Published: Wednesday, 1st July, 2009 2:26pm

MP Browne slams 'devastating' jobs blow

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KILMARNOCK and Loudoun MP Des Browne has described the closure of drinks firm Diageo"s Kilmarnock plant - with the loss of up to 700 jobs - as "devastating" for the area.

The firm, which had previously warned that tough times were ahead in the wake of the recession, has announced that they are closing the Ayrshire plant as well as their Glasgow facility as part of company restructuring. The closures will take place over the next two years.

Reacting to the announcement, Mr Browne said: 'This is devastating news for Kilmarnock, Ayrshire and the whole of the west of Scotland. Loyal workers and their families will be in shock at this disastrous decision. It is totally unjustified and I urge the company to reconsider these proposals. They need to get round the table with the dedicated staff who have worked at these plants for generations. The people of Kilmarnock have helped build this business since it was founded in 1820. Countless millions of pounds have been made from two centuries of their hard work.

'This is a hugely profitable company and there is no economic case for shutting the plant. It is a mistake which will cost Scotland dear and which the company and the Scotch whisky industry will live to regret.'

Finance Minister John Swinney added that the Scottish Government was trying to get Diageo to reconsider their decision.

He said: 'This is an extremely disappointing announcement which could mean up to 500 workers losing their jobs.

'The First Minister has this morning spoken to the company and will meet senior executives to make exactly that point.

'This will be a particularly worrying time for workers at Kilmarnock and Port Dundas. We note there will be no compulsory redundancies for 12 months - a pledge we want the company to guarantee - and welcome the creation of 400 new jobs at the company"s new packaging plant in Fife.

'If job losses occur we will, through Skills Development Scotland, co-ordinate local response teams under the Partnership Action for Continuing Employment (PACE) initiative.

'The food and drink industry is vital to the Scottish economy and it is encouraging that Diageo remains a significant employer and is committed to Scotland.'