HC Deb 30 April 2001 vol 367 cc453-4W
Mr. Ashton

To ask the Prime Minister what discussions he has had with Motorola on the future of its mobile phone factory in Bathgate; and if he will hold similar discussions with Ericsson of Worksop Notts, on the future of its mobile telephone plant. [159120]

The Prime Minister

[holding answer 26 April 2001]: I spoke to Motorola on Tuesday 10 April in support of the company choosing to maintain production at Easter Inch, the largest, private sector manufacturing site in Scotland, rather than closing it to focus all its production at the company's plant at Flensburg.

Now Motorola has made its decision the Scottish Executive will pursue with the company future options for the Bathgate site. There are a variety of options to explore with the company—ranging from sale as a going concern including to a contract manufacturer of mobile phones or another related business. The other alternatives include new employment for a new employer purchasing the site. We regret the redundancies, and Invest UK has already begun to assist the Scottish Executive with the task of future options.

In order to assist the individuals affected the Scottish Executive is setting-up a Taskforce with Scottish Enterprise Edinburgh and Lothian, Employment Service, West Lothian Council, the Careers Service, Benefits Agency and the STUC. The Taskforce will draw up an Action Plan specifically to meet the needs of the Motorola workers. Subject to the agreement of Motorola, this is likely to include an on-site jobshop, business start up workshops and other support to assist people to find jobs. The Taskforce has already begun work today.

Ericsson announced on 26 January 2001 that it will cease manufacture of telephone handsets throughout the world and that in consequence it intends to dispose of its plants making handsets, including Carlton near Worksop and Scunthorpe. The Government have kept in regular contact with the Managing Director responsible for the two sites and with Ericsson HQ in Sweden over new developments. Through the Regional Development Agencies, Government Offices and Invest UK, we are working closely with the company to find a buyer for the sites. Officials from the Department of Trade and Industry, Local Government Offices and Regional Development Agencies have also visited the Carlton and Scunthorpe operations in order to gain a better insight. I know my hon. Friend will shortly meet with the Minister for Small Business and E-Commerce.

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