Region's hopes of train-building jobs dashed

(Martin Slack

HOPES that renewing Britain’s fleet of Intercity trains would create Yorkshire jobs have been dashed as it emerged Labour spent 26m on the rail project before it stalled.

The Intercity Express scheme was drawn up by the Department for Transport to reduce journey times and increase capacity on the East Coast and Great Western main lines.

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It was suggested that a factory to build the new trains would be built in Sheffield, but it has now emerged that if the project ever does go ahead, trains will be built in County Durham.

The 7.5bn deal was postponed before the General Election after Transport Minister Lord Adonis said it was “inappropriate” to commit cash with the country facing a large deficit.

But during a Commons debate, coalition Transport Secretary Theresa Villiers said Labour had spent 26m on consultants and preparation before a contract was ever signed.

The Labour Government had already chosen a consortium of companies to provide the new trains, led by the Japanese bullet train builder Hitachi, before it shelved the scheme. Ms Villiers said there was “some concern” over the consultants’ bill during a debate called by Sedgefield MP Phil Wilson, who said the deal was now vital for people in his constituency.

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The MP urged Ms Villiers to re-start Intercity Express to create jobs in the town of Newton Aycliffe, saying one way of cutting the deficit was “increasing the private sector”.

Mr Wilson said Hitachi had confirmed to him that if the project was revived, the factory would be located in the North East, leaving the hopes of South Yorkshire in tatters.

The future of Intercity Express will be sealed by the Government’s spending review next month, but Ms Villiers said she would give serious consideration to Mr Wilson’s arguments.