Latest news with #SubsidyControlAct
The Herald Scotland
3 days ago
- Business
- The Herald Scotland
Swinney did ‘nothing' to save bus jobs says Sarwar
Mr Sarwar cited a letter from August 2024 — first disclosed in The Herald — in which Paul Soubry, president and chief executive of Alexander Dennis's parent company NFI Group, wrote directly to the SNP leader warning that the Government's procurement decisions risked undermining Scotland's domestic bus manufacturing industry. READ MORE The company has since proposed consolidating its manufacturing operations in Scarborough, North Yorkshire, putting around 400 jobs at risk in Falkirk and Larbert. 'John Swinney received a letter almost a year ago directly from the company,' Mr Sarwar told MSPs, 'setting out how his decision to buy buses from China instead of from Scotland was putting the company and jobs at risk.' 'He did nothing for the skilled workforce. But last week, as usual, he tried to find someone else to blame for his own failure by talking about UK procurement laws — laws that did not stop Andy Burnham buying Scottish buses, but somehow stop this SNP Scottish Government.' Mr Swinney rejected the accusation, insisting the Scottish Government had taken action following the August letter, including setting up work between the firm and Scottish Enterprise. He said ministers had maintained a 'positive dialogue' with Alexander Dennis, which had 'expressed appreciation' for Government support, including £58 million in zero-emission bus funding. 'We established work for Scottish Enterprise with the company to support the company in securing its future,' he said. 'That work was taken forward as a consequence of that dialogue.' But critics said the scale of the support did not match the urgency of the warning from Mr Soubry, who in his letter expressed 'regret' that Scottish Government decisions had left the firm feeling it had 'no choice but to reconsider our entire investment in the Scottish operations of Alexander Dennis'. The Scottish Labour leader also pointed to procurement data showing that since receiving the letter, the Scottish Government had not ordered a single bus from Alexander Dennis, while Greater Manchester — operating under the same UK legal framework — had placed significantly more orders. In a new letter from UK Cabinet Office Minister Pat McFadden to Mr Sarwar, the Chancellor of the Duchy of Lancaster acknowledged that while UK subsidy rules prevent tying grants to domestic purchases, there is nothing to stop governments awarding subsidies directly to manufacturers such as Alexander Dennis. (Image: Cabinet Office) He also said the Scottish Government could use the Crown Commercial Service framework — where Alexander Dennis is already a supplier — to apply social value criteria favouring local industry or to issue a direct award. Under the new Procurement Act, bids from countries such as China, which are not party to UK trade agreements, can also be lawfully disregarded. Mr McFadden wrote: 'The Subsidy Control Act does not prevent manufacturers, such as Alexander Dennis, receiving subsidies directly and this remains an open, and viable, option for the Scottish Government.' He added that the Procurement Act 'allows contracting authorities to disregard bids from non-treaty state suppliers, which includes countries like China'. Alexander Dennis has argued that Scottish Government policy failed to align with its own just transition principles, noting that 83% of orders under the second phase of the Zero Emission Bus Challenge Fund (ScotZEB2) went to manufacturers in China and Egypt. The company received just 17% of the 252-bus order, despite its long-standing presence in Falkirk and years of support from Scottish Enterprise. Andrew Learmonth Kathleen Nutt; Hannah Brown; Rebecca McCurdy Deborah Anderson; Catherine Salmond undefined 60% of recipients have opened this mail. undefined Hello, Can we start adding this source code to the bottom of every politics article? It will bring up an advert and a link to Unspun Live. To add it you need to click this button on Martini. That will take you into HTML mode. And then scroll down to the bottom of the article and then copy and paste the code below. If you click on the source button again you should be able to see if it's worked. @Deborah Anderson Can we get colleagues to do this when they're working on politics tales?
