Childcare agency closes after £2m request is refused

ONE of Scotland's largest childcare providers is going into liquidation in a move which could cost the economy around £10 million, it was announced last night.

Officials at One Plus, which employs more than 600 staff, said they had decided to pull the plug after ministers turned down a 2 million rescue package.

The organisation which helps more than 1,000 families across Glasgow and the west of Scotland, costs around 11 million a year to run, with more than half the money coming from public funds.

Glasgow City Council, with the help of the Executive, provided the organisation with 700,000 to tide it over, but a spokeswoman said it had not been enough.

"The board, senior managers and external consultants have tried their utmost to keep the business running," she said.

"Unfortunately these efforts have proved unsuccessful. The Executive has turned down a 2 million rescue package.

"The One Plus board has been advised they have no option but to place the company into liquidation."

A spokesman for the Executive said the company's refinancing plan "did not stand up". He also said ministers will want to know how One Plus ran into such serious financial difficulties.

One Plus provided childcare for around 400 young people in Glasgow, but a spokesman for the city council said alternative arrangements had already been made for most of them.

"We are delighted other organisations, both private and voluntary, have offered assistance so quickly and the vast majority of young people affected will face little or no service disruption," he said.

Dan Sharpe, organiser for the TGWU, warned there was "a great amount of anger" among the One Plus workforce.