Major Investment in South Durham under Threat
Posted by Phil Wilson, MP for Sedgefield, at 13:56, Mon 12 July 2010:
Hitachi train building programme destined for Newton Aycliffe at risk as Government review scheme – one of the largest projects since Nissan
800 new jobs and thousands of supply jobs in jeopardy
I am calling on Government to think about economic benefits and future of North East before making decision and want a North East campaign to save jobs
I am writing to the ministers responsible for the decision on the future of the Intercity Express Programme which would produce hundreds of rail carriages to replace the aging Intercity coaches used on the East Coast and Great Western mainlines after Philip Hammond, the Transport Secretary made the project part of the Comprehensive Spending Review in October which could see it dropped.
Hitachi has selected Newton Aycliffe for its manufacturing site creating 250 construction jobs straightaway. The site would support as many as 800 manufacturing jobs when in full production. Hitachi also estimates that 6,700 supply chain jobs would be supported, 7 out of 10 in manufacturing.
The Hitachi project was part of the Labour Government’s transport strategy. I understand the Government would not start to buy the rolling stock until 2016 and therefore there will be no significant public expenditure for several years until the factory is built and the rolling stock is ready.
The site would also be used to build carriages for the European market, especially Scandinavia and Northern Europe.
I believe this is exactly the kind of manufacturing scheme Newton Aycliffe and the North East wants. Hundreds of manufacturing jobs with thousands of supply chain jobs and a major company in the area. We all want to see the economy rebalanced in favour of manufacturing jobs which are not just created for public sector procurement purposes but also for export growth. The economic argument stacks up, especially when the Government will not be buying the rolling stock for several years and there is no significant impact on the public finances in the short term.
I am writing to the ministers responsible at the Treasury, Department of Transport and Business asking them to thinking long and hard about their decision on Newton Aycliffe, the North East and wider economy.
I am also calling on business leaders and trade unions in the North East to join me in campaigning for the project to go ahead. I believe if the Government is serious about investing in industry and growing the manufacturing sector they most allow this scheme to go ahead. My concern is, if Hitachi do not build their train building site in the Newton Aycliffe they may take it to another country in Europe.
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Posted by DAVID ATKIN, 16:38, Mon 12 July 2010: (Is this post abusive?) #
Well said Mr. Wilson, I only hope your words do not fall on deaf ears. The country in general is desperate for more manufacturing jobs, but here in the North East I think our needs are more than others, this jobs boost would do wonders for the area. Ironically if the Coalition rubber stamp this they will be looked upon more favourably by the electorate up here, but again I congratulate you on your efforts to get those Hitachi jobs into Aycliffe.
Posted by James Edwards, 18:08, Mon 12 July 2010: (Is this post abusive?) #
I am fully in support of what you say - just the sort of manufacturing we need - if we can build Tornado and Nissan cars, such work let alone all the 'new tech' companies we can do anything.