The union Unite has branded the government’s decision to award a contract to build new train carriages to a ‘German-led consortium’ over Derby-based Bombardier as a ‘disgraceful decision which is a hammer blow for the Derby area’.
The government announced this morning that the consortium led by Siemens had beaten Bombardier Transportation’s consortium to be preferred bidder for the 1,200 new carriage contract on the Thameslink route.
The decision puts a question mark over the future of Bombardier’s Derby site, ‘not to mention the local supply chain which has the biggest concentration of train supply companies the Europe,’ Unite said.
Unite regional coordinating officer, Mark Young, said:
“This news is a hammer blow for Derby and for British manufacturing. The government’s decision to award this contract to a consortium which does not have British manufacturing and British job creation as its prime focus is absolutely disgraceful.
“The decision is a major blow for jobs in the East Midlands, not just at Bombardier but in the local supply chain, which has the largest concentration of train supply companies in the UK.
“There is no way that the Germans or the French would allow a strategically important manufacturing capability to be put at risk, particularly given that the train carriages will be built for the UK rail network.
“This decision is yet another example of the Tory-led government failing British manufacturing, and failing to protect and create the jobs which are so crucial to our economic recovery.
“Bombardier would have maximised UK manufacturing capability to build the trains, surely this would have been the best long term decision for Britain?
“Unite will now be seeking a meeting with Bombardier management to discuss ways to protect jobs in Derby.”
Teresa Villiers, Minister of State for Transport said:
“I fully appreciate that this will cause huge disappointment in Derby, where Bombardier would have liked to have been preferred bidder, but we are bound by EU procurement rules and, after a very careful assessment, Siemens had come up with the best deal.”
this Government is a waste of time.
Seems it would rather have people unemployed & no future for the younger Generation.
I’m so annoyed i can’t really express what i want to say.
This wouldn’t happen in other countries !!!
Think again DC. I am a lifetime Tory voter and an economist of sorts and this move is to all appearances just plain wrong.
The added costs of additional unemployment and welfare arising must surely render the Siemens route an economic non runner.Â
While no great fan of supporting industries that are going nowhere there are core skills we cannot afford to lose and that is just what will happen if the pro Siemens decision stands.
Incidentally I was for many years an industrial purchasing engineer and on only one occasion did I receive an outright offer of a major bribe, from Siemens!Â
Co-incidence?
It is not just the jobs at Bombardier in Derby that could be lost but this decision could also have a big impact on local suppliers. The Goverment say it is a better decision for the tax payer but i would rather pay tax & keep people in employment than pay tax for them to claim Jobseekers allowance.
There is a lot of unemployment in Derby & many jobs that are advertised are only part time.
What happens if Bombardier decides to pull out of the UKÂ alltogether,things could be very bleak.
You should acquaint yourself with the Public Contracts Regulations as well as establishing exactly what type of ‘manufacturing’ takes place in Litchurch.
What type of manufacturing takes place then?
The Unions are upset because the order has been won by a “German-led Consortium” (i.e. Siemens Transportation Group), instead of Derby-based Bombardier. It should be pointed out however, that there are no British companies whatsoever involved in train building, all facilities were sold to foreign companies following rail privatisation. The factory at Derby is merely a small part of German-based Bombardier Transportation, which has numerous facilities throughout Europe and the World. So whichever company had been successful, executives in Berlin decide on which factories produce the various components.
Not true – Bombardier is regionally based and has home markets for all its strategic plants – Derby has UK as its home market.
Bear this in mind – i dont believe there’ll be a huge difference, component (therefore supply chain) wise between building it in Derby or Germany – however the Hitachi IEP, assembled at Newton Aycliffe, will use predominantlyy Japanese/Asian components and only bolted together in North East. The irony is that choosing Siemens is criticised as bad for British industry, but Hitachi are lauded. As always, things are not always as simple as they appear….
This is a huge own goal by the government and no dressing up the decision can repair the damage. The impact on UK train manufacturing in the UK is potentially at risk. The government should be ashamed of this decision and makes you wonder if they have a clue how to protect UK manufacturing or care (and don’t hide behind Teresa Villiers excuse about being bound by EU procurement rules – what a lame excuse).
UK CENTRE OF EXCELLENCE FOR TRANSPORT NEEDED!!
While facilitating the development and expansion of small businesses is an unarguable important objective for the UK govt, part of UK economic strategies should also be govt putting in place the conditions required for expansion and diversification of of the UK’s existing ‘big business’ successes…
Improving the UK’s rail systems is an unassailable objective for UK industry and govt…
But putting the best British minds to work- preferably in collaboration with overseas partners- on the designing of rail-related products that eventually end up on and part of the UK’s rail systems ought to be an integral part of this objective…
Ensuring that these products and their underlying technologies- if necessary in adapted formats- have significant potential for export- should be as well…
In terms of long-term industrial strategies, the establishment of facilities in the UK to construct and/or assemble new trains/rail-related hardware for the country is less than 1/2 of what industry leaders and govt officials ought to be aiming for…
The creation of a self-sustaining rail technology (and public transport) research and development base in the UK is needed just as much…
The likelihood of EU member nations (and places such as India) that are upgrading their rail systems buying from the UK will be greatly increased if products and systems marketed are perceived to be coming out of a creditable, cutting-edge technology joint-venture- with its own well resourced, demonstrably functional R & D centre….
It could only make constructive sense for some of this fiscal year’s spending- perhaps collaboratively with overseas mega-corporations’ contributions- to be put towards the establishment of a rail transport R & D technology centre/campus in the UK… if necessary with the UK govt as a temporary minor shareholder in the venture….
Such a centre/campus comprising significant representation from a world-class rail technology leader such as Hitachi- http://www.hitachi.eu/products/business/public/index.html – along with a leading UK firm that has leading-edge complimentary technology expertise- such as Rolls-
Royce- would be one way of providing the new centre/campus with automatic positive world-recognition…
A company like Rolls-Royce, BAE, or VT paired with an effervescent and competent international partner- such as Hitachi- and its Japan-based R & D resources- would immeasurably strengthen the viability and export-related potential of a UK based “world centre” for rail technology research & development…..
A well resourced, efficient ‘World-Centre-of-excellence’ for rail-and-public-transport research and development’ type facility in the UK could only substantially increase the likelihood of contracts to design, manufacture and assemble rail and public-transport products (+ their components and related hardware) going to existing UK-based companies and UK factories…
Roderick V. LouisVancouver, BC, Canada
Including the recent IEP announcement, this is £10 billion of orders to Japanese and German firms which will employ thousands of workers, compared to a measly few hundred in the UK!  High time we got our priorities right!
This story raises so many issues. We are being told that Siemens came up with the best deal. What is this deal? Has anyone seen any figures? Given Siemens sordid history in acquiring foreign contracts in the past, they may make intersting reading. Again why is a Britsih government unwilling to look after its own people? Teresa Villiers talks about EU precurement rules, but it seems that only the UK abides by them. If nothing else this story highlights our sad relationship with the EU.