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Rail Manufacturing: Job Losses
16 April 2024
Lead MP
Huw Merriman
Debate Type
Ministerial Statement
Tags
EconomyTransportBusiness & Trade
Other Contributors: 24
At a Glance
Huw Merriman raised concerns about rail manufacturing: job losses in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Before commencing, the Minister expressed condolences to Mr Speaker regarding his father's loss. He stated that he is responding on behalf of the Secretary of State, who will meet with Alstom’s chairman and chief executive soon to discuss potential solutions. The Government recognises short-term gaps in order books for companies like Alstom and Hitachi but emphasised these are complex issues without simple solutions. They have been working closely with both companies since early 2023, convening a cross-Whitehall group to advise on supporting continued production at Derby and Newton Aycliffe, despite current consultations on job losses by Alstom. The market for passenger trains is competitive, and while the Department cannot guarantee orders, substantial demand for new trains exists, evidenced by recent orders from London North Eastern Railway and tenders launched in December 2023. In January, the Minister wrote to train manufacturers outlining a pipeline of current and expected orders worth an estimated £3.6 billion with more than 2,000 vehicles to be procured over coming years.
Louise Haigh
Lab
Sheffield Heeley
Question
The shadow highlighted Britain's rail manufacturing crisis due to potential job losses at Alstom and Hitachi, criticising the Government for delays despite being aware of these issues since more than a year ago. Both manufacturers blame continued delay by the Transport Secretary. The shadow accused the Minister of dismissing people’s livelihoods as 'peaks and troughs' and questioned the Department's claim of no influence over procurement contracts.
Minister reply
The Minister affirmed that the Secretary of State is actively working with Alstom and Hitachi to find solutions, highlighting eight meetings held with each company. He dismissed opposition criticisms, particularly regarding HS2 orders remaining at 54 trains as planned since phase 1 commenced. The Minister emphasised investment in rolling stock since 2012 under the Conservative Government.
Question
The MP asked about the Minister’s belief on how Great British Railways and wider rail reform will help to smooth out peaks and troughs in railway industry investment.
Minister reply
The Minister acknowledged that a more holistic approach, integrating track and train, will enhance future decision-making certainty. He reiterated current orders and highlighted tenders planned for the upcoming year.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Question
Expressed condolences to the Speaker on his personal loss. Criticised the procurement process for new rolling stock as fragmented, pointing out the dire economic impact on Alstom workers in Derby and Scotland's rail supply jobs, highlighting that this situation was predictable. Questions why rolling stock leasing companies dominate rather than straightforward procurement, and asked when a proper integrated rail strategy will be put forward.
Minister reply
Stressed that 8,000 new rolling stock vehicles have been manufactured since 2012, which is out of a total fleet of 15,600. Explained that the Government has invested significantly in rolling stock and hopes for cross-party support on rail reform legislation.
Pauline Latham
Con
Mid Derbyshire
Question
Asked whether Conservative MPs have been working with the Secretary of State to address the Alstom situation.
Minister reply
Acknowledged the work done by local MPs and thanked them for their efforts in pushing for a solution. Emphasised the number of meetings, cross-departmental taskforce involvement, and hours spent on this issue.
Margaret Beckett
Lab
Derby South
Question
Disagreed with the statement that there has been substantial cross-party work and mentioned she was not involved in meetings. Criticised government inaction for putting jobs at risk.
Minister reply
Acknowledged the cross-party nature of discussions, promised to follow up on a request for meetings. Stressed the need for an open tender process due to legal challenges.
Jason McCartney
Con
Colne Valley
Question
Thanked the Minister for securing £48 million of levelling-up cash for upgrades on the Penistone line and highlighted upgrades at Huddersfield railway station.
Minister reply
Acknowledged his constituency's rail projects, mentioned TransPennine Express train orders, disabled access upgrades, and thanked the team delivering these projects.
Grahame Morris
Lab
Easington
Question
Expressed condolences to the Speaker. Mentioned over 900 people employed on temporary contracts at Hitachi in Newton Aycliffe and Alstom in Derby whose jobs are already at risk, before any formal redundancies occur. Urged the Minister to use his influence to ensure a brighter future for UK train manufacturing.
Minister reply
Acknowledged the concern and noted the legal complexities involved with the procurement process due to previous court challenges. Stressed looking into bringing forward contract orders where fair.
Maggie Throup
Lab
Erewash
Question
Asked for reassurance that Alstom's supply chain will not be forgotten regardless of today’s discussions.
Minister reply
Reassured the MP and constituents about considering all jobs, including those in the supply chain. Mentioned ongoing meetings with Alstom to find a solution.
Wera Hobhouse
Lib Dem
Bath
Question
The Government’s inaction in signing off new orders for trains is now threatening hundreds of jobs in County Durham and wiping millions of pounds off the value of rail manufacturing companies. Inadequate supply to our rail infrastructure will have a big impact on decarbonising the UK transport system. Is the Minister aware of that, and what are the Government doing in the long term to invest in our rail infrastructure?
Minister reply
Thanks to the UK taxpayer, the Government have invested over £100 billion in the railways, and a lot of that investment has gone through to rolling stock. As I have mentioned, the rolling stock is now on average under 17 years old, with a life cycle that goes to 35 to 40 years. The Minister highlighted innovation such as battery trains trialed by Great Western.
Question
Many of my constituents are involved in rail manufacturing, both at Hitachi and in the wider supply chain, and are genuinely concerned about the situation. Can my hon. Friend reassure me and my constituents that this situation is getting the full attention of the Secretary of State, and can he outline to the House why the issue is not as simple as the stroke of a pen, as alleged by the Labour party?
