St Rollox Railway Works: Closure

Chris Stephens Excerpts

Monday 14th January 2019 Commons Chamber

[Mr Sweeney]

I thank the hon. Gentleman for his intervention. He raises the actions already taken so far; there has been a very rapid response from elected Members of all parties to address this critical issue facing such a strategic and iconic industrial facility in Glasgow.

I will come to the details of that action soon, but first I want to outline the extent of the work that could have been brought into the site but that curiously the current management has not been entrepreneurial enough to bid for, never mind secure. That includes class 320 work for ScotRail and its fleet owners Eversholt, which is potentially worth £6.5 million; class 156 work for Northern Rail, worth £3 million; class 156 work for ScotRail, worth £2 million; class 156 retrofitting for ScotRail, worth another £1.5 million; and class 153 ScotRail work, worth another £3 million. There is also exam and inspection work unable to be done at other ScotRail depots or in Scotland because they are at capacity and do not have the workforce. In addition, there is high-speed train conversion work also available and class 170 work worth another £3.5 million, as well as the Caledonian Sleeper work. There is a huge array of potential opportunities and investment to be brought into the site that it has not even considered bidding for. It is bizarre that the company would not be doing that if it is not a branch-plant economy and relationship.

[Chris Stephens (Glasgow South West) (SNP)]

The hon. Gentleman’s speech has been very passionate and I agree with a lot of what he has said. Does he agree that another danger is that the 45-day redundancy notice does not give enough time for a solution to be found for the company and the highly skilled workforce at St Rollox?

[Mr Sweeney]

I very much agree with the hon. Gentleman, who makes a pertinent point about the triggering of the HR1 statutory notice, which starts the clock ticking. In my previous job at BAE Systems, I remember when that clock was set ticking at a mass meeting in 2012. At that time, more than 1,000 jobs were put at risk on the Clyde, and I know how unpleasant that feeling was, especially just before Christmas. The workforce were really sold short by the management. In the morning they were given their Christmas hampers, and in the afternoon they were told that their works were closing down. What appalling corporate social responsibility that was.

This is a testament to the breakdown of trust between Gemini and the workforce, and we have to fight hard to delay the statutory notice as much as possible, because there is a viable solution. The site is fundamentally viable. Indeed, it is believed that one opportunity would be provided through the electrification of the line. We have recently seen investment in the Edinburgh to Glasgow improvements, and this is only a short distance away. It is less than a mile to the site, and the electrification of the line into the works would allow more work to be accessed readily without using shunters. A previous proposal was considered by the coalition Government, and it was anticipated that capital costs of approximately £700,000 would be required at that time. I urge the UK and Scottish Governments to instruct Network Rail to action an immediate feasibility study to look into electrifying the line into St Rollox under control period 6 of Network Rail’s funding.

I went to meet the workforce at the site, along with the MSPs from the area and the leader of the Scottish Labour party, Richard Leonard. We consulted the workforce directly, and a meeting was subsequently held with the Scottish Transport Minister, Michael Matheson MSP. He has confirmed that officials at Transport Scotland and Scottish Enterprise have been working towards pulling together several organisations that are members of the rail supply network, along with potential customers for the services that Springburn provides. He has also asked that Gemini postpone the commencement of the closure consultation to allow all the options to be explored, and we are absolutely confident that there is a viable future for this site. It is fundamentally viable, and it has improved massively. Indeed, I visited it when I was working with Scottish Enterprise, and I was very impressed by its modern nature, its highly efficient operations and the work that had gone into massively improving its efficiency, safety and costs over the period of ownership by Knorr-Bremse. I am hopeful that that can be sustained. There is a model for restructuring that could happen.

I had the opportunity to meet the rail Minister earlier today, and we discussed the opportunities for the site. There is huge disruption in the rail industry in the UK with the onset of new rolling stock, but this site has endured disruptions and changes across the railway industry from the dawn of the railway age. It was built when the first railway was constructed in Scotland, and it can endure again in the future. There is an opportunity to restructure the site and I am hopeful, as I know ScotRail is, that it can be a strategic component of Scotland’s rail industry long into the future. I believe that if the rail Minister is amenable to acting proactively and urgently with his counterpart in Scotland, we will be able to work collaboratively at all levels of Government to ensure that the site will endure for the next 150 years.

This is a huge opportunity for Scotland’s railway industry, and I would hate to see that value, opportunity and potential destroyed simply to serve the short-term benefit of a private operator that is clearly treating its workforce with contempt. I want that operator to understand that the opportunity to be involved in the site is not just in its own self-interest, and that it is also an opportunity to defend and promote the growth of Scottish railway engineering long into the future. The only reason that the community of Springburn exists is because of the railway industry, and to lose the last vestige of the purpose and unifying identity that underpins our community would be hugely tragic. The worst thing is that the site is not a lame duck; it is entirely viable but it has been sold out by a lack of effort and entrepreneurial spirit on the part of its private management. We must wrest back control of the site and relaunch it for the future, to ensure that Scottish railway engineering can thrive long into this century.

--- Later in debate ---

[Andrew Jones]

In the meeting this afternoon, the company said it would be very happy to participate in the consortium the hon. Gentleman describes, which seems very positive. I hope all sides will enter this opportunity with their eyes open and with a constructive attitude.

[Chris Stephens]

As well as writing to the Scottish Transport Minister, the Minister could press Network Rail on what it can do to save these jobs in the city of Glasgow.

[Andrew Jones]

The work stream that Network Rail takes north of the border is determined north of the border, so I would be cautious about any discourtesy to Scottish Government colleagues by treading on their toes, but I understand the hon. Gentleman’s point, which I will resolve with the Scottish Minister before taking any action. But if Network Rail can play a part, it should do so. If the company can play a part, it should do so. With the company, the local political leadership, the national political leadership and the trade unions all participating in a positive way, it is possible that this plant may be saved, with the injection of opportunity via some changes to infrastructure. Ultimately, however, it will need to have a supply chain of orders, otherwise it will continue to be loss-making and its future will not be sustainable.

As I was saying, the opportunity is significant, because of the sheer nature of the investment being made across our railway industry. Even though things are devolved in this area, I recognise that the UK Government can highlight issues and we can discuss issues here. I will take the actions that I have described to try to encourage all the parties to come together to form a deal. I hope that I have been able to demonstrate that the Government take seriously the importance of the supply sector into the industry and that the actions we can take, although limited because of the devolution settlement, might help this deal come to fruition. I would be very keen if it did.

Question put and agreed to.