Swinney: New work for bus maker Alexander Dennis being explored

The First Minister said he could not provide further details due to “commercial sensitivity”. He has asked the company to consider an extension to its consultation period while the package is developed.

Last month, Alexander Dennis announced it was proposing to consolidate its UK operations at a single site in Scarborough, North Yorkshire.

The decision puts 400 jobs at risk at its facility in Falkirk in another blow to the Forth Valley, which has already seen more than 400 jobs go at the Grangemouth refinery this year.

Mr Swinney said: “Scottish ministers place the utmost importance on the presence of Alexander Dennis in Scotland and the retention of its highly skilled manufacturing workers.

“The Scottish Government has committed to exploring any and all viable options throughout the consultation period to allow the firm to retain its skilled employees and manufacturing and production facilities.

“While I cannot provide details due to commercial sensitivity at this time, I hope this update provides the workforce and local community with further assurance that the Scottish Government remains wholly committed to supporting the future of bus manufacturing in Scotland.

“We will undertake this work in tandem with every other short, medium and long-term opportunity we continue to explore in close collaboration with the company, Unite, GMB, Scottish Enterprise, Transport Scotland and the UK Government.”

Deputy First Minister Kate Forbes will meet with the unions GMB and Unite today to update them on the proposal.

Labour previously accused Holyrood ministers of overlooking Scottish industry in favour of ordering buses from China. Mr Swinney argued state aid regulations – in the form of the UK-wide Subsidy Control Act – prevent the Government from directly procuring from a single supplier like Alexander Dennis.

Speaking to The Scotsman last month, Scottish Secretary Ian Murray said: "They [the Scottish Government] have to look themselves in the mirror. But they should be leaving no stone unturned about how we can keep this bus company open."

Paul Davies, the managing director of Alexander Dennis, has said it would need to win orders for at least 70 new buses this year to keep its Scottish operation going.