Scottish and UK Governments must act to save Alexander Dennis, say MSPs

Independent

7 days ago

Immediate action must be taken to ensure bus manufacturing does not end in Scotland, the Scottish and UK Governments have been told.
Holyrood's Economy and Fair Work Committee urged the administrations north and south of the border to do all they can to stop the closure of Alexander Dennis in Scotland.
Some 400 workers are at risk of redundancy as the company proposes moving its manufacturing from Falkirk and Larbert to Scarborough in North Yorkshire.
Colin Smyth, the Labour MSP who convenes the committee, has written to Finance Secretary Shona Robison and Scottish Secretary Ian Murray asking them to set out their plans to save the jobs and wider industry.
He said the loss of so many highly-skilled job would be 'devastating' to the local community and country as a whole.
'The committee is clear that the situation is so serious that every possible effort must be made to retain these jobs in Scotland,' he told Ms Robison.
Alexander Dennis has said it needs up to 100 bus orders this year and up to 400 next year to avoid the closure of its factories in Scotland.
Mr Smyth urged the Finance Secretary to explain what she is doing to bring new orders forward and stimulate demand for the sector.
He urged Ms Robison to strengthen procurement to ensure that local firms are prioritised.
The SNP has come under fire from opposition politicians for the number of Scottish buses being built in countries like China, rather than at home, which they say has contributed to the company's decision to move to England.
Mr Smyth also expressed concerns around reports that £20 million in support from Scottish Enterprise for Alexander Dennis to research and develop net-zero buses may no longer result in any vehicles being built in the country.
The committee has written separately to Scottish Enterprise over the funding.
He said to Ms Robison: 'Given the strategic importance of Alexander Dennis, the high quality of its workforce and the role of manufacturing in Scotland's future economy, it is vital that every possible action is taken to retain manufacturing, and the jobs it provides.
'The committee urges the Scottish Government to do all it can, working with partners at every level, to secure a positive outcome.
'Ministers must act with urgency and ambition to help keep these jobs and avoid a world-class manufacturer shutting its doors in Scotland.'
In his letter to the Scottish Secretary, the committee convener described Alexander Dennis's potential loss as 'deeply concerning'.
He said co-operation between Westminster and Holyrood would be 'essential if a viable and sustainable future is to be secured for bus manufacturing in Scotland'.
He added: 'I know you agree that the potential end of bus manufacturing in Scotland — with the direct loss of 400 jobs and further losses across the domestic supply chain—would be devastating for the area and for Scotland.
'This is all the more concerning given the growing UK and European demand for buses to support climate, transport, and industrial goals.'
He said that while a cross-governmental working group on the issue has already met several times, it was 'clear that urgent decisions are required' as the the redundancy consolation process is set to wrap up on August 15 – something that has already been extended by two weeks.
Mr Smyth again raised concerns around the procurement process, saying: 'During our evidence sessions, the Committee heard concerns that, in practice, local content is not being adequately recognised or prioritised in the tendering process.'
He added: 'The committee understands that the UK Subsidy Control Act does allow social value to be considered when evaluating bids, enables direct awards, and permits some differential treatment in awarding subsidies.'
And he asked Mr Murray to set out what action the UK Government is taking to ensure to ensure domestic manufacturing is prioritised.
He said: 'Given the scale of potential job losses in Scotland, the importance of maintaining a strong manufacturing base in the UK, and the proven capability of the workforce at Alexander Dennis Ltd, the Committee believes that urgent and coordinated action is essential.
'We therefore urge the UK Government to use every lever at its disposal – particularly through procurement, investment, and industrial strategy — to help secure a future for bus manufacturing in Scotland and protect these skilled jobs.'
Scottish Secretary Ian Murray said he has met with the company several times and is working with the Scottish Government and those in the UK Government 'at pace' to find a solution to the job losses.
He urged the Scottish Government to do more to prioritise the company in its own procurement.
Mr Murray added: 'I will continue to engage with the Scottish Government on this devolved issue, as well as continuing to seek clarity from the company on what interventions are most likely to retain these skilled jobs.
'Earlier this month the UK Government announced £15.6 billion of funding for local transport projects in England's city regions as part of the Spending Review.
'That is a huge opportunity for Scottish manufacturers and I have written to metro mayors across England encouraging them to consider the options available to support British jobs and skills, in line with the Government's wider consultation on creating social and economic value through public spending.
'The UK Government's Industrial Strategy, published recently, commits to further use the Government's procurement power to strengthen domestic supply chains and support good quality local jobs.
'While procurement is a devolved issue in Scotland, this does create further opportunities within the UK market for British manufacturers.'
Ms Robison said: 'Our absolute focus continues to be on exploring all viable options to support Alexander Dennis Ltd, its workforce and the families and communities they support.
'The Scottish Government continues to work at pace and in close collaboration with the company, trade unions, Scottish Enterprise, Transport Scotland and the UK Government during the consultation period.
'This work includes discussions on potential support for a company furlough scheme and urgently examining options to provide greater confidence regarding short-term demand for bus manufacturing in Scotland.
'As I set out in an update to committee last week, it is important that the UK Government publishes a future pipeline of orders as soon as possible, given the relative scale of the double-deck market in England compared to Scotland.'
A Scottish Enterprise spokesperson said: 'Scottish Enterprise has had a strong strategic partnership with Alexander Dennis Ltd for more than 10 years, during which time we have supported technology development, skills and cultural transformation at the company.
'We continue to work closely with them to explore a range of possible options and try to find a positive solution, despite the challenging circumstances.'