Con-Dem government delay puts crucial rail contract for north east
in the balance
9 July 2010
Unite, Britain's biggest union, is calling on employers, MPs and
business lobby groups from across the north east to campaign to
secure a crucial £7.5 billion rail contract which could be at
risk.
The union has warned that the Intercity Express Programme (IEP)
is now in the balance as the Con-Dem government has deferred its
decision on whether the programme will go ahead to October at
the earliest.
The IEP was awarded to Agility Trains owned by Hitachi, to
replace the HST fleet and would operate on the East Coast &
Great Western lines. The first 70 units are to be built in Japan,
the remaining will be assembled in the UK with an initial workforce
of 200 rising to 500 in peak production. Hitachi has made it clear
that should it establish a UK train building facility it would seek
to use that as a base to export trains into Europe. Hitachi has
considered many sites for the new UK train building facility and
the Tyne Yard location is understood to be Hitachi's favoured
site.
Should IEP be cancelled by the government, Hitachi will not
build the UK train building factory. The north east region would
lose out on significant construction and fabrication work including
20 years of maintenance work that is connected to the contract.
From 2002 to 2009 the UK's sole domestic volume train builder,
Bombardier, has only manufactured half of the rolling stock ordered
for the UK network. Unite believes a second train builder in the UK
would mean the UK could capture much more of the UK’s rolling stock
market than previously.
Davey Hall, Unite regional secretary, said: "Unite is calling
upon employers, business groups and MPs to jointly campaign to
ensure the government endorses the contract without delay to
support regional investment, jobs and the UK’s manufacturing
base.
"If the government gives the green light to the contract the
investment would put the UK back on the map as a significant train
manufacturer for the European market.
"This provides a prime opportunity to advance a combined and
concerted effort from all concerned to ensure the contract comes to
fruition and is placed in the north east."
ENDS
Contact: Ciaran Naidoo on 07768 931 315 or Davey Hall on 07802
912 735
