Rail Manufacturing: Job Losses

Debate between Huw Merriman and Grahame Morris

Tuesday 16th April 2024 Commons Chamber

[Huw Merriman]

I thank my hon. Friend; he is a champion of the railway, and it was an absolute delight to visit him at Huddersfield station and talk about some of those projects. Of course, his point is completely relevant to the matter before us. The trans-Pennine route upgrade, for which there will be more Government investment than there was for the entirety of Crossrail, allows us to put an order in for TransPennine Express trains, so there will be more trains manufactured as well as better stations, longer platforms and more resilience. [Interruption.] I thank that team, which is doing a brilliant job, which The Sunday Times has highlighted. Rather than chuntering, it would be nice if the Opposition thanked those who deliver railway projects to time and on budget.

[Grahame Morris (Easington) (Lab)]

My condolences on your loss, Mr Speaker. I thank you on behalf of the workforce for granting this urgent question, because the situation is becoming critical.

My union, Unite, tells me that there are over 900 people employed on temporary contracts at Hitachi in Newton Aycliffe and at Alstom in Derby whose jobs are already at risk. This is before any formal redundancies occur; Unite believes that that could happen as soon as June. I am well aware that the Minister knows that the industry needs a steady stream of orders to sustain train manufacturing here in the UK and preserve those vital jobs in areas such as County Durham, where we do not have an abundance of skilled employment, so in all honesty I earnestly ask the Minister to use his good offices to persuade the Secretary of State to intervene urgently and ensure a bright future for this vital UK train manufacturing industry.

[Huw Merriman]

I certainly take that point from my good friend. The hon. Member has worked tirelessly for the rail workforce, and I know that he means everything he says with passion and conviction. I have talked about the situation being a complex one from a legal perspective, and I would take him back to the contract award for HS2, which went to Alstom and Hitachi. That was challenged in court by Siemens; the Department succeeded on every single point, but that just shows how careful we have to be from a legal perspective during the tendering process, because it will end up in litigation. The worst thing would be to hand out contracts in a manner that is not legally fair and then find that they are being unpicked, which brings fresh uncertainty. Instead, we are looking at the entire order book to see where we can bring matters forward in the pipeline—matters that Alstom may be working on already. Where it is the fair and right thing to do, we are looking to see whether we can bring those contract orders forward in the pipeline.

Oral Answers to Questions

Debate between Huw Merriman and Grahame Morris

Thursday 14th December 2023 Commons Chamber

[Grahame Morris (Easington) (Lab)]

One train per hour stops on the Durham coastline, usually with two carriages. This severely limits access to economic opportunities in Sunderland, Newcastle and Middlesbrough. Recently, Northern Rail confirmed a new two-hourly service, but my constituents will only be able to wave at it as it goes by, because the plan is that it will not stop at the stations at Seaham and Horden. Can the Rail Minister please use his influence with Northern to see whether he can get those trains to stop?

[Huw Merriman]

I am sure that everyone waves at the hon. Gentleman, great man that he is. It was great to meet him when he came to the Department. We talked about Durham coastal service and timetable changes. Today, Transport for the North is discussing timetable changes, so I hope that that proposal goes through and that I can therefore give Durham coastal service the improvement that he asks for.

Refurbishing Trains: Contracts

Debate between Huw Merriman and Grahame Morris

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.

Oral Answers to Questions

Debate between Huw Merriman and Grahame Morris

Thursday 13th July 2023 Commons Chamber

[Huw Merriman]

The hon. Lady is a London MP, and she will be aware that when London Underground did exactly the same thing for the underground it was deemed a success. That is why the current Labour Mayor has no plans to reverse it. The first group I met was that representing disability and access issues, because I wanted to ensure that the reforms best help those individuals. The aim is to redeploy staff away from the ticket office, where not so many people are seen, to the front of the station where all passengers can access them. That will particularly benefit those who have accessibility and disability challenges.

[Grahame Morris (Easington) (Lab)]

I wish the Minister a happy birthday, but may I respectfully bring to his attention the experience shared by Stephen Anderson, who provided evidence to the Transport Committee recently? He highlighted this issue, and said that if he requires assistance he needs a designated point to approach, rather than having to call out for help on the platform. In essence, Stephen believes that ticket office closures are merely a means to cut staff. As a disabled passenger impacted by previous Government policy, Stephen expressed a view echoed by other witnesses, including Baroness Tanni Grey-Thompson. Does the Minister share their concerns?

