Swinney pledges extra £25m for Grangemouth and calls for matched funding
The First Minister said the Labour Government must ‘do what it said it would do before the election’.
John Swinney has pledged a further £25 million to secure a “just transition” for Grangemouth, calling on the UK Government to match the Scottish Government’s funding.
The First Minister said the Labour Government must “do what it said it would do before the election”.
However, he praised the recent discussions he has had with Labour ministers Ed Miliband and Michael Shanks on the future of the industrial site.
Earlier this month, redundancy letters were sent out to staff at the oil refinery owned by Petroineos – with some 65 of around 500 jobs expected to be retained.
It was announced last year that the central Scotland facility would close and transition to become an import terminal, as Petroineos reported massive losses at the refinery.
A £1.5 million report into the feasibility of Grangemouth becoming a low-carbon energy hub, known as Project Willow, is due to be published by the end of the month.
John Swinney announced the new funding in a statement to the Scottish Parliament on Tuesday, saying it would come from ScotWind revenues in a budget amendment.
Mr Swinney said: “Any redundancy, whether voluntary or compulsory, is a matter of deep regret.
“That is particularly so given that this government believes that refining at Grangemouth should continue, that this closure is premature, and that it is detrimental to Scotland’s transition to net zero.”
A careers fair will take place on March 6, he said, with 19 companies taking part.
He said the additional £25 million for the Grangemouth just transition fund would take the Scottish Government’s total investment for the site to £87 million.
This new money will expedite any proposals which come from Project Willow, he said.
The report is examining other industries which could exist on the site such as plastics recycling, hydrogen production and sustainable aviation fuel.
He said collaboration with Energy Secretary Mr Miliband would continue, but he urged the UK Government to at least match the Scottish Government’s just transition fund.
The First Minister said: “We need the UK Government to do at least the same and deliver a fair amount to avoid significant economic disruption in central Scotland, and to protect and promote Scotland and Grangemouth’s future interests.
“In short, we need this Labour Government to do what it said it would do before the election.”
The recent UK Government’s recent growth deal money does not recognise the urgency of the situation, he said.
Scottish Conservative leader Russell Findlay welcomed the funding announcement but blamed the Scottish Government for creating a “hostile environment” for fossil fuel firms.
He said: “I find it remarkable that in a statement of around 1,600 words the words ‘oil and gas’ were not even mentioned once.
“The truth is that the party who used to champion Scotland’s oil now seem to regard it as a dirty word.
“Grangemouth workers know that the anti-oil and gas sentiment from the SNP in Edinburgh and Labour in London has been fatal.”
Scottish Labour leader Anas Sarwar said he and the First Minister shared a “deep frustration” with Petroineos over its decision to close the refinery, despite attempts to keep it open.
But he added: “Governments have known of the company’s intentions for five years but failed to put plans in place.
“But over the past seven months the UK and Scottish governments have worked collaboratively to deliver the Falkirk and Grangemouth Growth Deal, joint working on Project Willow and joint attempts to secure incomes for workers for the next 18 months.”
Responding to the First Minister’s statement, Scottish Secretary Ian Murray said it was the Labour Westminster Government which had provided a sense of urgency on Grangemouth.
He said: “We will consider the announcement today in detail, and set out our own next steps in due course.
“When Labour came to office last year, there were no plans for Grangemouth. Within days the UK Labour Government approached the Scottish Government to put together a package of measures.
“This included £100 million for the Falkirk and Grangemouth growth deal, which will deliver more than £628 million in economic benefits and create 1,660 jobs.
“The UK Labour Government is also putting £26 million into the Forth Green Freeport, with Grangemouth at its heart, to attract investment and well paid, quality jobs to the area.
“Project Willow, a jointly-funded study looking at a long-term sustainable future for the site, was commissioned within days of Labour taking office.
“It could have been commissioned months beforehand, but only got the green light after Labour won the election.”
STUC general secretary Roz Foyer said: “This is not insignificant funding from the Scottish Government, but for the workers who face redundancy in the coming months, it is still too little too late.
“The Scottish and UK Government have known for months if not years that workers are facing redundancy. Political inaction has let them and their families badly down.”
A Petroineos spokesman said: “The first phase of Project Willow is now complete and has set out clearly for governments at Holyrood and Westminster the scale and nature of the low-carbon manufacturing opportunities that could be pursued at Grangemouth.
“It is an enticing blueprint, but it will only become more than that through a series of enabling actions by both governments, in the shape of policy and financial support.”
