IEP - 12,000 jobs missing

This from then Secretary of State for Transport, Geoff Hoon, in February this year:

"This announcement demonstrates that this Government is prepared to invest, even in difficult economic times, by improving our national infrastructure. It is good news for the British Economy that over 12,500 jobs will be created and safeguarded; good news for the regions that the Government is supporting significant inward investment; and good news for passengers that we are taking the steps necessary to improve their rail journeys."

Good news indeed.

But what's this?

According to Hitachi yesterday, as reported by Yahoo:

The deal, expected to be inked by March 2010, is worth one trillion yen (11.36 billion dollars) and will create up to 500 jobs, the official said, adding that the location of the assembly plant remained undecided.

So where are the rest coming from?

UPDATE: This from J Alfred Prufrock...

Since the Agility Trains consortium is struggling to raise £500 million of funding for IEP, Hitachi must be wondering whether under 200 vehicles are worth building in Japan, let alone in a new factory in the UK.

No wonder DfT Rail is actively discussing life extension of the FGW IC125 fleet to beyond 2030.

And that's before the austerity measures cut in after the election.