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Diageo cuts alternatives examined Efforts to stop Diageo closures
(about 9 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. Politicians and unions have been meeting to discuss how to persuade whisky giant Diageo not to shut two plants earmarked for closure.
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 chaired a private meeting of the taskforce at St Andrews House in Edinburgh.
He said work on proposed alternatives to closure would now be refined and put forward as soon as possible.
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 efforts 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 has been studying a report by BDO Stoy Hayward, which evaluated Diageo's original plans and has been looking at information on possible alternatives.
Range of optionsRange 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.
Mr Swinney said the report included a range of options, including Diageo building a smaller bottling plant in Kilmarnock. Mr Swinney said it included a range of options, including Diageo building a smaller bottling plant in Kilmarnock.
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: "The task now is to take the evidence we have received from the consultants to build the alternative proposition, which Scottish Enterprise are now taking forward.
But he admitted it was unlikely all the proposed Diageo job losses could be prevented. "That proposition will be prepared very speedily, based on the evidence and information we have, and taken forward for discussion with 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. "The focus of that alternative will be to protect employment at the plants at Port Dundas and Kilmarnock."
"I think most people would accept that is the case." Diageo has said it would 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.