St Rollox Railway Works: Closure Debate

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Department: Department for Transport

St Rollox Railway Works: Closure

Danielle Rowley Excerpts
Monday 14th January 2019

(5 years, 5 months ago)

Commons Chamber
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Paul Sweeney Portrait Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
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It might be the small hours, but I rise to speak on no small matter. It is a very important matter facing Glaswegians in the future: that of Scottish engineering. The St Rollox locomotive and carriage works in my constituency, which has existed since 1856, is now under imminent threat of closure and I rise in support of the workers there, 200 of whom face the loss of their livelihoods, which is of great concern to the city of Glasgow.

The works were built in 1856, for the Caledonian railway. The new works were built on the site of the first railway in Scotland, the Glasgow and Garnkirk railway. To this day, it is still affectionately known as the Caley. Given that it has existed since the dawn of the railway age, it is very sad that we could be witnessing the end of an industry that is synonymous with the community of Springburn in which it was built.

During the second world war, St Rollox joined in the war effort, producing, among other things, Airspeed Horsa gliders for the Normandy landing airborne assault. Cowlairs, nearby, also produced 200,000 bearing shells for Rolls-Royce Merlin engines. For more than 170 years that community has been at the forefront of Scotland’s engineering excellence. Indeed, anyone growing up in the city of Glasgow will have visited, and will be familiar with, the city’s transport museum, and will have seen all the wonderful steam locomotives that were built in Springburn, more than 25,000 of which were sent to all corners of the earth. That is a real pedigree of Scottish engineering, which endures to this day. It would be appalling if the last vestiges of such a wonderful tradition were to be lost, and we, along with the trade unions, believe that that is entirely avoidable.

St Rollox has endured through nationalisation and privatisation. In 1948, when it was nationalised as part of British Railways, it became the primary Scottish centre for the repair of rolling stock, and it retains that role to this day. After British Rail Engineering Ltd was privatised in 1988, the site was operated as a rail maintenance facility by British Rail Maintenance Ltd, along with Eastleigh, Doncaster and Wolverton. It was then a nationalised industry, but during that period its size was reduced from 150 acres to about 15 today. In 1995 BRML was privatised and the site was sold to Babcock International and Siemens, along with the Wolverton site. The sites have been paired ever since. In 2002, both sites were sold to Alstom, a French-owned company, and in 2007 Alstom sold the site to a company called Railcare.

Railcare was placed in administration in July 2013. Although I was not a Member of Parliament then, I remember the great anxiety that that caused. However, from anxiety came great hope when, in August 2013, the site was acquired by a German-based engineering group, Knorr-Bremse. In 2018, it was sold to another German company, an industrial turnaround specialist called Mutares. In November 2018, just a few weeks after its acquisition, it was formed into a newco known as Gemini Rail, which was a wholly owned subsidiary company of Mutares but also associated with Knorr-Bremse—for instance, sharing the same company house number. It is clear this has been an exercise conveniently designed quickly to rationalise operations in the UK.

As at December 2018, St Rollox continues to carry out component and rolling stock repairs and overhauls. Recent work has included overhauls of class 156s, class 158s and class 320s for Abellio ScotRail. It is the largest rolling stock repair site in Scotland. Two smaller sites in Kilmarnock are operated by Brodie and Wabtec respectively, and are still operating at capacity.

In December last year, shortly after acquiring the site, the new owner announced very suddenly that it planned to close the works, stating that it was making losses of between £3 million and £4 million. Unite, which represents more than 90% of the workers on the site and which conducted an inquiry, believes that the actual losses amounted to only about £1 million to £1.5 million. After a meeting with the managing director of the site, it was conceded that the real losses made by the company that year were only £1 million to £1.5 million at St Rollox, but it was forecast that there would be larger losses in the future as the UK rolling-stock industry was transformed, with new stock coming on line, and there was less demand for repairs and maintenance of legacy rolling stock.

Danielle Rowley Portrait Danielle Rowley (Midlothian) (Lab)
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My hon. Friend is making a powerful speech on an issue about which I know he cares deeply. Does he agree that this is another example of far-removed managers making decisions that have an impact on workers who keep our industry alive, and that we need to reverse that and put the power back into the hands of those workers?