By Suzanna Kerridge, 26 April 2001 16:50
NEWS Wendy Alexander, Scottish Minister for Enterprise told the Scottish Executive that everything possible must be done to assist those affected and help them find new jobs. The team working with the government includes the Scottish Enterprise Edinburgh and Lothian, Employment Service, West Lothian Council, the Careers Service, Benefits Agency and the Scottish Trade Union Congress. Alexander claimed it was undecided how the money was to be spent. Financial aid from the EU was another option being explored. However, she said she wanted an on-site jobshop and a financial contribution from Motorola towards the outplacement costs. Compaq has agreed to this for workers being made redundant and Motorola should do the same, said the Minister. Reiterating her dismay at Motorola's decision, Alexander called the announcement a body blow to the workforce. A meeting between Scottish Executive Enterprise officials and Chris Galvin, chairman at Motorola UK, has been scheduled for Monday where they will discuss various options. Resolutions include offering the premises for the contract manufacture of mobile phones or a related business or selling the site. Motorola decided that the financial benefits of keeping the German plant open outweighed the fact that Bathgate is productive and profitable. Under German tax law Motorola's loss making Flensburg plant is allowed to carry losses forward and offset them against future profitable years. This means the company could end up paying no tax in its profitable year.
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