HS2 Update

Chris Williamson Excerpts

Monday 17th July 2017 Commons Chamber

[Chris Grayling]

I met my hon. Friend the new Member for Stoke-on-Trent South (Jack Brereton) today to talk about the need to make sure that there is an HS2 service for Stoke-on-Trent, and I have given him that commitment. [Interruption.] Labour Members may chunter, but I remind them that my hon. Friend has been the transport spokesman for the ruling group on Stoke-on-Trent City Council, so he is eminently well qualified to make this case, and is already doing a first-rate job as representative of the Stoke-on-Trent South constituency. I have been pleased to give him a commitment about the services for Stoke. I am also pleased to give the hon. Member for Stoke-on-Trent Central (Gareth Snell) a commitment that the whole point about HS2 is that it frees up capacity for these extra freight services and extra local passenger services. That is one of the reasons we are doing it.

[Chris Williamson (Derby North) (Lab)]

I am grateful to the Secretary of State for confirming in his response to my hon. Friend the Member for Chesterfield (Toby Perkins) that the midland main line will be electrified, but we have been waiting for as long as I can remember for that to happen, and led up the garden path on numerous occasions. Will he therefore, for the record, give us a date when the midland main line south of Sheffield through into London will be electrified?

[Chris Grayling]

We are talking about the ability to run an electric train from London, up HS2, around the route into Sheffield Midland, and back up to Leeds. I have given a very clear commitment that that will be the case. As I have said in this House before, the next stage of electrification of the midland main line is currently under way. I have also said that my big priority is to deliver for the people on that line the service improvements they want as quickly as possible, and that is what I am seeking to do.

Oral Answers to Questions

Chris Williamson Excerpts

Thursday 6th February 2014 Commons Chamber

[Mr Goodwill]

That is probably a matter for the Secretary of State for Health. There will be a free vote on Monday on that subject, and I will certainly be voting to ban smoking in cars where children are present, having had to sit in the back of the car at a young age feeling green and carsick while my father was puffing away.

[Chris Williamson (Derby North) (Lab)]

5. What assessment he has made of the availability of bus services across the country.

[Andy Sawford (Corby) (Lab/Co-op)]

12. What assessment he has made of the availability of bus services across the country.

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

Decisions about the provision of bus services outside London are a matter for commercial bus operators and local authorities, who are best placed to identify the transport needs in their areas. Ministers and officials are in regular contact with bus sector stakeholders such as local authorities and the Confederation of Passenger Transport about developments in the bus market. My noble Friend Baroness Kramer will also chair the next meeting of the Bus Partnership Forum this week, bringing together all those with an interest in the provision of bus services.

[Chris Williamson]

First, may I put it on record that my right hon. Friend the Member for Derby South (Margaret Beckett) and I very much welcome the Crossrail announcement, which will secure the long-term future of rail manufacturing in Derby? My question is about buses, however. The Minister will be aware that Government figures show that, as a result of Government cuts, there has been a 17% reduction in the number of supported bus services in this country. Will it not render meaningless the Prime Minister’s commitment to securing the pensioners bus pass if there are no buses for pensioners to use in the first place?

[Mr Goodwill]

Local authorities have certainly had to make some difficult decisions, but the fact remains that 44% of the money that goes to bus companies comes, in one way or another, from the taxpayer. We should look carefully at the working of the bus service operators grant, which is a fuel subsidy, because it seems to be a very blunt tool to support services that are under threat, particularly in rural areas.

TfL (Funding and Station Staffing)

Chris Williamson Excerpts

Wednesday 15th January 2014 Westminster Hall

[John McDonnell]

That is the running theme through all the comments we have had.

The Campaign for Better Transport stated:

“Plans to close ticket offices and cut staff in stations will mean passengers are left to fend for themselves when buying a ticket and will result in people paying over the odds for their journey.”

If there are 17% fewer staff to help passengers, then what? As my hon. Friends have said, staff help with incidents, accidents, advice on what route to take, directions to local venues or addresses, disability access needs, lost property and yes, lost children and everything else, as well as service updates and many more issues that passengers cannot deal with on their own or via a machine. The remaining station staff, to be frank, will be less available to help with travel and other inquiries, because they will be busy helping people to use the ticket machines who would have previously have sought help at the ticket office.

Passengers also need some types of help that a station supervisor has to deal with, in particular the more complex issues for a more senior level of staff. Now there is a station supervisor in every station, but under London Underground’s plans, they will be removed from many stations and responsible for a number of stations instead, so that they might have to travel from another station to help passengers. Staff will be expected to work on several stations over a wider area, so they will be less familiar with the area the station is in and they will often be working in isolation.

There will be an impact on efficiency—all the expert evidence that we have collected says exactly that. Station staff play an important role in keeping the trains moving, such as helping the trains to depart promptly, reporting faults and providing information and advice during service disruption. Station staff work with other London Underground staff, such as drivers and service controllers, to keep the tube running. If there are fewer staff in stations, the train service will suffer. The London Underground plans to remove station supervisors from many stations will slow down service recovery during and after disruption.

Station supervisors also play a critical safety role. London Underground plans that such essential staff will be in charge of several stations at the same time, so they will be unable to deal in person with the many safety incidents and issues. It intends to plug some of the gaps in staff coverage with a casualised work force of agency staff, as well as having office staff who occasionally work on stations, away from their normal duties and with minimal training. In many people’s view, that will compromise safety. I agree.

[Chris Williamson (Derby North) (Lab)]

My hon. Friend has obviously focused on the implications for London. I represent a constituency in the midlands, and my real fear is that if Boris Johnson and London Underground get away with these reckless cuts to staffing on stations on the London Underground network today, it will be the midland main line and other surface railway networks around the country tomorrow. Does my hon. Friend share that fear?

[John McDonnell]

My hon. Friend has made a valuable point. What happens in London is usually the example that is then rolled out to the rest of the country. This issue is critical not just for London but nationally. Ministers have a role in this matter, which should not just be left to the Mayor of London.

There are already issues with station staffing as there have been cuts in the past. In outer London, many stations are already neglected and are not well staffed. Transport for London responded to questions from members of the Greater London assembly on this matter by saying that on average stations have to be closed on 120 occasions a year due to staff shortages.

--- Later in debate ---

[Chris Williamson (Derby North) (Lab)]

I have only a minute left to speak, but there are plenty of things that I want to say. I rise to contribute to the debate as a part-time Londoner, even though I represent a constituency 120 miles from the capital. I emphasise that to me this is part of a wider ideological assault on the public sector and on public services. We have heard eloquent testimony today from hon. Members about the contribution that London Underground staff make to ensuring that we have a quality service. We should be proud of and cherish the personal attention that they give members of the public. The Minister should use his good offices to ensure that the Mayor recognises the important role that those staff play and that the Mayor meets their trade union representatives, so that he can hear directly from them and, we hope, they can change his mind.

[Lilian Greenwood (Nottingham South) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Rosindell. I congratulate my hon. Friend the Member for Hayes and Harlington (John McDonnell) on securing this important debate. He is a tenacious advocate for better public transport and was right to say that London Underground’s quality of service is now under threat.

There are two closely related issues in the debate, and I would like to begin with the question of station staffing levels, because the staffing reductions on the underground weigh heavily on the minds of many Londoners who rely on current levels of customer service to undertake their daily journeys. Of course, that is to say nothing of those Londoners whose jobs are at risk.

