"Disastrous exporting of rail manufacturing would end under Labour," says McDonald

Visiting Birmingham’s Centre for Railway Research and Education as part of Labour’s Build It In Britain campaign for reviving the UK’s rich industrial heritage, Labour’s Shadow Transport Secretary will reveal that:

• Over the last eight years, hundreds of millions of pounds in rail manufacturing contracts have gone overseas.
• Between 2010 and 2017, 1 in 8 jobs involved in manufacturing trains have been lost, while between 2010 and 2016, turnover of locomotive and rolling stock, is down 10 per cent.
• The National Skills Academy for Rail estimates that rail apprentice numbers have declined to just 1,800 in 2016/17. This is almost 50 per cent less than in 2011/12 and less than half the amount the sector needs.

Labour has a three pronged pro British manufacturing plan to build our rail network in Britain. The next Labour government will:

• Change public sector procurement rules so that government supports jobs and industry, and promotes a fairer society.
• Invest in infrastructure using its National Investment Bank, in order to help companies here in Britain keep goods flowing efficiently and keep costs low.
• Invest more in education, skills and lifelong learning through its National Education Service.

Speaking ahead of the visit, part of Labour’s ‘Build it in Britain’ campaign launched last week, Andy McDonald MP, Labour’s Shadow Transport Secretary, said:

“Over the decades that the Tories have savaged our industrial heritage, rail manufacturing has declined, major public contracts have gone overseas, and the skills the sector needs have received unforgivably poor support.

“We will rebuild our rail industry, to develop the hi-tech skills of young people and all workers, to promote 21st Century manufacturing, and to defend jobs and the communities that depend on them.

“Labour will build a rail network fit for the 21st century, one that will provide the foundation for a rail system placed back in the public’s hands.

“The next Labour government is going to throw its weight behind British rail manufacturing, and build a British rail network that works for the many, not the few.”

Ends

Background

1.  Labour will change how public sector procurement works, supporting our rail industry to Build it in Britain.

This includes:

a.    having a default position of facilitating British procurement, including steel,  whenever possible

b.   ensuring that new rolling stock is publically owned

·       Under the Tories a number of lucrative rolling stock contracts have been awarded to foreign companies:

Spanish company, Construcciones y Auxiliar de Ferrocarriles (CAF), won a £490m contract to build 281 vehicles for Arriva Rail North.

The Guardian, 23 January 2016, https://www.theguardian.com/uk-news/2016/jan/23/unions-condemn-giving-spain-490m-uk-train-contract-as-a-kick-in-the-teeth

Railway Gazette, 22 January 2018, http://www.railwaygazette.com/news/traction-rolling-stock/single-view/view/caf-awarded-arriva-rail-north-train-contract.html

CAF and Bombardier Transportation were selected to supply rolling stock for the West Midlands franchise.

Railway Gazette, 17 October 2017, http://www.railwaygazette.com/news/traction-rolling-stock/single-view/view/bombardier-and-caf-win-west-midlands-train-contracts.html

CAF were also awarded the contract to build new trams for the Midland Metro.

BBC News, 2 July 2013, https://www.bbc.co.uk/news/uk-england-birmingham-23150033

·       According to TED, the EU tender database, since 2014, Network Rail has awarded rail contracts, in part or in full, worth at least £106,970,076.09 to foreign companies.

National Rail Infrastructure Ltd awarded contracts for flood prevention works to three companies including Danish firm, Environment Solutions APS.

TED, 29 September 2014, http://ted.europa.eu/udl?uri=TED:NOTICE:89219-2014:TEXT:EN:HTML

Network Rail High Speed awarded a £59,291,147.23 (CHF 7,752,294) contract for HS1 rail grinding services was awarded to Swiss company, Speno International SA.

TED, 21 May 2015, http://ted.europa.eu/udl?uri=TED:NOTICE:224049-2015:TEXT:EN:HTML

Network Rail Infrastructure Ltd awarded a £42,000,000 contract for electrical installations for railways to three firms – including Belgium firm, Lamifil NV, and German company Nkt Cables GmbH & Co. KG.

TED, 14 December 2015, http://ted.europa.eu/udl?uri=TED:NOTICE:318624-2015:TEXT:EN:HTML

Network Rail Infrastructure Ltd awarded a £3,000,000 contract for track construction materials and supplies to four companies including Irish firm, Rivval Ltd.

TED, 1 October 2016, http://ted.europa.eu/udl?uri=TED:NOTICE:362153-2016:TEXT:EN:HTML

Network Rail Infrastructure Ltd awarded a contract for £2,678,928.86 for architectural, engineering and surveying services to Dutch firm,Fugro RailData B.V.

