The government’s decision to award a £1.4bn train carriage contract to a German factory rather than a Derby plant is to be investigated by MPs and the National Audit Office.
The Commons transport select committee announced on Wednesday that it would take evidence from ministers on the choice of Siemens as the preferred bidder to build 1,200 carriages for the Thameslink route between Bedford and Brighton. Rival manufacturer Bombardier has said that 1,400 jobs will have to go at its Derby factory as a result, leading to calls for the government to re-examine the award of the work abroad.
The select committee will take evidence on September 7 after Parliament returns from its summer recess. It will also examine broader issues related to the way that trains are procured in the UK.
Auditor general Amyas Morse has also confirmed that, after requests from MPs, he has asked the NAO’s transport team to undertake an initial investigation on whether it should conduct a value-for-money examination of the deal.
In a letter to four MPs sent on July 26, Morse said that he would decide whether a full investigation should go-ahead in October. But he added that he was unable to halt the progress of the contract with Siemens.
The Department for Transport said that it had no choice but to award the contract to Siemens due to European Union procurement laws, which state that a bidder’s location or nationality cannot influence contract awards.
The last time the NAO examined the procurement of trains by the Department for Transport, was in June last year. Its Increasing passenger rail capacity report found that the value for money of rail capacity enhancements, including new carriages, was at risk due to the recession slowing the growth in travel.
