Now Chinese could end up running HS2
MINISTERS were under fire last night after shortlisting a stateowned Chinese group to run HS2.
The row erupted after Westminster Transport Secretary Chris Grayling announced that the keys to Britain’s biggest ever infrastructure project could be handed to a consortium made up of Hong Kong firm MTR and the Guangshen Railway Company.
One Tory MP said the Government should be giving as much opportunity to British firms as possible at such a critical time for the economy.
Another said the whole project should be halted for a public inquiry. The UK Government announced three groups are in the running to operate the West Coast Partnership franchise. This includes trains on the West Coast route from 2019 and initial HS2 trains between London and Birmingham from 2026.
Two bids are by partnerships between UK and foreign companies. But the third, by a Chinese-Hong Kong consortium, does not have any British involvement. Those involving UK firms include a joint bid by Sir Richard Branson’s Virgin Trains and Stagecoach, which have teamed up with French high speed rail firm SNCF. Virgin and Stagecoach currently run the West Coast franchise.
Stagecoach was set up by Scots businessman Sir Brian Souter and his sister, Ann Gloag. Another group to have
‘Kick in the teeth for UK industry’
made the shortlist is a venture between Aberdeen-based FirstGroup and the Italian operator Trenitalia.
Awarding the contract to the Chinese would be politically charged. However, critics said their main concern was the prospect of British operators being frozen out.
Last night, Conservative MP Andrew Bridgen said: ‘This is the biggest infrastructure project ever undertaken in the United Kingdom.
‘If it ends up mainly built and operated by foreign companies this further diminishes the benefits to Britain.’
Fellow Tory Sir Bill Cash said: ‘At this critical moment for our economy it is absolutely essential we give the maximum opportunities to UK manufacturers.’
Cheryl Gillan, Conservative MP for Chesham and Amersham said: ‘Everything needs to be halted – there needs to be a government review of this project.’
Liberal Democrat transport spokesman Jenny Randerson called the shortlist a ‘kick in the teeth for British industry’.
The Department for Transport said all the bids feature ‘UK rail experts’, adding: ‘We want partners who are the very best, regardless of where they are based.’
Three-quarters of Britain’s railways are run by foreign companies.
Recent analysis by the Rail Maritime and Transport Union found of the 28 private rail contracts, 21 of them are partially or wholly owned by foreign state backed companies.
RAIL unions are plotting further chaos on Southern trains after a Government report blamed them for causing more than a year of disruption on the service.
Drivers’ union Aslef said it would vote on a strike at the end of next month and the RMT union said guards will stage a 24-hour walk out on July 10.
The report by Network Rail veteran Chris Gibb said the unions were the ‘primary cause’ of the disruption endured by passengers.