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Alternative plan for Diageo jobs Diageo jobs rescue plans agreed
(1 day later)
A business plan to save the Diageo plant in Kilmarnock from closure is to be handed to the Scottish Government by East Ayrshire Council. An alternative business plan to save the Diageo plant in Kilmarnock from closure has been agreed, the Scottish Government has said.
The council's case will be presented to Finance Secretary John Swinney later. Finance Secretary John Swinney said the plan, which will be put to the drinks company, would continue production in the town by setting up a new plant.
It is the latest stage of a multi-agency cross-party campaign to save the town's bottling plant and the Port Dundas distillery in Glasgow. The broad proposal was agreed by a multi-agency taskforce set up to reverse Diageo's proposed cuts.
It would also see production continue at Glasgow's Port Dundas distillery.
Diageo announced last month that it planned to close both facilities with the loss of up to 900 jobs.Diageo announced last month that it planned to close both facilities with the loss of up to 900 jobs.
The majority of the job losses - 700 - would come with the closure of the Johnny Walker bottling plant in Kilmarnock. We are ready to put the plan to Diageo and will do that swiftly John SwinneyScottish finance secretary
The majority of the job losses - 700 - would come with the closure of the Johnnie Walker bottling plant in Kilmarnock.
Diageo said these would be off-set by the creation of up to 400 new posts in Fife.Diageo said these would be off-set by the creation of up to 400 new posts in Fife.
East Ayrshire Council's plan is expected to address the findings of an independent report which is believed to have backed some of Diageo's business case. Following a meeting of the taskforce, comprising unions, local politicians, councils and economic development agency Scottish Enterprise, Mr Swinney said: "We have formulated a proposal to put to Diageo which will focus on continuing production activity at Port Dundas in Glasgow and the development of a new bottling plant in Kilmarnock on a greenfield site.
Every business must work hard to remain competitive, but no business does that by forgetting its roots Willie CoffeyKilmarnock MSP "We are ready to put the plan to Diageo and will do that swiftly. We look forward to discussions with the company on the details of our proposals. They have pledged to engage with us on our proposals and that is exactly hat we expect them to do."
The BDO Stoy Hayward report, commissioned by Scottish Enterprise at a cost of £75,000, has not been made public because of commercially sensitive information contained within it. The plan came in a wake of an independent report which is believed to have backed some of Diageo's business case.
However, it is understood to have concluded that the rationale behind the drinks conglomerate's plans appeared "sensible". The BDO Stoy Hayward report, commissioned by Scottish Enterprise at a cost of £75,000, has not been made public, however it is understood to have concluded the rationale behind the drinks conglomerate's plans appeared "sensible".
East Ayrshire Council took out advertisements in The Herald and The Scotsman newspapers on Saturday which attacked the findings of the study.East Ayrshire Council took out advertisements in The Herald and The Scotsman newspapers on Saturday which attacked the findings of the study.
The adverts stated: "Disappointingly there are a number of discrepancies and serious omissions in the report and on more than one occasion the consultants were unable to answer our questions.The adverts stated: "Disappointingly there are a number of discrepancies and serious omissions in the report and on more than one occasion the consultants were unable to answer our questions.
"When pressed, the consultants admitted that across a number of key issues, they were simply expressing their own views, including their statement that location will not affect whisky sales.""When pressed, the consultants admitted that across a number of key issues, they were simply expressing their own views, including their statement that location will not affect whisky sales."
Further losses
Meanwhile, the SNP MSP for Kilmarnock, Willie Coffey, has called for Diageo to wait for the Scottish Government's alternative business plan before making any final decision.
Mr Coffey said he was responding to remarks from Diageo managing director Brian Donaghey that more bottling jobs could move overseas if the Kilmarnock plant was saved.
The MSP said: "It is deeply disturbing that before any business proposal has been put to Diageo by the government, and in a week when Diageo is expected to announce nearly £3bn of profits, it is suggesting further job losses if Kilmarnock is saved.
"Every business must work hard to remain competitive, but no business does that by forgetting its roots.
"Mr Donaghey's comments seem extremely cynical and appear intended to divide the workforce.
"It's not the first time I have had to ask Diageo to stick to the assurances given to the first minister by their chief officer Paul Walsh and I ask Mr Donaghey to respect that."