Every passenger may experience inconvenience if staffing levels are reduced. How many of us have come across faulty barriers or ticket machines, but have known exactly where to find help? How many of us knew where to go for advice when a service was cancelled, especially late at night? Clearly, it was the ticket office. Just yesterday, I arrived on the platform down at Westminster to find services disrupted, so I could not travel by tube and needed a refund on my Oyster card. I knew that that service would be provided quickly and courteously by staff in the ticket office, and of course it was.

Such experiences are common to us all, but as my hon. Friend the Member for Hayes and Harlington set out very clearly, we know that Boris Johnson’s plans to close all ticket offices and cut 17% of station staff will hit disabled passengers particularly hard. These are passengers who Transport for All has warned could face new barriers in trying to travel to work, to see friends and family and to get out and about in the capital. According to Transport for London’s own equality impact assessment, customers with dyslexia will be particularly affected, as that is

“a disability that remains hidden when”

people are

“using a ticket office, but would potentially become known when”

they are

“requesting assistance at the ticket machine.”

If stations are left unstaffed, perceptions of safety will be damaged, discouraging some groups of passengers in particular from travelling. TfL’s own equality impact assessment states:

“Concerns about crime and antisocial behaviour tend to affect the travel patterns of women, BAME”—

black, Asian and minority ethnic—

“Londoners, younger people and…those on lower incomes more…than other groups”.

A number of my hon. Friends have described some of the circumstances that demonstrate exactly how important tube workers are in keeping stations safe and feeling safe.

Let us be clear. This is not a carefully managed, gradual transition to new working practices. All the ticket offices are due to close next year. That suggests that it is driven by a political timetable. These proposals are about McNulty-style cuts to the underground instead of putting passengers first. I well understand why my hon. Friends the Members for Derby North (Chris Williamson), for North Ayrshire and Arran (Katy Clark) and for Wansbeck (Ian Lavery) are worried about the implications for their local rail services. When almost 1,000 station staff are losing their jobs, it is simply not credible for the Mayor to say that that will not lead to any reduction in passenger service and safety standards.

[Chris Williamson]

Does my hon. Friend agree that this is also a matter of trust? I say that because the Mayor is on record as saying in March 2010:

“This Mayor takes his promises to Londoners extremely seriously. Every station that has a ticket office will continue to have one.”

He made that solemn pledge; he could not have been clearer. This is a matter of trust, is it not?

[Lilian Greenwood]

My hon. Friend is exactly right. I would say that the Mayor has now lost any credibility that he might once have had on this issue. Not only did he make those comments in 2010 but in his 2008 manifesto he was unequivocal:

“We will halt all such ticket office closures immediately.”

I know that the Mayor has had a high-profile falling-out with the Deputy Prime Minister, but perhaps he should have some sympathy with him, because he was photographed signing a petition that called for an end to

“the closure of station ticket offices”

and the reopening of

“those which have already been closed.”

In a particularly florid turn of phrase, the Mayor said at the time:

“Consider the threat has been lifted, annihilated, vaporised, liquidated, exterminated, removed and obliterated as of now”.

He later said to Assembly Members:

“The first and most important point to make is no ticket offices will be closed...They are not going to be closed...The answer to the number of ticket office closures is nil”.

On the very same day, a leaked TfL report revealed that closures were indeed being planned, and in November we had confirmation that all ticket offices were to be shut, so Boris Johnson began as the Mayor who said that he would save every ticket office and he will finish as the Mayor who closes every one of them.

There are other long-term considerations that have to be addressed, including the future of London Overground which, as my hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott) rightly said, is an excellent service. Services and stations on the West Anglia lines are due to be transferred from Greater Anglia to London Overground next year, and commuters on those lines will be hoping that the promises made on investment and improvements in service quality will be upheld. As the Campaign for Better Transport has powerfully argued, the highly visible improvements that London Overground made in 2007, which included putting more staff on stations, have improved passenger satisfaction, driven up revenue and transformed the image of many local services.

As Ministers help to oversee the transition of the lines, will they satisfy themselves that this round of job losses is not the first step towards returning to the poorly staffed, poorly maintained and threatening stations that characterised the old Silverlink franchise? If this Minister can give that commitment today, this question must surely apply: why take that approach to the overground but not the underground?

Unfortunately, recent relations between the Government and the Mayor’s office do not give us cause to hold out much hope for the future. Several of my hon. Friends have raised concerns about TfL’s funding. The current dispute between the Treasury and the Mayor reflects poorly on both parties, but as Labour Members understand, ordinary Londoners are the ones set to pay the price.

I will give some background. David Goldstone, TfL’s chief finance officer, told London assembly members that

“the Mayor made the decision about the average”

increase

“across all TfL services being at RPI…at that time we understood the travel cards would have the national RPI-plus-1 formula applied. The Chancellor then announced that national rail would be at RPI.”

This has left TfL with a budget shortfall of £13 million to £14 million a year, and the late application of fare rises this year—a result of the confusion between Whitehall and the Mayor’s office—means that the bill could rise to £20 million in 2014. There is an apparent refusal by Treasury Ministers to fund that hole in the Mayor’s budget, and that has naturally led to suspicions that personality politics may be at work.

Can the Minister provide clarification and say whether the Chancellor of the Exchequer informed the Mayor of London that he intended to restrict fare rises to RPI before the announcement was made? Will the Treasury fund the shortfall, and if not, what estimate has he made of the impact on TfL’s services that cuts of this value could have? Is he in contact with the Mayor and the Treasury on this matter, and what representations has he made to them? I hope that the Minister will address those questions and the questions raised by other hon. Members, but the truth is that there are enough questions on this issue and these plans to fill a much longer debate.

With fewer staff available to manage congestion during peak periods, it seems likely that overcrowding will start to have a greater impact on operational performance. Violent crime is unfortunately on the rise on the underground network, and visibility will be reduced, as up to 17% of station staff are set to lose their jobs. Staff will be carrying more expensive equipment as they replace ticket-office functions, which could make them targets for abuse and theft. Of course, the staffing reductions will be much higher at some stations, raising the prospect that individual members of staff could be left in unsafe situations, with little flexibility for back-up, particularly when there are problems on the lines.

However, it does not seem that the Mayor or TfL have planned for these problems, nor does there seem to be an awareness of the practical challenges that unattended ticket machines and barriers pose. We all know that that is not infallible technology and that without constant supervision, disruption can soon mount up for passengers. I am concerned that passengers will not necessarily be able immediately to find staff to help them if they are not in the location where they should be able to find them.

Although most of the matters we have discussed today are the responsibility of the Greater London authority, there is an important role for Ministers in assessing the impact of the planned cuts, clarifying the position on the £20 million black hole in TfL’s budget and ensuring that this chaotic situation never arises again, because Londoners deserve better than this.

Oral Answers to Questions

Chris Williamson Excerpts

Thursday 17th January 2013 Commons Chamber

[Mr McLoughlin]

I think I have been very open with the House, and I have also commissioned inquiries. Initially the hon. Lady questioned their independence. I am glad that she is now happy to abide by those reports, which were clear that, had Ministers been warned, different actions could have been taken, which is exactly what the permanent secretary said before the Select Committee on Transport.

[Chris Williamson (Derby North) (Lab)]

4. What recent progress he has made on the Thameslink and Crossrail rolling stock contracts; and if he will make a statement.

