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Pressure mounts on Diageo over whisky plant closure

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Published Date: 04 July 2009
DRINKS giant Diageo has come under mounting criticism over its shock move to close its iconic Johnnie Walker whisky plant in Ayrshire.
As politicians from all parties united to try to fight the closure of the Johnnie Walker packaging complex in Kilmarnock, the company came under a barrage of criticism from East Ayrshire Council.

The local authority has paid for large adverts in
newspapers, including The Scotsman, to launch an attack on the company, accusing it of ripping the "very heart and soul" out of Kilmarnock.

The advert, which claims the council was kept in the dark about Diageo's plans until they were made public, states: "There appears to be no real appreciation of the devastation this decision would cause to Kilmarnock and the wider community.

"Generations of families have shown tremendous commitment and loyalty to the company over the past 200 years and now they are to witness the very heart and soul being ripped out of Kilmarnock."

The battle to halt the closure of the iconic plant has intensified as politicians joined union leaders in a bid to save hundreds of jobs.

Senior politicians from Labour and the SNP yesterday met with Diageo officials in a bid to maintain Kilmarnock's historic link with the world's best- selling whisky. But there was a warning from the Conservatives that political posturing on the issue may mean efforts to save the plant will fail leading to the loss of 700 jobs.

SNP finance secretary John Swinney and local Labour MP Des Browne, a former Scottish secretary, visited the under-threat plant together yesterday in an act of unity after coming to verbal blows on the issue the day before.

Mr Browne had accused the Scottish Government of sleeping on the job and, along with Scottish Enterprise, failing to put the case for the Kilmarnock outfit when Diageo first announced its review.

Conservative shadow Scottish secretary David Mundell said: "Once again, they've put their own narrow political agendas ahead of the common good."

The visit by Mr Swinney and Mr Browne coincided with the launch of a petition set up by local SNP MSP Willie Coffey and supported by Kilmarnock Football Club.

Club chairman Michael Johnston said: "Diageo's decision to close the Johnnie Walker plant in Kilmarnock must be reversed. We will support the employees whose jobs are under threat and our local politicians in their campaign to keep Johnnie Walker in Kilmarnock, where it was founded in 1820."

Mr Coffey added: "It is vital that we all band together to force Diageo to reverse their decision."

First Minister Alex Salmond has also urged Diageo to reconsider its plans, which would mean the loss of at total of 900 jobs through the Johnnie Walker closure and the closure of the Port Dundas grain distillery in Glasgow.

Glasgow MSP Patricia Ferguson complained that the focus on the Kilmarnock plant was at the expense of Glasgow. "What is happening in Ayrshire is disastrous, but we cannot allow the fate of Diageo's staff in Glasgow to be forgotten," she said.





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  • Last Updated: 03 July 2009 11:44 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Diageo , Scotsman Whisky
 
1

BROONISDOOMED,

PITS OF HELL 04/07/2009 01:17:20
i see the tory making a useful contrabution,its about as welcome and useful as a chocolate fireguard
i would rather see all the political parties fight to retain jobs instead of bickering
tory must know where they are going to relocate the jobs(prob england)
maggy thatcher was really disapointed that it was pointed out,that it was impossible to run a pipeline,from the oil fields straight to england
that is tories through and through,they smile whilst sticking the knife in your back
com lord foulkes,some shouting from you would at least add to the pressure -sound of crickets chirping and tumble weed rolling bye
2

Iainbroch,

04/07/2009 01:29:47
It is clear that Des Browne just does not get it, similarly Patricia Ferguson does not get it either, nor does David Mundell. It is also clear that the present management at Diageo is in need of the proverbial boot!

If Diageo has no interest in its whisky arm then perhaps it should be taken from them and given to someone who does?

