Double blow for Scottish jobs

Mitsubishi will stop producing colour TV sets at the plant on July 4

Two companies based in Scotland have announced they are to shed a total of 900 jobs.

Japanese electronics giant Mitsubishi is closing down its television production plant in Haddington, East Lothian, with the loss of around 550 jobs.

Computer firm Fullarton's is continuing in business, but is laying off 350 workers at its plant in Gourock, Renfrewshire.

Politicians described the announcements, which came shortly after each other, as a "disastrous day for the Scottish economy."

They called for the government and job creation agencies to concentrate more on a strategy which broadened Scotland's economic base so the country relied less on electronics and hi-tech investment.

Mitsubishi staff were given the day off after the news was broken that the plant was to close.

Managers tried to soften the blow by stressing the decision to shut down was not a reflection on the quality of the staff.

The firm blamed falling profits and orders for the closure that will, according to reports, double the town's unemployment rate.

Asian crisis blamed

Fullarton's managing director Alan McLuckie said his firm had suffered because the computer industry had hit a "soft patch".

He blamed the Asian financial crisis and the strong pound for the situation but predicted that, by the end of the summer, the industry would have picked up again.

"We are not happy about the situation but it has not come as a surprise to us. We have seen this coming since January.

"We are still optimistic about the future in this market-place but we have to re-organise the business."

Fullarton's recently laid off 250 staff at its headquarters in Kilwinning, Ayrshire.

'Disastrous day'

The Scottish Liberal Democrats' Industry spokesman, Michael Moore, MP, said the Scottish economy had to be broader-based to cushion it against such job losses.

He said: "Coming hours after Mitsubishi's announcement of job losses in Haddington, this completes a disastrous day for the Scottish economy.

"Clearly what is needed is a serious effort by all agencies, from the government to the Local Enterprise Companies, to promote a long-term strategy for broadening the base of the Scottish economy.

"At the moment our over-reliance on electronics companies means that when they suffer, Scotland is left very over-exposed.

"Unfortunately, today we have seen two very clear examples of that."

Residents and retailers in Haddington said the closure would turn the town into a "ghost town."