[The Minister of State, Department for Transport (Mr Simon Burns)]

We aim to reach financial close on the Thameslink rolling stock contract early this year. The Crossrail rolling stock procurement is a live procurement exercise being run by Crossrail Ltd. It is due to announce the de-selection to two bidders in spring this year, with contract award expected in spring 2014.

[Chris Williamson]

The Chancellor says it is essential to cut unnecessary public expenditure, but the review of the inter-city express programme by Sir Andrew Foster shows that the Thameslink rolling stock programme will cost hundreds of millions of pounds more than necessary. How can the Transport Secretary justify wasting British taxpayers’ money to create highly skilled manufacturing jobs in Germany when he could have re-run the procurement process in a matter of months, with a tender process that better ensured that this massive investment of taxpayers’ money led to manufacturing jobs in Britain? I am worried that the same thing is going to happen with—

[Mr Speaker]

Order. We are grateful to the hon. Gentleman; we have got the gist of it.

West Coast Rail Franchise

Chris Williamson Excerpts

Thursday 6th December 2012 Commons Chamber

[Mr McLoughlin]

My hon. Friend says that Parliament holds Ministers to account. In fact, it is not only Parliament that holds Ministers to account, because that also happens through the Select Committee procedures, on which I will certainly not lecture my hon. Friend, and that applies to permanent secretaries and officials as well. There will undoubtedly be other reports not only by the Transport Committee but by other Select Committees and by the National Audit Office. Various reports will come out on this subject.

[Chris Williamson (Derby North) (Lab)]

Will the Secretary of State agree to meet staff representatives through their trade union to discuss and consider the ongoing uncertainties and concerns about this contract?

[Mr McLoughlin]

I am always happy to meet various bodies, and if the hon. Gentleman puts a proposal to me I will certainly consider it.

Thameslink and Crossrail Contracts

Chris Williamson Excerpts

Tuesday 20th November 2012 Westminster Hall

[Chris Williamson (Derby North) (Lab)]

It is a pleasure to serve under your chairmanship for the first time, Mr Howarth.

Bombardier is the last train-making company left in the United Kingdom. We have got to this state, frankly, if we go back into relatively recent history, because of the privatisation of the rail industry, which has led to an unco-ordinated approach to the procurement of trains and much short-termism. The train manufacturing industry in this country is left hanging in the balance.

As a result of the Government’s decision last year to appoint Siemens as the preferred bidder for the Thameslink contract, 1,440 jobs at the Derby Bombardier factory were lost. Some 1,600 remain, and 12,000 people work in the supply chain in the rail industry, which accounts for some 900 companies. Bombardier is therefore still a significant player, even though it is the last remaining train maker in the UK.

I want to set out what I believe have been fundamental errors in the Thameslink procurement process. I also want to make the point—I hope the Minister agrees—that it is not too late to correct those errors. I hope, too, that he will give an assurance that the mistakes made in the Thameslink process will not be repeated in future contracts, particularly in the Crossrail contract that is due to come up in the next few years.

[Pauline Latham (Mid Derbyshire) (Con)]

Does the hon. Gentleman not want to look forwards, rather than totally backwards, and be positive? Does he not agree that further contracts, such as for Crossrail, are coming up, and that we should be careful not to jeopardise that by ranting on too much about the past. We should look forwards for Bombardier and ensure that we do everything, on a cross-party basis, to get it the contract for Crossrail.

[Chris Williamson]

Of course, we need to look forward, and I shall come to that, but it is also important to look backwards for a while, because it is not too late for the Government to do the right thing. There are problems with and delays in the Thameslink contract, so it is appropriate to take that historical context into account.

[Dr Matthew Offord (Hendon) (Con)]

I thank the hon. Gentleman for securing the debate, which, as chairman of the all-party group on the Thameslink route, I particularly welcome. When he looks back, will he consider the previous Government, who designed the tendering process, and acknowledge the role that they played in this fiasco?

[Chris Williamson]

There is clearly a problem, and whoever is responsible is, in a sense, not really the point. I accept that there were clearly faults with the process designed by the previous Administration, but in taking account of the comment made by the hon. Member for Mid Derbyshire (Pauline Latham), it is important to look forward, while also acknowledging the impact of what we have seen over the past 18 months or so.

Time is short, so I will try to motor along. I have a lot to say, and I want to give the Minister an opportunity to respond to my points. I was about to make the point that we were told 18 months ago that preferred bidder status for the Thameslink contract had been conferred on Siemens. Before the 2011 summer recess, I was told by the then Minister of State, Department for Transport, the right hon. Member for Chipping Barnet (Mrs Villiers), that the contract would reach financial close by the end of that year. She said that the Department could not countenance any further retendering of the process, because that would build in far too long a delay, which would impact on the infrastructure project. However, here we are, some 18 months later, and we do not seem to be that much closer to a final decision or the financial close on the award of the contract.

In answer to a parliamentary question that I tabled, the Minister of State, Department for Transport, said that the DFT is now looking

“to secure financial close early in the new year.”—[Official Report, 25 October 2012; Vol. 551, c. 1005W.]

That will be well over the 18 months and getting on for two years, so I am not sure that the arguments made in the first instance hold any water.

I have several questions that I hope the Minister will respond to if he gets the chance. Is he confident that the timetable will not slip yet again, because it has slipped time and again? Will he explain why the forecast date continues to slip, which is rather curious and which I do not understand? Will he tell the House whether he or the Department is aware of any problems with the proposed deal? Is the slippage caused by Siemens asking for more time, or are the delays caused by problems in his Department? Will he confirm that there will be no further slippage in the time scale? In which month in the new year will financial close eventually be reached? Will it be spring or earlier?

I want to go through some of the series of errors in the Thameslink tendering process, if I may. The contract is clearly a Government one, but the DFT has not managed it as though it were. Furthermore, the tender evaluation was discriminatory. The EU’s Commissioner for the single market, Michel Barnier, has said that, as far as the Commission is concerned, the Thameslink contract is being undertaken by a contracting authority; in other words, it is a Government contract. The Secretary of State for Business, Innovation and Skills, no less, has said that the consequence of the process

“was bound to lead to the outcome it did.”

The fact is that the Department is bound by regulations. As this is a Government contract, regulation 23 of the Public Contracts Regulations 2006 is relevant. It stipulates:

“Subject to paragraph (2), a contracting authority shall treat as ineligible and shall not select an economic operator in accordance with these Regulations if the contracting authority has actual knowledge that the economic operator or its directors or any other person who has powers of representation, decision or control of the economic operator has been convicted of any of the following offences”—

including, among others—

“(a) conspiracy within the meaning of section 1 of the Criminal Law Act 1977… ; (b) corruption within the meaning of section 1 of the Public Bodies Corrupt Practices Act 1889… or… ; (c) the offence of bribery”,

as well as various other offences.

Paragraph (2), which is referred to, states:

“In any case where an economic operator or its directors or any other person who has powers of representation, decision or control has been convicted of an offence described in paragraph (1), a contracting authority may disregard the prohibition described there if it is satisfied”—

this is the key point—

“that there are overriding requirements in the general interest which justify doing so”.

I would be grateful if the Minister explained what “overriding requirements” led the Department to disregard the fact that Siemens has fallen foul of sub-paragraphs (b) and (c)—in other words, corruption and bribery. I believe it is common knowledge that it has been found guilty of those offences in America and in its home country, Germany.

