Mr. Chakrabortty doesn\’t manage it.
To him it\’s all about the way in which the Derby train works are just a subsidiary of some Johnny Foreigner company.
The contract was for a build and lease set of trains.
Siemens has a higher credit rating than Bombardier. Thus the lease part of the contract is cheaper for Siemens than it is for Bombardier.
One figure I\’ve seen is £750 million cheaper over the lifetime of the contract.
If the contract had been written (under Labour, please note) as a build, deliver and get paid one then the prices would have been much closer.
So, it\’s all a result of G. Brown liking to buy things on the never never.
Place the blame where it belongs, if you wouldn\’t mind.