The other thing to remember about IEP is that one of the prime political motivations for it is to help Britain get out of recession. This isn't just a "procure some trains" exercise, it's an attempt to seriously invest in British industry. We're funding the construction of new train building facilities in this country, designed to create jobs for British people.
Not really. It precisely is about "procuring some trains".
The procurement was kicked off by Labour under the then public procurement rules and is about HST/225 replacement, nothing more.
There were 3 bidders, all offered some (but not that much) UK content, but in any case you can't discriminate on that basis or the EU Competition people will complain.
Alstom (who would have offered Preston-built traction kit in a largely French-built train) backed out.
Bombardier/Siemens offered a joint bid which would not have had much UK content though it might have been assembled in Derby.
Hitachi offered a Japanese train, and eventually offered to assemble it in the UK. UK content very low, like the 395s.
If the government had failed to sign with Hitachi the order would have gone to Bombardier/Siemens, with mostly German/Swedish technology.
In my view the jobs that really matter are the design and development ones, and Hitachi are offering few of those.
They are funding the whole thing, so you would expect them to retain the IPR in Japan.
If Hitachi locate some high added-value work in the UK (like the Japanese car manufacturers have) it would be great, but they are not obliged to.
Some of the hands-on depot jobs will also be very valuable if Hitachi expands its UK production.
All Newton Aycliffe does is give the industry a choice of final train assembly in the UK and defuses the "last train builder in the UK" issue.
This is same position it had up to the point that Alstom stopped building trains in Birmingham after the first batch of Pendolinos were built.
The European view is that they are appalled at the UK placing orders outside the EU, with the prospect of Hitachi making inroads in other EU states on the back of the IEP order.