Tuesday, 1 March 2011

IEP job creation - Compare and Contrast

This from Hitachi on 12th February 2009...

London, February 12, 2009 --- The British-led Agility Trains consortium, comprising Barclays Private Equity, Hitachi Ltd. (NYSE: HIT / TSE: 6501, "Hitachi") and John Laing, was today announced as the preferred bidder for the UK Department for Transport's Intercity Express Programme.

The programme represents a substantial investment in the UK Railway Industry, and Agility Trains is committed to spending 70% of the contract value in the UK. Agility Trains is delighted to confirm that Hitachi and John Laing expect this programme to deliver 2,500 skilled engineering jobs in the UK, in train manufacturing, construction and maintenance. Specifically, the consortium is in active discussions with 20 carefully selected high-quality UK suppliers, which will have a knock-on effect of safeguarding jobs in the UK. In addition this long-term programme will help secure up to 12,500 direct and indirect jobs in the local supply and services industry and local supporting communities.

Compare the above with this from Hitachi today...

LONDON, UK, March 1, 2011 — Agility Trains Ltd. today announced that it is delighted by the Department for Transport's decision to proceed with the Intercity Express Programme (IEP) with Agility Trains, subject to financial close. Under the IEP Agility Trains will deliver train services to Train Operating Companies at a fixed price for approximately 30 years using the IEP family of trains.

In addition, Hitachi is pleased to announce that Newton Aycliffe in Co. Durham is the preferred site for its planned European rolling stock manufacturing and assembly centre (subject to finalising commercial agreements). This investment will generate at least 500 new jobs, and major opportunities for the UK and European supply chain. The company looks forward to working with the Department for Business, Innovation and Skills, local authorities and a new workforce to create a world-class manufacturing facility.

Just fancy that!

UPDATE: This from The Archer...

Having just compared and contrasted the above I think I've got to the bottom of the difference in job numbers:

The February 2009 release talked of 2,500 skilled engineering jobs in the UK, in train manufacturing, construction and maintenance not to mention 12,500 knock-on jobs.

The March 2011 release talks of 500 new jobs, but no mention of where those jobs are or why they are not skilled engineering jobs.

Now, as any SoS know, 2,500 minus 500 = 2,000.

So are the 500 new jobs simply to build the Newton Aycliffe facility, which will then take delivery of the trains, after 2,000 skilled Japanese engineering workers complete them in Kasado?