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Page last updated at 20:30 GMT, Wednesday, 15 July 2009 21:30 UK

MPs told of Diageo closure plans

Diageo's Kilmarnock packaging plant
Diageo aims to close its Kilmarnock packaging plant by 2011

MPs in the House of Commons have heard there are few families in Kilmarnock who are not connected to the Johnnie Walker plant.

During a debate on Diageo's closure plans, Kilmarnock MP Des Browne said the plant "dominated" the town.

About 900 jobs are threatened by the plans to close the bottling plant in Kilmarnock and the Port Dundas distillery in Glasgow.

Alex Salmond earlier signed a petition against the move.

During a visit to the Kilmarnock site, the first minister Diageo's plans were "not acceptable to the Scottish people".

In the Commons debate, Mr Browne, a former Scottish Secretary, said that like the ravens of the Tower of London, no matter how bad things got, there was always "hope for the future" as long as the bottling plant was there.

'Marketing gurus'

"This proposal has nothing to do with the recession and everything to do with Diageo positioning themselves in the global market for the next decade or so, as they are entitled to do," he told MPs.

"The difference this time is that I believe the marketing gurus, in their desire for more share of stockholder value, have convinced them that they can take the risk of breaking the line between the world's best known Scottish whisky and its history and further, and they must have been prepared to contemplate this, that the disastrous social effects that this decision would have on the community I represent ... is a price worth paying.

I would encourage everyone to support the Diageo workforce at this worrying time and add their name to the petition to Keep Johnnie Walker in Kilmarnock
Alex Salmond
First Minister

"Well I don't believe it is."

Mr Browne said he believed the chief executive of Diageo was a "man of his word" and an alternative proposal would be considered.

Business minister Pat McFadden said: "For our part the work that the Scottish Government and its partners were taking forward is crucial.

"I hope and believe the company is genuine about consultation, open-minded about possibilities.

"The UK Government will continue to work with the company, to work with my right honourable friend (Mr Browne) and to engage with the workforce about the best ways forward on this crucial and important issue."

Campaigners have said the restructuring moves announced by the drinks manufacturer could be the ''thin end of the wedge'', and eventually whisky could end up being bottled outside Scotland.

Petition call

Politicians and trade unions have been working with Scottish Enterprise and the local councils to draw up alternatives to the closure plans.

Mr Salmond met with the leader of East Ayrshire Council, Douglas Reid, staff at the Johnnie Walker plant, and trade union representatives on Wednesday.

He said: "Following Diageo's announcement earlier this month, the Scottish Government has been working hard to safeguard jobs and to ensure Scotland gets the best possible outcome for the company and its staff.

Port Dundas distillery
About 200 jobs will go with the closure of the Port Dundas distillery

"Diageo has committed to a genuine consultation on their proposals and we are working to ensure that the company fully understands the consequences of their decision and also the benefits of retaining their strong and long-established relationship with Ayrshire."

He added: "This government is focused on saving jobs and presenting Diageo with a strong, cohesive argument that challenges their proposals.

"Diageo has made billions of pounds from Scotland and their plans are not acceptable to the Scottish people.

"I would encourage everyone to support the Diageo workforce at this worrying time and add their name to the petition to Keep Johnnie Walker in Kilmarnock."

Diageo plans to cut 700 jobs by closing its bottling plant at Kilmarnock, with about 200 to go at Port Dundas distillery in Glasgow.

The company said focusing operations on other Scottish sites would save £20m a year.

It says 400 new jobs would be created through a £100m investment, mainly at its packaging plant at Leven with some packaging also transferring to the Shieldhall site in Glasgow.

East Ayrshire Council has also organised a protest in Kilmarnock for Sunday 26 July.

The "Keep Striding Forward" march will start at Howard Park at 1300 BST.



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