Siemens AG is part of the Cross London Trains consortium, so the Department should have taken into account its obligations as set out in the regulations. Let me stress that I have nothing against Siemens per se, but I want to ensure that the law is applied appropriately and that the best interests of the United Kingdom, and of my home city and constituency of Derby, are served by the Government’s decision.

On the discriminatory nature of the matter, the process of evaluation is separated into four distinct component parts, or stages, which do not seem to be related to each other, and each part has to be satisfied in its own right. Once a bidding company has passed a stage, that stage is not referred back to, and it seems not to have any relevance to the next stage. I say that the process is discriminatory because, as experts agree, credit ratings are the key to the decision at the fourth, most important stage of the evaluation process; the quality of the product and the deliverability of the trains are utterly irrelevant. That process gave Siemens an unfair commercial advantage because it had a superior credit rating. The Department for Transport should urge the Minister, even at this late stage, to terminate the process and retender it on the basis that it was discriminatory and unfair.

Another reason that the Department should consider terminating the process and starting again is that a number of civil servants who were suspended over the west coast main line debacle were also involved in the Thameslink process—that was confirmed in responses from Ministers to written parliamentary questions that I tabled. That also flags up another significant question mark over the validity of the decision to award the contract to Siemens.

Will the Minister give an unequivocal guarantee that Crossrail is being taken forward correctly? Are the obligations placed on contracting authorities being observed by his Department and by Transport for London? Will he confirm that the Crossrail tender evaluation criteria will be non-discriminatory and will not give an unfair financial advantage to any bidder based on their credit ratings? Moreover, will he assure us that the socio-economic factors have been included in the Crossrail invitation to tender, and if they have, how have they been included? Will he give us some information in relation to the proposed eVoyager contract, which is also really important to the future of the Bombardier factory in Derby?

Will the Minister put in place an independent inquiry to consider the workings of the Department for Transport with regard to the procurement of trains? From what we have seen over the past 18 months or so, it seems pretty obvious that there has been a problem with the way the Department for Transport approached the process.

I have further questions for the Minister. What alternatives are being considered if Siemens is unable to reach financial close? In response to a written parliamentary question, the Minister said that the Department was assessing other options in the event of it being unable to reach financial close with Siemens. What are those options?

[Dr Offord]

In the next few moments, I will give the hon. Gentleman an opportunity to catch his breath and focus on some of his comments. He has presented an eloquent case for his constituents, and I would not take that away from him. None the less, I hope he agrees that I present an equally valid case on behalf of my constituents, who want a speedy resolution to the Thameslink project. That project is vital to them as it runs through the constituency.

The hon. Gentleman started by saying that there were flaws in the process. So far, he has identified issues that he considers unfair; perhaps he is questioning their validity and clarity.

[Dr Offord]

Of course, Mr Howarth. My point is that the hon. Member for Derby North (Chris Williamson) has not identified any flaws in the tendering process. Will he address that matter, before the Minister rises to speak, by describing those flaws?

[Chris Williamson]

I am sorry if the hon. Gentleman has not followed my contribution, because I outlined what I consider flaws in the process. First, this is a Government contract and it has not been treated as such; it has been treated differently. Secondly, it is discriminatory, because it gives an unfair advantage to one of the bidders for the contract. The Government are under an obligation to ensure that there is a level playing field for bidders for such a significant contract, especially when the unfair advantage is given to a foreign competitor against our own British-based train-making company. Those are the flaws. Regrettably, we do not have time to go into further detail. If we had a longer debate, perhaps we could do so. I hope that the Minister will deal with those specific points.

Let me return to the final few questions that I have for the Minister; I hope he will give them some attention. If the Department for Transport is unable to reach financial close with Siemens—there seems to be a large question mark over that—will Bombardier, as the reserve bidder, be automatically awarded the contract? Do alternatives that the Department is considering include allowing Siemens to build the trains and other organisations to provide the funding and finance? If Siemens fails to deliver on the Thameslink contract, will it be excluded from further bidding for the Crossrail contract? We deserve a response to that question, because there has clearly been a significant delay in the process. It would be inappropriate if Siemens were allowed to bid for another contract if it were unable to deliver on this one.

If Siemens is eventually awarded this contract, will the Minister give a commitment and assure us that we will not see a repeat of what happened under the Intercity Express Programme contract? In that case, the Bombardier consortium and the Hitachi-led consortium put in bids on one basis under the original tendering process. After preferred bidder status was conferred on the Hitachi consortium, there was substantial and significant change to the design of the IEP contract trains. That seems unfair, because, as I understand it, the design is now very similar to the offer that could have been delivered by Bombardier in the first instance, although it was not allowed to put that alternative design forward at that point.

Time is short and the Minister has only 11 minutes left, although there are still quite a few questions that I would like to ask. I hope he can answer some of my questions, especially the one about considering putting in place an independent inquiry to look at the workings of the DFT in relation to the procurement of trains.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

Thank you very much for calling me to speak, Mr Howarth. I will do my best in the 10 minutes or so available to try to answer as many points as I can.

First, I welcome this debate on Thameslink and Crossrail, two schemes that are of great importance to this country’s rail industry and, more widely, to supporting growth and jobs. I know that the hon. Member for Derby North (Chris Williamson) has been an active campaigner on behalf of Bombardier, which is natural, as it is situated in his constituency and city, and the company of course plays a key role in Derby’s economy. I am pleased to respond to this Adjournment debate on a subject that I know is of great importance to him and his constituents. I am especially pleased to do so in the week after Southern announced that it intends to exercise an option for 40 new Electrostar carriages from Bombardier, which I am surprised he did not mention.

Let me start by saying that rail is a success story and this coalition Government is committed to continuing to invest in the success of rail. Since the 1990s, both the number of passenger miles and passenger journeys on rail have nearly doubled. In the same period, use of rail freight has expanded by more than 60%, and in the past decade we have seen significant increases in passenger satisfaction and train punctuality. However, this Government requires, and is driving, even more improvement. We are investing £18 billion in this spending review period alone on a programme of rail improvements as large in scale as anything seen since the 19th century.

In Derby, the Department for Transport is investing in transport improvements, including investing £4.9 million from the local sustainable transport fund; more than £2 million from the better bus area fund; more than £8 million in highway maintenance and pothole repairs; and more than £9 million as part of the integrated transport block. We have also provisionally approved a £4.4 million contribution to a replacement road-over-rail bridge over the Derby to Birmingham railway line.

Thameslink is an urgently needed programme that will provide additional capacity for key London commuter routes and relieve overcrowding on the London underground. It includes major infrastructure works at key London stations, including the complete modernisation of London Bridge station and the procurement of next-generation rolling stock. In time, it will include changes to franchise arrangements to support delivery of the service.

Thameslink is already making a difference to passengers. Farringdon and Blackfriars stations have been transformed, platforms along the route have been extended to support new 12-car services, and enabling works have begun on the reconstruction of London Bridge station and its approach tracks. I take this opportunity to commend the industry, and especially Network Rail, for the work that has been done to upgrade Blackfriars, which was unique in scale and difficulty. I saw that work at first hand and thought that they did a fantastic job.

