Rail Manufacturing: Job Losses

Sam Tarry Excerpts

Tuesday 16th April 2024 Commons Chamber

[Huw Merriman]

That is the same Huddersfield that I visited with the team from the trans-Pennine route upgrade. We are investing between £9 billion and £11.5 billion in upgrading that route, which not only will make it better for rail passengers, but will provide thousands of jobs, the bulk of them from the local workforce, of which the trans-Pennine route upgrade team is very proud. That rather demonstrates that what the hon. Member has just stated is not backed up by the facts.

[Sam Tarry (Ilford South) (Lab)]

During the pandemic the Government rightly stepped in to support train operating companies through huge subsidy, which essentially meant subsidising the profits of those companies. The Minister will also know that since British Rail was privatised, the ROSCOs—rolling stock companies—have been highly profitable and lucrative businesses, in my view with very little value for the taxpayer whatsoever. Will the Minister therefore consider two things: first, in this situation with Hitachi and Alstom, seriously consider direct Government intervention to stop these companies going to the wall before they can get the next orders in; and secondly, urgently convene a meeting of local businesses in both those areas with all the rail unions, from Unite to the Transport Salaried Staffs Association, ASLEF, and the National Union of Rail, Maritime and Transport Workers, bringing them together to discuss how we jointly work together to make sure that our brilliant and long-held and highly skilled workforce is not just thrown on the scrapheap for decades to come?

[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.