Date: 27 August 2009 BROCKLEBANK: DIAGEO TASKFORCE PROPOSALS ARE UNREALISTIC The proposals of the taskforce set up to reverse Diageo’s plans to cut 900 jobs in the west, as part of the restructuring of their Scottish operations, will see only half of these jobs saved at a potential cost of £75million to the taxpayer.
The net effect of the taskforce’s proposals being accepted by Diageo would be that only 50 jobs in Scotland would be saved as it will almost undoubtedly put an end to the current plan for an £86million expansion of the Leven packaging plant which would have seen the creation of 400 jobs.
Commenting, Conservative MSP for Mid Scotland and Fife, Ted Brocklebank, said;
“The proposals put forward by John Swinney and the Diageo taskforce are unrealistic as they will only end up saving a total of 50 jobs in Scotland. With this rescue deal likely to cost £75 million to the taxpayer and result in a loss of 400 jobs earmarked for Leven, it is a solution that does little to satisfy anybody. Jobs saved in Kilmarnock would just be jobs lost in Fife.
“The taskforce has effectively created an artificial fight between Kilmarnock and Leven as their proposals will severely compromise Diageo’s preferred option of consolidating its operations in Fife. The proposed expansion of its Leven packaging plant and the creation of 400 new jobs in the area will potentially no longer go ahead.
“Nobody wants to see jobs lost anywhere in Scotland during these difficult times. However, as we see from today’s results, Diageo has not been immune to the recession and has seen falling sales in both the UK and the US. This performance has only been hidden by a weak pound. Diageo must be allowed to make independent commercial decisions for the long-term sustainability of its operations.”
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