Scottish ministers are working with bus operators to drum up interest for much-needed orders from Alexander Dennis Limited (ADL), the Finance Secretary has said. The bus manufacturer is currently consulting on proposals to close operations in Scotland and move to a single site in Yorkshire due to financial concerns.
The potential closure would put 400 jobs at risk across Scotland. Appearing before MSPs last month, Alexander Dennis managing director Paul Davies said the decision was not a "done deal", but the company would need to see a significant rise in bus orders.
Orders needed to save factory
Davies said the company requires between 70 and 100 orders by the end of the year and 300-400 next year to remain open. In a letter to Colin Smyth, the convener of Holyrood's Economy and Fair Work Committee, Finance Secretary Shona Robison said the Government is committed to looking at "all viable options".
Ministers are working with private bus companies to secure orders. "I agree about the importance of securing a short-term pipeline of orders," she said.
Government explores all options
"Please be assured that we are therefore liaising with commercial bus operators and local transport authorities to establish the current demand for double-deck buses in Scotland and are working alongside UK Government to identify demand in other parts of the UK," Robison added. She stressed the importance of Alexander Dennis to Scotland and retaining the jobs of highly-skilled workers.
"That is why we are continuing to work at pace with Scottish Enterprise and UK Government, and alongside the company and trade unions, to explore all viable options to support ADL to retain bus manufacturing in Scotland," the Finance Secretary said. Robison also suggested ADL could be forced to pay back money it has been given by the Government's commercial arm Scottish Enterprise for skills and technological development.
State aid rules limit intervention
However, it would be for the agency to decide how to proceed. The Finance Secretary also stressed the issues the Government faces due to UK-wide state aid regulations, which govern the level to which ministers can intervene in private businesses.
She said the Subsidy Control Act does not allow for subsidies which enforce the use of domestically-made goods and services. This would hamper the Scottish Government's efforts to force bus firms to use Alexander Dennis.
"Scottish ministers and officials consistently make representation on the development of the subsidy control regime for the benefit of Scottish businesses," she said. "However, as this is a reserved matter, it is ultimately for UK Government to make the final decision on any changes to the regime."
(PA) Note: This article has been edited with the help of Artificial Intelligence.
