Grangemouth proves we need democracy at heart of our economy

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POLITICAL SUBMISSION - This item has been submitted by Richard Leonard MSP, Scottish Labour Party. Confirmation that Petroineos intends to close the Grangemouth oil refinery is a massive blow to workers, their families and our communities, and shows why a just transition to a greener economy is so important

The Petroineos announcement, released last week through a public relations agency, that it intends to consult over the closure of the Grangemouth refinery by next spring is a massive blow.

The headlines tell us that 400 jobs are at risk. Anyone who knows anything about the site and its operations understands that, in reality, hundreds of other sub-contractor jobs are also on the line.

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There would also be a knock-on effect which will depress the local economy, putting other businesses and yet more jobs at risk.

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This is not simply a matter of local, but national importance. After all the refinery is a national strategic asset and a major contributor to the Scottish economy.

The plan for Grangemouth to move from a significant source of export earnings to a terminal for imports takes us in precisely the wrong economic direction.

It cannot be right that the fate of this site and all of these jobs should rest in the hands of one man who is – after all – a tax exile, and an overseas government.

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I have mentioned in this column before, that over 20 years ago I was campaigning for a just transition, and arguing even back then, that the local economy here should be a test bed for that approach.

So, when I heard the SNP’s acting Cabinet Secretary for Net Zero and Energy tell the BBC that she wanted to “have as little a gap as possible” and wanted the company “to hang on to the workforce for as long as possible” I knew the test had been failed, and badly.

Just transition means full income protection, access to sustainable jobs, free educational access for workers and economic support for impacted communities.

It will be up to the new Labour UK government as well as SNP ministers to seriously address each one of these elements of a just transition.

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The Scottish government needs to work with trade unions as well as business representatives on an economic plan and a comprehensive industrial strategy.

We need democracy at the heart of our economy as well as our politics. This decision reminds us of that, above all else.

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