Railway industry leaders have called on Transport for London (TfL) and train operating companies to follow the example set by HS2 Ltd and Network Rail in relation to supply chain engagement during the coronavirus pandemic.
In a submission to Parliament’s transport committee, The Railway Industry Association (RIA) said it would like to see “greater engagement” from TfL in supporting its supply chain, citing the “positive engagement” of HS2 Ltd and Network Rail as an example to follow.
As revealed by NCE, HS2 Ltd has committed to releasing cash into its supply chain “as early as possible”. Network Rail has also committed to “immediate” payment terms in a bid to help suppliers hit by cashflow issues during the Covid-19 lockdown.
TfL has, however, had its own cashflow issues and only secured a £1.6bn government bailout at the end of last week.
RIA’s submission states: “Rail suppliers would like to see greater engagement with Transport for London, including how it sees investment plans changing due to the Coronavirus outbreak and the impact on the supply chain.
“Further dialogue would be beneficial for both parties and would encourage greater engagement.”
It adds: “The Government’s response to Coronavirus and engagement with rail suppliers has generally been positive so far.
“Rail Minister Chris Heaton-Harris MP has been supportive and accessible, and, together with Network Rail Chief Executive Andrew Haines and HS2 Chief Executive Mark Thurston, has engaged regularly with RIA and the rail supply sector.
“Concerns from the sector have been responded to quickly, and measures put in place to limit the financial uncertainty for businesses, to ensure suppliers are able to continue supporting rail services for key workers and resources.”
The submission also calls for rail workers to be identified as ‘key workers’ and calls for assurances to enable work to continue in the coming months.
RIA chief executive Darren Caplan added: “The past few months have been incredibly challenging for many in rail, and it is noticeable and welcome that the railway industry has received such strong support from the Government and clients like Network Rail and HS2 Ltd.
“As our submission to the Transport Committee’s consultation shows, the twin priorities of the Railway Industry Association and our members has been to ensure the railway network can enable key workers and resources to be able to move around the country, while also ensuring the work suppliers do – working of course within the safety guidelines – helps rail play its part in spearheading economic recovery.
“We now welcome the opportunity to work with the Transport Select Committee, the Government, client bodies and other rail stakeholders, to accelerate work and ensure the railway industry can build even better world-class rail at home and abroad – with rail supply being a leading sector in helping the UK bounce back from the Coronavirus lockdown – in the months ahead.”
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