Rail Manufacturing: Job Losses

Andy McDonald Excerpts

Tuesday 16th April 2024 Commons Chamber

[Huw Merriman]

As my hon. Friend has described, this is a careful balance. I reiterate that if we were to award contracts outside of the usual process, other workforces would also be impacted, such as those in Newport, in Newton Aycliffe and in the Hull area. We have to take into account the whole workforce, as well as fair process on the contract. However, as he mentions, trains are being manufactured right now and rolling off the production line up in Derby—South Western trains and East Midlands trains—and they are good-quality trains. As I have said, the challenge is that we have produced a lot of trains over the years, and I really want to help those train manufacturers to export more, because that will fill up the order books so that they are not reliant only on the domestic market. As it gets fresher and younger, in rolling stock years, we need to find a solution outside this country.

[Andy McDonald (Middlesbrough) (Lab)]

I offer my condolences to you, Mr Speaker.

The Minister says this is a complex issue, but is it not rather simple? These companies will not be around to enjoy the sort of exporting opportunities he talks about if they do not sustain. On his answer to my hon. Friend the Member for Nottingham South (Lilian Greenwood), can he just apply his mind to what he said about the invitations to tender? If it is going to take that long to issue those tenders, these companies will not be around. It is not about them not competing; it is about their being able to compete and to be here. Can he not recognise that it is the constant chopping and changing in procurement that has landed the rail industry in this terrible situation?

[Huw Merriman]

I do not accept that. When I met the train manufacturers earlier this year, they said they wanted longer-term certainty, and the reason for setting out what is coming up next is to give them that certainly. Of course, train manufacturing is going on right now. For example, we have just seen the award to CAF for the 10 LNER tri-mode trains, so there is manufacturing and contracts are being awarded. I know I am repeating myself, but as the train rolling stock gets younger in age—it has a life of 35 to 40 years, and its average age is now under 17 years—by definition fewer orders tend to go through. However, it is important to have a future pipeline, which is why I mentioned the orders going to tender for this year and next.