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Last Updated: Tuesday, 17 February, 2004, 12:40 GMT
Minister pledges brewery support
Beer pumps inside a pub
About 170 people are currently employed at the plant
Enterprise Minister Jim Wallace has promised to support those affected by the closure of Britain's biggest brewer.

A total of 170 jobs are to be lost after Scottish & Newcastle announced it is to close its Edinburgh plant.

Opposition MSPs have called on the Scottish Executive to help businesses with similar problems to prevent further job losses elsewhere.

High fixed operating costs are among the reasons behind S&N's decision.

Enterprise Minister Jim Wallace vowed everything would be done to get new jobs for the affected workforce.

He said: "I deeply regret that, after so many years of production, Scottish Courage have decided to close the brewery.

"From our discussions with the company it is clear they recognise the contribution the workers have made to the company over the years.

"This will be terrible news for the individuals affected and the executive will do everything it can to support them at this difficult time."

He added: "My colleague, Lewis Macdonald, has been in discussion with the company and I intend to speak to the unions to see what additional help the executive may be able to offer."

Jim Wallace
Mr Wallace is to meet with unions to discuss how the executive can help
The Scottish National Party's economy and enterprise spokesman Jim Mather said the brewer's decision may be part of a wider problem.

The Highlands and Islands MSP said: "This will come as a massive blow to the workers at the Scottish & Newcastle plant in Edinburgh.

"This is yet another example of organisations slimming down their operations in Scotland.

"We have already seen the manufacturing industry making massive cuts to the workforce across the country and I hope that this announcement is not a sign of worse things to come."

He added: "The Scottish Executive must start taking Scottish business seriously, otherwise the worry is that the jobs market will continue to decline even further."

Scottish Conservative Party spokesman Murdo Fraser called for a reduction in business rates to below the English level to give Scottish firms a "competitive advantage".

He said: "Whilst it is not for politicians to interfere in the business decisions of private companies, I hope that Enterprise Minister Jim Wallace is in touch with S&N about this announcement.

"Scottish and Newcastle are paying high levels of business rates and water charges on this site and I hope that this has not been a factor in the decision to close the brewery.

"Both are far too high across Scotland and Mr Wallace will need to examine whether they played a part in this news.

"There is no doubt that fixed costs play a role in the viability of a business and that in some cases the opening or closing of a factory or business premises will be influenced by the relative levels of rates and charges between one part of the country and another."


SEE ALSO:
Brewer to close Edinburgh plant
17 Feb 04  |  Business
S&N 'to shut heartland breweries'
16 Feb 04  |  Business
UK brewer 'hopes to tap China'
12 Dec 03  |  Business
Brewer S&N reports 8% profit rise
02 Dec 03  |  Business
Brewers bow out of the pub
06 Oct 03  |  Business


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