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Letter to the Editor

Derby Evening Telegraph - Monday, 13 October 2003


Dear Sir,

It appears that Bombardier has excess production capacity in Europe, and is looking to close factories. The Derby factory, in terms of costs and productivity, is towards the top of the league, so it ought to be safe.

But there's a fly in the ointment. It appears that France and Germany (and possibly other EU countries) are operating a clandestine "buy local" policy -- in clear breach of EU Single Market rules.

Industry sources tell me that in the past five years, German railways have sourced 100% of new rolling stock in Germany, and France has done much the same. Yet only 70% of British rolling stock has been locally sourced -- 30% has gone abroad, including the recent £200 million order from First Group. It is the loss of this order which threatens jobs in Derby.

So from Bombardier's point of view, a German factory can certainly get work in Germany, and may get work in Britain as well. But a British factory certainly can't get work in Germany, and may not get the British orders either. On this basis, Derby looks ripe for closure.

I shall be writing to the EU's Competition Commissioner, Mario Monti, and asking him to look into the sourcing figures for France and Gemany, to see if they are in fact in breach of Single Market rules.

All too often, we in Britain tie our hands behind our backs by obeying EU rules that other countries ignore. This time, it could cost hundreds of jobs in Derby.

Yours faithfully,

Roger Helmer MEP