[Huw Merriman]

I thank my hon. Friend—I enjoy all the work that I do with him. I take the point that he makes with regard to Stephen, but I passionately believe that the best help that anyone can give in a rail station is through personal interaction. That is difficult when somebody is behind a glass screen, because they are not able to exit that point and go and help. It was striking that the recent report on accessibility by the Office of Rail and Road showed that demand for passenger assist at stations had increased by 68%. On that basis, and because fewer people are now purchasing tickets from the ticket office—only one in 10—it surely makes sense to put the staff out on the platforms where they can be accessed, and where they can help and reassure people and give them more assistance.

Oral Answers to Questions

Debate between Huw Merriman and Grahame Morris

Thursday 24th November 2022 Commons Chamber

[Huw Merriman]

I thank my right hon. and learned Friend for his warm welcome of my entire portfolio; I am very proud to be covering HS2 and rail. Some £3.2 billion has already been paid out in land acquisitions, and more is to be paid out. The Government did recognise that there were problems with acquisitions, and a report was commissioned by a predecessor of mine. We will ensure that we can learn lessons. With regard to the payment of interest, HS2 Ltd pays interest at 0.5% below the Bank of England base rate, and there was a period of two years between 2020 and 2022 when no interest was paid because the base rate was below 0.5%, but I am willing to meet my right hon. and learned Friend to discuss these matters further.

[Grahame Morris (Easington) (Lab)]

I welcome my hon. Friend the Minister to his position. I remind him that Mark Thurston told the Transport Committee that the anticipated spend for the current year was within the envelope of £5.7 billion. My question relates to how that £5.7 billion is being used in terms of procurement. What can the Minister and the Department do to encourage or specify the use of British steel for rails and structures within the terms of the contract?

[Huw Merriman]

I thank the hon. Member, or should I say my hon. Friend, as he is indeed that. I recognise all the work that he has done and continues to do on the Transport Committee. I thought he might ask that question. Some £122 million of British steel has been purchased by HS2. I am keen that we talk to HS2 more about how it can further invest in British steel. I will supply him with figures on how much steel has been produced from outside the UK, because that is how we will end up holding to account. Some 60% of the HS2 procurement contracts will go to small and medium-sized enterprises, as well as large entities such as British Steel.

Transport Committee

Debate between Huw Merriman and Grahame Morris

Thursday 13th January 2022 Commons Chamber

[Huw Merriman]

I thank my right hon. Friend for his words. Like him, I think that the Government deserve a huge amount of credit for accepting all the recommendations. He will know from chairing a Select Committee that it can sometimes be disappointing to receive the responses, but this one was fantastic. He makes the correct point that this is all about the statistics. There is a perception that smart motorways are not safe, and we have to get that right, otherwise people will not use them. If we use the data from 2015 to 2019, we see that there is indeed a better fatality rate, at least. The serious collision rate is perhaps a little more patchy. If we then take 2019, we see that the reverse is true. For that reason, we called for a pause until we can get to the bottom of that.

My right hon. Friend asked about the statistical measure—for example, I referred to the 0.12% figure on all lane running motorways. It is measured per 100 million vehicle miles. It is important to recognise that this is on a proportionate basis. It does not compare a small amount of the network with a much larger one in terms of fatalities. I do not have the data on day and night, but I will write to him with that.

[Grahame Morris (Easington) (Lab)]

I commend the Chair, members and staff of the Transport Committee and, unusually from my lips, I also welcome the Government’s response in accepting its recommendations.

My question is about the promises that were made to install stopped vehicle detection technology on the existing stretches of smart motorways. I ask because, in 2019, only 18% of all lane running motorways had had stopped vehicle detection technology advanced cameras installed. The Transport Committee has now been told that this roll-out will not be complete until September 2022—that is six years behind schedule. What confidence can the Committee, the House and the general public have in the ability of National Highways—which many of us know as Highways England, as it was previously—to realistically deliver on this and other road safety improvements in future?

[Huw Merriman]

The hon. Gentleman—my friend—is right to praise the role of members of the Committee. He is a great one of us, and I thank him for everything he has done in this regard. He is also right to point out the target delivery date. That was one frustration that the Committee experienced. There had been a commitment to roll out the stopped vehicle detection technology for the whole of the existing network by 2023, but the date was then brought forward by a year, to 2022. That was regarded as a positive—which it is—but, as the hon. Gentleman will know, we had received a commitment that from 2016 onwards all new smart motorways would have that technology, so we regarded the date as not one year early, but six years late.

The hon. Gentleman is right to focus on that issue, because we understand—we will look into this further, as will the Office of Rail and Road—that once the road has been built, installing the technology when the lanes are running will be much more difficult, time-consuming and expensive than it would have been had it been done in the first place. I am also intrigued by the question of whether there is enough technology in place to be delivered, from a supply perspective. I think that the hon. Gentleman and I will work in the Committee to investigate that further.