Minister reply
I can give my hon. Friend that assurance. He is absolutely right; this is a complex matter, and it is important that we get it right. We are working with Alstom, the council, and all other parties.
Lilian Greenwood
Lab
Nottingham South
Question
Derby’s Litchurch Lane site is unique in designing, developing, building, and testing trains. The Minister says that this matter is complex, but my question is simple: when does the Department for Transport intend to issue the invitations to tender for the promised new train fleets for Chiltern, Northern and Southeastern?
Minister reply
The answer is over the course of this year and next year for all of the train manufacturers that the hon. Lady has mentioned.
Question
The threat to the Alstom factory in Derby is a concern for employees in Amber Valley and those employed by the supply chain. If it comes down to a choice between having all the i’s dotted and t’s crossed, or having that factory saved for the long term, can I urge the Minister to take a risk on the contract, sort that out later and save the factory?
Minister reply
This is a careful balance. We have to take into account the whole workforce as well as fair process on the contract. Trains are being manufactured now in Derby, South Western trains and East Midlands trains.
Andy McDonald
Lab
Middlesbrough and Thornaby East
Question
The Minister says this is a complex issue, but is it not rather simple? These companies will not be around to enjoy the sort of exporting opportunities he talks about if they do not sustain. On his answer to my hon. Friend the Member for Nottingham South, can he just apply his mind to what he said about the invitations to tender?
Minister reply
I do not accept that. When I met the train manufacturers earlier this year, they said they wanted longer-term certainty.
Matt Vickers
Con
Stockton West
Question
Hitachi provides opportunities and high-skilled jobs, benefiting people right across the north-east, including a number in my constituency. Can my hon. Friend confirm that he will continue to look at every possible option to protect these jobs and the north-east’s incredible manufacturing capabilities?
Minister reply
Yes, indeed. The team at Hitachi as well as Alstom will of course be working on the HS2 tender for 54 trains.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
In 1823, Robert Stephenson and Company set up the world’s first locomotive factory in my constituency. Is the Conservative idea of an anniversary present to the north-east to end 200 years of railway manufacturing and innovation?
Minister reply
These are private sector companies that rely on Government-funded contracts but ultimately they are private sector companies, and this is a matter for them.
Question
My constituency incorporates the Newton Aycliffe Hitachi factory. As has been mentioned, it is the home of the railways—200 years ago, the first train went on the line just next to the site of the Hitachi factory. We are founded in railways and want to be in railways. Right here and right now, I am very concerned about what is happening with Hitachi, as I obviously am about Alstom and the supply chains.
Minister reply
I thank my hon. Friend because he is working with us constantly to ensure that Hitachi’s concerns are addressed.
Alex Cunningham
Lab
Stockton North
Question
This Government have abandoned industries in the north-east, including primary steel making on Teesside and Cleveland Bridge & Engineering Co. Now Hitachi is at risk of failure due to lack of support, affecting my constituency's rail industry heavily.
Minister reply
Hitachi built its plant after the Conservative Government came to power because it supports businesses and attracts investment, with 8,000 new rolling stock vehicles produced since 2012.
Greg Smith
Con
Mid Buckinghamshire
Question
Chiltern Railways has massive overcrowding due to old rolling stock. Will he prioritise Chiltern and East West Rail for new trains, especially battery-powered ones?
Minister reply
A meeting is lined up with the Secretary of State to discuss Chiltern’s rolling stock, and a consultation will go forward this summer regarding East West Rail.
Barry Sheerman
Lab
Huddersfield
Question
The manufacturing sector has been shrinking under this Government since 2010. What is the Minister going to do about it?
Minister reply
Investment between £9 billion and £11.5 billion in upgrading the trans-Pennine route will provide thousands of jobs, mostly from the local workforce.
Sam Tarry
Lab
Ilford South
Question
Will the Minister seriously consider direct Government intervention to stop companies like Hitachi and Alstom going bankrupt before they can get new orders? And urgently convene a meeting of businesses and unions?
Minister reply
Direct meetings with unions have been held, providing motivation to intervene. Orders from train operators will be put out to market.
Liz Twist
Lab
Blaydon
Question
What are the Government going to do to ensure we do not lose rail manufacturing capability in the north-east?
Minister reply
Hitachi is concerned but has yet to consult on changes in workforce. Bringing orders from TransPennine, Northern, Southeastern and Chiltern will assist.
Mike Amesbury
Lab
Worcester
Question
What further discussions are the Minister and Secretary of State going to have with manufacturing and rail unions on this matter?
Minister reply
Met Alstom unions, working across Government to provide reassurance for decision-making.
Jim Shannon
DUP
Strangford
Question
What is the Government’s strategy for supporting manufacturing companies throughout the UK to attract business and sustain contracts? Will they commit to fulfilling all Government contracts with British-manufactured products?
Minister reply
Writing to train manufacturers, meeting them, and listening to them. Working with Treasury to bring pipeline forward, writing to ROSCOs to finance train refurbishments.
Shadow Comment
Louise Haigh
Shadow Comment
The shadow responded by expressing condolences for Mr Speaker's father and highlighted the critical state of Britain’s rail manufacturing. Alstom in Derby faces 1,300 potential job losses and Hitachi in Newton Aycliffe faces another 700, impacting over 16,000 jobs in supply chains. She criticised the Government for delays and inaction despite being aware of these issues since more than a year ago. Both manufacturers blame continued delay by the Transport Secretary for their uncertain futures. The shadow accused the Minister of dismissing people's livelihoods as mere 'peaks and troughs' and stated that the Department has varied contracts previously, undermining the Minister’s claim of no influence over procurement contracts.
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