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Diageo cuts alternatives examined Diageo cuts alternatives examined
(about 12 hours later)
A taskforce set up to save two Diageo plants earmarked for closure is to examine an independent report offering alternatives to the cuts.A taskforce set up to save two Diageo plants earmarked for closure is to examine an independent report offering alternatives to the cuts.
Finance Secretary John Swinney, who will chair a private meeting of the group at St Andrews House in Edinburgh, said it was a "crucial step".Finance Secretary John Swinney, who will chair a private meeting of the group at St Andrews House in Edinburgh, said it was a "crucial step".
Diageo proposes to close its Johnnie Walker bottling plant in Kilmarnock and the Port Dundas distillery.Diageo proposes to close its Johnnie Walker bottling plant in Kilmarnock and the Port Dundas distillery.
It says the 900 job losses would be off-set by 400 new posts in Fife.It says the 900 job losses would be off-set by 400 new posts in Fife.
Scottish Enterprise, the government's enterprise agency, is co-ordinating an effort to draw up a plan for an alternative to closure.Scottish Enterprise, the government's enterprise agency, is co-ordinating an effort to draw up a plan for an alternative to closure.
The taskforce will study a report by BDO Stoy Hayward, which evaluated Diageo's original plans and will provide information on possible alternatives.The taskforce will study a report by BDO Stoy Hayward, which evaluated Diageo's original plans and will provide information on possible alternatives.
Range of options
The report will not be made available publicly as it contains commercially sensitive information.The report will not be made available publicly as it contains commercially sensitive information.
Momentum 'growing' Mr Swinney said the report included a range of options, including Diageo building a smaller bottling plant in Kilmarnock.
Mr Swinney said the campaign to save the plants was "gathering momentum". He told BBC Radio Scotland: "There are different suggestions made about the possibility of continuing packaging and bottling activity at Kilmarnock, on the existing site and at different sites."
He said: "It will provide a chance for all partners to consider the report into Diageo's proposals produced on the taskforce's behalf. But he admitted it was unlikely all the proposed Diageo job losses could be prevented.
"Crucially, this report will be the substantive basis on which we can develop our alternative proposal to put the strongest possible case to Diageo." "Throughout this process I have made it quite clear that I thought it was going to be difficult to maintain employment numbers at the level they currently are at," he said.
"I think most people would accept that is the case."
Diageo has said it will co-operate with the efforts of the taskforce and listen to its conclusions.Diageo has said it will co-operate with the efforts of the taskforce and listen to its conclusions.
About 700 jobs would be lost with the closure of the East Ayrshire bottling plant and as many as 200 with the closure of the Glasgow facility.About 700 jobs would be lost with the closure of the East Ayrshire bottling plant and as many as 200 with the closure of the Glasgow facility.
The company has said the redundancies would be offset by the jobs it plans to create at its packaging plant in Leven, Fife.The company has said the redundancies would be offset by the jobs it plans to create at its packaging plant in Leven, Fife.
It estimates the closure plans should save £20m each year, from an investment of £100m.It estimates the closure plans should save £20m each year, from an investment of £100m.
The taskforce is made up of representatives from East Ayrshire Council, Glasgow City Council, Scottish Enterprise, trades unions and local politicians.The taskforce is made up of representatives from East Ayrshire Council, Glasgow City Council, Scottish Enterprise, trades unions and local politicians.