LABOUR have failed to promise a bailout for more than 400 workers at Mossmorran facing redundancy after its oil giant owners announced the site would close next year.
Fossil fuel giant ExxonMobil announced on Tuesday that the Fife Ethylene Plant will close in February – but the UK Government poured cold water on hopes of a British Steel-style rescue.
Scottish Secretary Douglas Alexander said: “This is an incredibly difficult time for the Mossmorran workers and their families.
“The UK Government has explored every reasonable avenue to support the site, but the closure decision is ultimately a commercial one for Exxon, a company which is facing significant global challenges.
“Our focus now must be on supporting the workforce in the months ahead.”
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And in an emergency statement to the Commons on Tuesday evening, industry minister Chris McDonald said the lack of intervention was not a decision the UK Government "has taken lightly".
He said: "Despite tireless, inventive and determined work from both Government officials and Exxon, the challenges facing the site were ultimately insurmountable.
"The decision for Government not to provide financial or bespoke policy support was communicated to Exxon by my right honourable friend the Business and Trade Secretary, but we have of course retained an open dialogue with the company throughout."
SNP MSP for Kirkcaldy, David Torrance, said: "The Labour Government has known this was coming since April but, just like at Grangemouth, has done absolutely nothing to find a solution.
"It seems to be becoming the norm that Labour will step in to save industrial jobs in England but sit on their hands and let hundreds of skilled Scottish workers lose their livelihoods."
The plant, which sits outside of Cowdenbeath, produces ethylene, which is the base material for plastic.
Owners ExxonMobil blamed Britain's "current economic and policy environment combined with market conditions, high supply costs and plant efficiency", saying there was not a "competitive future" for the site.
The UK Government took the dramatic step of holding an emergency Saturday sitting in Parliament to nationalise the Scunthorpe steelworks.
It has allowed other industrial sites such as the Grangemouth oil refinery and the Port Talbot steelworks in south Wales to close.
Willie Rennie, the LibDem MSP for North East Fife, said it would be a "huge blow for workers at the plant and across the wider supply chain".
He added: "It seems like there is lots of talk about a just transition but the governments always end up announcing closures and playing catch-up.
"This is a valuable industrial site with a local workforce who are equally valuable so we need a new plan for the use of the site."
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Scottish Conservative shadow cabinet secretary for business, economy, tourism and culture Murdo Fraser said: “It’s time that both Scotland’s governments stopped passing the buck and worked together to support businesses to thrive, rather than trying to limit the damage after they hit crisis point.
“Mossmorran’s closure will devastate the local economy and the livelihoods of hundreds of skilled workers.
“Other businesses in the supply chain will be hit too, in a region already reeling from the redundancies at Grangemouth.
“By imposing high-tax, low-growth policies and opposing our oil and gas sector, the Labour and SNP governments are wreaking havoc on Scotland’s economy. Our industrial capacity is being hollowed out.
“ExxonMobil specifically blame the economic and policy environment for this closure. As well acting as to limit the damage from this decision, both governments should now use their upcoming budgets to reverse their hostile stance towards industry.”
