ALEXANDER Dennis bosses asked the Scottish Government for “assistance” in setting up a meeting with UK officials ahead of an announcement that 400 jobs were at risk.
A briefing note sent to Scottish Government officials by employees of Alexander Dennis, just weeks before the bus manufacturer announced plans to move operations to England, said that they had struggled to secure a meeting with UK Government officials.
The document, released through Freedom of Information disclosures, was sent to officials ahead of a meeting between bosses at Alexander Dennis, First Minister John Swinney, and Deputy First Minister Kate Forbes on Sunday May 25.
Alexander Dennis agreed to postpone the closure announcement scheduled for May 28 while the Scottish Government worked with them to find a solution.
The news that the Falkirk factory was facing closure, while the head office in Larbert would remain open until contracts were completed, broke on June 11.
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During this pause, Alexander Dennis had a phonecall with the Minister for Industry, Sarah Jones.
In September, Alexander Dennis announced it would no longer be shutting its Falkirk and Larbert sites after a £4 million furlough scheme was put in place by the Scottish Government.
Scottish Secretary Douglas Alexander claimed the UK Government has been “leading intensive work” on saving jobs at Alexander Dennis – despite the bus firm's announcement making no reference to his claim.
And, it has now emerged that in the early stages of jobs being at risk earlier this year – Alexander Dennis struggled to get a meeting in the books with UK officials.
Under the heading “UK Government engagement” on May 25, the briefing document states: “We do not yet have a meeting in diaries with UK Government despite our efforts, any assistance would be greatly received given the severity of the situation.”
Minutes of the meeting show that Swinney told Alexander Dennis the threat of job losses was of “enormous concern” and “asked what alternative proposal would be considered to avoid this decision”.
Paul Davies managing director at Alexander Dennis and Paul Soubry, president and CEO, of NFI Group Inc, the firm’s parent company, were present at the meeting with Swinney and Forbes.
Davies and Soubry agreed to a request from Swinney and Forbes to “delay any decision for two weeks reiterating the key challenge of demand, efficiency and urgency”.
A briefing document ahead of a further meeting between Alexander Dennis bosses and the First Minister and Deputy First Minister said there were only “two actions which could potentially influence NFI parent to reconsider the decision”.
The two options were an “immediate sizeable bus order” to “alleviate immediate pressures”, or for the UK Government to impose tariffs on foreign imports and give Alexander Dennis and the wider bus sector an “exemption in the UK Subsidy Control Act, allied to a series of targeted public sector intervention towards ADL order book”.
A summary of the call with the UK’s Minister for Industry, on June 4, stated that: “The Minister shared that there were overlapping issues with UK steel procurement and that the UK Government was looking at options for procurement change.
“The clean industry bonus was mentioned as a method of incentivising UK spend but no commitment to expand this further.”
It added that Jones said she would raise the issue with the Secretary of State for Scotland, then Ian Murray, and the Minister for Local Transport “to find out what the current thinking was and if any distress support measures were being considered”.
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In a letter to Swinney and Forbes, Murray said that he would “be writing to local leaders across the UK to encourage them to support British bus manufacturers with future orders”.
He asked what “options were being explored” by the Scottish Government and “if there were ways in which UKG and SG could work together on a solution”.
Following the Scottish Government’s £4 million furlough announcement in September, current Scottish Secretary Alexander claimed the UK Government was the leading force behind the plans, while Minister for Energy Michael Shanks congratulated Labour MPs instead of Scottish ministers over the announcement on social media.
However, the Alexander Dennis press release credited the Scottish Government, and did not mention the UK Government’s involvement.
“Today’s announcement marks a turning point. The Scottish Government’s support allows us to propose a new outcome to our statutory consultation today,” the firm said at the time.
The furlough scheme will run for 26 weeks to enable Alexander Dennis to bring manufacturing back online.
The Scottish Government said it would fund 80% of the scheme, with Alexander Dennis providing the remainder.
The Scotland Office has been contacted for comment.
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