A REVIEW of Hitachi’s £7.5bn plans to bring train building back to the region has found a “significant cost saving”, in a boost to the project.

Rail Minister Theresa Villiers immediately said the work strengthens the case for building a factory in Newton Aycliffe, County Durham, employing up to 800 people and creating 8,000 jobs in the supply chain.

The boost was revealed as MPs debated the Intercity Express Programme (IEP), ahead of a decision next month on whether it will avoid spending cuts.

However, Ms Villiers also acknowledged a rival, cheaper proposal to modernise the existing InterCity 125s, instead of replacing them with new passenger trains – emphasising that the decision remains on a knife-edge.

That plan was quickly condemned as a “lick of paint” by Sedgefield MP Phil Wilson, who led the debate and insisted replacement of the Seventies- built trains was long overdue.

The Labour MP said: “This is the North-East standing up for itself and saying ‘We can do the job’. Hitachi has shown its faith in the region and I hope the Government does.

“I agree we must cut the deficit, but one of the ways of doing that is by growing the private sector. Starving the North-East is not the answer.”

The debate came a day after Mr Wilson released a study suggesting the project would deliver a £660m boost to the region over 20 years – £48 for every £1 invested.

In reply, Ms Villiers insisted her department was “giving very serious consideration” to that analysis and agreed IEP fitted perfectly with Government aims to shift the North- East away from the public sector.

IEP trains would mostly run on the Great Western route, between London and Swansea. The route was due to be electrified, but that is another project facing the axe.

Ms Villiers was also unable to confirm whether a decision on IEP would come on October 20 – the day of the spending review announcement – or a few days later.

However, she told MPs that a fresh re-evaluation by Agility Trains, the preferred bidder consortium led by Japan’s Hitachi, was due shortly.

She said: “I am advised that Agility expect to offer a significant cost saving while still meeting the original specification.”

Asked outside the chamber by The Northern Echo if that saving was significant, Ms Villiers said: “It strengthens their case.”

People are being invited to show their support for the project by turning up for a mass photocall at the proposed factory site, Amazon Park, Newton Aycliffe, at 11.45am on Saturday.

Next week, a delegation from County Durham will meet Transport Secretary Philip Hammond to impress on him the importance of the project.