Scottish Government 'exploring all viable options' to save jobs at Alexander Dennis

Scottish ministers are working with bus operators to drum up interest for much-needed orders from Alexander Dennis Limited (ADL), the finance secretary has said.

The bus manufacturer is currently consulting on proposals to close operations in Scotland and move to a single site in Yorkshire due to financial concerns, with 400 jobs potentially at risk.

Appearing before MSPs last month, Alexander Dennis managing director Paul Davies said the decision was not a “done deal”, but the company would need to see a significant rise in bus orders – between 70 and 100 by the end of the year and 300-400 next year – to remain open.

In a letter to Colin Smyth, the convener of Holyrood’s Economy and Fair Work Committee, finance secretary Shona Robison said the Government is committed to looking at “all viable options” and ministers are working with private bus companies.

“I agree about the importance of securing a short-term pipeline of orders,” she said.

“Please be assured that we are therefore liaising with commercial bus operators and local transport authorities to establish the current demand for double-deck buses in Scotland and are working alongside UK Government to identify demand in other parts of the UK.

“I am in full agreement with you about the importance of Alexander Dennis to Scotland and of retaining the jobs of the highly-skilled workers.

“That is why we are continuing to work at pace with Scottish Enterprise and UK Government, and alongside the company and trade unions, to explore all viable options to support ADL to retain bus manufacturing in Scotland.”

Robison also suggested ADL could be forced to pay back money it has been given by the Government’s commercial arm Scottish Enterprise for skills and technological development, though it would be for the agency to decide how to proceed.

The finance secretary also stressed the issues the Government faces due to UK-wide state aid regulations, which govern the level to which ministers can intervene in private businesses.

She said the Subsidy Control Act does not allow for subsidies which enforce the use of domestically-made goods and services, which would hamper the Scottish Government’s efforts to force bus firms to use Alexander Dennis.

“Scottish ministers and officials consistently make representation on the development of the subsidy control regime for the benefit of Scottish businesses,” she said.

“However, as this is a reserved matter, it is ultimately for UK Government to make the final decision on any changes to the regime.”

A UK Government spokesperson said: “The UK is a global leader in bus manufacturing, and around 60% of buses funded through our zero-emission regional bus programme are being built by UK-based companies, supporting jobs and a greener transport network.

“Alexander Dennis has a strong future in the UK’s growing zero-emission bus market. Through the spending review, we have committed £15.6 billion to local leaders to boost services and green fleets across the UK.

“We’re also giving regional leaders and leading manufacturers a voice on zero-emission plans, through the UK bus manufacturing expert panel, which seeks to put local people at the heart of bus building.”