Alexander Dennis: FM warned a year ago over firm 'reconsidering'
The First Minister was also told they had already been 'forced' to offshore certain manufacturing functions to China.
The Labour MP for Falkirk, Euan Stainbank, said it was 'absolutely astonishing that John Swinney' had been informed of the risk to hundreds of Scottish jobs and 'done absolutely nothing to avert this'.
Notes seen by The Herald show the First Minister intervened after learning of potential redundancies at the firm, suggesting 'further capital support' and advising Scottish Enterprise to 'exhaust all options to support the business'.
Scottish Government records show ADL has received £58 million in public 'subsidy' for green vehicles since 2020 under two schemes aimed at transitioning Scotland to green buses.
Some £30m in job grants for research and development over 10 years came from the Scottish Government's economic development agency, Scottish Enterprise.
A delivered Alexander Dennis bus (Image: Pic supplied) Despite this, ADL said there was not enough support from government and issued a stern warning about its future in Scotland in August last year.
READ MORE by Martin Williams
"We are regretfully left with the impression through recent developments that the Scottish Government has little regard for domestic bus manufacturing jobs in Scotland and we have no choice but to reconsider our entire investment in the Scottish operations of Alexander Dennis," the Canada-based executive told the First Minister.
"In fact, in an attempt to enhance our price competitiveness we have already been forced to offshore certain fabrication functions to China.
"I would appreciate an urgent face-to-face meeting with you and key members of your Government to further discuss this critical situation."
The First Minister and Deputy First Minister set out the economic case for Scottish independence in 2013 at the Alexander Dennis Falkirk plant. (Image: NQ)
He said that in Canada and the United States, governments and transit agencies are 'incredibly proud' of their domestic manufacturers and support them accordingly.
"Alexander Dennis operates in a market that had left them with the impression that governments do not seem to care about domestic economic importance," he added.
"Indeed, this seems to fly in the face of Scotland's flagship policy plans for a Just Transition, which aims to deliver a fairer, greener future for all, delivered in partnership with those impacted by the transition to net zero.
"Alexander Dennis is a key manufacturer in Scotland assisting in delivering a Just Transition through the manufacturing of zero-emission buses with their workforce.
"Alexander Dennis should be considered a business of strategic economic importance to Scotland."
ADL expressed frustration in May 2023 over the Scottish Government's Zero Emissions Bus Challenge Fund (ScotZEB).
A Scottish Government memo to the Deputy First Minister, Kate Forbes, revealed a series of letters from ADL and NFI raising concerns about the outcome of the fund.
While a Scottish Government memo said ADL received orders for 363 zero-emission buses – more than any other manufacturer – a separate briefing stated ADL was awarded only 17%, or 44 buses, from phase two.
A meeting was set up between the First Minister and Mr Soubry in August last year over levels of support rooted in Scottish Government schemes launched in 2020 to accelerate zero and low emission bus manufacture and 'help drive a green recovery out of the Covid pandemic', worth £155.8m to date.
The relationship between Alexander Dennis and the SNP goes back to 2013, when then First Minister Alex Salmond and then Deputy First Minister Nicola Sturgeon used its Falkirk base to launch the economic case for Scottish independence.
He said while ADL received 17% of the orders under ScotZEB2, no other UK manufacturer benefitted — despite all being part of the Scottish Bus Decarbonisation Taskforce.
He expected 83% of the 252 buses ordered under ScotZEB2 to go to manufacturers based in either China or Egypt.
He said there was a 'further disappointing revelation' in the final round of ScotZEB — that the winning bid would leverage £3.20 of private sector investment for every £1 from the Scottish Government for 252 vehicles.
Mr Soubry said 'this was surprising to read' as the unsuccessful Alexander Dennis-led Phoenix consortium bid planned to deliver up to £3.94 of private investment per £1 of ScotZEB2 funding for a volume of 300 zero-emission buses.
"With recent decisions by UK bus operators to acquire largely imported buses with no domestic economic, technology or labour requirements or benefits, we feel we have no choice but to now begin preparations to put a number of people within our team at risk of redundancy, which could decimate the communities we operate in and have important historic ties with," he said.
(Image: Alexander Dennis)
Mr Stainbank said the letter to the First Minister was a damning indictment of the SNP's failure to act.
"It is absolutely astonishing that John Swinney was informed of the real risk to Alexander Dennis's Scottish operations close to a year ago," he said. "He appears in the interim to have done absolutely nothing to avert this.
"This is a monumental failure of SNP industrial policy. Greater Manchester bought more than five times as many buses from Alexander Dennis than the SNP did - operating under the exact same legal framework. John Swinney should be embarrassed by that."
