Firm denies 'secret' closure plan

About 700 jobs will be lost when the Kilmarnock plant closes

Drinks firm Diageo has denied claims that it had secret plans to turn part of its closure-threatened Johnny Walker plant in Kilmarnock into luxury flats.

The company said staff and unions had been aware for some time of proposals to sell off part of the site.

Diageo described the timing of a recent planning application to facilitate a possible sale as "unfortunate".

Last week the firm announced plans to restructure its business with the loss of up to 900 Scottish jobs.

Newspaper reports on Tuesday said politicians, unions and staff had been shocked that Diageo was planning to sell off part of the Kilmarnock site months before it announced the plant's closure.

We fully accept that the timing of this application was unfortunate but it was driven by the imminent change in legislation Diageo statement

Des Browne, Labour MP for Kilmarnock and Loudoun, described the news as "potentially explosive".

"The discovery suggests the company may have been planning to close the plant for some time," he said.

"If so, they have been pulling the wool over everybody's eyes. It makes me doubt their claim that Diageo discussed possible closure with their staff as soon as they could.

"Selling off the staff car park is only consistent with a plan to shut the plant. You can't consult meaningfully with the work force if you've already made your mind up."

In a statement, Diageo said its property services department continually reviewed land which was no longer required for business needs.

It said: "The land at Balmoral Road was first identified for possible development more than five years ago.

Planning changes

"It was considered to offer long-term potential for redevelopment because it is close to existing housing and therefore unsuitable for expansion of the main Kilmarnock plant.

"The land is currently used for car parking, sports activities and, in addition, there are areas which are undeveloped.

"The trigger for the outline planning application submitted in April was an imminent change in the Scottish Government's planning legislation coming forward under The Planning etc (Scotland) Act 2006."

About 170 jobs will go with the closure of the Port Dundas distillery

Diageo said the planning application had been "communicated to and discussed" with staff and unions and that most of them had "been aware that the issue had been under consideration for many years".

The firm said East Ayrshire Council, which was supportive of the application, also asked it to consider selling a small part of the ground to a neighbouring haulage business which was looking to expand.

Diageo said that "there was also consultation with neighbours who might have been affected by any development of the Balmoral Road land".

The statement added: "We fully accept that the timing of this application was unfortunate but it was driven by the imminent change in legislation.

"The future of the land at Balmoral Road was first looked at more than five years ago and is part of a separate ongoing property review.

'Unrelated' proposal

"Its potential development is completely unrelated to the current proposed restructuring of our operations in Scotland."

Alan Neish, head of planning at East Ayrshire Council confirmed that a planning application had been received from Diageo in April "for a residential development on open space to the rear of the factory".

"Contrary to the report in a national newspaper, the application did not relate to any part of the Johnnie Walker plant but included a smaller area currently used as car parking," he said.

"The proposal was advertised and three objections were received.

Diageo made a profit of £1.64bn in the six months to the end of December

"The council organised a meeting with Diageo which was due to take place last Friday in relation to these significant objections, however, this was cancelled by Diageo following their announcement regarding company restructuring.

"As the application stands it would have been recommended for refusal."

Diageo announced last week that it planned to close its Johnnie Walker plant in Kilmarnock with the loss of up to 700 jobs.

Up to 200 additional posts would also go with the closure of its Port Dundas distillery in Glasgow and other restructuring moves.

The drinks giant said the job losses would be offset by the creation of up to 400 new jobs through the expansion of a packaging plant at Leven in Fife.

'Heritage' product

Meanwhile, on Tuesday a petition was launched by politicians and unions in Glasgow in a bid to save jobs at the Port Dundas distillery.

Patricia Ferguson, Labour MSP for Glasgow Maryhill, said: "Glasgow is furious that Diageo is taking 150 jobs out of our city, closing a distillery that has been here for 200 years.

"There is simply no case for closure. We need to save these jobs.

"Diageo needs to understand that the reason people buy Scottish whisky is because of the heritage and history of the product. Take that away and we are left with little."

A similar petition to save jobs at the Johnnie Walker plant in Kilmarnock was launched last week.