As the hon. Gentleman highlighted, there have been delays in awarding the Thameslink rolling stock contract. The Thameslink train order is a significant investment and the detailed contract terms need to be right, so that we can meet the demanding customer and performance requirements of this next-generation rolling stock. The contract places much greater responsibility for the train’s performance in service on the train manufacturer and maintainer than has been the case traditionally. That is the right thing to do, and given the size of this order, it takes time to get the detailed contract documentation completed. The Government is confident that it is very close to final agreement of these commercial arrangements, and we expect to be able to conclude the associated documentation by the end of this year.

As the hon. Gentleman stated, we recently revised our target date for achieving financial close to early in the new year. Of course, agreement on financing has to come after agreement on commercial arrangements, and we have to allow a proper period for the rating agency and banks to perform their due diligence. As he will appreciate, the lending environment remains challenging for all projects. Notwithstanding that background, Siemens remains confident that the funds can be secured for Thameslink.

Members will know that the Government has recently paused existing franchise procurements, including for the new Thameslink franchise, while reviews take place of the serious errors that were uncovered on the west coast main line franchise competition. The Government is wholly committed to learning the lessons from that episode, but Members will appreciate that I cannot pre-empt the findings of the independent inquiries looking into those matters.

Regarding train fleets, however, I am quite clear that the key features needed by the new Thameslink trains are those that support the demanding performance requirements needed to operate a high-frequency service through the central core between Farringdon and St Pancras of up to 24 trains per hour in either direction. Those are very different train performance requirements from those needed by trains on other routes operated by Southern. Hence, a different train fleet is required for Thameslink.

There has been some question whether there will be sufficient electric trains from the existing Thameslink programme to support all the announced electrification schemes; I think the hon. Gentleman has raised that issue in parliamentary questions. Let me be clear that the Government’s electrification programme covers both regional and commuter services, alongside long-distance, high-speed services for passengers and freight. The existing Thameslink rolling stock will be cascaded to regional and commuter lines, the very uses that it was designed to be suitable for. Overall, there is sufficient cascaded stock available to meet the needs of the electrification programme. We are working with our industry partners to ensure that that rolling stock is made available in time for the electrification of the routes.

Thameslink is also good news for jobs. The rolling stock contract will support the creation of an estimated 2,000 jobs in the UK, supporting manufacture of train components, construction of depots and subsequent maintenance of the new fleet of trains.

[Chris Williamson]

Will the Minister give way?

[Norman Baker]

I will give way shortly.

In addition, at the peak of construction activity, we expect an additional 3,000 people to be employed directly on the Thameslink infrastructure works as a whole, with as many people again employed in related jobs in the wider community. I am happy to give way now to the hon. Gentleman, but he asked me a lot of questions and left me only 10 minutes to respond.

[Chris Williamson]

I beg the Minister’s pardon, but will he concede that the 2,000 jobs that he referred to a few moments ago would be created whoever won the contract, including Bombardier?

[Norman Baker]

Of course—I am absolutely happy to accept that. I welcome new jobs wherever they are created in this country. These are train-related jobs that help both the rail industry and the wider economy.

At this point, I will try to answer some of the questions that the hon. Gentleman put. Some were related to the past, and I take the point made by my hon. Friend the Member for Hendon (Dr Offord) that the hon. Gentleman’s speech was largely about the past, rather than the future.

The hon. Gentleman asked specifically about Siemens and read out extracts from the legislation relating to the position that he thinks applies in this case. I should make it clear that for convictions to give rise to the requirement to exclude Siemens plc from the Thameslink rolling stock project, those individuals involved in the activities that resulted in convictions would need to be in a position of power, representation, decision or control of Siemens plc. The Department investigated the position at the pre-qualification stage and was satisfied that that was not the case. Consequently, we can reiterate that the Department does not consider there were grounds to exclude Siemens plc from the Thameslink rolling stock contract.

The hon. Gentleman also mentioned Crossrail, of course, as he looked to the future. Before discussing Crossrail, I should finish talking about Thameslink by referring to the point made by my hon. Friend the Member for Hendon in an intervention on the hon. Gentleman. My hon. Friend’s point was that Thameslink was largely done and dusted by the time that this Administration came to power and, to use the phrase that I think my right hon. Friend the Secretary of State for Defence used at the time, when he was Secretary of State for Transport, all he did was “open the envelope”. That is the consequence of that particular process.

Moving on to Crossrail, the £14.5 billion Crossrail project will create vital new transport infrastructure to support economic growth. The project will deliver a 74-mile railway; 13 miles of new tunnels under London; new, expanded or upgraded stations along the Crossrail route; and a new fleet of trains. When the project is complete, Crossrail services will run from Maidenhead and Heathrow in the west to Shenfield and Abbeywood in the east. For the millions of people who will use its services, Crossrail will deliver faster journey times and better connectivity, while reducing overcrowding on other services. Overall, it will provide a 10% uplift in London’s rail transport capacity. Crossrail is not only great news for passengers, but good news for the economy, as it will support growth and the UK’s long-term competitiveness. Crossrail will provide 14,000 jobs at the peak of construction and is predicted to facilitate employment growth of up to 30,000 jobs by 2026.

The Government, working with Transport for London as its co-sponsor, established Crossrail Ltd as a single-purpose delivery body for the Crossrail project. Crossrail Ltd is responsible for procuring the many contracts needed to deliver the project, the largest of those being the contract for an initial order of around 600 new carriages—the exact number is a matter for the bidders—and a new depot at Old Oak Common. The contract is expected to be worth in the region of £1 billion and is likely to include options to allow TfL to expand the fleet in future years to accommodate demand and respond to possible changes, such as High Speed 2. The procurement of Crossrail’s rolling stock marks the beginning of Crossrail’s transition from Europe’s largest engineering project to an operational, world-class railway. These will be modern, high-capacity trains that replace many older, inner-suburban trains that run into Paddington and Liverpool Street.

Our priority is to deliver that new railway, which so many people are looking forward to, on schedule and to ensure that we do so as efficiently as possible, with value for money for the taxpayer and future fare payers always in mind. We are clear that we want to secure the right train at the right price to deliver the benefits of Crossrail to London and the south-east. The only way to achieve that is through a strong and fair procurement policy. Four bidders—Bombardier, CAF of Spain, Hitachi and Siemens—submitted first-round bids by the deadline of 29 October. I have no knowledge of what is in the bids, but I hope that Bombardier, along with the other bidders, has submitted a strong, competitive bid that meets the exacting requirements of Crossrail. I am sure that the hon. Member for Derby North would like us to follow proper EU procurement policy and rules.

Those first-round bids are being assessed by Crossrail Ltd. It expects to be in a position to shortlist bidders next spring, so as to move to the next stage of the competition. It is hoped that a preferred bidder will be announced later next year, with the project moving to financial close in 2014. The first train is expected to enter service between Liverpool Street and Shenfield—the first section of the Crossrail route that will be operated by TfL—in 2017. The full Crossrail service is expected to be fully operational in late 2019, with the central tunnel section opening in advance of that.

Midland Main Line

Chris Williamson Excerpts

Monday 16th April 2012 Commons Chamber

[Mrs Villiers]

My hon. Friend is entirely correct. There is significant cross-party support, and there is a range of interesting research and evidence on the potential benefits of electrification of the midland main line, much of which I have seen directly. As I think the hon. Member for Leicester South (Jonathan Ashworth) mentioned, in February, I met MPs to discuss the proposals, along with the deputy mayor of Leicester. This debate provides a welcome opportunity for the House to reflect on an important subject for the regions concerned.