A month after Mr Soubry's letter, a further call between the First Minister and NFI and ADL showed that Mr Swinney advised and asked that Scottish Enterprise 'exhaust all options to support the business'.
A note of the meeting cleared by Mr Swinney stated that he requested that 'all options are exhausted before any final decision is taken by ADL'.
An official note of a meeting between Mr Swinney and representatives of Alexander Dennis from 12 August says the First Minister 'noted the potential for further capital support should be explored'.
By then Alexander Dennis had already benefited from taxpayer-funded grants and support from the Scottish Government worth £90m since 2005.
In the same year of the 2023 ScotZEB2 launch, Scottish Enterprise sanctioned a £13.2m grant on top of a £49.7m ADL investment into the development of zero emissions technology for battery-electric and hydrogen fuel powertrains. Some £11.2m was drawn down.
John Swinney (Image: PA) Last week, Mr Swinney told MSPs he was 'deeply concerned' about the proposed job losses and said the government was 'exploring all viable options' to support the workforce.
He defended the government's record, stating that Alexander Dennis had received more orders than any other manufacturer under the first phase of ScotZEB and was supported with significant research and development funding.
However, he acknowledged that UK-wide subsidy control rules limit what the Scottish Government can do to directly support or prefer domestic manufacturers. 'We must work within the law,' he said. 'But we are trying to find a way through the Subsidy Control Act to ensure we can support manufacturing in Scotland.'
Union leaders are calling for more urgency. Unite Scotland estimates that up to 1,600 jobs could be at risk when supply chain roles are included and warned of a 'devastating' impact on communities already reeling from the Grangemouth oil refinery closure.
A Scottish Government spokesperson said: 'We are exploring all viable options throughout the consultation period to allow the firm to retain their hard-working employees and manufacturing and production facilities at Falkirk and Larbert.
'Since 2020, ADL secured orders for more zero emission buses than any other single manufacturer through the Scottish Zero Emission Bus Challenge Fund and its predecessor the Scottish Ultra Low Emission Bus Scheme.
"ADL has received £58m of Scottish Government subsidy for vehicles under these programmes. ADL have secured orders for more than 360 vehicles through Scottish Government zero emission bus funding programmes, compared to the 160 currently on order from Manchester.
'In response to correspondence in August 2024, the First Minister met with the company that same month, and Scottish Enterprise have been supporting the company with additional supportive measures.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Herald Scotland
an hour ago
- The Herald Scotland
I have walked amongst Scotland's largest gulls - they are a menace
They are big too. Very big, probably the biggest in Scotland, and with their size comes with equally large beaks, and that is where the problem lies. Have anything edible about your person at that time of the morning then you really are in trouble. For gulls, like some of us humans, seem to have forgotten all about their traditional diet of healthy fish discarded over the side of a trawler, and now prefer fast food – and more of it the better. And you can see their point in a way. Why would you want a measly fish straight out of the sea, when you can gorge on plump ones wrapped in batter and served with chips. However, it is not a laughing matter really, as there are increasing examples of people getting hurt by the hungry birds up and down the country. Now the problem (again) has been raised at Holyrood with former Scottish Tory leader Douglas Ross warning that Scots risk losing their lives over the 'growing problem' of 'dominating' gulls if action is not taken to stop them. That is quite the claim but at least had evidence to back it up. In the chamber, Mr Ross spoke of gull horror stories including one woman who fell outside her house as a result of a gull attack, broke her leg, went to hospital and then, upon her return, was attacked again. It is high time that irresponsible campervan users are taxed off the NC500 Alan Simpson: The new £144m electric rail line without enough trains Alan Simpson: Giving CalMac contract is right - now give them better ships Alan Simpson: Scotland's tourism sector needs to be heard before it's too late The debate was led by Mr Ross after he submitted a motion stating that the parliament should note concern around the reported changes to the approach taken for granting licences to control gulls in recent years by NatureScot. He argued that this has led to fewer licences being approved. A total of 2,041 licences were granted in 2023, however this figure fell to 505 in 2024. He told the chamber there is a 'clear conflict' in the Scottish Government body Nature Scot between conserving and preserving bird numbers and controlling the applications to regulate bird numbers. Mr Ross also criticised NatureScot and the Scottish Government for being on the side of seagulls and not humans during a sometimes heated debate at Holyrood. The Former Scottish Conservative leader said: 'Currently they are clearly conflicted between conserving and preserving bird numbers and also being the agency that looks at and deliberates on applications to control birds. 