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”.
Earlier this month, redundancy letters were sent out to staff at the oil refinery owned by Petroineos – with only 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 £1.5m 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.
The First Minister announced the new funding in a statement to the Scottish Parliament on Tuesday, saying it would come from ScotWind revenues in an amendment to the Scottish Budget.
“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.
Swinney said the additional £25m for the Grangemouth just transition fund would take the Scottish Government’s total investment for the site to £87m.
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 the UK Government’s Energy Secretary Ed Miliband would continue, but he urged the UK Government to at least match the Scottish Government’s just transition fund.
Swinney 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.”
He added that the recent UK Government’s recent growth deal money does not recognise the urgency of the situation.
‘Scottish Labour have been missing in action’
SNP MSP for Falkirk East Michelle Thomson reiterated calls for the UK Government to match the funding pledged by the First Minister.
Thomson (below) said: “I am pleased that the Scottish Government has today announced concrete action to improve the future for Grangemouth and its workforce.
“The closure of the refinery could have a devastating impact, and Labour – despite promising to save Grangemouth – have been missing in action since entering government last year.
“However, with limited powers and a fixed budget, the Scottish Government is working to build a secure and sustainable future through the Grangemouth Just Transition Fund, worth £25m on top of the £7.8m already provided in the budget.
“The Labour Government at Westminster must match this action – having invested hundreds of millions in similar projects across England – to ensure the survival of Grangemouth and protect the livelihoods which depend on it.”
Meanwhile, Scottish Greens MSP for Central Scotland Gillian Mackay said Labour had “simply got people’s hopes up and walked away”.
Mackay (below) said: “This is a welcome announcement from the Scottish Government, but it needs to be backed up by resources and a plan from the UK Government.
“The reality is that the biggest decisions have to be made in Westminster. Labour promised that they would protect jobs but since taking office they have done nothing of the sort. They simply got people’s hopes up and walked away.
“Grangemouth is my home, and it has been infuriating to watch promises being made and then dropped. People in the town have been let down so many times already and a lot of them are feeling abandoned.
“Even at this late stage, I urge the UK Government to apply every lever available to ensure that the community is protected and that we can keep people and skills in Grangemouth.”
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.”
Meanwhile, Scottish Secretary Ian Murray said the First Minister’s announcement was “made possible by Labour’s austerity-ending Budget which delivered £4.9 billion extra for the Scottish Budget”.
He added: “At every step of the way, it has been Labour that have driven a sense of urgency to Grangemouth.”