[Chris Williamson (Derby North) (Lab)]

I, too, congratulate the hon. Member for Loughborough (Nicky Morgan) on securing the debate. I think that the case for the electrification and upgrade of the midland main line is unanswerable, and I hope that we will hear some reassuring words from the Minister this evening. Does she agree that it is absolutely essential that the Government do everything in their power to ensure that the trains that run on the midland main line—and indeed on every railway line in the country—are, wherever possible, built in British factories, and preferably in the Derby factory of Bombardier?

[Mrs Villiers]

The hon. Gentleman knows that I have a very high regard for the Bombardier operation in Derby, and he will appreciate that we are bound by European rules on the procurement of rolling stock.

The Government appreciate the economic benefits that investment in transport can bring in general. That is why we have given priority to investment in our rail network, even when budgets are limited by the pressing need to deal with the deficit. As well as going ahead with high-speed rail, we have embarked on a major programme of rail improvements on a scale larger than anything attempted since the Victorian era. That programme plays a significant role in two of our important priorities: promoting economic growth and cutting carbon. It is also vital that we get the cost of running the railways down, so that we can respond to concerns about fares.

Where there is a strong business case, and subject to affordability, the Government support the progressive electrification of the rail network as a way to reduce the cost of running the railways, boost the economy, increase passenger comfort, and reduce carbon. As we have heard from my hon. Friend the Member for Loughborough, electric trains cost less in fuel and maintenance than their diesel equivalents; they are quieter; they are lighter, which saves on wear and tear to the track; and they emit less carbon dioxide. That is why the Government have already committed to an extensive programme of rail electrification, which includes the Great Western main line from London to Oxford, Newbury, Bristol and Cardiff, and lines in the north-west, including from Liverpool to Manchester and from Blackpool to Manchester. Indeed, Mr Deputy Speaker, your constituency is set to benefit from the changes. Subject to confirmation of the business case, the line from Manchester across the Pennines to Leeds and York is also due to be electrified.

As my hon. Friend the Member for Loughborough and others have rightly emphasised, the midland main line plays a major role in supporting the economies of the east midlands and south Yorkshire. Most inter-city services on the line are provided by modern, high-performance, diesel Meridian trains. The line also benefits from the recent investment in new stations at Corby and East Midlands Parkway, and from the £800 million transformation of St Pancras. The Government have committed to further improvements by 2014. Network Rail is due to complete a £69 million investment to deliver an eight-minute improvement in journey times for passengers between London and Sheffield. In the longer term, the economies of the east midlands and south Yorkshire will benefit from the second phase of High Speed 2, with journey times slashed and rail capacity dramatically increased.

We recognise that there is a good case, on economic and financial grounds, for further investment in the midland main line over and above what we are already committed to. The scale of what can be delivered depends on what is affordable, and on a careful and fair assessment of competing priorities elsewhere on the rail network. The report commissioned by East Midlands Councils and South Yorkshire passenger transport executive entitled “The Case for Upgrading and Electrifying the Midland Main Line” is very impressive. It highlights significant potential economic, environmental and financial benefits from electrification and the other upgrades to which my hon. Friend the Member for Loughborough referred.

The Government recognise that the electrification of the midland main line could help spread the benefits of HS2, because it would enable through-running of services between the new high-speed network and the midland main line. This is something that we will consider as we prepare our response to the advice of HS2 Ltd on phase 2 of the project to complete the Y network to Manchester and Leeds. This potential benefit and the others mentioned today, including the important points made by my hon. Friend about freight and the potential benefits to freight from an electrified midland main line, will all be taken into account in our decisions on the forthcoming HLOS statement.

As my hon. Friend the Member for Loughborough set out, electrification of the midland main line and various other upgrades to the line are included in Network Rail’s initial industry plan for possible delivery in the period between 2014 and 2019. This document and the priorities that it sets out will play an important role in forthcoming decisions on which projects can be funded in the CP5 rail period to 2019. I welcome the decision by the rail industry to prioritise electrification of the midland main line in the IIP. The Government are currently considering how much funding will be available in total for rail investment in the five-year period up to 2019 and how it should be allocated. We will announce our decisions by July.

Although the business case for midland main line electrification does indeed look impressive, as I have acknowledged at the Dispatch Box before now, there can be no doubt that the project would be complex and challenging, and it would be expensive to deliver. Network Rail has estimated the capital cost of electrification alone to be just over £530 million, not including the other improvements mentioned in the debate. Major engineering work would be required. Just to make room for the overhead wires, more than 50 bridges would have to be rebuilt.

So, alongside midland main line electrification and upgrades, we will need to assess the case for improvements on other routes to determine which projects are given priority. The initial industry plan contains proposals for rail improvements likely to cost about £4.5 billion in total during the CP5 control period. This is on top of £5 billion for projects already committed for the period, so we will need to strike a balance and make choices. Of course we want to fund projects which promote economic growth and improve efficiency, as we believe electrification of the midland main line would do. We also need to ensure that the Government’s finances are not overstretched during difficult times.

Pedestrian Access (Railway Stations)

Chris Williamson Excerpts

Wednesday 14th December 2011 Commons Chamber

[Paul Blomfield]

My hon. Friend makes an important point. In stressing the communities that I represent in Norfolk Park and Park Hill, I do not want to underestimate the impact of closing the bridge on the wider city. That is a crucial tram stop, which is widely used by people coming to work during the day, people studying at Hallam university, and those coming to the cinemas and theatres in the evening. That bridge is crucial for them.

Before the Minister makes the point, I recognise that there is a problem with revenue loss, although attempts to gain accurate information on the scale of the problem have met brick walls. The Minister quantified it in a letter to me, at £2.3 million, only today, but we need more analysis. Fare evasion must be tackled, but barriers are not the one-size-fits-all answer that the Department for Transport seems to believe.

The problem of revenue loss lies with local services—main line services have cracked it through effective ticket checks on trains—but it is not simply deliberate fare evasion. I regularly travel on local services and it is often a challenge to pay. For example, I can join the train at an unstaffed station where I cannot buy a ticket.

The train companies could make much better efforts to collect fares, and on the busy trains, at peak times, when it can be difficult for ticket collectors, they could deploy staff on the platform. They could also install ticket machines at unstaffed stations. They could do a number of things. Barriers are the easy solution for the Department for Transport and the train companies, which are guilty—if hon. Members will forgive the pun—of tunnel vision, because they are ignoring the wider interests of the city. The station and its bridge were rebuilt with public money, so why are the needs of the public not being put first? Our taxes paid for the station improvements, yet the Department for Transport wants to relegate the needs of the public behind those of the train companies.

That raises important questions on future franchising arrangements and what control communities have and should have over our stations. The current franchise expires in 2015, and it is vital that the new round of tendering, which will begin in the next couple of years, takes into account local views, so that the DFT and franchisees are not locked into an agreement that will damage our city.

This issue emerged under the previous Government, but let me reflect on how they dealt with it. The Transport Secretary at the time, Lord Adonis, listened to local people and challenged the policy of his officials, who appear to be the driving force behind the move to barriers. He listened, he came to Sheffield, he looked at the position, he attended a meeting of RASC and he responded to their concerns by announcing a clear and unequivocal commitment that there would be no barriers at Sheffield unless pedestrian access was maintained.

