First Minister warns of further economic pain as Scotland emerges from recession

Published on Thursday 14 January 2010 14:48

FIRST MINISTER Alex Salmond today warned that Scotland will face many economic pit-falls as the country battles its way out of recession.

• Alex Salmond

The First Minister, speaking at today's First Minister's Questions, said the Scottish Government would step in where it could to lessen the blow of any future job losses.

Mr Salmond added: "We are in a recovery phase from a deep recession but the recovery is fragile. There are still going to be disappointments and reversals in terms of many companies across Scotland."

"The Government, through its economic recovery plan, is doing "everything in its powers" to ease the situation, he added.

Liberal Democrat leader Tavish Scott urged Mr Salmond to get behind the textiles industry amid fears over the future of the JJ & HB 1788 Cashmere Mills in Innerleithen in the Borders.

"The Caerlee mill owners have called in the administrators as 170 jobs are at stake in a town of 2,500 people," Mr Scott said today.

Lib Dem finance spokesman Jeremy Purvis, the MSP for the area, has been involved in talks.

Mr Scott added: "Government must create space, time and opportunity for new investors and buyers to be secured.

"Textiles have been hit hard in this recession. Companies have closed.

"The mills we still have are rising to the challenge of building new markets and creating new high-end products, that's why this cashmere company has a future."

He called on Mr Salmond to get behind the industry to help safeguard the mill.

Highlands and Islands SNP MSP Rob Gibson said the ANM Group has said it is to close the Scotch Premier Meat abattoir in Dornoch, with 29 workers losing their jobs, and its Highland Country foods abattoir in Forres, with 18 workers being axed.

Mr Gibson said these were "big blows in two small towns" and called on Mr Salmond to do whatever is needed to "keep them in play".

Rural Affairs Secretary Richard Lochhead has already held talks with the ANM Group, Mr Salmond said, and added that the Government will take up "any and all" suggestions to help.

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