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25 April 2006
Pressure to be kept on Tesco
Dundee City Council will keep up the pressure on Tesco to reverse their decision to close the distribution depot in the city with the loss of more than 400 jobs, writes Brian Allison, local government reporter.
Lord Provost John Letford said the proposed closure was all the more disappointing in light of the supermarket giant’s announcement of £2.25 billion profits for the past year, 17% up on the previous year.

“The Dundee workforce have contributed to those profits and the success of Tesco and deserve better than to have their depot shut down,” he said.

Last month, Tesco announced they would be moving the Baird Avenue distribution centre from Dundee to Livingston with the loss of 432 jobs by summer next year. Despite offers of alternative sites in Dundee the company have insisted the move to Livingston will go ahead because it is a better location for the depot, as the bulk of the stores are in the central belt.

Local and national politicians met with Tesco executives at the City Chambers, but came away frustrated at the lack of answers to questions about the rationale for relocating.

The Lord Provost said the council had asked for a meeting with Tesco chief executive Sir Terry Leahy and the company’s board to put Dundee’s case at the very top level.

Although that has not been forthcoming, council administration leader Jill Shimi said a meeting had been arranged in Edinburgh next month with senior Tesco executives when the council would again put forward a strong argument in favour of retaining the distribution centre in Dundee.

The council intends to challenge the assumptions that have been made in the decision to close the Dundee facility.