I want to know why the current Government will not honour that commitment and look forward to the Minister’s remarks.

[Chris Williamson (Derby North) (Lab)]

I have some experience of this problem in Derby. The station was gated, and although the authorities claim that pedestrian access has been maintained, it is complicated and difficult for pedestrians to gain access. Some need to obtain certification from the college on the other side of the railway line. That has caused local residents to object, so if my hon. Friend can prevent similar difficulties arising in Sheffield, I am four-square behind him, because I wish we did not have to contend with those problems in Derby.

[Paul Blomfield]

I am grateful to my hon. Friend for his intervention. I am aware of the situation in Derby. When EMT floated a similar proposal to tackle the problem in Sheffield, we drew heavily on the Derby experience in dismissing it as an impractical and unworkable solution.

That is one reason so many people are opposed to barriers. Indeed, when in opposition, the Minister wrote to a concerned rail expert on the matter. This is from his letter:

“Whilst barriers do work very well in some circumstances...it is by no means proven that revenue protection and passenger safety is achieved in others. For these reasons, I am opposed to the proposed new barriers at Sheffield and York railway stations.”

Will the Minister confirm that that is still his view and, if not, why has he changed his mind?

I look forward to the Minister’s response and his answers to these questions. Is he willing to travel to Sheffield and meet RASC to ensure that he properly considers the issues I have raised tonight?

Will the Minister provide a full breakdown of the revenue loss and explain exactly how it is calculated? What impact assessment has the Department conducted to evaluate the wider consequences for Sheffield, beyond the interests of the Department and the rail companies?

Why was there a reversal of the previous Labour Government’s commitment that there should be no barriers at Sheffield unless pedestrian access was maintained, and will the Minister tell the House who took that decision? Will he state whether it is the Department’s policy that every railway station should be gated? That seems to be the case from the incremental promotion of gating through franchise agreements, but if that is so, should that policy not be open to full debate?

Will the Minister say whether he now believes, as many in his Department do, that ticket barriers are the only solution to tackling fare evasion? Is it right that the DFT are making decisions from Whitehall about stations around the country without taking into account the local situation? Will he undertake to consult local communities before concluding the next franchise agreements for the management of local stations?

The words of my constituents tonight demonstrate that this is a disagreement not just between the Minister and me, but between the people of Sheffield and the micro-mismanagement of the DFT. The Department’s intransigence in pressing this deeply damaging proposal will have a huge impact on our city. I hope that tonight will take us one step closer to a resolution of this issue.

In conclusion, let me quote two of my constituents. Mark Doel says:

“This government says that it believes in devolving power to the local people. Well, the local people have spoken with one voice.”

Roger Donnison sums up Sheffield’s case perfectly:

“All of the recent investment in and around the station has been based on open access via the footbridge. Integration of the railway with the tram, and of Park Hill with the city centre will be lost without it.”

--- Later in debate ---

[Norman Baker]

Let me try to deal with the point about staff on trains. It is partly about franchise requirements—and, by the way, I am advised by officials that the barrier obligation is ongoing for East Midlands Trains, although alternatives would be considered if gating was not installed by a particular date, which I must say is an interesting franchise condition.

Members will appreciate that there is a significant cost to having staff on trains. Train companies employ revenue protection officers on a regular basis, but it is not possible—particularly on busy trains—to have any guarantee that the conductor, particularly when the train is busy and when there are frequent stops on the service, will be able to get through the train and check all the tickets. Indeed, the hon. Member for Sheffield Central said in his introduction that he is often unable to buy a ticket to travel on the train.

[Chris Williamson]

In view of his comments about the cost of train managers, will the Minister confirm that the plan to introduce more gates is part of a long-term Government plan to de-staff or run down the number of staff working on the railways? Is that behind his plans?

[Norman Baker]

I would not infer that at all. As I said a moment ago, if there are gates, staff are needed in case someone gets stuck in them. If the gates are unstaffed, they have to be left open. Gates are in fact a guarantee of staff on the station.

Oral Answers to Questions

Chris Williamson Excerpts

Thursday 10th November 2011 Commons Chamber

[Justine Greening]

As my hon. Friend rightly points out, there are far more issues to do with the MOT test than just its frequency. We aim to look at all those issues as part of this review, and I shall be making an announcement shortly.

[Chris Williamson (Derby North) (Lab)]

I, too, extend my congratulations to the Secretary of State on her new role.

The Member of the European Parliament for the East Midlands, Glenis Willmott, has established that the European Union has no problem with the Thameslink contracts being retendered to incorporate socio-economic factors. The Business Secretary was on the “Today” programme this morning saying how much the Government supported the manufacturing industry. May I urge the Secretary of State to show her commitment to British manufacturing by considering retendering the Thameslink contract, which could be achieved in a matter of six to 12 months?

[Justine Greening]

We cannot retender that contract, not least because it would put on hold the vital work being done on the Thameslink project, which is creating, I think, 3,000 jobs. The hon. Gentleman’s point about better reflecting socio-economic factors in the procurement process is, however, a good one. That is precisely why we are looking at how we can improve the procurement process, which I should add was developed by his Government.

Train-building Industry

Chris Williamson Excerpts

Tuesday 12th July 2011 Westminster Hall

[Chris Williamson (Derby North) (Lab)]

I will try to be brief, Mr Gale, and it is a great pleasure to serve under your chairmanship.

I congratulate the hon. Member for Amber Valley (Nigel Mills) on an excellent speech. I agreed with almost everything that he said, although I shall come on to a point with which I took slight issue. I agreed with what the Prime Minister and the Chancellor of the Exchequer said when they came to Derby just three months ago. The Prime Minister said:

“The point of the Cabinet today is to ask one fundamental question: what is it that we can do in government to help the economy to rebalance, to grow and for businesses to start up, to invest and employ people?”

The Chancellor said:

“Derby’s a great example of what Britain’s economy should be in the future. And a strong endorsement of the importance of manufacturing industry.”

I could not agree more.

The train-building and railway industry has been a cornerstone of British manufacturing since the 19th century. It is a vital industry in the Derby area, and it would be a sad irony, would it not, if 2011 turned out to be the last year when a British train rolled off a British production line? However, that is where we might be if the Government are unwilling to reverse their decision. Derby gave the world the railways, and I want Derby to continue to have a future in the railway industry long into the 21st century.

The hon. Member for Mid Derbyshire (Pauline Latham) referred to the Rolls-Royce crash of 1971. Derby has not faced a crisis of such proportions since then. Not for 40 years have we faced the possibility of losing so many jobs in one go. I remember that, at the time, the then Government were initially unwilling to intervene, but ultimately they did the right thing by Rolls-Royce, the workers, and the families who relied on Rolls-Royce for their livelihood. Since then, Rolls-Royce has gone from strength to strength, and it is now the largest employer in Derby. It is a world-leading company and a top aerospace company in the world.

I come to the matter raised by the hon. Member for Amber Valley with which I slightly took issue. He referred to a future for the train-building industry if the Government are unable to change their decision on the Thameslink rolling stock programme. My fear is that if that decision is not changed, the train-building industry in our country might not have a future. Let us be clear. From the autumn, Bombardier will have work for barely 300 workers to finish off a contract for sub-surface trains for the London underground, which means that 3,000 people who are employed directly by Bombardier, and at least a further 12,000 in the supply chain, could lose their jobs within the next 12 months. That would have huge knock-on implications for the city, and not just for the individuals who lose their jobs, devastating as that would be, but because the wider implications for Derby’s economy would be massive.