But then it is the same old story if you dont control your own affairs then someone else will and not to your benefit!
3

Edward,

04/07/2009 01:40:33
Its rich for Des Browne to start blaming the Scottish Government. When this first came out and Browne was interviewed together with somene frm the SNP, there was noit a peep. 24 hours later and fully breifed by Labour spin doctors its clear he has been told to work in a blame factor against the SNP!
Des Browne himself is useless, if he actually spent a bit more time in Kilmarnock and had HIS finger on the pulse, he would knwo what is going on!
4

Edward,

04/07/2009 01:44:58
Fact of the matter is Diageo is not interested in tradition or the whiskies it produces. The bottom line is profit and the maximisation of it!
The Scottish Whisky Association has turned a blind eye to what has and is going on, since this conglomarate moved in. By the way what has Lord Haw Haw got to say about all this, after all he is closely involved with the Scottish Whisky Association , or is it as is most likely the case that he is someone who is in it for the free lunches nd drinks!
5

Charles Linskaill,

Edinburgh 04/07/2009 01:51:52

The "Pressure" may Grow, but one thing for certain, our whisky plant's will Go!
This is on another par to our beloved, 'once-was-Banks'
Scotland and Scottish Matters, Never mind Brown, more the likes, Why has our Mr Salmond, not made comment?

6

Charles Linskaill,

Edinburgh 04/07/2009 01:54:45

One Question Speaks Scottish Mountain's, does it Not!

7

redcliffe62,

04/07/2009 02:55:41
it does seem strange that the local council and local mp had no idea. i do not blame them though, diageo seemed very adept at making sure it was kept a secret so that any attempts to keep it open could and would be avoided.
labour press releases blaming the snp are stupid, as would any attack on local mps or east ayrshire council by other parties; as they can all only act on what they were told, and led to believe what was happening.
8

redcliffe62,

04/07/2009 02:57:05
a comment from fooks who should have been closer to the action than most would be enlightening. as the scoptsman's resident mouthpiece on many peripheral matters, this is an area where he can genuinely claim expertise and i might actually be interested in hearing what he has to say.
9

,

04/07/2009 03:10:45
Comment Removed By Administrator
Reason:
10

Iain Mac,

04/07/2009 08:42:57
Its interesting to see the Tories revert to their evil Thatcherist ideologies - how can hundreds of job losses be for the 'common good' as yon idiot Mundell says?

Maybe we should look to communities buying their own distilleries in the same way as crofting communities buy their own land?

No word from the sinister 'keepers of the quaich' here?
11

qohldr,

04/07/2009 08:56:49
If the SNP and Labour had not been given it the look at what we are doing or the look at what they are not doing for political score points and joint forces when this first came out then maybe Mundell would not have pointed it out.
12

Darien,

Panama 04/07/2009 10:03:53
#6 Charles: "Never mind Brown, more the likes, Why has our Mr Salmond, not made comment?"

You should study things more. FM Salmond quickly let Diageo know in no uncertain terms that what they are suggesting is unacceptable. See: http://news.bbc.co.uk/1/hi/scotland/glasgow_and_west/8130165.stm

Wolf @ #10 comments also confirm FM Salmond is quick on the draw. Broon is nowhere on this, and Mandelson does not care or even know where Scotland is, and refused to engage with Diageo saying it was all due to the global economy and nothing he could do (that's Westminster for you).

Browne is just posturing to save his own skin at the next election. The heavy hitters in this politically are Salmond and Swinney - they have the mandate in Scotland and only they have the sincere interest to actually do something, albeit not quite having access to all the resources or full economic powers.

Mundell is a pointless oaf and hopefully the egits in the borders who succeeded in voting in the only Tory MP in Scotland last time will have the good sense to get him out next time. He should be the last Tory MP in Scotland.
13

TWC,

exLabour 04/07/2009 10:10:46
I knew Mad Dog would be out in support of Desperate Browne,even Gordon dropped this guy as useless.

Diageo should be boycotted by the scots. They would drop Scotland if they could, so it's time we took control over the Scottish Brand and limited it's use.
14

TWC,

exLabour 04/07/2009 10:25:30
18 It Came From Outer Space

Who cares Just stand up for ourselves, its either that or continue to take what is thrown at us. You know the way Labour voters do keep accepting Cr4p.

Stay subservient to everybody. Public opinion and action still has an effect as you can see by Brown's decline into a mumbling heap.
15

TWC,

exLabour 04/07/2009 10:45:49
20 It Came From Outer Space,

How much Whisky would they sell if the Scottish reference was removed, a long term objective could control Scotland the Brand.

