Posted: Tue Aug 25, 2009 3:31 pm Post subject: £75 Million For Tax Payers To Bail Out Diageo
I saw this in The Sun online:
Quote:
TAXPAYERS could bail out whisky giant Diageo with £
Consultants BDO Stoy Hayward say Diageo could switch production from its doomed plant in Kilmarnock and build a new one on a greenfield site on the edge of town.
But it would need massive subsidies and the knock-on effect throughout Scotland would mean just 60 posts would be saved from the hundreds the firm is planning to axe.
Finance Secretary John Swinney blew £100,000 on a report from consultants hired by the Scottish Enterprise business agency designed to fight the closures.
But it agrees with whisky bosses that the jobs are just too expensive to save.
After meeting Diageo bosses and campaigners, Mr Swinney insisted: "This meeting is a crucial step forward and demonstrates the substantial case against Diageo's proposed job cuts in Scotland is gaining real momentum."
Kilmarnock MP Des Browne said: "It is clear that bottling whisky can continue in Kilmarnock.
"It will have a cost but that cost is much less than the cost of closure."
But a Diageo source said: "Yes, there appears to be another option - but at a massive cost."
And a Diageo spokeswoman added: "We welcome this thorough report."
To me this makes no sense if all that is saved is 60 jobs, surely the government cannot be considering this, £75 million to save 60 jobs. This would mean a cost of £1.25 million to save each job, it makes no sense. Surely the £75 million could be better spent helping all 700 workers at the Kilmarnock plant, such as subsidising new businesses to start up in the area.
Joined: 02 Nov 2006 Posts: 2217 Location: USA - Formerly Scotland
Posted: Tue Aug 25, 2009 11:44 pm Post subject:
I agree Gregor spending that amount to save only 60 jobs makes no sense whatsoever.
To me Diageo has already made the decision and is simply being polite listening to suggestions. It is a damn shame Diageos profit comes first before the lives of the hundreds they are laying off but that is the way of the world i suppose.
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