I agreed with what the hon. Member for Mid Derbyshire said when she made that point and also referred to the apprenticeships that will be lost at Bombardier. I know that that is an area of priority for the Government—I share that view—so I implore the Minister to consider the training and employment opportunities for countless young people and future generations in the city of Derby. They will be denied such opportunities if the decision is not reversed.

As I said, the train-building industry is a cornerstone of British manufacturing. Surely we cannot allow such a situation to develop on the spurious grounds that awarding a contract to Siemens represents value for money for taxpayers. How can that possibly be true when 15,000 workers might lose their jobs? That would lead to a huge loss of tax revenue to the Exchequer, a loss of VAT because of reduced spending power, and the payment of increased unemployment benefit.

I shall present a petition to the House next week. It already has 27,000 signatures and the number is growing by the day. It demonstrates the strength of feeling not just in Derby, but further afield, as my right hon. Friend the Member for Derby South (Margaret Beckett) pointed out. The issue is national, not just local.

I shall conclude with three specific questions to the Minister. What legal advice did the Department take on changing the terms of the original invitation to tender? What assessment has been made of how Germany and France have managed to stay within EU procurement rules when, in the past 10 years, 98% of train contracts in Germany have gone to German companies, and 100% of such contracts in France have gone to French companies? Finally, will the Minister publish the results of the value-for-money assessment applied to Siemens?

I will conclude with a quotation from the Chancellor’s Budget statement:

“Manufacturing is crucial to the rebalancing of our economy.”

He continued:

“We want the words…“Made in Britain”, “Created in Britain”, “Designed in Britain” and “Invented in Britain” to drive our nation forward—a Britain carried aloft by the march of the makers. That is how we will create jobs and support families.”—[Official Report, 23 March 2011; Vol. 525, c. 958-966.]

I could not have put it better myself, so I urge the Minister and the Department to look carefully at the decision and to change it to ensure that British train building has a future.

--- Later in debate ---

[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.

[Chris Williamson]

Will the Minister give way?

[Mrs Villiers]

No. I am afraid I have only a few more minutes, and a long list of points to get through. I want to try to respond to my hon. Friend the Member for Amber Valley.

My hon. Friend was concerned that in some way the Department for Transport discriminated against Bombardier. Absolutely not. We fully respect the excellence of the engineering facilities at Bombardier. We are determined that it should be judged on an impartial basis, so there is no question of any predisposition against Bombardier, or any discrimination.

Several hon. Members have expressed concern about the combination of long-term funding and maintenance and whether we should take the approach to procurement in the future of judging each procurement on its merits. It was not possible to sever those elements of the bid process from the criteria we inherited from the previous Government. They combined long-term maintenance and funding, and it would not have been possible for us to sever those criteria and start again, for the reasons I have given.

My hon. Friend the Member for Amber Valley thought that there was a case for leaving more procurement decisions to the train operators and the rail industry. I agree on that. He also asked about the margin between Siemens and Bombardier. I am afraid that that is commercially confidential at the moment and I cannot share it with the House. It would not be in the interest of Bombardier, Siemens or the taxpayer for me to do that. Several hon. Members, including my hon. Friend and the shadow Secretary of State, have expressed concern about the Siemens bogie. That has been evaluated. The bogie is based on proven technology used elsewhere. Its development began in 2007 and it is expected to have undergone about 1 million miles of testing before it goes into passenger service. As to concerns about peaks and troughs in rolling stock orders, yes, we need to consider that in future, and we shall do so as part of our consideration of the McNulty review.

My hon. Friend the Member for Mid Derbyshire (Pauline Latham) spoke passionately and movingly about the impact of job losses. She asked about a meeting with the Prime Minister, and he has asked the Business Secretary to meet Councillor Philip Hickson of Derby city council. In answer to the question of the hon. Member for Derby North (Chris Williamson) about assessment of the position in Germany and France, we looked carefully at their approaches, and will also do so as part of our growth review. As to whether we will publish the results of the value for money assessment of the Siemens bid, it is not possible at this point, as I have said, to publish such commercial details, because they are commercially sensitive. The hon. Gentleman asked what legal advice the Department obtained on changing the invitation to tender. As I have made clear, we are legally bound by the criteria we inherited from the previous Government, and those were thoroughly assessed by our legal advisers.

[Chris Williamson]

Will the Minister give way?

[Mrs Villiers]

No, I am sorry. I have a lot of points to make, and I propose to make them.

My hon. Friend the Member for Solihull (Lorely Burt) rightly emphasised the benefits of open markets and highlighted the dangers that going down a protectionist route might have. The hon. Member for Birmingham, Erdington (Jack Dromey) talked about how the Government could use their £100 billion public procurement programme to underpin economic recovery. Of course we will consider that as part of our growth review. My hon. Friend the Member for Crewe and Nantwich (Mr Timpson) was concerned about the amount spent on consultancy. The bulk of that happened under the previous Government, but I agree that we need a more efficient approach to spending on consultancy in relation to procurement in the future. Since the general election the consultancy spend has been considerably reduced.

It is important to recognise that Bombardier, alongside other train manufacturers and train and component supply chain businesses in the UK, will have the opportunity to bid for a range of contracts in the future. We are reforming the franchise system to incentivise train operators to invest in new rolling stock. We have given the go-ahead for the tube upgrades. We have secured funding for Crossrail. We are going ahead with a consultation on high-speed rail. Bombardier is a highly successful global company, with a proven record of winning big contracts for its Derby works and elsewhere. It has done so in the past; we see no reason why it should not be well placed to do so again in the future. In recent years it secured orders for nearly 1,400 carriages for London Underground’s sub-surface line, 376 for the Victoria line and 232 for London Overground. It has been shortlisted for the Crossrail order. Its striking success rate on tube-related contracts must put it in a strong position for when London Underground next needs to procure new carriages, which, thanks to the securing of funding for the tube upgrade, will happen in due course. Only a few weeks ago, Bombardier won a £354 million signalling contract for London Underground.

For all those contracts we are determined to ensure that domestic suppliers are treated entirely impartially and given a fair chance of getting them. The fact that the coalition Government have secured funding for such a major programme of capacity enhancement will result in major opportunities, not just for Bombardier but for other train component and supply chain manufacturing businesses in this country. Following its nomination, for example, as the preferred bidder for the intercity express programme contract, Hitachi has announced that it is locating its train manufacturing services for Europe at Newton Aycliffe in County Durham. That will provide significant opportunities for UK component manufacturing. As has been said, if the Siemens Thameslink bid proceeds to conclusion, it will involve the creation of 2,000 jobs in the UK. It has indicated that it intends to use elements of the UK supply chain to supply its bid.

This has been a difficult debate, and it is a difficult time for Derby. We are determined to help.

[Chris Williamson]

Will the Minister at least give an undertaking to take legal advice on the possibility of calling in the decision and reviewing it, with the possibility of reversing it, as has happened with previous contracts?

[Mrs Villiers]

We have looked extensively at the contract and have done the numbers very carefully. As I have said, it is not legally possible for us to rip it up. We need to ensure that in future, Bombardier and all our domestic suppliers will be well placed to compete effectively for bids and competitions that will be made possible by the coalition’s commitment to investing in our railways.