2. To ask the Scottish Government what support it has given to create jobs at the former Pinneys plant in Annan. (S5T-01567)

The Scottish Government has provided a £1.7 million regional selective assistance grant to support the creation of up to 120 jobs at the former Pinneys plant in Annan.

Working with Scottish Enterprise, Scottish Development International and Dumfries and Galloway Council, the Scottish Government sought to find a new investor. Together, we have been successful. On Friday 15 March, Atlantis-Pak purchased the site from Young’s Seafood and announced a £9 million investment plan, which is fantastic news for the people of Annan and the south of Scotland, following a difficult 12 months since the decision to close Pinneys.

Attracting a new international investor to the site sends a strong message that Scotland is open for business and that we are determined to work collaboratively at national and local level to secure investment and jobs for the people of Scotland.

I agree—it certainly is fantastic news for the people of Annan. How will the venture contribute to inclusive growth in the local economy? What part, if any, did the United Kingdom Government play in securing that success?

The UK Government was not involved in the work. The work was carried out in Scotland and was driven by our public agencies. I pay particular tribute to all the public servants involved, who did a superlative, first-rate job. They do not often enough get credit for their hard work, which in this case resulted quite directly in securing desperately needed investment in Annan.

On 13 March, we announced a proposed investment of £85 million in the Borderlands inclusive growth deal over the next 10 years, which will help to drive forward improvements in skills, digital connectivity, tourism and infrastructure development. We are slightly disappointed that the UK Government has not matched the level of our investment; it is putting in a lower sum of £65 million compared with our £85 million.

I associate myself with the cabinet secretary’s remarks about the hard work of the officials and share his disappointment at the lack of equivalent investment in the Borderlands deal by the UK Government.

The cabinet secretary will be aware that the factory has been closed for some time and that the workforce has, to an extent, dispersed. Can he provide an update on what has happened to the workforce and on how successful the Scottish Government has been in finding those employees alternative employment?

Ms McAlpine is absolutely right to raise that point because, sadly, there were over 400 redundancies at the site last summer. Since then, the public sector, working as team Scotland, has worked tirelessly to help individuals get the support that they need and deserve through partnership action for continuing employment—PACE—and through holding two job opportunity fairs, with one in July and one in October. I attended one of the fairs, which was a very well-run event in Annan that provided 200 individuals the opportunity to meet 19 employers and recruitment agencies, exhibiting over 350 vacancies.

That is all solid and valuable work that has been done by public servants who are wholly committed to trying to help individuals who suffer the hammer blow of redundancy by providing other opportunities or employment. I am pleased that a substantial number—a majority—of those who were made redundant and who sought employment have found new employment, training, self-employment or other opportunities.

People living in Annan will be extremely disappointed that, in relation to what is a universally good news story, politicians are attempting to play petty politics and claim all the credit when they were not interested in stepping in immediately to provide the relief that families were looking for at the time.

That said, this is fantastic news for Annan. Can the minister tell me the current number of former Pinneys employees who are still looking for employment and what the Government will do to ensure that those individuals get first access to the vacancies?

A huge amount of work has been done, as I have described already in my substantive answer to Ms McAlpine’s question.

In July 2018, the south of Scotland economic partnership announced funding of up to £250,000—£140,000 in 2018-19 and £110,000 in 2019-20—to create the local solutions team. That team is developing projects and opportunities for economic development and identifying sites for business expansion. An example is the clearance of the site at Stapleton Road in Annan next to the Pinneys site. [

Interruption

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Mr Mundell is keeping up a constant barrage sotto voce but, if he wants to listen for a moment, I can assure him that a substantial number of those who were made redundant last year and who sought employment have found new employment, training, self-employment or other opportunities. I am delighted that that is the case.

The measures that were announced yesterday will provide the opportunity for up to 100 people to obtain employment over the coming year; it is hoped that production will restart at Pinneys in the autumn. That is a terrific good news story and we are working hard with the company to see whether there are opportunities to build on that further.

I was pleased to have an initial discussion with Mr Bhagat yesterday during my meeting with him and his family in Annan, which was extremely cordial. In his short speech, Mr Bhagat mentioned the public servants by their Christian names and said that he is able to speak to any of those individuals at any time. He really appreciates what they have done. It is right to heap praise on the individuals working in the public service who helped to secure this terrific result.

I echo the cabinet secretary’s thanks to all the council and Government agency staff who have been involved in helping to secure a very welcome buyer for Pinneys. Like the cabinet secretary, I had the pleasure of meeting the new owner, Keshav Bhagat, yesterday, and I was encouraged by his desire to grow the workforce, hopefully beyond the initial plan of 120 posts.

Given the welcome financial support through Scottish Enterprise, will the cabinet secretary confirm that the workforce will benefit from the Scottish Government’s fair work first criteria, including full trade union recognition and collective bargaining?

I hope that the number of posts will grow, but it is still currently below the number that were lost when Pinneys closed. What more will the Government do to support and grow the job prospects for the people of Annan and the surrounding area?

Mr Smyth makes a series of very fair points. On his first question, I can confirm that the regional selective assistance grant funding that has been agreed and will be provided is one of the first under the Scottish Government’s fair work first initiative, which is committed to fair work, job security, fair pay and a greater voice for workers.

As part of the RSA application, the minimum salary at the plant will be in excess of £18,000, which is above the £9 an hour living wage. The majority of salaries will be well above that.

Mr Smyth is right that a greater number of people lost their jobs than the number of new jobs that are being provided at this stage, or at least in the autumn of this year. A huge amount of work is continuing, not only with Mr Bhagat and his team but with other potential employers in the Annan area. I am pleased that the local solutions team is playing an active part in that. I hope that Mr Smyth agrees that, if the UK Government was prepared to match the Scottish Government’s level of commitment of £85 million, instead of the UK’s £65 million, that would mean an additional £20 million that could be invested in the south of Scotland, which would help Annan and the rest of the area.