Published: Monday, 13th July, 2009 9:03am

Cross party talks will take forward Diageo case

Comments (0) | Print | Email

Work will intensify to save Scottish whisky jobs this week when John Swinney chairs cross-party talks to take forward the case against the potentially devastating cuts proposed by drinks firm Diageo.

Politicians, trades unions and business support professionals from Kilmarnock and Glasgow will join the Finance Secretary to agree the next steps in a shared commitment to stave off net job losses of up to 500 across Scotland.

The talks, to be held in Edinburgh on Tuesday evening, will involve representatives of the Scottish Government, Scottish Enterprise, Glasgow City Council, Unite union, GMB union, East Ayrshire Council, MPs and MSPs.

Mr Swinney said: "Our priority is to ensure Diageo's proposals, which would have a serious impact on the Scotch Whisky industry and Ayrshire economy in particular, are not implemented.

"In the wake of Diageo�s announcement and following meetings last week with East Ayrshire Council and dialogue with Glasgow City Council involving local politicians and Scottish Enterprise, we agreed to join forces and develop an alternative business proposal based on access to the financial information behind the company�s original decision.

"Diageo have committed to holding a proper consultation on their proposals and that is what we must have.

"Diageo workers can be assured that we are working flat out in our efforts to preserve the strong relationship between Kilmarnock and Port Dundas and the Scotch whisky industry. Tuesday�s meeting will focus on bringing together the most cohesive arguments and package of initiatives possible.

"Diageo must realise that the social consequences of their financial proposals are not acceptable to the people of Scotland."

Speaking on Friday following press reports of interviews with Diageo executives, Labour MP Des Browne said: "There is nothing new in anything I have heard from Diageo's executives in the last 48 hours.

"I met with Paul Walsh, the chief executive, within twenty-four hours of the announcement being made. I made my view clear at that point that we have a very difficult task to persuade Diageo's executives to change their minds - although we did it ten years ago.

"The difference is that ten years ago we had the opportunity to make up their minds, rather than to change them.

"I have never underestimated the challenge we have, but the company have promised me that they will listen seriously to any alternative proposal. I will hold them to that promise.

"We now need to ensure that when Alex Salmond meets Paul Walsh on 22 July, we have exhaustively examined their business case and he has an alternative to present."