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Scottish government pledges £25m more for Grangemouth
A view of the Grangemouth petrochemical plant in Grangemouth, September 12, 2024

JOHN SWINNEY challenged the Labour government in Westminster today to match his pledge of a £25 million cash injection into Grangemouth oil refinery — but unions have demanded more action from both governments.

Scotland’s First Minister hopes the funds will secure a just transition for the hundreds of workers set to lose their livelihoods when the PetroIneos oil refinery closes in May, enabling the delivery of recommendations from the Project Willow feasibility study focussed on turning the complex into a low-carbon energy centre.

He said: “Any redundancy, whether voluntary or compulsory, is a matter of deep regret.

“That is particularly so given that this government believes that refining at Grangemouth should continue, that this closure is premature, and that it is detrimental to Scotland’s transition to net zero.”

Issuing a challenge, he added: “We need the UK government to do at least the same and deliver a fair amount to avoid significant economic disruption in central Scotland, and to protect and promote Scotland and Grangemouth’s future interests.

“In short, we need this Labour government to do what it said it would do before the election.”

Scottish Labour leader Anas Sarwar said: “Governments have known of the company’s intentions for five years but failed to put plans in place.

“But over the past seven months the UK and Scottish governments have worked collaboratively to deliver the Falkirk and Grangemouth Growth Deal, joint working on Project Willow and joint attempts to secure incomes for workers for the next 18 months.”

Unite general secretary Sharon Graham welcomed the pledge, but added: “Workers in Grangemouth have already been let down and we will need more than this to fix the situation.

“Both the UK and Scottish governments must now pull out all the stops to ensure that we do not lose these refinery workers and their incredible skills.”

Echoing the sentiment, STUC general secretary Roz Foyer said: “It is still too little too late. The Scottish and UK government have known for months if not years that workers are facing redundancy.

“Political inaction has let them and their families badly down.”

“Scotland is facing an economic earthquake if the refinery is allowed to close,” said Unite Scottish secretary Derek Thompson, warning of the consequences of inaction.

“We are facing an estimated shock to the economy of up to £4 billion over the next decade before any of the jobs at scale promised through Project Willow will see the light of day.”

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