Main Points:
- The labour party has added pressure on David Cameron over the decision to award a £3 billion train contract to Siemens of Germany instead of the Bombardier Factory in Derby .
- The decision could cost 20,000 jobs including 6,000 people employed by Bombardier in the UK.
- Bombardier is reviewing its main operations following the Thameslink's decisions.
- Eagle and Denham said : "At a time when economic growth remains weak, a threat to so many cannot be allowed to happen unless all possible solutions are explored."
- Philip Hammond (Transport Secretary) suggested that other European countries protect their industrial interests when handing out manufacturing contracts.
- However they noted that the EU rules require equal, transparent and non discriminatory treatment of bidders for government contracts.
- Government industrial policy favouring protectionism is regulated against EU guidelines state explicitly that governments must not base contract awards on a bidder's location or nationality.
- The unite trade union said the UK should follow the example of Germany where state - backed Deutsche Bahn awarded 6 billion euros (£5.4 billion) high speed train contract to Siemens.
Links:
- http://www.labour.org.uk/thameslink-must-lead-to-new-rail-procurement-approach,2011-07-12
- http://www.guardian.co.uk/business/2011/jul/03/rail-transport-bombardier-siemens
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