and I are very focused on that issue and would be happy to meet my hon. Friend.

[Margaret Beckett (Derby South) (Lab)]

Is the Secretary of State aware that words such as “rebalancing our economy to promote private sector jobs and skilled manufacturing” ring very hollow in Derby, where 3,000 such jobs are now at risk as a result of a decision to build Thameslink trains in Germany? I understand that the Government reviewed and reconfirmed the contract after the election, but I understand also that the Secretary of State still has the power to call in the process and to invite the bidders to re-tender. Can he confirm that he will now do so?

[Mr Philip Hammond]

I understand the disappointment felt by Bombardier and, indeed, the anxiety felt by the people of Derby about that decision, but before the right hon. Lady delivers me a finger-wagging lecture perhaps I can remind her of a couple of points. Her Government designed and initiated the procurement process, and some Members may remember that they used to call it Thameslink 2000. We inherited it 16 years late and £600 million over budget, and it fell to us effectively to open the envelope. The procurement was carried out under the terms of the EU directive, and the Siemens bid offered the best value for money on the criteria for appraisal set out in the original competition that the previous Government launched. We have to comply with EU law, and I do not have the power that she suggests I have.

I firmly believe that free trade and open markets are the best way for us to proceed, but I believe also in the concept of the level playing field, and there is a case for looking at the way in which some of our neighbours and competitors operate the EU procurement directive, because it seems quite astonishing that, complying with that directive as we do, they have managed to achieve very high percentage penetrations of French-built trains on the French railway and of German-built trains on the German railway.