Rail Manufacturing: Job Losses

Liz Twist Excerpts

Tuesday 16th April 2024 Commons Chamber

[Huw Merriman]

A lot of the finance I talked about and the orders that have been brought forward, which is why we have a relatively young fleet, are the result of train operators being able to use their own balance sheets in order to invest. Rail finances are back to only about 80% of where they were pre-covid because of changes in working patterns; that has been more of a challenge, which is why the Government and the taxpayer take on more of the burden. On meetings with the unions, I should reference the meeting I had with union representatives from Alstom and the workforce, who were superb. They wanted to do their business in a sensible, calm way while also challenging, and rightly so. That provides us with the motivation to try to intervene and deliver a solution, and that is what the Secretary of State is doing right now.

[Liz Twist (Blaydon) (Lab)]

The potential loss of jobs at Hitachi will hit the north-east economy as a whole, and it is vital that we maintain rail manufacturing capability there. What are the Government going to do to ensure that we do not lose that facility because of a gap in orders? What will they do to ensure that does not happen and to save those jobs?

[Huw Merriman]

It is important to note that Hitachi is not currently consulting on any changes in the workforce, but it is of course concerned and it speaks to hon. Members in this place to put those concerns across, and I welcome that approach. Where train operators have rolling stock that is older and needs renewing, we are putting them out to market—those operators are TransPennine, Northern, Southeastern and Chiltern. Bringing those orders through will assist, but I come back to the export part of this: if our fleet is getting younger, meaning there will not be as many orders, we really need to see our four great manufacturers being able to export more abroad to deliver for UK plc.