Refurbishing Trains: Contracts

Grahame Morris Excerpts

Thursday 7th December 2023 Commons Chamber

[Grahame Morris (Easington) (Lab)]

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on expediting the contract process for refurbishing existing UK trains.

[The Minister of State, Department for Transport (Huw Merriman)]

I thank the hon. Member for his question, which I will answer on behalf of the Secretary of State. The Department works closely with rolling stock owners and train operators to understand when new and refurbished trains are likely to be required, and to ensure a regular flow of work for train manufacturing companies. Trains are major assets, with a lifetime of 35 to 40 years, so there will naturally be peaks and troughs in procurement cycles. The average age of the current fleet is 17 years.

The Department has overseen the procurement of more than 8,000 new vehicles for the Great British mainline railway since 2012. Some of those are still being produced, including Alstom trains for South Western and West Midlands trains. Passenger travel habits have changed over the past three years, and while numbers are showing signs of improvement, we are still seeing reduced passenger revenue on the railway. We are aware that Alstom is facing difficult trading conditions. It is consulting its unions and employees on possible job losses. While it must be a commercial decision for Alstom, the Government have been working with the company to explore options to enable it to continue manufacturing at its Derby site. Officials from my Department and my right hon. Friend the Secretary of State for Transport have held regular meetings with senior management at Alstom. We have also convened a cross-Whitehall group to advise on ways to support continued production at Derby and how best to support those workers who could lose their jobs.

The fact remains that the market for passenger trains is competitive. The Department cannot guarantee orders for individual manufacturers. None the less, we expect substantial continued demand for new trains. Last month, LNER confirmed an order of 10 new tri-mode trains for the east coast main line, and on Monday, a tender for new trains for the TransPennine Express route was launched. Contract awards are also expected between late 2024 and early 2025 for major orders for Southeastern, Northern and Chiltern. In the meantime, the Government will continue to work with Alstom and other UK manufacturers to ensure a strong and sustainable future for the rail industry.

[Grahame Morris]

Thank you, Madam Deputy Speaker, for granting this question on a matter of some urgency. I thank the Minister for his response, and I must impress upon him and the House that the Secretary of State must expedite the contract bidding process for updating existing UK trains to ensure the survival of the UK-based train manufacturing industry. Without immediate plans to allow companies to bid for new contracts, make no mistake, thousands of skilled jobs in the UK will go. The urgency stems from the crucial role of the Alstom factory in Derby. It is the UK’s only end-to-end, design, build and test train manufacturing facility, making it integral to the UK’s rail manufacturing industries.

Some 3,000 people currently work directly at Alstom, and 15,000 jobs in the supply chain rely on the factory’s continued production. Nick Crossfield, Alstom’s managing director, gave evidence to the Transport Committee yesterday, and he was absolutely clear that the Government need to decide now on how and where they want trains to be made in the future. If this Government do not expedite the bidding process, trains will not continue to be manufactured in the UK. They will start to be manufactured in North America, South America or south- east Asia.

Alstom’s current and final contract for rolling stock is on the Elizabeth line and is due to expire in six weeks. That could mean an end to the rail manufacturing industry in the UK as we know it. Yesterday, I met Unite the union, of which I am a proud member, and rail workers from Alstom site in Derby, and they asked for our help in retaining their jobs. Also just yesterday, two of the supply chain companies that supply Alstom went into liquidation due to the uncertainty over future orders from the Alstom factory. Timing on this issue has never been more crucial.

[Huw Merriman]

May I again thank my friend the hon. Member for Easington for raising this important issue? This is a matter of grave concern. The site has been operating in Derby for many years. Indeed, I think he and I both went to that site when it was formerly owned by Bombardier as part of a Transport Committee delegation. That support is assured. I also make the point that I am meeting Unite the union next week. It has been in touch, and I will be pleased to work with it and everyone to see what more can be done to keep that plant open.