Refurbishing Trains: Contracts

Baroness Randerson Excerpts

Tuesday 12th December 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, we have been actively involved in discussions with Alstom for several weeks on this matter and have held frequent meetings with the company to look at options around its production gap. We will continue to work with Alstom. A cross-departmental task force has been established and officials are meeting Alstom regularly to discuss how best to support employees at risk of redundancy.

[Baroness Randerson (LD)]

My Lords, in the past, when a major long-standing employer such as Alstom hit a crisis, the Government used to blame the shackles of EU competition law. Well, we are not bound by that any more, so who will the Government blame now? The truth of the matter surely is that the Government need to provide certainty on the new orders required.

The managing director of Alstom, in evidence to the Transport Committee in the other place, made it clear that one of its immediate problems is uncertainty over whether the Government will pursue the £2 billion contract for all the 54 HS2 trains they have ordered. Can the Minister tell us, here and now, whether that is the case? Will the full order still be required?

[Lord Davies of Gower (Con)]

I thank the noble Baroness for that question. What I can say to noble Lords that manufacturers are ultimately responsible for sourcing work for their assembly plants. There are upcoming procurements in the market being run by Northern, Southeastern, TransPennine and Chiltern. It is a competition process that is open to all manufacturers to bid, including Alstom in Derby. The department is also working with the Treasury to set out a pipeline for expected rolling stock orders, to provide the sector with further clarity over the near term.

Regarding HS2, Alstom are part of a contract with Hitachi to design, build and maintain HS2 trains for phase 1 only.