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Scottish Enterprise needs outside help to try to save Johnnie Walker jobs

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Published Date: 14 July 2009
By ANDY PHILIP
SCOTTISH Enterprise is poised to take on outside help as part of efforts to save hundreds of whisky industry jobs.
The economic development agency said a decision will be made today to appoint consultants to carry out an independent review of Diageo's closure proposals.

The drinks firm has announced plans to shut its Johnnie Walker bottling plant in Kilmarno
ck and the Port Dundas grain distillery in Glasgow, putting 900 jobs at risk.

Scottish Secretary Jim Murphy said the consultants move formed part of discussions held with Scottish Enterprise chairman Crawford Gillies.

Mr Murphy said: "Scottish Enterprise's role in persuading Diageo is crucial – and they and their external consultants need to formulate a compelling and comprehensive case to be put to Diageo as soon as is practicable."

Diageo bosses are "convinced" their plan to close the Johnnie Walker bottling plant is best for the long-term future of the brand.

A Scottish Enterprise spokesman confirmed outside help would be hired. "Regarding the appointment of an external consultant to carry out the independent review of Diageo's business proposals, we can confirm that we are expecting to receive a number of briefs by lunchtime tomorrow and a decision will follow by the end of the day," the spokesman said.

The move comes as Scottish finance secretary John Swinney prepares to hold cross-party talks tonight aimed at fighting Diageo's proposals.

He will meet senior figures from Scottish Enterprise, local councils, trade unions, and MPs and MSPs, to discuss what can be done to try to reverse the closure plans. He stressed all those involved were "working flat-out".





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1

The Strategist,

14/07/2009 00:16:58
Good grief.. If SE isn't capable of doing this then why the heck do we keep pumping money into it.
2

Darien,

Panama 14/07/2009 00:31:47
An independent Scottish Government is needed to deal effectively with all and any multinational corps. London does not care about jobs in killie, no point in kidding ourselves about that. No amount of posturing by Browne or Murphy will change things.

The UKofGB&NI is finished.
3

Fletty73,

Stirling 14/07/2009 00:47:40
What positive role can the unions possibly play in these discussions?
"Strike action" is all they ever say.
Keep them away from these talks,,,.!




4

Pretzel Logic,

14/07/2009 01:27:48
Consultants?

Who?
5

Edward,

14/07/2009 01:37:45
Des Browne and Jim Murphy can postulate all they want, Diageo are making hay while they can.
Fact is, if Scotland were an Independent country, it would be in a stronger position to protect its drink industry along the same lines that France does
6

Pretzel Logic,

14/07/2009 03:01:59
#5

Would make not the smallest bit of difference in this case.
7

donald,

glasgow 14/07/2009 06:07:54
It would be beyond the politics of the Thatcherite Labour London Government to seize the assets of the Guinness/ fraudsters, thieves and crooks. Office boys in Ben Dover House, London, England don't count and will do as they are told. We all know which country and which class they serve and it is not Scotland or the residual working class
8

Itchy,

14/07/2009 08:10:48
#7 yes, let's loot the rich. Marxist pig ignorance rules.
9

Itchy,

14/07/2009 08:11:40
#7 I bet you think Socialism benefits the working class.
10

tartangladbach,

edinburgh 14/07/2009 08:13:09
so jim "jimmy" murphy trys to save johnnie walker's, meanwhile his boss gordon "maggie" brown keeps promoting globalisation as a good thing for jobs?? so when all scotch whisky brands are produced in india and gordons living and working america with the blairs, saying how proud he is of his heritage, and jimmy's working for the paisley cooncil, will we still here how good the labour party have been for scotland?
11

It's life but not as we know it,

The Ooort Clouds 14/07/2009 08:24:15
Scottish Enterprise, Highlands and Islands Enterprise and all of the rest of these pen-pushing money wasting quangoes should simply be scrapped.
12

