Future of Rail Manufacturing

Mr. Cunningham expressed concern over the potential managed decline of Britain's rail manufacturing sector, specifically highlighting Hitachi Rail's situation in Stockton North where a £110 million train manufacturing facility is at risk due to a lack of future contracts and Government action. He noted that the company has 750 skilled workers and supports 1,400 jobs but faces a production gap from March 2025 onwards. Hitachi Rail proposed additional work and hybridisation solutions for maintaining skills, which were declined by the UK government citing legal risks. The hon. Member for Stockton North (Alex Cunningham) intervened, agreeing with his colleague's view on balancing risk in procurement to prevent losing key skills such as those at Hitachi's Newton Aycliffe plant. Alex Cunningham intervened to invite the Minister to experience the poor train conditions on a journey from Darlington to Saltburn. He also requested an intervention, but the content was not provided in the transcript.

The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) expressed concern over the dysfunction of the rail system, particularly with regard to job threats in the rail industry and the impact of ROSCOs on rolling stock procurement. He highlighted historical parallels from a 1994 debate about similar issues affecting the rail manufacturing sector.

Rail rolling stock manufacturing in the UK has a bright future with significant new orders from HS2 and other rail operators. However, the industry currently faces short-term challenges due to fluctuations in procurement orders. The creation of Great British Railways offers an opportunity to create a long-term horizon for investment, but different parts of the industry need to work together to achieve this goal.

Would my hon. Friend agree that the issue is not just the number of jobs Hitachi has brought to the region but the improvement in the skill base? Hitachi is training apprentices and increasing the skill base locally through investments in higher education and other things. Mr. Kevan Jones congratulated his hon. Friend on securing the debate and highlighted the significance of Hitachi's investment in Newton Aycliffe, which supported 700 jobs and the local supply chain. He emphasised that this was a political decision as it relates to ensuring consistent orders for UK factories, including Newton Aycliffe, to maintain long-term supply chains and retain skills.

Emphasised the historical importance of rail manufacturing in the north-east and praised Hitachi's role, noting its £3.6 billion-worth rolling stock orders, resilience in supply chains, and commitment to developing skills for the future.

Sam Tarry expressed concern about the lack of long-term orders at rail manufacturers, highlighting that Alstom and Hitachi Rail dominate around 55% of the market. He pointed out the negative impact on jobs when contracts are given to foreign firms, citing a loss of over 12,000 jobs in the supply chain from Siemens winning a Thameslink contract. Tarry also mentioned ongoing redundancies at companies such as Hitachi Rail and Alstom with nearly 900 people employed on temporary contracts being particularly vulnerable.

Stephen Morgan highlighted the crisis in rail manufacturing, mentioning 1,300 jobs at risk in Derby and 700 in Newton Aycliffe. He criticised the Government's lack of industrial strategy, which led to delays and uncertainty, causing skilled workers to leave for other industries and supply chain companies to go bust. He noted that without certainty and stability, the British rail sector could lose decades of expertise and face rising costs due to reduced competition.