Diageo rejects Scottish Government proposal on restructuring

The proposals from the Scottish government set out to use public money to protect 900 workers, whose jobs are under threat from Diageo’s planned restructuring.

Scottish Government Finance Secretary John Swinney presented the proposals to Diageo on 3 September 2009.

His Taskfoce proposal recommended that Diageo’s planned closure of the existing packaging plant in Kilmarnock should go ahead, but with a new plant constructed on a greenfield site near the town.

He also said the closure of a distillery in Glasgow should be delayed pending a change in market conditions.

Diageo replied by saying that the proposals would perpetuate inefficiencies and would put further investment in Scotland at risk.

At least Diageo made it quite clear that the company’s initiatives were never intended to seek public funding.

Diageo’s plans will lead to the loss of up to 900 jobs during the next two years, with another 400 jobs being created through the expansion of its packaging plant in Fife.