Future of Rail Manufacturing

Stephen Morgan Excerpts

Tuesday 23rd April 2024 Westminster Hall

[Stephen Morgan (Portsmouth South) (Lab)]

It is a pleasure to serve with you in the Chair, Sir Gary.

I start by thanking my hon. Friend the Member for Easington (Grahame Morris) for securing and opening this important debate. It has been a well-informed and timely debate, and I thank all hon. Members for their contributions to it. My hon. Friend spoke with real knowledge and understanding of the transport network, including the current challenges facing the rail sector and rail manufacturing. He spoke about the consequences of a lack of an industrial strategy and the value of rail manufacturing jobs, not only to local communities but to wider regions, stressing the need to honour existing contracts to help secure the future pipeline of work.

My right hon. Friend the Member for North Durham (Mr Jones) was absolutely right to say how vital a steady drumbeat of work is to secure rail manufacturing for the future. I know that he knows that very well from his extensive work on shipbuilding and I thank him for the points that he has made today.

Other Members made very valuable points with regard to the need for a long-term, holistic view of what is required to secure work for the future. My hon. Friend the Member for Stockton North (Alex Cunningham) shared concerns about the delays in ministerial announcements and the implications of those delays, while my hon. Friend the Member for Ilford South (Sam Tarry) spoke about the Government not taking seriously their commitments to support industry and jobs, and about what that means in terms of putting the sector at risk.

As we have heard, Britain’s rail manufacturing is in a state of crisis. In Derby, 1,300 jobs are at risk at Litchurch Lane, a factory that has been making trains for 150 years. Another 700 are at risk in Newton Aycliffe, and more than 16,000 jobs are at risk in the supply chains.

Behind these jobs are people with decades of experience and expertise and centuries of family history in our rail sector. When I visited Alstom last year, I met people who were following in the footsteps of their parents, grandparents and great-grandparents by working on that site. They had no plans to leave, but the uncertainty of the past has already caused so many to do so. This uncertainty has been extremely worrying for those in jobs that are at risk and for the rail sector as a whole, which has been unable to plan for the years ahead.

The frustrating thing is that all this has been avoidable. Both Alstom and Hitachi are clear that their uncertain future is thanks to the Government’s inaction. Ministers have been warned about the feast and famine of rolling stock pipelines for years, yet they have continued with the short-term, sticking-plaster approach, which has created a crisis in our rail manufacturing sector. Instead of confronting this problem, the Transport Secretary spent months with his head in the sand, saying that a deal to save jobs was out of his hands. As a result, deadlines were missed, skilled workers have left for jobs elsewhere and supply chain companies have gone bust. The contractor Paintbox went into administration last year when its work painting new carriages in Derby dried up. Motherson, which did the wiring on trains, pulled out of the site, and Solo Rail Solutions in Birmingham, which made the doors, appointed administrators earlier this month.

This is not just about job losses; what the Government do not seem to recognise is that huge industries cannot simply be turned on and off. Laying off workers means a loss of skillsets that take years to replace. It also means a loss of capability in the British market, which means less competition, more imports and rising costs for future procurements.

Last week, the Transport Secretary proposed a last minute order of Elizabeth line trains from Derby, but no formal deal has yet been reached. However, if one is reached, let us be clear what this will mean: another short-term sticking plaster that reveals the gaping hole in the Government’s non-existent industrial policy and means we are likely to have another groundhog-day experience with Hitachi in the months to come—more workers fearful for their job security, more families moving away due to uncertainty and more supply-chain companies struggling to survive.

[Alex Cunningham]

In my speech, I mentioned that the Government are using their problem with the level of risk to bring forward procurement. Does my hon. Friend agree that we have to balance that risk with the risk of losing all those skills in cases such as that of Hitachi?

[Stephen Morgan]

My hon. Friend is absolutely right. We need to bring consistency and clarity to the sector, so that the investment can take place. Many Members have said as much, and I thank my hon. Friend for putting that message on record.

This is a time when our rail industry needs certainty, stability and leadership. The managed decline that we have seen from this Government is only putting our railway jobs at risk. The Minister has many questions to answer. Other hon. Members have already asked many questions, so I ask him only one: what is he doing to stop a repeat of what we have seen in Derby over the past year happening in Newton Aycliffe in the coming months and elsewhere down the line? I look forward to hearing the Minister’s response and would like to restate my thanks to my hon. Friend the Member for Easington for tabling this debate.

[Sir Gary Streeter (in the Chair)]

I call Minister Huw Merriman to respond. If he would leave a minute or so for the mover of the debate to wind up, that would be great.