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Gus Macdonald comments on Viasystems announcement
29/09/1998
Scottish Business and Industry Minister Gus Macdonald said today that the Government was fully committed to doing all it could to help the Borders following the announcement by Viasystems that the company would be closing its plants at Galashiels and Selkirk.
Mr Macdonald said:
"I am very disappointed at the company's decision, and I recognise what a blow this is for the Borders. The Government is fully committed to doing all it can to help. I am determined that everyone in the Borders should be able to see real progress quickly in turning the situation around."
A meeting was held earlier today between the company and officials from the Scottish Office.
Mr Macdonald continued:
"We had hoped that there was still the opportunity for a constructive discussion on how to save these jobs in the Borders, however it was quite clear that the company had made up its mind on closure and was not interested in any offers of assistance.
"I have now asked Scottish Borders Enterprise, the Employment Service and other appropriate agencies to take immediate steps to provide advice and assistance to the staff affected. A rapid response team will move into action right away."
The Government has also asked the company for its full commitment and co-operation to help create new jobs and businesses in the area. The company has agreed to this in principle, but further detailed discussions will take place.
BACKGROUND
The Scottish Office has already announced an additional one million pounds funding for Scottish Borders Enterprise in response to local job losses, and established a working party with Scottish Borders Enterprise and Scottish Borders Council to address immediate problems of job losses in the area and to produce a new economic strategy for the Borders in the longer term. Today's news gives added urgency to this task. A first regeneration package has already been announced which could lead to the creation of 500 jobs within a year.
News Release: 1955/98
29 September 1998