SCOTTISH Labour have summarily dismissed calls to back the nationalisation of Grangemouth after the area’s SNP MSP penned an appeal to group leader Anas Sarwar.
Michelle Thomson, whose Falkirk East constituency includes the Grangemouth site, urged Sarwar to come good on pledges he made before the General Election that Labour would “step in to save the jobs at the refinery”.
Scotland’s last oil refinery is jointly owned by PetroChina and Ineos, who announced plans to shut the Grangemouth refinery last year. It was confirmed in recent weeks that 377 workers have accepted voluntary redundancy, with a further 28 compulsory redundancies.
Meanwhile, in Scunthorpe in England, the threat of the collapse of British Steel and the UK’s only working blast furnace led Labour to step in with emergency legislation, taking UK Government control over the site.
Thomson said that Labour’s actions south of the Border had raised questions about Sarwar’s repeated assertions that there was nothing to be done about Grangemouth because it was run by a “privately owned company”.
The MSP said that people were coming to the conclusion on the different approaches of the UK Labour Government towards British Steel and Grangemouth that “the only reason Westminster is not offering parity of treatment, is geography”.
That reflected comments from First Minister John Swinney, who on Monday suggested that Labour would have nationalised Grangemouth if it were in England.
In her letter to Sarwar, Thomson drew comparisons between Labour and former Tory prime minister Margaret Thatcher, who oversaw the closure of historic industries across the UK, and urged Sarwar to back nationalisation of the Scottish refinery.
“The Chinese company, Jingye, in Scunthorpe is reporting losses of around £700,000 whereas PetroChina, at Grangemouth, reports losses of around £500,000.
“Your Labour Government plans to capitalise Scunthorpe for up to £5 billion – 25 times the amount being set aside for Grangemouth with the paltry £200 million [pledged by Keir Starmer at the Scottish Labour conference] being loans or equity for projects that meet National Wealth Fund criteria.”
Thomson went on: “Scunthorpe is the last UK facility capable of producing virgin steel while Grangemouth is Scotland’s only oil refinery. The closure of both increases dependency on imports during a period of tariffs and trade wars.
“Both have a significant impact on supply chains with Scunthorpe providing the majority of rail tracks whereas Grangemouth is the primary supplier of aviation fuel for Scotland's main airports.
“Both have cited the recent spike in energy costs as contributing to their financial situation, costs which you also promised prior to the UK election that a Labour government would bring down.
“It would appear the only reason these sites are not comparable, and why Westminster is not offering parity of treatment, is geography. One site is in England, the other is in Scotland.”
Responding in place of Sarwar, Scottish Labour’s economy spokesperson Daniel Johnson made clear the party would not support nationalisation.
“For over a decade, the SNP government has ignored the mounting challenges at Grangemouth and not once did any of them utter the word nationalisation until now.
“This is yet another cheap attempt to grab a headline from the same MSP who not long ago claimed she’d found a mystery buyer for the site.
“While the SNP are busy manufacturing grievance, Labour are stepping up to secure a future for this crucial site.
“The SNP and the Tories sat on their hands for years, but within months, this Labour government has pledged £200m to secure Grangemouth’s industrial future.
“From investing in Grangemouth to protecting British Steel, this Labour government is standing up for workers and industry.”
The Project Willow report – which was funded by the Scottish and UK Governments – set out nine main options for the future of the Grangemouth site, which fell into three broader categories: waste recycling, bio-feedstocks, and offshore wind conduit projects.
The report said that around £3.5 billion in private investment will be needed.
Scottish Labour MP Brian Leishman, who represents Grangemouth at Westminster, had previously seemed to back nationalising the site.
“The PM recognises the strategic importance of Scunthorpe steel, he really should do the same for Grangemouth oil," he said.
On Monday, First Minister Swinney said the Scottish Government did not have "adequate" resources to nationalise the refinery itself.
