PRESS ASSOCIATION -- The Government will investigate the way European law dictates how it hands out contracts after British-based Bombardier lost out to German firm Siemens in its bid to build 1,200 train carriages, the Prime Minister has said.
Union leaders say the decision to award the lucrative £1.4 billion contract to build new carriages for the Thameslink route from Brighton to Bedford to Siemens has cost 1,400 jobs at Derby-based Bombardier.
Ministers have faced criticism that the deal flouts their promise of British jobs for British workers but insist their hands are tied because of the tendering process set up by the last government and dictated by European Union (EU) law.
Prime Minister David Cameron said the Government could do nothing about the decision to award the contract to Siemens in this case but added ministers would be investigating a possible change to the rules.
He said: "Bombardier is a great company, it has a great future in our country and we want to see it succeed. But I have to say that in this case the procurement process was designed and initiated by the previous government.
"We were bound by the criteria they set and, therefore, we will have to continue with the decision that has been made according to that criteria. But we are now looking at all the EU rules and procurement rules to see whether we can change and make better for the future issues like this."
His comments came after Geoffrey Robinson, Labour MP for Coventry North West, said 20,000 jobs were "at stake" in the UK as a result of the decision.