Walking with Johnnie

I know this is an advertisement for booze, but I've rarely seen such an ad constructed so elegantly. Go for a stroll with Robert Carlyle as he narrates the story of Johnnie Walker in this beautifully shot and immaculately rehearsed commercial which is said to have been filmed in one take.

Without the likes of Johnnie Walker and his determination Scotland would be a much poorer place.  Where are our Johnnie Walker's of today?  Our entrepreneurs who believe in manufacturing instead of moving money around?  Is it our education system which is failing to produce such talent or is the talent being stifled by political regulations?  So many questions.  So few answers.

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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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Kilmarnock United

I'm sure there are many people in Britain who didn't have a clue where Kilmarnock is or had even heard of the town. Now it's firmly on the map since the MSM picked up on the story of the good folk of Kilmarnock's struggle with the town's biggest employer.

For those of you who don't know the details, Kilmarnock is where Johnnie Walker whisky is bottled and the name Johnnie Walker has been associated with the town since 1820. The drinks giant Diageo want to close down the plant and move the bottling to Fife. They say the redundancies would be offset by the creation of 400 jobs at its packaging plant in Fife.

Thousands of people took to the streets on Sunday in a march and rally organised by East Ayrshire Council, part of the alliance seeking to reverse the closure decision.

The First Minister Alex Salmond, along with Des Browne and Annabel Goldie attended the rally. Mr Salmond said, "This rally marks another step forward in the joint campaign to perduade Diageo of the substantial economic advantages in retaining their long established and hugely beneficial links with the communities of Scotland. Next month the campaign will present an alternative business case to retain this iconic brand in Ayrshire and to demand fairness for their workers across Scotland and Port Dundas in Glasgow."

Annabel Goldie stated, "Across communities, across political parties and across organisation the message is: Do not tarnish the legendary reputation of scotch whisky and do not abandon the legacy of generations of skilled and loyal employees who have made Diageo the hugely successful company it is today. Corporate success should never exclude corporate responsibility."

The people of Kilmarnock ought to hold their heads up high because they've shown that community spirit is not dead. Radio phone-ins have recorded complete support for their case and I wish them all the luck in the world.

Source: BBC

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JOHNNIE WALKER'S GONE DUTCH

Today the Guardian reports how the Johnnie Walker label was spirited away to Holland. It was achieved by a method called outward domestication. Although I'm no economist, it's easy to see this is all to do with UK tax avoidance and seemingly perfectly legal.

Johnnie Walker is owned by Diageo plc whose HQ is in London. They are giants in the drinks industry but Johnnie Walker, produced in Kilmarnock, is their most famous brand. It appears Diageo has been paying little tax to the Treasury as the tax system taxes 'only those financial profits said to arise in this country'. The bulk of Diageo's profits are declared in this class and for good reason - these overseas taxes are remarkably low.

What's their secret? The company is saying nothing, well they wouldn't, would they. Good investigative journalism has produced evidence of the way in which Diageo has transferred the brands to Holland - on paper anyway. The Inland Revenue has been over to Amsterdam to have a wee word with Diageo and a deal has been done, far more in favour of Diageo that the Treasury by all accounts.

' The legal ownership of many famous trademarks has been transferred, including Johnnie Walker scotch, J & B Rare, and Gilbey's gin - brands worth hundreds of millions of pounds.

Along with the brands has gone the ownership of the entire whisky businesses, leaving Scotland's distilleries as hollowed-out sub-contractors.'

So, next time you have a hot toddy, or just a drop of malt because you want one, give a thought to our whisky industry. Have any other companies who own one of our greatest products acted in this way? Time the Scottish government took a good look. We can't afford to have this happen in an independent Scotland.

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