Thursday Volume 532 15 September 2011 No. 201 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 15 September 2011 £5·00 © Parliamentary Copyright House of Commons 2011 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 1159 15 SEPTEMBER 2011 1160 preferred bidder. Will he now admit that that was a House of Commons terrible mistake, which has put at risk Bombardier, Britain’s last train manufacturer, and thousands of British Thursday 15 September 2011 jobs down the supply chain? The House met at half-past Ten o’clock Mr Hammond: The only other option available to the Secretary of State—I have to repeat myself again—would PRAYERS have been to cancel the Thameslink procurement completely and abandon the project. That power exists, but there is no power to alter the terms under which the competition [MR SPEAKER in the Chair] is conducted once it has begun. That was made very clear by the representative from the European Commission and by the academic lawyers who gave evidence to the Oral Answers to Questions Select Committee. Nigel Mills (Amber Valley) (Con): Will the Secretary TRANSPORT of State confirm that he will look to include socio-economic conditions in future procurement contracts and to give The Secretary of State was asked— them sufficient weighting that the full economic impact of the contract can be taken into account? Rolling Stock Contracts Mr Hammond: The Prime Minister has agreed that 1. Steve Rotheram (Liverpool, Walton) (Lab): What the growth review should include a review of public assessment his Department has made of the ability of procurement in the UK, and that work is now under British-based train manufacturers to win contracts for way. We will look at what happens in other EU countries rolling stock. [71828] that are similarly constrained by EU procurement rules, and we will look at best procurement practice in large 2. Tom Blenkinsop (Middlesbrough South and East commercial companies to maintain long-term best value. Cleveland) (Lab): What assessment his Department We will certainly look at the opportunities provided by, has made of the ability of British-based train and the appropriateness of, including socio-economic manufacturers to win contracts for rolling stock. criteria, where appropriate. [71829] The Secretary of State for Transport (Mr Philip Duncan Hames (Chippenham) (LD): I am sure that Hammond): Since privatisation, Bombardier, as the only the Secretary of State will want to join me in congratulating current UK-based train manufacturer, has supplied the Invensys, based in my Chippenham constituency, on majority of new trains across the UK main line rail and winning a multi-million pound signalling contract on London underground networks, with a combined total the Thameslink project. A world leader in train-signalling of over 4,500 new carriages ordered since 1996. Going technology, Invensys has in the past experienced some forward, there are a number of contracts that the difficulty in winning domestic contracts. What steps is Department would expect Bombardier to bid for, including the right hon. Gentleman taking to ensure that recognition the Crossrail project for the supply of around 600 carriages, of UK engineering talent is more commonly the rule and it is already a pre-qualified bidder. The tender for rather than the exception? this contract is due to be issued in 2012. There are also potential future orders for the London Underground Mr Hammond: The general rule is that we would deep tube lines. expect to evaluate bids for contracts on their merits. Companies such as Invensys and, indeed, Bombardier Steve Rotheram: I listened to what the Secretary of have won many contracts on their merits, but we will State had to say and, quite frankly, I could have predicted look at whether we should, in appropriate cases, include his response. Why is he not prepared to do anything to wider socio-economic issues and factors, which some reconsider his disastrous decision to award the Thameslink other EU member states routinely do in their public contract to a company that intends to build these trains procurement processes. in Germany? Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op): Mr Hammond: I sometimes get the feeling that I am Yesterday, the Deputy Prime Minister made a speech talking to a brick wall on this subject. I have said it about the importance of investment in infrastructure. before and I will say it again: the criteria by which the Will the Secretary of State provide some examples of bids were to be evaluated were laid down by the Government how that might lead to more opportunities for UK-based in 2008. The criteria have to be followed, although they train manufacturing in the short term? might not be the criteria the hon. Gentleman would like. We have made a commitment to look at the way we Mr Hammond: I am grateful to the hon. Lady for her specify the criteria in future public procurements, but question. We are sensitive to the pressures that the UK on this project it is Labour’s mess and we are landed train manufacturing supply chain—not just Bombardier with it. but the component suppliers—are under, and the Tom Blenkinsop: I am sorry, but the right hon. Gentleman Department is urgently looking at some other projects told the Transport Select Committee that there was an that might be advanced. In particular, the industry option to review or restart the Thameslink procurement proposed a project to modify the cross-country Voyager process at any time during the year before naming the train fleet so that it could run under electric power, 1161 Oral Answers15 SEPTEMBER 2011 Oral Answers 1162 which would provide—if Bombardier were to win the has resumed to reach a total of 1.4 billion journeys contract—a substantial piece of work for the crucial undertaken. Long-distance rail travel has nearly doubled design department in Derby. That is at the heart of since privatisation. securing the future of that business. Simon Hart: Will the Secretary of State put some Maria Eagle (Garston and Halewood) (Lab): Yesterday, pressure on Network Rail about the state of their the Deputy Prime Minister told the right hon. Gentleman stations? Whitland station, in my constituency, is now to speed up delivery of Crossrail. Will he update the in such a deplorable state that it works against people House on the new completion date for the project, wanting to travel on rail and against attracting tourists which will, I presume, now be earlier than December to our area. 2019, the date to which he pushed it back after the election? Mr Hammond: Management of stations is the responsibility of train operators. Under the revised Mr Hammond: The Deputy Prime Minister did not franchise programme that the Minister of State has tell me to speed up the Crossrail project. The thrust of announced, we intend to transfer leasehold ownership his speech was the need to ensure that committed capital of stations to the franchise train operator, so that it can funds are spent on their intended profile. The requirements have a more direct, hands-on involvement. However, I to keep demand in the economy mean that we must get will look into the specific example about which my hon. those vital capital programmes spent on programme, Friend asks. and the Crossrail project is spending on programme Mr Denis MacShane (Rotherham) (Lab): The Secretary and will deliver the completion of the project from of State’s extraordinary statement that rail travel is 2016, with full running from 2019. something for rich people could be made only by one of Maria Eagle: So the Deputy Prime Minister was the southern millionaires in the Cabinet. If he came to wrong—there is no plan to bring forward projects and Rotherham, he would see plenty of people who are not no plan for growth. May I ask the Transport Secretary rich, but they are now being threatened with the ticket about the procurement of trains for Crossrail? After his office at Rotherham station, which is being rebuilt, disastrous decision to award the Thameslink train contract being taken away. May I put it to him that many of my to a company that will build the trains in Germany, constituents do not do computers and need help and putting at risk Britain’s train manufacturing industry, aid? That ticket office at Rotherham station must stay. he has said that he is reviewing the Crossrail contract. Mr Hammond: I understand the right hon. Gentleman’s As he has just confirmed that Crossrail is still being point, and I agree that there will be a need for assisted delivered on his slower timetable, rather than reviewing channels— it for six months, why does he not scrap the process and start again, and this time ensure that Bombardier has a Mr MacShane: What are assisted channels? fair chance to secure the work. Finally— Mr Hammond: I will tell the right hon. Gentleman Mr Speaker: Order. I think we have the gist, and we what assisted channels are. Even as the purchase of are grateful. tickets, over time, is bound to become more computer based, as new technologies are deployed and more Mr Hammond: The hon. Lady is all over the place. tickets are bought online, through mobile technology There is nothing to scrap in relation to the Crossrail and so on, there will still be a need for an assisted rolling stock procurement programme, because we have channel, and we will ensure that there is one.