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25 January 2006
Job loss firm’s £11.8m grants
A Fife firm, which has announced it is transferring 700 jobs abroad due to cheaper labour costs, may only have to repay a small amount of the £millions it has received in Government grants.
Rosyth-based Lexmark, which yesterday announced the closure of its plant, has received just under £11.8 million in grants since 1995. The Executive today said it planned to hold talks with the firm about the last grant, of £275,000, awarded for a specific project. It is possible the firm might have to repay some of this, sources said.

Lexmark received £5.6 million in 1995, £5.9 million in 1998, and £275,000 in 2002. An Executive spokesman said the grants were paid in the form of regional selective assistance. This came with strict conditions, which companies must meet, both for job creation and investment.

These included an “obligation period” applying to each sum granted, and in the case of the two earlier sums this period had expired.

Meanwhile, a team which helped former Longannet minewokers find employment has been brought in to assist the 700 workers facing redundancy.

Redundancy support team Partnership Action for Continuing Employment (PACE) has already made plans to visit the workforce on site to discuss workers’ career options.

Led by Scottish Enterprise Fife, PACE involves the local authority, Careers Scotland and Jobcentre Plus.

In 2002, PACE was brought in when 500 workers were laid off after Longannet Colliery was damaged by a major flood. More than 80% of the miners from Forth Valley found new work through PACE.

The majority of staff at the American-owned inkjet cartridge manufacturers work in production and will need to be retrained in order to find new employment.

Staff at the Fife plant were devastated yesterday when told they would lose their jobs by the end of the year.

Lexmark was accused of laying off Scottish workers to take advantage of cheap labour overseas. It is keeping plants in Mexico and the Philippines.

Joe Noble, chief executive of SE Fife, said there was a long road ahead for the workforce. “Of the workers affected, we expect about 200 to be managerial professionals, engineers, supervisors or IT people.

“Clearly there are jobs for these skills in Fife. Just now we have companies recruiting, such as HBOS, BSkyB and Intelligent Finance.

“From the information we’ve had so far, about 500 work in production, who will need to be retrained to give them a chance of competing in the labour market.”

Mr Noble said Rosyth dockyard’s role in the Future Aircraft Carrier project could provide job opportunities for Lexmark workers. However, he admitted some workers may move to other areas for employment.

He continued, “There’s a labour shortage in Aberdeen that some of the skills used in Lexmark would be suitable for. Edinburgh is also on our doorstep.

“We will be working as hard as possible with the company and the workforce to secure our objectives.” It’s a big task and we have to roll our sleeves up.”

Despite mass redundancies in Fife’s manufacturing sector over the past years, including at Lexmark, Duracord and Rosyth dockyard, Mr Noble said 15% of Fife’s workforce were still employed in the sector.

He added, “Maybe some of the workforce will be able to find employment in Fife. There are still opportunities in the manufacturing sector.”