Labour calls review over £3bn contract awarded to Siemens of Germany.
Shadow business secretary said awarded this contract to Siemens instead of bombardier factory in Derby "dealt a blow to British manufacturing".
This decision could cost 20 000 jobs and "at a time when economic growth remains weak, a threat to so many can not be allowed".
Though EU regulations require equal opportunities when handing out government contracts, shadow business secretary John Denham suggests the UK should follow Germany who recently awarded a £5.4bn high speed train contract to Siemens.
http://www.guardian.co.uk/business/2012/dec/16/fresh-blow-bombardier-thameslink-contract
http://www.independent.co.uk/news/business/news/rising-costs-put-trains-deal-for-thameslink-route-at-risk-8303482.html
overruns to the timetable are expected to add tens of millions to the cost of the money that Siemens borrows. Banks will toughen up the terms of their loans to reflect what now appears to be a riskier deal than when it was first announced.
There are two possible outcomes here: that Siemens fails to raise the money and therefore the whole deal unravels or, more likely, one way or another a deal is struck at a greater financial price.
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