Alexander Dennis: ScotGov accused of 'neglect' on firm off to England

The Herald Scotland

5 hours ago

A row erupted in the Scottish Parliament in the wake of revelations in the Herald over the depth of the public funding for Scottish jobs over the past ten years - and even while it was cutting back its workforce by a third five years ago.
The Herald also revealed how the First Minister was warned about Alexander Dennis was "reconsidering" its "entire investment" in Scotland a year before announcing it plans last week to relocate to England putting 400 jobs at risk.
Calls have been made to claw money back money if Alexander Dennis follows through with its plans.
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------------------------------------------------------------------------------------------------------------------------------Scottish Conservative Central Scotland MSP Stephen Kerr told Ms Forbes: "There is £90m of public money went to ADL and yet there was not even a guarantee of jobs.
"This crisis didn't come out oft he blue. The SNP governmet was warned for over a year and did nothing. When ADL asked for support they were met with silence.
"When Scottish jobs were on the line, the Scottish Government were looking in another direction.
"When orders for buses were needed, those orders went to China.
"This was not a matter of subsidy control it is strategic neglect."
He added: "It is a betrayal of Scottish manufacturing. "
The Herald revealed that the row between ministers and ADL emerged over levels of support and had its roots in Scottish Government schemes launched from 2020 to accelerate the use and manufacture of zero and low emission buses in Scotland and 'help drive a green recovery out of the Covid pandemic" which have been worth a total of £155.8m to date.
Frustrations emerged after May, 2023 when Alexander Dennis hosted the second phase of the Scottish Government's Zero Emissions Bus Challenge Fund (ScotZEB) which was to have funding worth £58m. It also showcased its Enviro100EV concept, a lightweight single-deck zero-emission bus with new in-house battery powertrain confirmed that grant backing accelerated its development.
(Image: PA) In a scathing letter seen by The Herald, Paul Soubry, president and chief executive of Alexander Dennis's parent company NFI, told John Swinney that recent developments had 'regretfully left [them] with the impression that the Scottish Government has little regard for domestic bus manufacturing jobs in Scotland'.
The First Minister was also told they had already been 'forced' to offshore certain manufacturing functions to China.
But a Scottish Government memo said that ADL had received orders for 363 zero-emission buses from ScotZEB more than any other manufacturer benefitting from the schemes. A separate briefing states that Alexander Dennis was awarded only 17% or 44 buses from second phase of the programme.
A significant grant through the ScotZeb 2 programme was awarded to Zenobe, and its consortium of bus and coach operators to support the transition of bus fleets to electric.
ADL, which incurred total losses over three years of £44.9m between 2021 and 2023, made its own bid to the programme but was unsuccessful. While ADL was a supplier to the successful consortium it was not a formal part of it.
Ms Forbes said that its policy interventions had been designed to "accelerate uptage of zero emission buses in the Scottish market".
And she said that the Scottish Government and Scottish Enterprise had "continued to provide ongoing support to the company, both directly and through support for the adoption of zero emission".
She said: "We will work in close collaboration with the company, with trade unions and the UK Government to find practical solutions.
Kate Forbes (Image: Colin Mearns) "We are not going to play politics with this situation. We will continue to explore every avenue to avoid job losses.
"I recognize that ADL cannot stand still. We want to support the company, to innovate, to bring forward new products that reflect changes in the sector. In this government, we will continue to do all in our power to support Alexander Dennis and their highly skilled workers."