British Rail Engineering Ltd. (Hansard, 3 February 1986)

§ 6. Mr. Gregory
asked the Secretary of State for Transport what was the value of export orders achieved by British Rail Engineering Ltd. during the most recent 12-month period for which figures are available; and how this compares with each of the preceding five years.

§ Mr. Ridley
BREL exports in 1985 were worth some £12 million. Exports in the years 1980 to 1984 were £34 million, £19 million, £3 million, £1.5 million and £30 million.

§ Mr. Gregory
Does my right hon. Friend agree that, although the figures are disappointing, the prospect for British Rail Engineering Ltd. looks good, especially with its design team? Does he further agree that the greatest obstacle to increasing exports is the negative view adopted by the conveners of the unions in opposing innovation? Will he support the management of British Rail Engineering Ltd. and help ensure maximum possible exports?

§ Mr. Ridley
I pay tribute to BREL for its excellent efforts to obtain more overseas work. Last year it submitted tenders and indicative bids for export orders worth £580 million. More than 400 overseas trips were made to gain business. I am aware of a large number of possible orders in the offing. I congratulate BREL on its sterling efforts to try to increase business through exports. I realise that that is difficult, because many railways operate a protective attitude to exports. Despite that, BREL is beginning to break through in many parts of the world.

§ Mrs. Dunwoody
How many of those export orders were lost because of the attitude of the Government and the Export Credits Guarantee Department? Does the right hon. Gentleman believe that it is sensible to tell people that they are likely to lose their jobs in BREL because of privatisation and at the same time expect them to work harder?

§ Mr. Ridley
The answer to the first question is none. As to the second question, no one has suggested that those people should lose their jobs. We are discussing extra efforts for the core works of BREL in the export business so that it can expand and create more jobs.

§ Mr. Hirst
I warmly applaud the efforts of BREL to win overseas orders. Can my right hon. Friend tell me what proportion of the export sales have been manufactured at BREL's Glasgow works, where many of my constituents work? Does he regard it as disappointing that the management have proposed the downgrading of that works to a repair unit for ScotRail instead of using the undoubted talents and abilities of that work force for export orders?

§ Mr. Ridley
The works at Springburn are devoted to repair and maintenance and not to new build or heavy reconstruction. British Rail envisaged BREL handing over the works to ScotRail in 1987 as the main works to repair and maintain Scottish rolling stock. As such, it is not possible for them to participate in new export services, which are confined to the core BREL works at York, Derby and Crewe.

§ Mr. Snape
Does the Secretary of State accept that since the Conservative party took office, the railway works at Shildon, Stratford and most of Horwich have closed? Does he accept that Swindon is scheduled shortly to close and that the works at Glasgow are also under threat? Does he accept that up to 12,000 further redundancies in BREL are threatened and that it will take more than the disgraceful slur from his creeping hon. Friend the Member for York (Mr. Gregory) to alter that?
Does the right hon. Gentleman accept that it is the Government's intention to run down BREL even further prior to privatisation and that the public sector will again pick up the bill, while the private sector picks up the orders? Railwaymen will not forget the right hon. Gentleman's role in that.

§ Mr. Ridley
The hon. Gentleman has been told—again he does not seem to take it in—that his pressure for increased investment in the railways, which has been met, as I said earlier, has resulted in rolling stock that does not require so much repair, maintenance and reconstruction because it is new and of a higher quality. That has been the cause of the rundown in BREL's work force. To try to increase employment in the railway engineering industry I have agreed with the chairman of British Rail the new arrangements whereby BREL's activities will be split into repair and new build. The new build part will, therefore, at least have the opportunity to gain export orders. I should have thought that the hon. Gentleman would welcome that. He never seems to welcome good news.