'It is not possible any more for Nature Scot to do those dual roles'. Mr Ross pointed that NatureScot keep a record of bird deaths or injury but not take any record of people injured. He said communities and businesses in his own constituency of Moray, Nairn and Inverness have had significant problems with gulls in recent years, but that many communities across Scotland also experience similar problems. He also said the gulls are causing 'mental health issues' as their constant screeching torments the general public. 'They are a menace,' he emphasised to parliament. Mr Ross said he is not ignoring that people are encouraging gulls by feeding them and he accepted that was 'part of the problem'. Gulls 'dominating areas' are also seeing a reduction of other smaller birds, he argued. Mr Ross called on more 'robust action' from the Scottish Government and NatureScot to protect humans and businesses from 'the menace of dangerous gulls'. It is hard to argue with Mr Ross on this one as we can all probably recall being menaced by seagulls at one point or another in recent times. His point about smaller birds being driven from some areas is also true, as I can vouch from my own garden, which can suddenly become full of gulls, particularly when people put bread out. Of course, this is always well intentioned as it put out for smaller birds who cannot get a look in as everything is hoovered up by the aggressive gulls. I live a good 30-odd miles from the coast too, proving that the problem with gulls is not confined to seaside communities. Residents and businesses in the former fishing port of Nairn on the Moray Firth believe gulls have become a serious problem. Alan Simpson: Build more houses for rural Scots, not tax second home owners Alan Simpson: NatureScot may be threatening a rare mussel it should be protecting Alan Simpson: Forcing landowners to sell to locals is not the best solution We thought the good times would last forever. We were wrong. What next for Aberdeen? A survey by Nairn Business Improvement District (Bid) last year received 85 reports of gull attacks. Manager Lucy Harding told the BBC: 'That was quite worrying. It is an issue I regularly get reports on, of people being attacked for food particularly.' Gulls, like other birds, are protected by law and Scotland's nature body, NatureScot, has strict rules around how they are controlled. A licence is needed for the removal of nests and eggs from the roofs of buildings in areas where gulls are deemed to be a nuisance. But Ms Harding said it was now harder to obtain the necessary paperwork. Nairn Bid has put in place other measures to discourage gulls from nesting in the town, including reflective devices designed to scare birds away from rooftops. Gulls are a coastal species, but they have been drawn into towns and cities due to the plentiful places to build nests, a lack of predators - and lots of opportunities to find food. In their natural habitats - the coast and farmland - the birds eat carrion, seeds, fruits, young birds, eggs, small mammals, insects and fish. NatureScot issued 2,633 nest removal licences across Scotland in 2023, and 1,601 in 2024. It said it understood gulls could sometimes cause problems in towns and cities, but at the same time populations of the birds were facing 'serious declines'. NatureScot said it would continue to issue licenses where gulls were causing a health and safety issue. RSPB Scotland say that people and gulls could coexist if the right action was taken. Numbers of herring gulls, a species people are most likely to encounter in urban areas, have fallen by 48% in Scotland since the 1980s, according to RSPB Scotland. Clearly the answer then is not just mass culling of gulls, but it is fair to say that more robust action needs to be taken before somebody does get seriously hurt. But the answer ultimately lies with all of us and the amount of food that we just casually throw away, which then attracts gulls. We all need to look at our own behaviour and stop blaming the gulls, however menacing they are, for everything. Ultimately, we are the problem and therefore we are the solution too.
