Rail Manufacturing: Job Losses

Lord Grocott Excerpts

Wednesday 17th April 2024 Lords Chamber

[Lord Davies of Gower (Con)]

No, I do not agree that the Government have a gap in their industrial policy. Rail manufacturing plays a very important role in growing the UK economy and there is a strong pipeline of future orders for UK rail manufacturers, including upcoming procurements in the market being run by Northern, Chiltern, TransPennine and South- eastern. That competition process is open for all manufacturers to bid, including of course Alstom. The department is also working with His Majesty’s Treasury to set out a pipeline for expected rolling stock orders, to provide the sector with further clarity over the near term.

[Lord Grocott (Lab)]

My Lords, I think it was significant that there was no reference at all in the Minister’s Statement in the Commons to what I consider to be the inevitable consequences of the cancellation of the Crewe and Manchester sections of HS2: it is obvious that that was significant in terms of job losses. We already know about the losses that have occurred from money spent on both those projects that is now wasted because the line is not being built. What is the Government’s estimate of the loss of jobs in construction and manufacturing—which the Minister has focused on so far—as a direct result of the cancellation of those legs of HS2?

[Lord Davies of Gower (Con)]

I cannot comment on the construction side, but Alstom is part a contract with Hitachi to design, build and maintain the HS2 trains for phase 1 only—that is 54 trains. Phase 1 of HS2, between Birmingham and London, will continue, with, as I have said before, a rescoped Euston station. HS2 Ltd has written to the joint venture confirming that the original order for those 54 trains for phase 1 remains unchanged.

--- Later in debate ---

[Lord Davies of Gower (Con)]

I can only repeat what I have just said. The Government are working very hard to make sure the company remains at the location. New competitions have recently commenced for rolling stock on Northern, Southeastern, TransPennine and Chiltern railway lines, as well as procurements for fleet upgrades on East Midlands, Chiltern and CrossCountry. Alstom is very capable, and able to compete for this work.

[Lord Grocott (Lab)]

Perhaps I could ask for a specific answer on this. The Minister referred to the rolling stock that has already been ordered in respect of London to Birmingham, but he cannot give an estimate of job losses following the cancellation. There clearly must be consequences for rolling stock when you do not build a railway to Crewe and Manchester that you planned to build. So can the Minister at least tell us how much rolling stock in total is not now going to be required and constructed as a result of the closure of the new railway?

[Lord Davies of Gower (Con)]

I cannot give the noble Lord that figure at the moment, but I will certainly look into it and come back to him.