THE recent announcements that Hitachi has failed in its bid to build the new underground trains and that Royal Naval ships could be built in Japan are severe blows to the UK economy.

Those who make these decisions should be forced to justify why the contracts should not go to UK-based plants.

Many will say it is the cheapest option but as anyone knows who has any dealing with purchasing, cheap options are not generally cost effective.

A big question is how much will not granting the contract to the UK plant cost the UK? This means employment, spending and taxes, all lost because someone thinks the end cost is cheaper and therefore better.

The UK cost will be more than many overseas bids as our cost of living is higher. Reducing our cost of living will reduce these costs, but this is not always possible. However, choosing not to invest in the UK for the UK is never a good decision.

This proves the south doesn’t care about the north. If the factories were in London then they would have got the contracts even if the cost was double anything else.

Keith Howdle, Darlington.