Posted 25th July 2011 | 12 Comments
Thameslink contract: formal challenge not ruled out
One of thousands of protestors who gathered in Derby on Saturday
THE HEAD of Bombardier in the UK is declining to rule out a formal challenge to the selection of Siemens as the preferred bidder to build 1,200 vehicles for the new Thameslink fleet, in a contract which is worth some £1.4 billion.
There have been protests ever since the transport secretary Philip Hammond made his decision in mid-June. His colleague, transport minister Theresa Villiers, said the choice represented the best value for money for taxpayers, and that 2,000 British jobs would be created.
But the 'best value for money' claim has been vigorously disputed, following the revelation that no account was taken of the wider effect on the British economy in general and that of Derby in particular, where there have been warnings that up to 20,000 jobs are now at risk. Some 3,000 of these are at the Bombardier plant in Litchurch Lane, which will run out of work by 2014. The rest are in the supply chain and its associated businesses.
Bombardier has already announced that it is proposing to shed more than 1,400 jobs at Litchurch Lane, although work is continuing for now on several contracts, including the supply of 191 S-stock subsurface trains for London Underground, consisting of almost 1,400 vehicles. Although this is by far the largest of the jobs on hand, the last of these trains, destined for the District Line, is due to roll off the production lines in about three years from now.
The head of Bombardier in the UK, Colin Walton, was one of a number of speakers at a protest rally held in Derby on 23 July. Mr Walton told the demonstrators on Cathedral Green that he and his management team were doing all they could. Afterwards, Railnews asked him if a formal challenge to the selection of Siemens was on the cards.
He replied: “We're looking at every opportunity. We're looking at every option available to us, and we'll make decisions further down the line. We still believe it should be changed. There's no need for a challenge at this stage, in any shape or form. It's a negotiation phase. But we are looking at everything.”
Another speaker, Derby South MP Margaret Beckett, who has held several cabinet posts and served as Foreign Secretary in 2008, told Railnews she was questioning whether the correct European Union directive had been used when evaluating the bids.
She added: "All that stands in the way is the political will. If you look at the tender documents, there are a number of potential loopholes."
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
Duncan Jack, Pujols, France
It's just a shame that a British Prime Minister, who's salary is paid for by the British taxpayer, cannot see why one or two of the people he's paid to defend are getting upset because he's not bothered about them. Guess who's job will be the next to be axed. Perhaps we could get another leader from somewhere else in Europe, like Germany. Apparantly they have a factory and it may even work out cheaper. By the way, when was the last time that the Germans bought any railway eqipment of any sort from us?
Dave, Nottingham, UK
To point out that Bombardier would have made people redundant anyway is a little inaccurate.
Thameslink should have been awarded in 2010, meaning production would start in 2012. In this case, had Bombardier won, there would have been little gap between the finishing of the current contracts and the start of the Thameslink production.
However the announcement was delayed by over a year, so production will not start until 2013, so , had Bombardier won there would still be a "gap" where shop floor, test, stores etc had a low amount of work. Contract staff would be let go, and possibly some permanent staff as well. But, and this is important, Engineering, Project Management, Procurement, Finance etc would have been ramping up to start the new project. They may well have been recruiting.
Mick, Essex, UK
Just prior to the announcement, Bombardier wrote to the Government saying that, as orders were coming to an end, they would have to make 1200 redundancies even if they won the Thameslink order. Then a week after Siemens won it, Bombardier announced 1400 redundancies. So only 200 job losses are actually attributable to the loss of the Thameslink contract. Funny how this important piece of information has gone largely unreported, even the Unions don't mention it!
Rob, Nottingham, UK
Bombardier did win a contract for the London Underground signals, but the part of Bombardier that won the contract is based in Plymouth, UK.
Geraint Griffiths, Chester, United Kingdom
It may be "value for money", but the tax payer will lose out in other ways.
Melvyn Windebank, Canvey Island, Essex, England
The present government keeps trying to blaim the outgoing Labour government for this decision. Problem is the election was over a year ago and so while this argument would have been valid last year it simply does not wash this year!!
And if the Tories were not happy with this order and the way it worked why did they not say anything until after they had awarded it to Siemens?
Its time Cameron and co took responsibility for THEIR decisions!!!
Lorentz, London
Shame that Bombadier did not put as much effort in developing a decent product, and in the tenderfor teh project.
Deutelt, Krefeld, Germany
thanks a lot for this decision, it shows that europe is growing together.
plus, it is very good for germanys economy, which is the heart of europe.
JG, London, UK
Much as I would like the trains to be built in Britain, it does seem that British built trains are still inferior in build quality and/or design to German ones. As an example, the only time I've experienced one of the brand new Lorol units, my arm got soaked because of water pouring through the vent. OK, that's only one sxample, but the Siemens units do just seem to be built better. Mercedes vs Rover. Why? Management? The workforce? Or, more likely conflicting priorities between the two - managers want to keep costs down, workforce want to thwart the managers, when both should instead be concentrating on build quality.
Joel Kosminsky, London, Britain
The 'competition' wasn't a 'level playing field' as Siemens have other orders and losing this one would not have shed jobs. This time, we lose an order AND the future. That this Coalition set aside the wider picture means they have other blunders to come. Everyone has an interest - me too! - and we have to look at a bigger view.
Chris Reynell, Longstock, Hampshire.
It might sound daft - could Siemens be encouraged to sub-contract Bombardier to build the new rolling stock in Derby?
Airbus has several factories in different countries working together. A substantial part of the world beating class of airliners is developed and fabricated in the UK.
Working together may harness the best talents to become the world leader for the future generation of trains.
Otherwise train building joins the list of industries we once led and have lost.
Dean, St Albans, UK
Oh please give over.
Every time someone mentions loss of Bombardier jobs, can someone please point out to them that CANADIAN company Bombardier has won the next tube signalling contracts, enforcing BRITISH company Invensys to cut jobs.
Perspective please