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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 22 April 2025
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Displaying 942 contributions

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Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Colin Smyth

There are several hundred jobs at risk, but even the investment in that import facility is likely to create only 100 direct jobs. I am not clear about what work is taking place to secure employment for the existing workforce in the refinery and the many—although we do not seem to know what the number is—supply chain jobs that are affected. You have talked about working with the company on the import facility and the security of the energy supply, but what work is taking place to secure a future for the hundreds of jobs at the refinery at the moment? Those affected are highly skilled workers who are likely to be looking to leave the company because they are effectively being told that their jobs are likely to be lost, come 2025.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Colin Smyth

The issue, though, is around supply chain and contractor jobs. The direct employment at the site is very high skilled. It may well be that those workers will pursue opportunities elsewhere, but that could mean that they leave Grangemouth, so that is not a just transition. The issue is around those supply chain jobs.

The Grangemouth site is critical national infrastructure. Have there been raised, in your discussions with the company, any policy interventions at all from the Scottish Government or the UK Government that would allow the site to continue for a longer period than it looks as though it is likely to? I know that we do not know the exact date, but it looks as though it will be in 2025.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Colin Smyth

There must be supply chain jobs and contractor jobs already in place in the refinery, as well as the people whom you directly employ. What assessment has been made of any potential loss there? The company constantly talks up its positive impact on supply chain jobs, but there will obviously be a negative impact. What assessment has been made of that?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Colin Smyth

I agree. If we are to have a just transition, the starting point is knowing how many people are currently employed directly and indirectly for the refinery, in order to support those people. I am still not entirely clear about the impact numerically on supply chain jobs and what assessment has been made of that.

I will come back to the 2025 figure. You have indicated that you are not clear whether the refinery will close then. What would prevent it from closing in 2025? It is making a loss at the moment, and the assessment of your direction of travel clearly shows that you should be ready to close in 2025. What is going to change between now and 2025 that you have not already built in, and what impact does that have on your existing workforce?

Highly skilled employees who are in the refinery at the moment are now being told that their job is on a timer. Presumably, they will be looking for other employment, because you cannot give them any certainty beyond 2025. What assessment has been made of the impact on your daily operations of the fact that you are likely to lose skilled staff between now and 2025? They will be looking for opportunities elsewhere, presumably away from Grangemouth, because the work that you are doing elsewhere on the site to bring other things on stream is long-term stuff—it will not create any jobs in the short term, so people are going to leave the area because of your announcement.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Colin Smyth

Are you doing anything at all to reassure those in the supply chain and to suggest that there may be alternatives? You will know who your suppliers and contractors are on the site. Are you in discussion with them about what your future plans may mean for them? They will be feeling uncertain, too, and that concerns a lot of jobs.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Colin Smyth

I will come back to the issue of jobs. The company often talks about the positive impact on local jobs, not only from the site but from supply chain and contractor jobs. Will you clarify the number of jobs that are affected? We have heard that around 400 jobs will be directly affected, but what assessment has been made of the impact on supply chains, contractors and other local businesses as a result of the closure of the refinery?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Colin Smyth

What incentive is there to stay until 2025? If you are a skilled worker looking outwith Grangemouth potentially, what is the incentive to stay there? Are you saying that, if they stay, they will get a financial bonus? They know that their job will probably disappear in 2025. You have not said anything at all that suggests that it will go beyond 2025; realistically, we know that the date is 2025. What is the incentive for skilled employees to stay on the site?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Colin Smyth

In the previous evidence session—I appreciate that you may not have heard this—Iain Hardie, the head of legal affairs at Petroineos, suggested that the Government was pretty much made aware a year ago that the refinery was likely to close, although it was not given the date. Is that accurate?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Colin Smyth

We are told that the Government’s just transition plan for Grangemouth is likely to come up sometime next year. That may be less than a year away from the refinery’s closing. Are we dealing with this urgently enough? What potential impact will the plan have on supporting workers who are likely to lose their jobs from 2025? It looks as though the timescale is not urgent enough.

We have already heard the concerns about the Grangemouth future industry board. I am absolutely unclear about what it has done. We do not even seem to have an assessment of the job losses that are likely to result because of the announcement. We know that 400 direct jobs will likely be lost, but we do not seem to know what the impact will be on jobs in the supply chain. Do you think that you are dealing with this urgently enough, given that the just transition plan might come out less than a year from the refinery’s closing?

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Colin Smyth

To return to the point, what is the long-term blockage? You do not have a queue of people at the door wanting to buy the airport. You have said very positive things about the company making a profit, so why is there no queue at your door to buy it? What is the blockage? Is it the criteria? What are the reasons why you have not accepted any bids so far?