The really good thing about this is that it levels the competitive playing field. Those with access to cheap funds, Hitachi and Siemens, were able to put in cheaper overall bids than Bombardier (Canadian owned,based in the UK) and CAF (based in Spain). In 2011 Bombardier lost out to Siemens on the Thameslink contract because of the cheaper funding.
It never ceases to amaze me that the oh so competitive UK financial sector is unable to support UK industry in the way that Germany and Japan manage to do. Maybe it's because too much ends up in the pockets of investment bankers? |