TED, 25 November 2016, http://ted.europa.eu/udl?uri=TED:NOTICE:438616-2016:TEXT:EN:HTML

Network Rail Infrastructure Ltd awarded a contract for the supply of insulators for overhead electrical equipment to six companies including Italian firm, EB Rebosio SRL.

TED, 10 August 2017, http://ted.europa.eu/udl?uri=TED:NOTICE:320441-2017:TEXT:EN:HTML

·      The British rail industry and workers need support in bidding for future opportunities. There are currently a number of live tenders or future tenders (where Prior Information Notices have been published) for rail contracts.

“BOMBARDIER Transportation and Hitachi Rail have agreed to join forces to bid for a £2.75bn contract to supply a minimum of 54 360km/h trains for operation on Phase 1 of Britain’s HS2 high-speed line linking London and Birmingham, and CAF has been invited to bid.”

4 July 2018, Rail Journal, http://www.railjournal.com/index.php/rolling-stock/bombardier-and-hitachi-to-submit-joint-bid-for-hs2-train-contract.html

“Overhead electrical equipment (Live)

·      Network Rail requires Tensioning Devices, to maintain mechanical tension in the overhead conductors on electrified lines.

·      The devices need to be designed to attach to the structures for support of the overhead contract line system.

·      Contract details:

o Estimated date of publication of contract notice: 15 March 2018

o Contract value: N/A”

OJEU: Prior Information Notice, 27 October 2017,http://ted.europa.eu/udl?uri=TED:NOTICE:427186-2017:TEXT:EN:HTML&src=0

Track construction works (Live)

·      Network Rail is seeking design and construction of track works and associated civil engineering works such signalling, surveying and installation.

·      Suppliers will undertake track works on the GB rail infrastructure over the next 10 years.

·      Contract details:

o Estimated date of publication of contract notice: 9 May 2018

o Contract value: £5bn

OJEU: Prior Information Notice, 13 March 2018,http://ted.europa.eu/udl?uri=TED:NOTICE:109782-2018:TEXT:EN:HTML&src=0 

Rolling stock - measurement trains (Live)

·      Network Rail is seeking to renew the fleet of measurement trains which are used to monitor the condition of rail infrastructure and identify faults before they become a safety issue.

·      The contract is for four trains and one single unit in Control Period 6 (2019-2024) with an ability to add a further three or four trains in Control Period 7 (2024-2029).

·      The contract states that in interests of efficiency, suppliers consider modification of Network Rails wider rolling stock with necessary recording/monitoring equipment.

·      Contract details:

o Estimated date of publication of contract notice: 25 April 2018

o Contract value: £N/A

OJEU: Prior Information Notice, 26 January 2018, http://ted.europa.eu/udl?uri=TED:NOTICE:36479-2018:TEXT:EN:HTML&src=0

Replacement fleet - Long Welded Rail Train and Rail Delivery Trains (Live)

·      Replacement of current fleet of Long Welded Rail Trains (LWRT) and Rail Delivery Trains (RDT)

·      The current LWRT and RDT were built in 1984/85 and Network Rail are looking to replace them.

·      Contract details:

o Estimated date of publication of contract notice: 2 July 2018

o Contract value: £N/A

OJEU: Prior Information Notice, 16 December 2017, http://ted.europa.eu/udl?uri=TED:NOTICE:502338-2017:TEXT:EN:HTML&src=0

Western Rail Link to Heathrow - PF2 (Live)

·      5km rail link between Great Western Mail Line and Heathrow Airport Terminal 5.

·      Contract details:

o Estimated date of publication of contract notice: 1 July 2019

o Contract value: £700m - £900m

OJEU: Prior Information Notice, 8 May 2018, http://ted.europa.eu/udl?uri=TED:NOTICE:196671-2018:TEXT:EN:HTML&src=0

Southern Rail Link to Heathrow - PF2 (Live)

·      Envisaged that the rail link with serve Waterloo and Surrey/Hampshire from Heathrow.

·      Contract details:

o Estimated date of publication of contract notice: 2 September 2019

o Contract value: £700m-£1.4bn

OJEU: Prior Information Notice, 8 May 2018, http://ted.europa.eu/udl?uri=TED:NOTICE:196670-2018:TEXT:EN:HTML&src=0

·      In addition, under the Tories, the bulk of the rolling stock that run on the railways are owned by three private companies (rolling stock leasing companies, or ROSCOs) – Angel, Eversholt and Porterbrook. These companies lease the rolling stock to the train operating companies (TOCs) who then deploy it on their services.

·      A House of Commons Library paper last year said that the average age of rolling stock on the GB rail network was 21.1 years at Q4 2015/16.

“The average age of rolling stock on the GB rail network was 21.1 years at Q4 2015/16. This has been increasing year on year, though there are differences between franchised areas.”

