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Diageo statement
02/09/2009
he campaign to stave off 900 redundancies at Diageo will enter a new phase tomorrow with the presentation of further details on an alternative proposition to the firm.
Finance Secretary John Swinney told Parliament today that the closure of the Kilmarnock bottling plant would cost the local economy over £15 million a year and that every job lost would cost the public sector at least £10,000.
Mr Swinney will tomorrow meet Diageo to provide more detail of the alternative proposal agreed by the taskforce set up to reverse the company's decision.
Mr Swinney said:
"Our intention has always been to produce a solution which suits Diageo's business needs and is in Scotland's best interest. Our work to reverse Diageo's plans is about safeguarding economically fragile communities of Kilmarnock and Port Dundas. The 900 jobs in the West of Scotland are existing jobs which matter to the individuals, their families, and also to the wider community.
"An independent assessment of the impact of Diageo's proposals has been conducted by EKOS for Scottish Enterprise and East Ayrshire Council. The closure of the Kilmarnock plant is estimated to take £15.5 million annually out of the local economy, based on loss of income from employees and losses from local suppliers, investment expenditure and from eliminating support to local charities. EKOS estimate that the cost to the public sector for every job loss is initially £10,000 - £20,000 per annum. These are very telling figures and demonstrate the scale of Diageo's contribution to these communities and the devastating effects their actions would have on them.
"Diageo has a responsibility to the communities who have contributed so much to the company and their profits over generations; communities who have fully supported the success of the world renowned Johnnie Walker brand.
"Our alternative proposals are detailed, deliverable and in our collective interest and we are about to start negotiations with Diageo. I welcome the united cross-party support for this campaign and the recognition that Diaego's proposals are not desirable and not in company's or this country's best interests.
"I look forward to meeting Diageo tomorrow and working with them to achieve a solution which is in the best interests of the workforce, the company and Scotland as a whole."
Mr Swinney and Jack Perry, Chief Executive of Scottish Enterprise will meet tomorrow with Bryan Donaghey, Managing Director for Diageo Scotland and David Gosnell, Diageo plc's Managing director, Global Supply and Global Procurement.
Mr Swinney will provide further details to Diageo of the taskforce's alternative proposal, 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.