Yahoo
12-06-2025
- Business
- Yahoo
We will do everything we can to save Alexander Dennis jobs, vows Swinney
The Scottish Government will do 'everything we can' to support jobs at bus manufacturer Alexander Dennis, the First Minister has said. The company announced on Wednesday it is proposing to consolidate its UK operations at a single site in Scarborough, North Yorkshire. The decision puts 400 jobs at risk at its facility in Falkirk in another blow to the Forth Valley, which has already seen more than 400 jobs go at the Grangemouth refinery this year. Speaking at First Minister's Questions on Thursday, John Swinney said he is 'deeply concerned'. He told the chamber: '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 said his Government has 'supported' the manufacturer. But Scottish Labour leader Anas Sarwar accused Holyrood ministers of overlooking Scottish industry in favour of ordering buses from China, while pointing to the order from Alexander Dennis of around 160 vehicles by the publicly-owned network in Greater Manchester. In Scotland, public service buses are procured by private operators, who then run them on routes across the country. Mr Swinney said state aid regulations – in the form of the UK-wide Subsidy Control Act – prevent the Government from directly procuring from a single supplier like Alexander Dennis. He quoted a joint letter from the UK and Scottish governments, which pledged to 'work closely with Alexander Dennis at this challenging time'. He added: 'That's us indicating that we're keen to do everything we can to find a way through the Subsidy Control Act provisions, so the Government can continue to operate within the law, which we must do, but also, we can support manufacturing in Scotland, which is my priority.' Speaking to journalists after First Minister's Questions, Mr Swinney said the possibility of a furlough scheme for staff impacted by the announcement – as suggested by Scottish Secretary Ian Murray on Wednesday – is on the table. In the chamber, Mr Sarwar said: 'If John Swinney can't figure out a way to order buses in Scotland, I suggest he picks up the phone to (Greater Manchester Mayor) Andy Burnham and see how he managed to do it. 'Almost five times as many bus orders from Manchester.' Mr Sarwar's claim stems from the second phase of the Scottish Government's green bus initiative ScotZEB, which ordered 44 buses from Alexander Dennis. However, according to a press release from the time, 137 buses were ordered from the firm in the first phase, amounting to a total of 181. In a statement, Mr Burnham – who has 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?'
Yahoo
12-06-2025
- Business
- Yahoo
We will do everything we can to save Alexander Dennis jobs, vows Swinney
The Scottish Government will do 'everything we can' to support jobs at bus manufacturer Alexander Dennis, the First Minister has said. The company announced on Wednesday it is proposing to consolidate its UK operations at a single site in Scarborough, North Yorkshire. The decision puts 400 jobs at risk at its facility in Falkirk in another blow to the Forth Valley, which has already seen more than 400 jobs go at the Grangemouth refinery this year. Speaking at First Minister's Questions on Thursday, John Swinney said he is 'deeply concerned'. He told the chamber: '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 said his Government has 'supported' the manufacturer. But Scottish Labour leader Anas Sarwar accused Holyrood ministers of overlooking Scottish industry in favour of ordering buses from China, while pointing to the order from Alexander Dennis of around 160 vehicles by the publicly-owned network in Greater Manchester. In Scotland, public service buses are procured by private operators, who then run them on routes across the country. Mr Swinney said state aid regulations – in the form of the UK-wide Subsidy Control Act – prevent the Government from directly procuring from a single supplier like Alexander Dennis. He quoted a joint letter from the UK and Scottish governments, which pledged to 'work closely with Alexander Dennis at this challenging time'. He added: 'That's us indicating that we're keen to do everything we can to find a way through the Subsidy Control Act provisions, so the Government can continue to operate within the law, which we must do, but also, we can support manufacturing in Scotland, which is my priority.' Speaking to journalists after First Minister's Questions, Mr Swinney said the possibility of a furlough scheme for staff impacted by the announcement – as suggested by Scottish Secretary Ian Murray on Wednesday – is on the table. In the chamber, Mr Sarwar said: 'If John Swinney can't figure out a way to order buses in Scotland, I suggest he picks up the phone to (Greater Manchester Mayor) Andy Burnham and see how he managed to do it. 'Almost five times as many bus orders from Manchester.' Mr Sarwar's claim stems from the second phase of the Scottish Government's green bus initiative ScotZEB, which ordered 44 buses from Alexander Dennis. However, according to a press release from the time, 137 buses were ordered from the firm in the first phase, amounting to a total of 181. In a statement, Mr Burnham – who has 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?' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Scotsman
