§ Lord Clinton-Davis asked Her Majesty's Government:
§ What discussions they have had with British Rail and BREL Limited concerning the case for contracts to be placed for a substantial number of Class 465 trains (the Networker train) as a matter of urgency.
§ The Minister of State, Department of Transport (Lord Brabazon of Tara)My Lords, my right honourable friend the Secretary of State for Transport has discussed the prospects for further rolling stock orders with the chairman of British Rail and BREL. BR is not yet in a position to say when any orders for further Networker trains will be placed, but the Government fully recognise the advantages of BR being able to proceed with this as soon as possible. Decisions on the award of contracts are for British Rail to take.
§ Lord Clinton-DavisMy Lords, I thank the Minister for that reply. Is he aware that on 10th March the chairman of British Rail wrote to the secretary of the BREL works committee saying:
we are unable to finance this order within the current EFL. This is under discussion with the Government with a view to seeking an early solution to the problem"?Can the Minister indicate whether any further progress has been made? Does he recognise that this is an issue of great urgency in which about 1,600 of the 5,500 jobs at BREL are in jeopardy in an area of high unemployment?
§ Lord Brabazon of TaraMy Lords, the Government are very much aware of the importance of the Networker orders for BREL and for the workforce at York. The Government aim to maintain the high levels of railway investment over the next few years and we hope that BR can proceed with the order as soon as possible.
§ Lord Clinton-DavisMy Lords, the Minister has not given an indication as to whether the Government are prepared in principle to extend the constraints that the external finance limit currently imposes on British Rail. The essence of the matter is that British Rail must look to the Government to change their stance. Is the Minister prepared to indicate that the Government regard this as an issue where time is of the essence, where many jobs are involved and where the initiative must come from them?
§ Lord Brabazon of TaraMy Lords, the Autumn Statement announced major increases in British Rail's external finance limit. It was a generous settlement, but BR still faces a tight financial situation, 1562 particularly as a result of lower income from fares and property. It is a matter for British Rail how it allocates the investment. However, I assure the noble Lord that British Rail's external finance limit and the investment ceiling are kept under regular review.
§ Lord Stoddart of SwindonMy Lords, if the order is not placed soon, is there not a danger that the country will lose the capacity to build this type of aluminium constructed carriage? Under those circumstances, would it not be as well if the Government intervened? If they do not and if we do not obtain the order, we could in future be at the mercy of our foreign competitors.
§ Lord Brabazon of TaraMy Lords, I recognise that competition is important in the railway supply industry. The original order went not only to BREL but also to another company: two suppliers are involved in the order. As I said, competition is desirable.