The Scottish Government will do “everything we can” to support jobs at bus manufacturer Alexander Dennis, the First Minister has said.
The company announced on Wednesday it is proposing to consolidate its UK operations at a single site in Scarborough, North Yorkshire.
The decision puts 400 jobs at risk at its facility in Falkirk in another blow to the Forth Valley, which has already seen more than 400 jobs go at the Grangemouth refinery this year.
Speaking at First Minister’s Questions on Thursday, John Swinney said he is “deeply concerned”.
He told the chamber: “This issue has been occupying a great deal of the focus and the attention of the Deputy First Minister and I and the UK Government ministers since we became aware of the situation over the last few weeks, and then ultimately to the decision that was announced yesterday.”
He said his Government has “supported” the manufacturer.
But Scottish Labour leader Anas Sarwar accused Holyrood ministers of overlooking Scottish industry in favour of ordering buses from China, while pointing to the order from Alexander Dennis of around 160 vehicles by the publicly-owned network in Greater Manchester.
In Scotland, public service buses are procured by private operators, who then run them on routes across the country.
Mr Swinney said state aid regulations – in the form of the UK-wide Subsidy Control Act – prevent the Government from directly procuring from a single supplier like Alexander Dennis.
He quoted a joint letter from the UK and Scottish governments, which pledged to “work closely with Alexander Dennis at this challenging time”.
He added: “That’s us indicating that we’re keen to do everything we can to find a way through the Subsidy Control Act provisions, so the Government can continue to operate within the law, which we must do, but also, we can support manufacturing in Scotland, which is my priority.”
Speaking to journalists after First Minister’s Questions, Mr Swinney said the possibility of a furlough scheme for staff impacted by the announcement – as suggested by Scottish Secretary Ian Murray on Wednesday – is on the table.
In the chamber, Mr Sarwar said: “If John Swinney can’t figure out a way to order buses in Scotland, I suggest he picks up the phone to (Greater Manchester Mayor) Andy Burnham and see how he managed to do it.
“Almost five times as many bus orders from Manchester.”
Mr Sarwar’s claim stems from the second phase of the Scottish Government’s green bus initiative ScotZEB, which ordered 44 buses from Alexander Dennis.
However, according to a press release from the time, 137 buses were ordered from the firm in the first phase, amounting to a total of 181.
In a statement, Mr Burnham – who has visited the Falkirk site – said: “Our iconic Bee Network buses are a bit of Scotland right here in Greater Manchester.
“We have over 160 Alexander Dennis buses criss-crossing our city-region every day – connecting our communities to opportunity.
“If Greater Manchester can invest in world-class Scottish bus manufacturing, then why can’t the SNP Scottish Government?”
