Commons Sense

House of Commons · Ministerial Statement

Refurbishing Trains: Contracts

07 December 2023 · 13 other contributors

Opened by Huw Merriman Con Crawley

Transport

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Huw Merriman raised concerns about refurbishing trains: contracts in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The Department collaborates with rolling stock owners and train operators to ensure a steady flow of work for UK manufacturers.
  • The average age of the current train fleet is 17 years, with a typical lifetime of 35 to 40 years.
  • Over 8,000 new vehicles have been procured for the Great British mainline railway since 2012.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Huw Merriman

The Department closely collaborates with rolling stock owners and train operators to understand the timing for new and refurbished trains, ensuring a steady flow of work for UK manufacturers. The current fleet's average age is 17 years out of a lifetime of 35-40 years, leading to natural peaks in procurement cycles. Since 2012, over 8,000 new vehicles have been procured for the Great British mainline railway. Passenger travel habits have changed post-pandemic, affecting revenue on railways and impacting companies like Alstom, which is currently consulting its unions due to potential job losses. The Government have met regularly with senior management at Alstom and convened a cross-Whitehall group to explore ways to support continued production in Derby. Despite competitive market conditions, substantial demand for new trains remains expected, evidenced by recent orders from LNER and TransPennine Express, with further major contract awards anticipated between late 2024 and early 2025.

Other contributors (13)
  • Grahame Morris Lab Easington

    Question

    Morris urged the Minister for immediate plans to expedite contract bidding processes, citing the crucial role of Alstom’s Derby factory in the UK rail manufacturing industry and highlighting potential job losses if no immediate actions are taken.

    Minister reply

    Merriman thanked Morris for raising the issue and assured support for the Derby plant. He mentioned that he would be meeting with Unite the union next week to explore further ways to keep the plant open.

  • Iain Stewart

    Question

    Stewart emphasised the need to address short-term lulls in the rail industry by working closely with rolling stock companies (ROSCOs) and others to bring forward refurbishment contracts.

    Minister reply

    Merriman confirmed that the Secretary of State wrote to ROSCOs in September, encouraging them to discuss opportunities for easing challenges such as refurbishments or major overhauls.

  • Rachael Maskell Lab/Co-op York Central

    Question

    Maskell highlighted the urgency of the matter and questioned what actions have been taken since September to bring forward contracts that will enable the plant to remain open.

    Minister reply

    Merriman mentioned ongoing efforts including the announcement of £3.9 billion for TransPennine route upgrade, which initiates tendering processes for new rolling stock.

  • Greg Smith Con Mid Buckinghamshire

    Question

    Smith requested that Merriman ensure Chiltern can get trains refurbished and new trains into the pipeline as soon as possible to address overcrowding.

    Minister reply

    Merriman assured Smith that tendering processes for Chiltern will commence next year, allowing for the delivery of necessary trains.

  • Ian Mearns

    Question

    Mearns emphasised the strategic importance of retaining British manufacturing capacity and requested swift action to grant companies opportunities to bid on new rail upgrade plans.

    Minister reply

    Merriman assured Mearns that all manufacturers would be allowed to bid fairly in upcoming contract tenders.

  • Simon Fell

    Question

    Fell asked about Government efforts to improve customer service and train performance, noting the need for new trains to actually run.

    Minister reply

    Merriman acknowledged the need for better performance from both manufacturers and Network Rail, expressing willingness to meet with Fell to discuss specific points.

  • Simon Lightwood Lab Co-op Wakefield and Rothwell

    Question

    Asks about Alstom's future due to lack of confirmed workload beyond Q1 2024, delayed HS2 contracts until 2026. Asks for Minister’s commitment to safeguard jobs and provide certainty on HS2 orders.

    Minister reply

    Clarifies that this is not related to HS2; it involves a tender process for all four train manufacturers. Emphasises the fair tendering process, confirmed by Alstom's chief executive.

  • Martin Vickers Con Brigg and Immingham

    Question

    Enquires about new TransPennine express trains to address severe overcrowding on Cleethorpes-Manchester-Liverpool service.

    Minister reply

    Announces an order for new TransPennine express trains with a complete upgrade of the route. The UK Government is spending more money than was spent on the Elizabeth line, aiming to deliver better services.

  • Wera Hobhouse Lib Dem Bath

    Question

    Asks about the Minister’s commitment to electrification plans, noting only 101 miles of track being electrified this year.

    Minister reply

    Highlights Network North plan for electrification in Hull, Sheffield-Manchester, and Sheffield-Leeds. Explains difficulties with East West Rail due to bridge sizes but notes significant progress compared to previous years.

  • Rachel Hopkins Lab Luton South and South Bedfordshire

    Question

    Presses the Minister on retaining high-skilled manufacturing jobs at Alstom during production blips, highlighting the importance of train production for net zero challenges.

    Minister reply

    Agrees that investment in public transport is vital. Discusses efforts to help manufacturers with international orders and bringing forward contracts to fill order books better.

  • Toby Perkins Lab Chesterfield

    Question

    Expresses concern about Alstom’s future, blaming the lack of strategic direction on rail projects post-Brexit.

    Minister reply

    Assures that the Secretary of State and officials are meeting with Alstom. Confirms Minister will meet representatives to assist in keeping the plant open.

  • Jim Shannon DUP Strangford

    Question

    Asks how Government will ensure refurbishment contracts can be organised to keep people in work.

    Minister reply

    Confirms orders are being brought forward. Secretary of State has written to companies financing train manufacturing and refurbishment to bring forward that refurbishment. Emphasises the importance of helping manufacturers export orders globally.

Shadow Comment

Grahame Morris

The shadow Minister emphasised the urgency for immediate plans to expedite the bidding process for new contracts, citing the critical role of Alstom's Derby factory in maintaining UK rail manufacturing industries. Without urgent action, skilled jobs and supply chain positions could be lost, leading to offshoring of train manufacturing to North America, South America or Southeast Asia. Morris highlighted that the current contract on the Elizabeth line will expire in six weeks, raising concerns over future orders from Alstom’s factory. Urging the Government to decide now on how and where trains should be made, he stressed the importance of retaining jobs and preventing two supply chain companies from going into liquidation due to uncertainty.

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