The former Motorola plant will house the new tax office
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The Inland Revenue is to create more than 500 jobs at a new call centre in West Lothian.
From next year, it will base its tax credit division in the former Motorola factory at Bathgate, which closed in 2001.
About 300 existing staff based in Livingston are also to transfer to Bathgate.
West Lothian Council has been trying to attract public sector jobs to the area and have been particularly keen to see the former Motorola factory re-occupied.
The plant closed two years ago with the loss of almost 3,000 jobs.
More than 1,000 jobs were also lost when electronics firm NEC to shut its Livingston plant soon after.
However, the area's unemployment rate at 2.6% is below the average for the UK.
West Lothian Council is confident that there is enough quality labour available in the area to make a significant contribution to the Inland Revenue's staffing needs.
Willie Dunn, the council's economic development spokesman, said: "It is a good day for West Lothian and in particular for the people of Bathgate.
"We have been campaigning for more government jobs to come to West Lothian for a long time. We have got the lowest percentage of government-based jobs in Scotland."
He said the new site would be the main centre for processing pension credits for the whole of the UK.
Prison plans
"It is high-end jobs, well-paid and secure for the long term," Mr Dunn said.
The choice of the former Motorola factory as the base for the new operation was very significant, he said.
"For us this is the icing on the cake. This sends out the message loud and clear that West Lothian is back and we are a good place to do business," Mr Dunn added.
The council also hopes that 400 jobs will be created if plans for a new prison for 700 inmates at West Calder get the go-ahead.
It is seeking to reach agreement with the Scottish Prison Service (SPS) over the sale of the 50-acre Addiewell site.
Mr Dunn said he expects a planning application and environmental impact statement to be submitted soon.
An SPS spokesman said: "Discussions are still ongoing but this new prison would relieve the pressure of overcrowding on other central belt prisons and reduce slopping out.
"Exactly how many jobs there'll be will depend on whether it is a public or private prison, but it's fair to say hundreds of jobs will be created."