THE Scotland Office has said it is “categorically untrue” to suggest the UK Government had offered Young’s Seafood a £1.3 million “incentive” to close the Pinneys of Scotland plant in Annan and move production to Grimsby.

Young’s Seafood said on Thursday there was no “viable alternative” to shutting the factory, and that it would close by the end of the year with the loss of at least 450 jobs.

But questions were asked of the UK Government after it was revealed on the Wings Over Scotland site that the company had been awarded £1.3m to help safeguard 250 jobs and create a further 200 roles in Grimsby.

South Scotland Labour MSP Colin Smyth told Westsound News that Secretary of State for Scotland David Mundell had questions to answer.

He said: “It is clear that as long ago as 2015, Young’s had decided to consolidate their operations in the north of England, and the successful application to this UK Government fund has swayed their decision to retain their full operations in Grimsby rather than at Pinneys.

“At the time of this decision David Mundell had recently been appointed to the UK Government Cabinet and must now explain why his Government moved to secure jobs in Grimsby but not in Annan. It also raises the question – did he know jobs were under threat at Pinneys as far back as 2015?

“The Scottish Government must also explain what they knew about the state of Young’s Seafood Limited and about the decisions the company would take. The Scottish Government have agencies such as Scottish Enterprise to ensure that large employers remain successful but also to monitor those companies in difficulty.

“This revelation shows that Young’s has been struggling for some time which the UK and Scottish governments must have been aware of, yet neither provided any major funding to retain jobs in Annan."

The funding, which was provided by the then UK Government Department for Business, Innovation and Skills was awarded to Young’s Seafood after a successful application to the “Developing the UK’s Leading Food Manufacturing Cluster in Greater Lincolnshire” plan.

A spokesman for the UK Government has now disputed the claims: “In 2015 Young’s Seafood was granted funding from North-East Lincolnshire Council via the Regional Growth Fund to deliver training at a plant in England.

"Training is a devolved issue, and we understand Young’s also sought similar funding from the Scottish Government for their Fraserburgh site.

"No application was made to the UK Government for funding for the Pinneys site. ‎

“Young’s has confirmed that this grant for training in 2015 is entirely unrelated to their present decision on the Pinneys plant in Annan. It is categorically untrue to suggest that the UK Government supported jobs in Grimsby at the expense of those in Annan.

"David Mundell is doing everything possible to support the workers at Pinneys and help find a new future for the site.”

A spokesperson for Young's Seafood also denied any link, saying: “In 2015/2016 we lost a significant contract at our Fraserburgh site and considered closing the site. Instead, following consultation, we kept the site open and transferred some volume to one of our Grimsby sites. During the process, we secured some funding to train our existing employees in Grimsby. This took place 3 years ago and has no impact on the situation with Pinneys today.

“The benefit of funding Young’s Seafood secured in 2015/2016 has no bearing on the present decision regarding our Pinneys site. We are in consultation at our Pinneys site because the two major contracts we had there were no longer financially viable leaving a site more than half empty with very little work.”