Scottish executive under pressure as more job losses announced
When contact lens maker Bausch and Lomb today announced 500 job losses in West Lothian it is clear that nobody in the Scottish parliament expected this. The company is effectively transferring production from West Lothian to the US and Ireland as it looks to consolidate in these difficult economic times. However, a number of Scottish MPs are now calling on the Scottish executive to step in again and consider a "Diageo style intervention".
As we have covered on numerous occasions, the Scottish government is currently in talks with Diageo about how they can save hundreds of jobs at one of the company's major plants in Kilmarnock. However, there is a debate as to whether taxpayer's money should be used to shore up business operations which would otherwise be moved elsewhere. Even though the Scottish executive has apparently offered Diageo a substantial subsidy the company itself claims it never asked for this style of assistance and has yet to make a decision on the operation in Kilmarnock.
There is an underlying feeling in the business world that controversial attempts by the Scottish executive to change the mind of the likes of Diageo may actually be doing the Scottish economy more harm than good in the medium to longer term.
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