Our job is to adapt to global changes

Published on Friday 21 December 2001 00:00

THE announcement by NEC earlier this week that it is to "mothball" its Livingston facility with the loss of a further 1200 jobs hopefully ends what has been an annus horribilis for job losses in West Lothian, coming so soon on the back of the decision to close the Motorola cell phone division in Bathgate with the loss of more than 3000 jobs.

The NEC and Motorola job losses form the major part of the 5300 redundancies that have been announced in West Lothian businesses this year.

As the economic spokesperson for West Lothian Council, my thoughts and that of my colleagues are with the individuals and families which have suffered as a result of these redundancies, not just in NEC and Motorola but in the local companies which have also been badly affected this year.

The pain and frustration that I have witnessed in the eyes of many employees who have been told that they are no longer required due to global economic trends is something which will remain with me for some time. It also drives to me conclude that greater action is now required.

The NEC move has wider significance locally as its decision to locate here in July 1983 signalled the start of a real economic renaissance for West Lothian.

It also established Livingston as the centre of the electronics industry in Scotland and was the catalyst for much of the inward investment that followed over the next 15 years.

The commitment of the company was significant, with more than 1 billion investment over the last 18 years including more than 20 million in 2000 alone. The Motorola and NEC announcements have shown how ruthless the global economic conditions can be and how we are affected by decisions taken in other parts of the world.

But we are not alone here, as this is the way the new global economy operates. Like it or not, it is the only game in town, and the challenge for us is to diversify the base of our economy further to protect us from being over- dependant on specific sectors.

I have heard many people say we should not have become so dependant on inward investment and invested more in local companies. Easy to say in hindsight, but remember in the early 1980s our unemployment rate in West Lothian was 22 per cent and now it sits at 4.3 per cent.

THE 20,000 jobs created by overseas-owned companies played a major role in regenerating the local economy and reducing the unacceptably high levels of unemployment.

Those who say that the multinationals protect their "home" plants at a time of crisis just need to look at the Motorola situation. Last year, before the Bathgate closure, Motorola effectively shut down its entire cellphone manufacturing capacity in the United States with the loss of more than 10,000 jobs.

The downturn in the global electronics sector is hitting every developed country, but particularly the US, the home of many of the major electronics companies. So it is not just West Lothian that is suffering. However, in Scottish terms we are certainly suffering more than most, and are without doubt experiencing the most rapid and profound change of any local economy in the UK.

The challenge for us is to maximise the benefits of global investment but also develop the capacity of our home-grown businesses to compete in new markets. We also need to significantly increase the number of high growth business start-ups.

West Lothian Council, along with its other economic partners, clearly identified the need to diversify the economy with the publication of the joint ten-year economic strategy for West Lothian in 1998.

This strategy sought to reposition West Lothian as a key player in the knowledge-age economy, where added value is achieved through knowledge and we become less dependant on manufacturing/assembly operations who are likely to look for lower cost locations in eastern Europe and beyond.

We accepted that this was a long-term view, which would take five to ten years to achieve. No-one could have foreseen the change in the global economy which has essentially condensed that process into 18 months.

We have seen some considerable successes in achieving the objectives of this strategy with formation of the Alba Campus as a centre of expertise in electronic design and software.

This 200m development will ultimately provide 5000 jobs for the area. The opening of the new West Lothian College and MacArthur Glen designer outlet centre have been significant developments for the area. The establishment of the J4M8 Distribution Park with the Scottish Courage and Aldi regional headquarters and distribution centre will help to further diversify the local economy.

But with the closure of Motorola earlier in the year it was clear to the council and its partners that the changes in global economic conditions were likely to impact further and we needed to do more. Last month we finalised a Strategic Action Plan for 2002-2005.

This 25m package aims to create nearly 7000 new jobs and the plan has been submitted to the Scottish Executive for its consideration.

KEY elements of the plan include realistic proposals to improve the transportation infrastructure and practical assistance to improve the competitiveness of small and medium-size firms. Positioning West Lothian as the key location for knowledge-based companies in Scotland is part of our longer-term aspiration. We want to see West Lothian become the "Cambridge of the North", building on the success of the Alba Campus.

A major part of the package includes initiatives to improve the skills of the workforce to equip people to take advantage of growth in jobs at Edinburgh Park and other areas.

The recent spate of redundancies confirms, as all politicians are constantly aware, there is no such thing as a "job for life", the challenge is to remain "employable for life", which is about constantly updating your skills.

Following the NEC decision, the council and its partners are pressing for an urgent meeting with the Enterprise Minister to agree a plan of action for the short and medium-term recovery of the area. This will be essential not just for West Lothian but for Scotland.

Willie Dunn is deputy leader of West Lothian Council