An extra £200m from the UK government for the Grangemouth oil refinery ahead of its closure will need to be “used correctly” if it is to have a “transformative impact”, a leading trade unionist said.
Roz Foyer, general secretary of the Scottish Trades Union Congress, also said further money from both the UK and Scottish governments would be needed, on top of the additional funding announced by the prime minister.
Keir Starmer told the Scottish labour conference in Glasgow on Sunday that the cash, from the National Wealth Fund, would be an “investment in Scotland’s industrial future”, with work to be done to “develop viable proposals” for an alternative future for the site, which currently employs more than 400 workers.
Foyer said the funding, which could also attract additional investment from the private sector, could “not be dismissed lightly”.
But she insisted: “This funding will only have a transformative impact if used correctly and is accompanied by even further investment from both governments.”
She also said Keir’s announcement “neglects” proposals put forward by the Unite trade union for the Grangemouth plant to be transformed into a production centre for sustainable aviation fuel.
Foyer said that plan would secure “the jobs and the futures of the workforce in the here and now”, adding that this “must be the priority from all governments, not retrospective action that assumes the closure of the site is inevitable”.
Unite general secretary Sharon Graham said the funding showed that the prime minister and UK government had “finally listened” to the unions and others campaigning for a future for the Grangemouth site.
Currently Scotland’s only oil refinery, the facility is due to close from the second quarter of 2025, with redundancy notices already issued to some of the 400-plus workers.
Graham said the new money promised by Starmer “needs to be the start not the end in delivering a real workers’ transition for Grangemouth”.
She added: “Following this announcement, it is essential that all stakeholders come together to put the meat on the bones and that this investment counts for jobs and our security.”
UK Energy Secretary Ed Miliband said the money would help “unlock the site’s long-term potential”.
Miliband stated: “We have always said that we will leave no stone unturned in seeking a sustainable industrial future for Grangemouth and its workers.
“Alongside our ongoing support for affected workers, this investment will help unlock the site’s long-term potential, with the backing of the private sector.
“This will create good jobs in vital new industries and drive growth and investment in the local community as part of our plan for change.”
Scottish secretary Ian Murray said: “The UK Government has been working at speed to ensure a long-term future for Grangemouth and the National Wealth Fund allocation announced today demonstrates our commitment to this.
“We remain committed to working closely with the Scottish Government and other partners to support the refinery workers and ensure the long-term future of this site.”
By Katrine Bussey, PA Scotland Political Editor