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?"
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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.'
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