The National
2 hours ago
- The National
Palestine Action documentary brought forward due to ban
The online release of To Kill a War Machine was brought forward to this week after it emerged that the Home Office is going to proscribe Palestine Action after activists from the group broke into RAF Brize Norton in Oxfordshire and spray-painted two military planes red. Days after the incident, the Home Secretary, Yvette Cooper, said the 'disgraceful attack' was 'the latest in a long history of unacceptable criminal damage committed by Palestine Action'. A draft of a proscription order against Palestine Action will be presented to parliament on Monday. READ MORE: Met police drops second terror charge against Kneecap The ban under terror laws would make it a criminal offence to belong to or support the group and would be punishable by up to 14 years in prison. The film's directors have been scrambling to take legal advice and fear they will end up being in breach of counter-terror laws if they continue distributing their documentary, according to the Guardian. Showings of the film have been lined up across Britain in the coming days and weeks but plans to ban the group have cast doubt over whether the screenings can go ahead. To Kill a War Machine was made available to watch online on Tuesday and has been downloaded by people from all over the world. However, its London-based directors, Hannan Majid and Richard York, are concerned that Britain could end up being the only place in the world where people would not be able to see the film. 'We've operated around the world and have a lot of experience of regimes telling us what we can and can't do,' Majid told the Guardian. 'We've had authorities in Bangladesh telling us we shouldn't even be editing footage of garment workers and activists advocating for their rights, and we've been followed by the police in Cambodia, but we have never encountered anything like this in Britain.' Majid has been working with York since 2006 through their production company, Rainbow Collective, which focuses on documentaries about human rights issues and have collaborated with organisations including Amnesty International. To Kill a War Machine took six months of work and was made independently by the filmmakers from Palestine Action. The documentary uses real-time bodycam and phone footage that the group had put into the public domain. In the film, activists are seen smashing and occupying weapons factories across the UK while explaining their motivation for their actions, which they view as legitimate in the face of alleged war crimes in Gaza. (Image: @IMDmilo) There are also interviews with two activists from Palestine Action, Sohail Sultan and Joe Irving, both of whom were acquitted of charges of causing criminal damage. However, the move by the UK Government to proscribe Palestine Action means there are now questions looming over whether the documentary and events, including a London premiere on July 18, can be continued after the group is banned. 'We set out to make this film in a completely legitimate and legal manner, as we have done with other films. It's been certified by the British Board of Film Classification (BBFC) and it is good to go but now we are being advised that the curtailing of Palestine Action could have a major knock-on effect for us as it could become not only illegal for others to voice support for them but also for us, as film-makers, to distribute this film,' said York. Majid added: 'People are still excited and there has been a tremendous outpouring of support on social media. 'Hopefully we can still go ahead with much of our plans, but we have had to rush things forward and do the digital release this week rather than waiting for September and try to build on the awards we have already picked up. 'That all changed on Monday night and there has been a spike as soon as we put it online.' The filmmakers are having discussions with distributors in the UK and the US about the potential risks of showing the film. 'On the basis of some of our legal advice, we may not even be able to distribute it in other countries and territories if the film is seen as being somehow in support of a group which is proscribed. We are still hoping to be able to show it in cinemas within the law,' said York. They are also considering whether they will have to withdraw submissions for a range of international film festivals.
Scotsman
2 hours ago
- Scotsman
Anas Sarwar opens door to ending Scotland-England tax divergence in dig at SNP 'performance'
The Scottish Labour leader has hit out at the SNP's tax strategy. 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... Scottish Labour leader Anas Sarwar has suggested he would move to end the tax divergence with the rest of the UK if he becomes first minister. Mr Sarwar has accused SNP ministers of 'government by performance' over their higher tax regime for the super-rich, but risks being faced with less money to spend on public services if he does cut tax. Advertisement Hide Ad Advertisement Hide Ad Scotland's higher earners pay more income tax than the rest of the UK. Photo: Gareth Fuller/PA Wire The Scottish Government's top rate of tax - 45 per cent - comes in at earnings of £75,001, while those reaching £125,140 face a 48 per cent levy. In the rest of the UK, the top rate of tax is 45 per cent and only comes in when earnings reach £125,140. Speaking to the Scottish Sun on Sunday, Mr Sarwar said: 'Any government with analysis showing 90 per cent of what it says it's going to raise is actually going to be lost due to behavioural change, and they still go ahead, is not a serious grown-up government. Advertisement Hide Ad Advertisement Hide Ad 'That is government by performance. They think they are playing a game, but they are actually playing with people's lives and livelihoods.' Scottish Labour leader Anas Sarwar. Picture: Jane Barlow/PA Wire | Jane Barlow/PA Wire Mr Sarwar's position could anger trade unions who have welcomed higher earners being targeted for tax increases. Unions have called for his Labour colleagues at Westminster to introduce a wealth tax, which could then be adopted by the Scottish Government. The Scottish Labour leader said: 'You have to have a much more honest conversation about what is actually happening in Scotland. We don't have the breadth of that so-called super wealth to do the things we need to do to fix our economy. 'That can only come from attracting investment, private and public, and also foreign direct investment, and it means having a growth-first agenda.' Advertisement Hide Ad Advertisement Hide Ad Concerns have been raised over whether the higher tax rates for the super-rich in Scotland have brought in more funding for Holyrood. Research by the Institute for Fiscal Studies (IFS), published last year found the Scottish Government's strategy of increasing the top rate of income tax 'may have reduced revenues', but warned 'significant uncertainty remains'. READ MORE: SNP ministers urged to hike taxes on wealthy ahead of Scottish Budget Advertisement Hide Ad Advertisement Hide Ad A spokesman for SNP Finance Secretary Shona Robison said: 'In Scotland, people on lower incomes pay less and we ask those on higher incomes to pay a bit more.
