Gray makes pledge to save BlindCraft if Labour elected

Iain Gray signs a charter pledging to do all he can to save BlindCraft

Mr Gray said he would work to ensure a virtually unknown public body procurement act called Article 19, which allows some public contracts to be handed to supported business, is implemented.

The move, which would be driven by Labour's proposed Disability Champion, could guarantee the future of the Craigmillar-based bed maker - if it is able to survive until it is implemented.

The factory will stop taking orders on May 9 and is expected to be given a 90-day winding up notice on Thursday.

Already 18 workers at the firm, which employs workers who are blind or have disabilities, have taken voluntary redundancy, while 34 remain.

Under European Union procurement laws, public bodies can use Article 19 to reserve some contracts for supported business. The result would be that firms like BlindCraft could depend on business from public bodies such as the Scottish Prison Service and the NHS, which regularly require new beds.

The Community Union, which represents the 218-year-old business, said it was likely that the move would be too late to save BlindCraft, but that it would help if a community group took over the running of the factory.

The current Scottish Government said three years ago that public bodies should aim to award at least one contract to supported businesses, however Scottish Labour claims there is no evidence that a single contract using Article 19 has so far been awarded. Mr Gray told the Evening News: "If I am elected First Minister I will ensure that we drive towards our target of an Article 19 contract awarded by every public body."

Fraser McQueen, Edinburgh branch organiser for the Community Union, said: "Article 19 looks good on paper but no-one is implementing it right now.

"The staff are hanging on for redeployment but it's not looking good. Only two employees have had job interviews."

Yesterday Mr Gray was at the Barrett Homes development in Slateford to promote the introduction of the First Foot scheme.

The party says its mortgage indemnity guarantee scheme will reduce the size of deposits on new properties to five or ten per cent, and underwrite the bank's risk in lending to an individual with a lower deposit.