Latest news with #ScottishZeroEmissionBusChallengeFund
Yahoo
2 days ago
- Business
- Yahoo
Swinney 'deeply concerned' over bus firm job cuts
The first minister has said the Scottish government will do "everything it can" to support workers at bus manufacturer Alexander Dennis. John Swinney said he was "deeply concerned" the firm was planning to move its full operation to a site in Scarborough, North Yorkshire, putting 400 jobs at factories in Falkirk and Larbert at risk. However, he faced criticism from Scottish Labour leader Anas Sarwar, who claimed his government had ordered more buses from China than it had from the firm. Swinney said most bus ordering decisions in Scotland were made by private operators, and the government had to comply with state subsidy rules in the way it supported businesses. At First Minister's Questions Swinney said: "This issue has been occupying a great deal of the focus and the attention of the deputy first minister and I and the UK government ministers since we became aware of the situation over the last few weeks, and then ultimately to the decision that was announced yesterday." He quoted a joint letter from the UK and Scottish governments, which pledged to "work closely with Alexander Dennis at this challenging time". Up to 400 jobs at risk at Scottish bus maker Alexander Dennis Bus manufacturer Alexander Dennis warns of 160 jobs at risk Alexander Dennis (ADL) cited strong competition from the China, which has seen its market share grow from 10% to 35%, among its reasons for the move. The firm also criticised UK policy, and called for jobs and local economic benefit to be factored in when taxpayers money is invested. Earlier Greater Manchester mayor Andy Burnham pointed to an order of 160 ADL buses for the publicly-owned "Bee Network" in the city, and questioned why the Scottish government could not do the same. In a statement, Burnham - who has previously visited the Falkirk site - said: "Our iconic Bee Network buses are a bit of Scotland right here in Greater Manchester. "We have over 160 Alexander Dennis buses criss-crossing our city-region every day - connecting our communities to opportunity. "If Greater Manchester can invest in world-class Scottish bus manufacturing, then why can't the SNP Scottish government?" Sarwar claimed the Scottish government had secured just 44 buses from ADL as part of the Scottish Zero Emission Bus Challenge Fund (ScotZEB) scheme last year. The fund was initially established in 2022 to "disrupt the bus and coach market" and allow operators the chance to make the move to zero-emission vehicles. Sarwar said that number was "five times" less than the number of buses ordered by Greater Manchester. However, that figure only covered the second phase of the rollout. The first phase, in which 276 buses were procured at a cost of about £62m, saw 137 buses ordered from ADL. An additional 116 buses were ordered from Chinese manufacturer Yutong, while the rest were built in the UK, Ireland and Europe. ScotZEBs predecessor, known as the Scottish Ultra-Low Emission Bus Scheme, also saw 207 electric buses ordered from ADL by operators between September 2020 and March 2021. Swinney said state aid regulations - in the form of the UK-wide Subsidy Control Act - prevented the government from directly procuring from a single supplier. In Scotland, most public service buses are procured by private operators, who then run them on routes across the country. Swinney said: "What I am doing, what the deputy first minister is doing, is how can we find a way in which we can remain legally compliant with the Subsidy Control Act and enable these obstacles to be overcome? "We are going to do everything we can to find a way through the Subsidy Control Act provision, so the government can continue to work within the law, and so we can support manufacturing in Scotland."
The Herald Scotland
2 days ago
- Business
- The Herald Scotland
Ministers urged to act over Alexander Dennis job losses
The plans would see work at the Falkirk site discontinued, while the Larbert plant would close once current contracts are completed. The company blamed strong competition from Chinese electric bus manufacturers, whose share of the market had risen from 10% to 35%. (Image: Alexander Dennis) Alexander Dennis employs 1,850 people in the UK, with its largest plant in Larbert. During First Minister's Questions, the Scottish Labour leader said the news was a direct consequence of 'SNP failure'. He contrasted the Scottish Government's recent order of just 44 zero-emission buses from Alexander Dennis with Greater Manchester's purchase of 160. 'Under the SNP, the Scottish Government is procuring more buses from China than they are from Scotland,' Mr Sarwar said. 'Greater Manchester Mayor Andy Burnham has bought almost four times as many buses from Alexander Dennis as the SNP Government. That is shameful. "So can I ask the First Minister, why do the SNP always put foreign businesses and manufacturers before Scotland's workers?" READ MORE Mr Swinney said: 'Since 2020, Alexander Dennis has secured more zero-emission bus orders than any other single manufacturer through the Scottish Zero Emission Bus Challenge Fund and its predecessor, the Scottish Ultra Low Emission Bus Scheme. 'We have provided £58 million of funding for zero-emission buses since 2020 through the Scottish Ultra Low Emission Bus Scheme. Scottish Enterprise has also supported Alexander Dennis with £30.3 million in research and development support as a contribution to their research and development activity. 'That has been part of the partnership undertaken between the Scottish Government and Alexander Dennis.' Mr Sarwar saoid the answer was "weak." "If Greater Manchester Mayor Andy Burnham can find a way within the existing legislation to procure more buses in Scotland. Why can't the SNP government? "It is another example of weak leadership from John Swinney. 'When Scotland needs buses, they buy from China,' Mr Sarwar told MSPs. 'When Scotland needs steel for bridges, they buy from China. When we need ferries, they buy from Poland and Turkey. Because all they want to do is manufacture grievance, and all they offer is waste and incompetence.' The First Minister responded that he was focused on delivering 'answers and solutions' rather than posturing. He said his government was in talks with UK ministers to explore ways to support the company. However, he noted that the post-Brexit Subsidy Control Act 2022 — which limits government support — constrained what action could be taken. The First Minister quoted Alexander Dennis managing director Paul Davies, who said: 'The stark reality is that current UK policy does not allow for the incentivisation or reward of local content, job retention and creation, nor does it encourage any domestic economic benefit.' Mr Sarwar claimed it was part of a wider pattern of 'weak, failing leadership' from Mr Swinney, adding: 'Even his own MSPs are now openly rebelling against him, with senior figures saying he has two weeks to come up with a new idea to save his job.' Falkirk MSP Michael Matheson said the jobs were 'not yet lost' and urged both governments to work together. He said: 'The last thing the workforce in my constituency need is for their future employment to be simply turned into a political football. Indeed, they deserve much better. 'Now more than ever, the workforce needs the Scottish and UK governments to work together.' Mr Matheson pressed Mr Swinney to commit to maximising potential new orders for Alexander Dennis across the UK and addressing the 'uneven playing field' created by subsidy rules. Mr Swinney gave Mr Matheson his 'absolute assurance' that the Scottish Government would enter the consultation process 'determined to safeguard the future of employment in his constituency'. Scottish Conservative MSP Graham Simpson accused the Government of ignoring previous warnings that support schemes would end up subsidising overseas firms. 'There have been various funds from the Scottish Government to help bus companies buy electric buses,' he said. 'One of them was launched by Michael Matheson, and that money — our money — has gone to buy Chinese buses. 'Some of us were warning years ago that this would end in tears, and that is where we have got to.' Mr Swinney responded: 'I am trying to handle this issue in a way that is not making any party political remarks. But I have to point out to Mr Simpson that the Subsidy Control Act was legislated for by the Conservative Government in the United Kingdom. 'It is the UK legislation that we are obliged by law to follow. I cannot act in a fashion outwith the provisions of the law, because I will just not be enabled to do so. I will not have a legal basis for acting in that fashion.'