We could at least demand the same laws as France and make it more difficult to lay off the Scottish worker.
16

thinking,

Scotland 04/07/2009 11:13:06
'The local authority has paid for large adverts'
Shouldn't it read, 'the taxpayer has paid for large adverts'?
#11 & 14
where does it say that 'how can hundreds of job losses be for the 'common good' as yon idiot Mundell says?'
Read it again - in the quote in the article he did not say hundreds of job losses were for the common good.
I read yesterday that the plant had a problem 10 years ago. Was it bailed out then with taxpayer's money?
If it is a viable business, why do Diago want to close it?
If it is not viable, why should the taxpayer support this one when there are many British owned businesses that are struggling that don't get help?
17

Navvy,

04/07/2009 11:33:54
I understand that the plant is badly laid out and inefficient has the council offered help to find a new site? I am sure that JW have paid millions in rates to the council over the years. what support did they get from the anti business labour council?

It is the way of the business world, Scotland lost control of the whisky years ago. In the important est asian market whysky has been gaining market sahre from brandy so it is important that it is cost effective. Scotland is lucky in that it hs retained Scotland's link to the spirit which meas that the real mackay must be distilled in Scotland but that does not make product substitution impossible there are a lot of competitor spirtis out there
18

thinking,

Scotland 04/07/2009 11:43:08
Just found this on the internet
'In February 2009 it was reported in the Guardian that the company had restructured itself so as to avoid paying tax in the U.K., despite much of its profits being generated in the U.K.'
19

macca,

out there 04/07/2009 12:09:16
Big business a politics dont mix, its a sad day for the town, but on the otherhand if they can save the jobs of these workers , I wonder if the polies will save the jobs of other poor souls who are in the same position!!!!!!, dear no 27thinking, everyone trys to avoid paying tax, or are you giving all your cash to the tax man.
The restructuring was probably done by a Scot in Head office (lol)
20

Itchy,

04/07/2009 12:36:31
#21 "We could at least demand the same laws as France and make it more difficult to lay off the Scottish worker."

And that would mean people would not take on Scottish workers as it is difficult to sack them when firms take a downturn.

21

Itchy,

04/07/2009 12:37:16
Diageo has form for this kind of incompetence.

Anyone remember the Cardhu fiasco?
22

Neil Waugh,

Old Strathcona 04/07/2009 13:56:09
What hasn't been explained is where the jobs are going. The packaging still needs to take place. Just apparently not in Kilmarnock.
Are they going off shore?
If so can Johnnie Walker still call legally itself "Scotch Whisky"?
That would get their attention real quick if they lost their designation.
Something that Salmond may want to consider.
23

Vatted Frank,

Island view NB Canada 04/07/2009 18:39:34
Sad day for Kilmarnnock.Westminister keeps raising the taxes on Whisky and the industry treating it like a cash cow. The industry looks for ways to cut costs and generate more profits for shareholders as sales drop.The government can not have it both ways.
24

Tartan Bond,

04/07/2009 20:49:18
The people of Kilmarnock should vote SNP when they can, that will ensure the survival of the bottling plant there. In fact all Scots should vote SNP to ensure that international businesses remain in Scotland.
Salmond will cut Corporation tax, the minimum wage, unemployment benefits, child tax relief and all services, to the bone.
Vote SNP now, to ensure that Scotland is changed forever. Maggie Thatcher is proud of Salmond.
25

spook007,

05/07/2009 09:20:58
No.33 Neil Waugh. you should read the reports. The jobs look to be coming to their Leven plant in Fife. Kilmarnock is a landlocked site and has no expansion options. They can't expand the site in any way in Kilmarnock so they have no option but to use another site for expansion. Kilmarnock only just survived by the skin of it's teeth ten years ago when Diageo did a review and closed two of their plants then. Also you can't call it SCOTCH WHISKY unless it is distilled and bottled in SCOTLAND so they can't move their operations out of the country. If Kilmarnock is rescued then I hope the government give the same backing to whichever site that the jub cuts will have to take place from then.
26

connaughtboy,

stonehaven 05/07/2009 10:49:13
22 smee

Change the record smee. You posted that rubbish on the 40p alcohol thread. It was irrelevant there and is irrelevant here.
27

Number 6,

Germany 05/07/2009 12:39:56
The Tories warn against "Political posturing" on the issue. Is that what they mean by doing all you can to stop this closure?

I even believe Browne wants this plant saved, although his ignorant accusations against the SNP on the subject, show where his main priority lies.

As for his leader Brown, who has declared the Government is "standing by ready to help" he still appears to have done nothing on the issue.

Maybe once he has stopped playing with his "New friends" he will turn his mind to the economic crisis in this country.

 

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