HBOS Scottish jobs plan attacked

HBOS is one of Halifax's biggest employers

Apparent moves to protect HBOS jobs in Scotland at the expense of those in England are "totally unacceptable," says Labour's Halifax MP.

Lloyds TSB unveiled its �12.2bn takeover of Britain's biggest mortgage lender after HBOS shares plummeted.

But the takeover document says the focus "is to keep jobs in Scotland".

Linda Riordan said she was shocked when she heard about it and wants a similar guarantee for Halifax. HBOS employs 6,000 people in the area.

HBOS - Halifax Bank of Scotland - has its headquarters in Edinburgh and 17,000 staff in Scotland.

Scottish jobs

There have been suggestions that Labour is looking to shore up support in Scotland, where they recently lost Glasgow East to the Scottish National Party and face another tough by-election in Glenrothes in either October or November.

On Thursday Chancellor Alistair Darling told the BBC: "I can well understand, not least because I happen to be an Edinburgh MP where a lot of my constituents work for HBOS, people will be concerned.

"I have spoken to the bank, not just about jobs, but the need to maintain a very significant presence in Edinburgh, in Scotland."

Scottish First Minister Alex Salmond has also said he would "strain every sinew" to protect as many Scottish jobs as possible.

I want that same guarantee that jobs are looked after in Halifax that they appear to have in Edinburgh Linda Riordan Halifax MP Town fears job losses

A clause in the takeover document reads: "The enlarged group will continue to use the Mound (its Edinburgh HQ) as its Scottish headquarters, will continue to hold its annual general meeting in Scotland and will continue to print Bank of Scotland bank notes. In addition the management focus is to keep jobs in Scotland."

But Mrs Riordan said she was worried by the news as HBOS is the second biggest employer in her Halifax constituency.

"It's vitally important, it will have a drastic effect on a small town that can't just absorb huge job losses," she told BBC Radio 4's World at One programme.

'A big deal'

Asked about the deal to keep jobs in Scotland, she said: "I really am shocked ... I don't want to see job losses anywhere but my main concern has to be Halifax and I want that same guarantee that jobs are looked after in Halifax that they appear to have in Edinburgh."

She said Downing Street had called her on Friday morning and said they would set up a meeting for her with the head of Lloyds and a Treasury minister on Tuesday.

Across the UK he has protected jobs by encouraging and allowing this merger to happen - otherwise the bank goes under Andy Kerr Labour's finance spokesman in Scotland

Of the clause in the document, she said: "That is totally unacceptable to me and I want similar commitments about Halifax, working with the unions. Unite have come out very strongly saying they will not accept compulsory redundancies."

"Halifax is a small town. I live in Halifax and everyone who lives in Halifax knows either someone who works there, or is related to them - that's how big a deal it is for Halifax."

Meanwhile Andy Kerr, Labour's finance spokesman in Scotland, told the programme he was pleased there was "an understanding of Edinburgh as a major financial centre second in the UK after London, that requires that degree of support during a very difficult time".

But he said Susan Rice, chief executive of Lloyds TSB Scotland, had made no firm commitments about job numbers or locations - which would only become clear over the coming months.

He said: "We need to ensure that across the UK, and that's what the prime minister has done, across the UK he has protected jobs by encouraging and allowing this merger to happen - otherwise the bank goes under."

A spokesman for HBOS said it had already had "a constructive discussion" with Minister for Yorkshire, Rosie Winterton, and it was "still very early days in this transaction".

He added: "The group has a long and proud heritage in Yorkshire. We have a proven record of carefully managing our responsibilities in every community we operate in. We will continue to do this as sensitively as we can."

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