UK Taxpayers Face £140 Million Bill To Prop Up Destruction Of Train Building Industry

Rail union RMT today demanded that the Government reverse the decision to award the crucial Thameslink fleet contract to Siemens after it emerged in a series of parliamentary answers to Derby MP Chris Williamson that the Siemens bid was priced in Euros and with the 10% decline in the value of the currency since tendering the cost to the UK taxpayer on the £1.4 billion contract has soared by £140 million.

In their response to Chris Williamson, a member of the RMT Parliamentary Group, the DfT said:

“I can confirm that elements of each of the named rolling stock procurements are priced in foreign currencies, including the Euro, and that up to the point of financial close any fluctuations in the value of the Pound against the Euro have the potential to impact upon the cost of these procurements to Her Majesty’s Government.”

RMT believes that the fluctuation in the Siemens price, added to the social economic cost of the loss of 10,000 jobs at Bombardier in Derby and in the supply chain, means that the case for reversing the original decision is now overwhelming and the delay in signing off the deal presents the Government with a window of opportunity to do just that.

RMT General Secretary Bob Crow said

"The catalogue of failure behind the betrayal of Bombardier has sunk to a new low with the taxpayer now expected to subsidise Siemens to the tune of £140 million due to the collapse in value of the euro.

"RMT has said for months that the chaos in the financial markets has delayed the sign off of the Thameslink deal and now that we have been proved right it is time for the government to cut the lies and give this vital work to the Derby workforce, who are geared up and ready to go, while there is still time."

> RMT National News

Friday, 2nd October
RAIL union RMT called for a levy on rolling stock companies today (October 2) as new figures exposed record dividend payments and seven figure salaries.
Tuesday, 29th September
RAIL union RMT announced strike action today (September 29) on Chiltern Railways after members voted overwhelmingly for industrial action against driver-only operation (DOO) planned for East West Rail services.
Monday, 28th September
Rail union RMT demanded today (September 28) that Avanti West Coast outsourced staff be bought into direct employment after the government announced the train company will be brought under public ownership by next March.
Monday, 28th September
RMT today welcomed Transport Secretary Heidi Alexander’s announcement that Great British Railways will be allowed to buy and own its trains ‘where it can provide value for money’.
Friday, 25th September
RAIL union RMT will hold protests outside Labour Party conference meeting in Liverpool on Monday September 28 with striking outsourced rail workers to highlight low pay and calling for them to be taken in-house.