JayJay,

Right here 14/07/2009 08:29:14
Yes, despite a cast of thousands and hundreds of millions of pounds of public money, we find once again that the mighty Scottish Enterprise doesn't employ anyone who can do anything and has to resort to "external consultants" (step smartly forward PWC or E&Y, collect £100k for a pointless report) to tell them what to do.
Since Diageo's management has made it perfectly clear that they are riding off into the sunset, even to the point of cack-handedly putting up a planning application to turn part of the site into flats, the only thing that could possibly change their mind is great wodges of government cash. And since that isn't going to be forthcoming, you have to wonder what marvels could be contained in a consultants report that is going to change the business case that you can bottle this stuff far cheaper in some third'ish world, non-unionised location.
I appreciate you might have to be seen doing something, but these tales tend always to have the same outcome. Throwing a bung at a major accountancy firm to attempt to change a done deal seems to me to be money that could be better spent elsewhere.
13

,

14/07/2009 09:00:18
Comment Removed By Administrator
Reason:
14

11 Ron,

14/07/2009 09:26:32
Point of fact - whisky is protected by law, like champagne.

#7, #11 -

If it weren't for Globalisation there wouldn't be a whisky industry, and certainly no Johnnie Walker. There's 16.5m cases of Johnnie sold around the world and only 50k cases sold in the whole of Britain.

More than 90% of all malt goes into blended whisky and nearly all of that is exported.

Scotch whisky is the UK's biggest food export.

Scots drink far more vodka than whisky - ratio is something close to 3:1.

Even historically John Walker launched into global sales using ships captains as agents - the square bottle came about so he could pack more into a smaller space and with less breakages.

My point.....there is great shame in the loss of jobs, the impact on Killie will be huge, possibly devistating. But lets not turn this into some Edinburgh v London, Unionist v Nationalist, Socialist v Capitalist debate. It's disrespectful of those who are directly hit by this and incredibly ill-informed.
15

The Strategist,

14/07/2009 11:59:09
Scottish Enterprise chairman Crawford Gillies spent most of his working life as a management consultant so I'm sure he's got lots of chums in that sector he can call upon.
16

Playground Monitor,

14/07/2009 12:21:49
Let me see:

Total take from Scottish Business Rates: £0.5Bn

Cost of Scottish Enterprise: £0.5Bn

Does anyone else see a solution which would provide a big boost to Scottish business (or remove a giant millstone from around its neck)?
17

Eve,

Scotland 14/07/2009 12:30:24
#15 11 Ron: "My point.....there is great shame in the loss of jobs, the impact on Killie will be huge, possibly devistating."

It's way passed being a great shame, job loses are truly divesting and depressing on those of us who are already looking for work. The loss of 900 jobs will have a massive impact on our country after all its no just Diageo who are making hundreds redundant.

And I very much doubt that they will stop with the job loses after they close these factories and lose these jobs. In most organizations the redundancy are flowed by more redundancies in the future. Sometimes it's only a year or two later before they announce more others it's been only a matter of months.

Whilst I agree that it's no a issue of Edinburgh v London, Unionist v Nationalist.

I totally disagree with you when you say it's no about "Socialist v Capitalist" Diageo can afford to splash out millions in sport sponsorships, These people they are sponsoring are the elite and already have money.

No organsation should be allowed to sponsor such luxurious sporting events when they are making people redundant. Cause they should be useing that money to keep their employees employed. Especially at these times of recessions.

How on earth can you claim that Capitalistism doesnae come in to it, when it's at the deep route of the problem, here.
18

Kobi.,

14/07/2009 12:31:33
#17

Is that not the Scottish Tory policy?
19

Playground Monitor,

14/07/2009 12:51:57
#19

If it is, they've got my vote!
20

Black Sabbath,

14/07/2009 16:26:19
#11 " when all scotch whisky brands are produced in india "

You cannot produce Scotch in India. Even if it were legally possible, India has the wrong climate to produce whisky.

Your post is pure ignorance.
21

Black Sabbath,

14/07/2009 16:29:26
#15 "Socialist v Capitalist debate"

Why not? Socialism is a total failure.

What would help the whisky industry is an old measure known as TAX CUTS. No chance of that though.
22

The Former Mr. Angry,

Perth 14/07/2009 21:34:32
I thought Scottish Enterprise was comprised of consultants who could step in and advise in situations like this. At that rate once another cupboard has been filled with reports saying what the commissioning body wanted to hear the end result will be "give me your watch and I'll tell you the time". In this case it's "time's up".

 

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