Hansard

I am sure that everyone in every party was shocked and dismayed by Motorola's announcement yesterday that it proposes to close its plant at Easter Inch in Bathgate. The news was devastating to the work force and I am sure that everyone will agree that we now have to do everything possible to explore every avenue for a way forward.

Today I will give further details of how we intend to proceed with the clawback of the regional selective assistance payments that were made to the company. I also want to share with members the plan of action that has been put together, including how we proceed with Motorola as a company. I would also like to give some details on the task force that has been set up to deal with the situation and announce some additional funding to support the action that the task force will take.

As members will be aware from comments that were made yesterday, we have been in constant contact over the past few weeks with Motorola, here and in the United States of America. Many people have been involved in negotiating hard with the company, right up to the announcement yesterday, to try and reverse the decision. However, in the final analysis, Motorola decided that the financial benefits of keeping open its German plant outweighed the fact that the Bathgate plant is highly productive and profitable. That makes the decision all the more disappointing.

The decision was on a knife edge, but Motorola has chosen to propose shutting Bathgate. In doing so, it has gone against the very strong track record of the Bathgate operation in terms of the efficiency, profitability and quality of the Scottish work force. Contributory factors—which, as the company has made clear, are very complex—have undoubtedly been the down-turn in the United States, worldwide changes in the mobile phone market and financial issues surrounding Motorola's performance in different markets. However, all of that is cold comfort to the work force at Bathgate.

None of us will give up the fight to save jobs, but it is clear that Motorola's intention is to close Bathgate. We need to plan for that eventuality. Obviously, this is an extremely difficult time for all those affected by the announcement. Our immediate priority must be to secure the best future opportunities for those affected.

I turn first to regional selective assistance. I have made it clear to Motorola that we will take steps to recover the £16.75 million in RSA that we have paid to the Bathgate plant over the past 6 years. That will be the largest ever single clawback of RSA in Scotland. Thereafter, our first priority is to pursue with Motorola future options at the Bathgate site. We need to explore every possible future use of the factory. The First Minister and I discussed that in more detail with trade union representatives this morning. I relayed to the chairman of Motorola in the UK, when we spoke on Monday evening, that that was something we wanted to pursue. My officials have been back in touch about the future of the plant. A meeting has been arranged for Monday between my officials and Motorola to discuss the options for the plant.

There are a variety of options that we want to explore with the company. Although the mobile phone market is difficult, there may be a company that is interested in the premises for the contract manufacture of mobile phones or another related product. Other alternatives include a new employer purchasing the site. We will want to ensure that the best option is secured for the future of the site.

Scottish Executive and Scottish Enterprise officials stand ready to facilitate those discussions on the use of the property and its marketing, and further support for retraining and employment at the site. I understand that there have already been expressions of interest. As the First Minister and I indicated to the unions, all options will be considered. As an aside, in response to those who say that Scottish Enterprise or Locate in Scotland are past their sell-by date, I want to record here that their expertise has been and will be absolutely critical in securing the best option for going forward.

That brings me to the second part of our response. How will we do it differently? The answer is that we are already doing it differently with respect to global companies and there are ways in which that holds out prospects for those affected at Bathgate. Throughout the negotiations, we have made the case to Motorola that, with the arrival of new high-tech facilitlies and more research-and-development intensive facilities on the horizon, it has opportunities in Scotland. Even with the closure of the Bathgate plant, those opportunities will still hold. What are the opportunities for the Bathgate workers in the other 20 or so Motorola facilities throughout the UK? What, in particular, are the opportunities for the Bathgate work force at the two planned new research and development intensive projects in Scotland?

We will be looking for commitments that Bathgate workers will have access to opportunities at the planned software development centre in Livingston and the planned plant in Dunfermline, including the necessary retraining. Despite the decision towards the end of last year to reconsider the timing of the Dunfermline project, Motorola has emphasised to us its underlying commitment to that project as the cornerstone of its future investment and manufacturing strategy in the UK, based upon the next generation of high-tech semiconductor technology.

It will be high-value jobs that bring security for Scottish workers. Competing on commodity products will never make for job security for Scots. For that reason, Scottish Enterprise has for some time been working closely with Electronics Scotland to ensure that Scotland becomes a global centre for microelectronic design and an internationally recognised location for the production of high-value, leading-edge products.

We need to ensure that all the affected staff have one-to-one counselling support through a specially dedicated rapid reaction team set up under our partnership action for continuing employment initiative—PACE. The task force membership will include Scottish Enterprise Edinburgh and Lothian, the Employment Service, West Lothian Council, the careers service, the Benefits Agency, the Scottish Trades Union Congress and the Executive. The task force will oversee the action plan to meet specifically the needs of the Motorola workers. I want an on-site job shop. I also think that we should be looking for a financial contribution from Motorola towards the outplacement costs. I note in passing that Compaq, which I visited last week, has agreed to contribute to the outplacement costs for the workers that it is making redundant. Motorola should do the same. We are also exploring the opportunities for European moneys, and the task force has begun its work.

We in the Executive will also do our bit. We are setting aside up to £10 million to help fund the steps that I have outlined. The actual sum that remains to be spent needs to be agreed in respect of the package of measures that it is spent upon. I am keen to ensure that we spend what is needed in the best way. It is not yet clear what different elements will be required. Perhaps there will have to be property assistance to a new employer on the site, perhaps there will have to be counselling services, or perhaps contractors will be affected.

Yesterday's announcement was a body blow to the work force. We must all now do everything that we possibly can to assist those affected to find new employment. That is the action that we are announcing today, and the first steps in that process have already begun.