Rolling Stock (Procurement)
Oral Answers to Questions — Transport
10:30 am

Jonathan Ashworth (Leicester South, Labour)

What recent assessment his Department has made of the effectiveness of its procurement policy for rail rolling stock.

Philip Hammond (Secretary of State, Transport; Runnymede and Weybridge, Conservative)

As stated at the Select Committee on Transport on 7 September, for all future Government-led procurements—not just those for rolling stock—the Prime Minister has asked the growth review to examine the degree to which the Government can set out the requirements and the evaluation criteria with a sharper focus on the UK’s strategic interest, including a review of public procurement practice and outcomes in other EU member states and a review of current private sector best practice. The results of those reviews will inform future Government-led procurements.

Jonathan Ashworth (Leicester South, Labour)

I am sorry that the Secretary of State feels that he is talking to a brick wall when Members raise legitimate concerns about the impact on jobs of the Bombardier decision. I am concerned about the impact on Leicester, where many firms are part of the supply chain. What reassurance can he give those firms now that the majority of our trains will be built abroad?

Philip Hammond (Secretary of State, Transport; Runnymede and Weybridge, Conservative)

The hon. Gentleman is quite wrong to say that the majority of our trains will be built abroad. One contract has been awarded to Siemens, and those trains will be built in Germany. Other contracts are in the pipeline, and Bombardier remains a very strong bidder. It has demonstrated over the last 15 years its ability to win a majority of UK train orders. From 2014 we will have a second UK-based train builder, Hitachi, in the plant that it is establishing in Newton Aycliffe, with the creation of 600 new jobs.

Margot James (Stourbridge, Conservative)

I very much welcome the review of how the Department implements the procurement rules. Does my right hon. Friend agree that there is no time like the present for a thorough review of how this country has, in the past, gold-plated EU directives and regulations?

Philip Hammond (Secretary of State, Transport; Runnymede and Weybridge, Conservative)

I should emphasise to my hon. Friend that the review is not concerned simply with train procurement but is a review of public sector procurement across the board. It will look at what is happening elsewhere and whether there are things that we can do differently so that procurements initiated by this Government do not have the flaws that hon. Members are identifying in the Thameslink procurement initiated by the last Government.