The Diageo Business

As some workers looked on from the public gallery today, John Swinney updated the Scottish Parliament on the campaign to try to save the jobs of 700 Diageo workers. A further 200 workers may lose their jobs at the Glasgow distillery. Drinks giant Diageo announced at the start of July that it wants to shut the bottling plant in Kilmarnock but create 400 jobs at the packaging plant in Leven, where there would be an £86m expansion programme.

Mr Swinney also estimated that the cost to the public sector for every job lost may be as much as £20,000 a year.

"Nine hundred job losses in the west of Scotland, particularly in the current economic climate, represent a body blow, not only to the individuals likely to be affected, but to the wider community and local economies."

He said the fact that Diageo had not approached either the Scottish Government or Scottish Enterprise before it made its announcement is a "matter of real regret."

Alternative proposals were agreed last week by a task force which has brought together trade unions, local authorities, Scottish Enterprise and politicians. If adopted, the proposals may see production continue in the Glasgow distillery, together with a new plant created in Kilmarnock.

Where does this leave Fife? Central Fife MSP Tricia Marwick has warned that she will not accept anything that threatens the long-term future of Diageo's operations in her constituency as the row continues.

Mrs Marwick said "I will not accept any proposals which could affect the long-term future of Diageo's bottling plant in Leven or the distillery at Cameronbridge. My first duty is to the people who elected me to put their interests first and that is what I intend to do."

She added, "In my view a new bottling plant in Kilmarnock threatens the long-term future of Leven."

I'm sure we all understand the dilemma here but how much more interference will Diageo take before they throw up their hands and say, "Enough"?

One solution already muted is that Diageo could turn Kilmarnock into a Johnnie Walker Heritage Centre which could employ many of those whose jobs would go. People come from all over the world to visit whisky distilleries and with Johnnie Walker being a top seller there is no doubt it would quickly attract visitors.

As for Tricia Marwick, I applaud her stance. She ignored calls at the weekend to boycott the Diageo sponsored Johnnie Walker golf tournament at Gleneagles and attended to give her support.

Businesses will be watching this matter carefully. Our politicians can't afford to mishandle it and be more of a hinderance than a help.

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