Meeting of the Parliament 18 May 2017
I welcome today’s debate on PACE. In 2015, the chamber praised the positive efforts of PACE in responding to redundancy situations. I know that since then, as we have heard in the debate, many improvements have been made to the service. I, for one, am particularly pleased to see that 80 SDS staff now work alongside jobcentre staff to enhance the work of PACE. A national helpline, a revamped website and improved information services have also increased the visibility and accessibility of PACE services for employers and individuals.
Those enhancements have enabled a change in the strategic focus of PACE, which was initially set up to target large-scale redundancies. Now that it has more dedicated staff and more accessible services, PACE can open its doors to more individuals and employers, particularly in rural areas such as my Dumfriesshire constituency where, in the past, small-scale job losses have not been seen as being as important as larger-scale ones in big companies in the central belt.
Such improvements have been very much welcomed, particularly last autumn, when Penman Engineering Ltd entered administration. It had been in operation locally since 1859 and was one of the area’s biggest employers. It was threatened with closure, and losing such a historic firm looked as though it would be a hammer blow to the local economy. Wave after wave of redundancies came, and the workforce shrank from 140 employees to a skeleton crew of 15. That was devastating news for our local economy and a deeply distressing time for the families who relied on the jobs at the site.
From the outset, PACE offered a quick and efficient response. Relevant assistance and guidance were immediately offered to all those who were affected by redundancy. Now that I have the opportunity, I particularly thank the minister for the advice and support that he gave me as a member during the first major round of job losses in my constituency. PACE really made a difference.
The service does not operate in isolation. It is a partnership of 22 organisations that co-ordinate a response to redundancy situations such as the one at Penman Engineering. As one of those partner organisations, Scottish Enterprise, which worked closely with the administrators, was vital in turning around the fortunes of Penman Engineering. The speed of the turnaround was remarkable. In September last year, the firm entered administration. In October, it started a search for a suitable buyer and by November new owners were secured. Since then, contracts have grown and the workforce has already risen to 67 employees. Every step of the way, every effort has been made to re-employ the old workforce. That is very important in a rural area such as Dumfriesshire where there are not all that many similar opportunities for those who have the particular engineering skill sets of that workforce.
It was undoubtedly true that the efforts of PACE and its partner organisations were constructive in Dumfries at that time just as they are across Scotland. That said, expectations need to be managed. Despite the general success of the initiative, it is possible for PACE to improve its redundancy support services. As we have heard from other members, the findings in the 2016 PACE client experience survey point towards a number of recommendations. A quarter of clients who used the PACE services felt that the introductory presentation and information guide came too late in the process. That needs to improve, because clients need to know how to access redundancy support as soon as possible. Further to that, awareness of the online PACE services and telephone helpline remains relatively low. If PACE is to satisfy the growing need among many for follow-up help, much improvement is needed in the promotion of the services. I hope that today’s debate goes a little way towards doing that.
Beyond improvements to the PACE client experience, the Scottish Government must also do more to drive investment, growth and business support. I must stress again that the good efforts of PACE are made all the more possible by the work of its 22 partners. I hope to see a 23rd partner very soon through the creation of a new south of Scotland vehicle that I hope will complement PACE’s work and tailor its services to support the specific and recognised local needs and economic challenges.
I also hope that a new vehicle will be able to work alongside the proposed borderlands growth deal that was announced today in the Conservative manifesto for the UK general election. That will help to create a stronger, more resilient and dynamic local economy. Through that, I hope that we can reduce the risk of future redundancies and deliver a broader mix of high-skilled and well-paid employment, particularly in traditional textile towns such as Langholm, where industrial activity has been in decline in recent years.
In closing, I wish to join Dean Lockhart in calling on the Scottish Government to follow the advice of leading organisations by co-operating with the UK Government’s industrial strategy. Co-operation is needed from all levels of government if businesses are to plan ahead for future trends in the economy. As Scottish Chambers of Commerce stated yesterday,
“Scottish businesses are competing on a global basis and need the co-ordinated support of all levels of Government to give them the edge to enable business to create high quality employment opportunities for all.”
Although PACE has been generally successful, the Scottish Government must do more to support the Scottish economy by co-operating with the UK industrial strategy, offering its full support to the borderlands growth deal, and delivering on the long overdue promise of a south of Scotland skills and enterprise agency.
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