Rail Manufacturing: Job Losses

Lindsay Hoyle Excerpts

Tuesday 16th April 2024 Commons Chamber

[Huw Merriman]

The hon. Lady asks whether the Secretary of State will take responsibility and work on this matter. He is doing that right now. He is about to start a meeting with the chief executive and chairman. And that is not the first meeting: he has held eight meetings with Alstom and eight with Hitachi to find solutions. Our officials in the Department for Transport have worked incredibly hard, as has everybody in the whole Derby family—the train operator, the unions that I have met and the workforce. We are all rowing together to try to find a solution.

I have to say that it does not help to see this cause being used almost like a political football. As an example, I did not use the expression “peaks and troughs” when it came to dealing with individuals. I said that the procurement cycle leads to that. My words will be clear in Hansard, and I resent having them misinterpreted, because it impacts on people and their feelings. I find it quite irresponsible of the Opposition to do that.

Another example of getting the facts completely wrong is the continued mention of HS2. Let me be clear: the order for HS2 was for 54 trains. That order remains at 54 trains, because they were always for phase 1, which is going ahead. The schedule remains the same and the number of trains remains the same, so let us deal with the facts rather than the fiction and scaremongering that I hear so often.

When it comes to facts, let me say that three of the four train manufacturers we are proud to have in this country have been building their plant here since 2010, under this Conservative Government. No doubt they decided to do so because we have commissioned 8,000 new rolling stock vehicles since 2012. The average age of rolling stock was 21 years back in 2016; it is now under 17 years, because we are investing in rolling stock, and there will be more orders. None the less, it is a complex legal solution that requires sensible minds, and I am very proud that the Secretary of State is leading on that endeavour.

[Mr Speaker]

I call the Chair of the Transport Committee.

[Iain Stewart (Milton Keynes South) (Con)]

I am pleased that the Secretary of State and the Minister are taking charge of negotiations with Alstom, Hitachi and others. I appreciate that as commercially sensitive discussions are ongoing, the Minister is constrained in what he can say, but they need to be resolved soon. The wider issue is the peaks and troughs not just in rolling stock procurement, but in railway industry investment more generally. How does the Minister believe Great British Railways and wider rail reform will help to smooth out the peaks and troughs in the longer term?

[Huw Merriman]

I thank the Chair of the Select Committee for his work. The Committee as a whole has looked at this issue and really probed for solutions. On the GBR point, it is also providing the body of pre-legislative scrutiny of rail reform, and I thank my hon. Friend and his Committee for their work in that endeavour. He is absolutely right that a more holistic approach to the railway, in which track and train are integrated, will help us to make further decisions into the future and give more certainty with regard to orders. None the less, I have set out the orders that have been taken over the preceding years. The order book is healthy and we will look to get the tenders out this year and next for the train operators that I have mentioned.

[Mr Speaker]

I call the SNP spokesperson.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

My condolences to you and your family, Mr Speaker, on the loss of your father.

Clearly, the news coming out of Derby about the precarious nature of Alstom is grim, not just for the workers and the wider economy of Derby, but for everyone involved in the supply chain across the country, including 24,000 rail supply jobs in Scotland. The fact is that this was predicted; we have all known about it for months. These are skilled, well-paying jobs of the type that we are continually told the UK is in the market for.

Does the Minister accept that the stop-start procurement of new rolling stock is a direct result of the fragmented and disconnected railway system that has placed financialisaton and the Treasury’s miserly attitude to investment above rail’s key role in a decarbonised 21st-century society? Why are rolling stock leasing companies ruling the roost rather than straightforward procurement? How is it possible that the island that invented the modern railway—the 200th anniversary of the Stockton and Darlington railway is next year—could have next to zero train production capacity within a matter of months? We need a proper rail strategy and integration; when will that rail reform be put before the House?