A BACKLASH is growing against the Government’s announcement yesterday that Britain’s biggest-ever order for inter-city trains — £7.5 billion — has been awarded to the Japanese train builder, Hitachi.

The Department for Transport was accused of spin after its statement that the contract had been awarded to “a British-led consortium.” The DfT also attributed quotes to Transport Secretary Geoff Hoon “that over 12,500 jobs will be created and safeguarded.”

The DfT was so anxious to maintain the ‘good news for Britain’ spin that within minutes of placing the announcement on its web site, an associated video (which can be viewed on the Railnews web site), which started with 60 seconds of promotion material about Hitachi, was withdrawn.

The consortium gaining the contract is known as Agility Trains and, as well as Hitcahi, includes John Laing and Barclays Bank.

But soon after the contract award was announced it emerged that much of the new trains’ construction will take place in Japan, with only final assembly taking place in Britain, creating about 500 new jobs. Sites in Ashby-de-la-Zouch, (Leicestershire), Sheffield and Gateshead are being considered, said Agility Trains.

Hitachi said all of the first ten trains, some 70 vehicles, will be made in Japan, and the outer shells and parts of the bogies of the remaining 1,330 vehicles will continue to be fabricated in Japan.

The RMT union criticised the choice of Agility over Express Rail Alliance, a group led by Bombardier Transportation, together with Siemens of Germany, Angel Trains and Babcock & Brown. Bombardier already has a significant train manufacturing base at Litchurch Lane, Derby.

Bob Crow, general secretary of the biggest rail union, RMT, said: "We have been campaigning long and hard to protect what is left of Britain's train-making capacity and skills base, and if the basic manufacture of these [train] sets is to be undertaken elsewhere today's announcement will have been a triumph of spin over substance.

“We need to know why the order was not placed with Bombardier, which has established train-building capacity and a skilled workforce in Derby."

In an apparent sop to Bombardier, the DfT announced yesterday that it was in discussions with National Express East Anglia for the Derby train maker to build 120 new carriages for use on the Stansted Express services between London Liverpool Street and the Essex airport.

Derby North Labour MP Bob Laxton said the decision was bad news for the area.

"This is a crass decision which gives the Japanese an opportunity of getting into the UK market. I don't believe for one moment the figure of 12,500 jobs because work will be brought into the UK from overseas," he said.

Keith Hazlewood of the GMB union said: "We need to clarify what on earth is going on and how much work will be done in this country."

The Tories’ shadow Transport Secretary Theresa Villiers said the announcement was "typical spin" from the government.

She said: “Only around 500, at most of the 12,500 jobs, announced today will be created in the UK by the train builder Hitachi and Labour have produced no convincing evidence to back up the rest of their claims on jobs.

"This announcement raises further questions about Gordon Brown's claims about British jobs for British workers. Geoff Hoon needs to stop the spin and tell the UK's hard pressed train manufacturing industry the real truth about his decision on replacing intercity trains."

Express Rail Alliance said it was "extremely disappointed" by the decision. "We have spent 18 months developing a compliant, competitively priced, innovative and sustainable solution, which would have significantly benefited the rail manufacturing economy in the UK and Europe."

The DfT said Express Rail Alliance “has been asked to maintain their status as reserve bidder in the case of DfT not being able to reach satisfactory terms with the preferred bidder.

“Both bids were deliverable and substantially compliant, and so comprehensively evaluating and choosing between them was a lengthy process.”

The new trains will operate on the East Coast and Great Western Main Lines, with options for deployment on London commuter services on the West Coast Main Line and on services between London and the West of England (Penzance and Exeter), said the DfT.

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