Derby job losses were ignored in Thameslink decision

THE GOVERNMENT has admitted that the effects on Derby of awarding the Thameslink contract to Siemens had not been taken into account when the calculations of 'value for money' had been made.

The Treasury said the potential damage to the economy of the East Midlands had not been assessed, claiming that there was no regional 'micro economic data' available.

One Derbyshire MP, Chris Williamson, said he found this admission to be 'absolutely shocking'.

He added: "It shows they were making a decision on this huge contract in the dark without any assessment as to what the impact of this sector on the country\'s economy is.

"There will be a huge knock-on impact in Derby's local economy and also on the public purse because it will lead to an increase in unemployment and reduced spending power."

The decision to award the £1.5 billion order to Siemens was allowed to emerge on Thursday morning, only 24 hours after the transport secretary had made a keynote speech at the industry exhibition Railtex but had fended off any questions about the Thameslink fleet.

Talks have already been started in Derby involving a task force set up by the leader of Derby City Council, Philip Hickson. He and his colleagues are pressing for a meeting with the Prime Minister.

The Derby and Derbyshire Rail Forum, which represents about 90 rail-related companies, said the rail industry supply sector in the East Midlands was still very much 'open for business', following the award of the Thameslink contract to Siemens. 

The Forum said: 'A number of the region\'s MPs, members of local government and the business community are seeking clarity from the Government on how this decision was made and its potential impact on our region. The DDRF Executive is working closely with these groups.

'Despite this worrying news the DDRF Executive believes that there still remain significant opportunities for members of the world’s largest rail cluster to win new business – whether that be in the UK or overseas, among existing customers or in new markets. For those in the rolling stock supply chain there is approximately £300 million worth of business to be won refurbishing existing UK fleets.

'As well as working with our members to help them win this work we will be approaching Siemens to see what opportunities there may be for members to sell their services and products into the new Thameslink fleet.'

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