12-06-2025
- Business
- Scotsman
Alexander Dennis: SNP Government accused of prioritising foreign firms as 400 jobs face axe
Scottish Labour say the First Minister should follow the lead of Manchester Mayor Andy Burnham, who has procured around 160 vehicles from the Falkirk facility. Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... John Swinney says his government will 'do everything we can' to save hundreds of jobs at bus manufacturer Alexander Dennis, as Scottish ministers were accused of prioritising foreign firms. The bus firm on Wednesday announced it was consolidating its UK operations to a single site in Scarborough, putting 400 jobs at its Falkirk site at risk. Advertisement Hide Ad Advertisement Hide Ad The First Minister 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.' Around 400 jobs are at risk at Alexander Dennis in Falkirk. | Michael Gillen/National World During First Minister's Questions on Thursday, Scottish Labour leader Anas Sarwar accused Mr Swinney of ordering electric buses from China rather than from the Falkirk facility. Mr Sarwar said Labour Greater Manchester Mayor Andy Burnham had been able to order around 160 vehicles from Alexander Dennis. Mr Swinney said the UK Subsidy Control Act prevented the Scottish Government from directly procuring from a single supplier, but pledged to 'work closely with Alexander Dennis at this challenging time'. Advertisement Hide Ad Advertisement Hide Ad Mr Swinney said: 'That's us indicating that we're keen to do everything we can to find a way through the Subsidy Control Act provisions, so the Government can continue to operate within the law, which we must do, but also, we can support manufacturing in Scotland, which is my priority.' Speaking afterwards, Mr Sarwar said: 'Under the SNP, the Scottish Government is procuring more buses from China than they are from Scotland. Scottish Labour leader Anas Sarwar during a visit to the Alexander Dennis site. | Jane Barlow/Press Association 'Greater Manchester mayor Andy Burnham has bought almost four times as many buses from Alexander Dennis than the SNP Government. That's shameful and yet another example of weak leadership from John Swinney. 'When Scotland needs buses, they buy from China, when we need steel for bridges, they buy from China, when we need ferries, they buy from Poland and Turkey.
Daily Record
12-06-2025
- Business
- Daily Record
John Swinney pledges to do 'everything we can' to save jobs at Alexander Dennis
More than a century of bus manufacture in Falkirk could soon come to an end with cheap imports from China blamed. John Swinney has pledged his Government will do "everything we can" to save jobs at an historic Scots bus manufacturers. Alexander Dennis announced yesterday it planned to centralise its operations in England by closing its two factories in Falkirk, with 400 staff at risk of redundancy. Such a move would bring to an end more than a century of bus building in the area after the firm's owners blamed competition from China for making it uncompetitive. The announcement is a fresh blow for the Falkirk district after the recent closure of the refinery in nearby Grangemouth last month. The First Minister told MSPs today: "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, since we became aware of the situation over the last few weeks. But Scottish Labour leader Anas Sarwar accused the SNP Government of overlooking Scottish industry in favour of ordering buses from China. He pointed to the success of the local bus network in Greater Manchester, which runs a fleet of 160 new vehicles all built in Falkirk. Andy Burnham, the English city's mayor, said the buses were "a bit of Scotland right here in Greater Manchester". Almost all bus services in Scotland are run by private operators who are free to order buses from any manufacturer they choose. Swinney insisted state aid regulations – in the form of the UK-wide Subsidy Control Act – prevented the UK Government from directly procuring from a single supplier like Alexander Dennis. He quoted a joint letter from the UK and Scottish governments, which pledged to 'work closely with Alexander Dennis at this challenging time'. He added: 'That's us indicating that we're keen to do everything we can to find a way through the Subsidy Control Act provisions, so the Government can continue to operate within the law, which we must do, but also, we can support manufacturing in Scotland, which is my priority.' Sarwar hit back: "If John Swinney can't figure out a way to order buses in Scotland, I suggest he picks up the phone to (Greater Manchester Mayor) Andy Burnham and see how he managed to do it. 'Almost five times as many bus orders from Manchester.' Sarwar's claim stems from the second phase of the Scottish Government's green bus initiative ScotZEB, which ordered 44 buses from Alexander Dennis. However, according to a press release from the time, 137 buses were ordered from the firm in the first phase, amounting to a total of 181. 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?"