15 June 2017, House of Commons Library: Railway rolling stock, http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN03146#fullreport  

·      A report published last year by Rail Delivery Group, detailed how only around half of the 6,000-plus new carriages costing £10 billion already committed for delivery from April 2014 to March 2021 have been or will be built in Britain.

“Around half of the 6,000-plus new carriages costing £10billion already committed for delivery from April 2014 to March 2021 have been or will be built in Britain. These will replace 3,000 or more older vehicles, increasing the size and capacity of the national fleet by around 20%.”

10 March 2017, Rail Delivery Group, https://www.raildeliverygroup.com/media-centre/press-releases/2017/469772151-2017-03-10.html

2.  Labour will invest in infrastructure and our rail manufacturing industry

This includes:

a.    delivering rail electrification and expansion across the whole country

b.   delivering historic levels on investment in key rail infrastructure projects such as Crossrail of the North, HS2

·      Latest figures show that the amount spent on Britain’s railways by the Government has fallen to its lowest level for nearly 15 years, new figures show.

11 October 2017, Rail Finance 2016-17 annual statistical release, http://orr.gov.uk/__data/assets/pdf_file/0008/25757/rail-finance-statistical-release-2016-17.pdf

·      Some £4.2 billion of government support went to the rail industry in 2016/17 to help with the operation, maintenance and upgrading of the network. This was a drop of almost 13 per cent on the previous year, once inflation is taken into account.

“The amount spent on Britain’s railways by the Government has fallen to its lowest level for nearly 15 years, new figures show.”

11 October 2017, Bt.com, government spending on rail falls to 15 year low, http://home.bt.com/news/uk-news/government-spending-on-rail-network-falls-to-15-year-low-of-42bn-11364219725005

• The number of jobs in manufacturing locomotives and rolling stock has fallen by 12.5 per cent since 2011.

ONS, 26 October 2017, https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/industry4digitsic2007ashetable16 

• Since 2010, turnover from the manufacture of rail and rolling stock has declined by more than 10 per cent.

ONS, 18 May 2018, https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/datasets/uknonfinancialbusinesseconomyannualbusinesssurveysectionsas

• In July 2017, the government announced it was scrapping numerous rail electrification schemes across the country including the Great Western line which itself was three times over budget, and the route from Cardiff to Swansea as well as numerous branch lines.

• Cancelling electrification projects around the country will add significantly to journey times: journeys between Manchester and Liverpool will be longer by nearly 30 minutes, whilst journeys between Leeds and Newcastle will be over 20 minutes longer. Cancelling the electrification of the Cardiff to Swansea section of the Great Western Mainline puts at risk the estimated journey time saving between Swansea and London with Super Express trains of 19 minutes.

• Network Rail estimates that electrification and the running of electric vehicles can help to reduce CO2 emissions by an average of 20 to 30 per cent compared to their diesel counterparts. Maintenance costs for electric trains are also 33 per cent lower than for diesel.

“Electric vehicles, on average, emit 20 percent to 30 percent less CO2 emissions than their diesel counterparts, depending upon the energy mix used for generation. Electric trains also tend to be quieter in operation.”

October 2009, Network RUS Electrification, http://archive.nr.co.uk/browse%20documents/rus%20documents/route%20utilisation%20strategies/network/working%20group%204%20-%20electrification%20strategy/networkrus_electrification.pdf 

• Furthermore, Network Rail estimates that electric passenger vehicles fuel savings are between 19 and 26 pence per vehicle mile.

“for passenger vehicles fuel savings are currently estimated as between 19 and 26 pence per vehicle mile – a saving of around 50 percent – and maintenance cost savings as approximately 20 pence per vehicle mile – a saving of around 33 percent… Where it is possible to replace diesel trains with electric trains, operating cost savings will be realised.”

October 2009, Network RUS Electrification, http://archive.nr.co.uk/browse%20documents/rus%20documents/route%20utilisation%20strategies/network/working%20group%204%20-%20electrification%20strategy/networkrus_electrification.pdf 

3.  Labour will support and invest in the skills needed to build a rail workforce fit for the 21^st century

This includes:

a.    tackling the decline in the number of apprenticeships and jobs in the rail industry

b.   improving the conditions for workers in the transport sector to encourage more to enter into it.

·     According to the National Skills Academy for Rail apprentice numbers have fallen.

“According to the National Skills Academy for Rail (NSAR) apprentice numbers have also fallen in the rail industry”

9 April 2018, https://www.railstaff.uk/2018/04/09/rail-industry-reaping-benefits-apprenticeship-levy/ 

·      The National Skills Academy for Rail estimates that rail apprentice numbers fell to 1,800 in 2016/17, from 3,520 in2011/12; this repre