Diageo-style rescue demand as US firm axes 500 Scots jobs

Published on Friday 4 September 2009 22:06

MSPs last night called on the Scottish Government to mount a "Diageo-style" intervention after a US multinational announced the loss of 500 jobs in West Lothian.

In a shock announcement, contact lens maker Bausch & Lomb unveiled plans to close its factory in Livingston and transfer production to Ireland and the United States.

The job losses have been called a "massive blow" to the region, coming amid contraction in financial services.

Opposition MSPs have now demanded the Scottish Government intervene with a similar package of incentives used to try to persuade Diageo to lift the axe hanging over 700 workers in Kilmarnock.

John Park, Labour's economy and skills spokesman, said: "I expect a Diageo-style intervention from the Scottish Government.

"One option could be a task force, similar to that working on the Diageo rescue plan, made up of unions, councils, local politicians, Scottish Enterprise and the Scottish Government, to see if we can keep these jobs."

Finance secretary John Swinney has made it clear he is prepared to use taxpayers' money to try to persuade Diageo – which recently announced a 2 billion profit – to change its mind.

But the CBI has questioned the tactics and others have asked whether whisky jobs are seen by the SNP administration as more important than other types of work.

Workers were yesterday told by bosses at Bausch & Lomb that the plant in Livingston, would shut in 18 months to save millions of pounds in running costs. The company is to enter a 90-day consultation and has begun talks with union Unite.

Local SNP MSP Angela Constance said: "As closure is not imminent, I want to ensure that all options other than closure have been fully explored and to establish what opportunities exist to mitigate this colossal job loss."

Lothians Labour MSP George Foulkes said: "It's vital that the Scottish Government puts the same effort into saving the Bausch & Lomb factory as it did into trying to save the Johnnie Walker plant."

But Gavin Brown, the Conservative spokesman on enterprise, cautioned against using similar tactics. "They ought to be doing everything they can. But I don't think they should be trying to arrange protest marches. It can be counterproductive," he said.

Labour MP for Livingston Jim Devine was pragmatic about the proposed move, pointing out that Bausch and Lomb would pay business rates of 12 per cent in Ireland, compared with 28 per cent in Scotland.

He said: "I have been in discussions with the company, and there is a suggestion the savings to the company could be in the region of 100 million.

Gerald Ostrov, chairman and chief executive of Bausch & Lomb, was at the plant yesterday to speak to the workforce.

He told them that the decision was regrettable but necessary in order to retain the company's competitiveness.