BOSSES at Grangemouth told how they warned governments for five years that the plant was likely doomed.
Petroineos chiefs accused Holyrood and UK ministers of responding to £600million losses at Scotland’s oil refinery with “rhetoric”.
Bosses at Grangemouth told how they warned governments for five years that the plant was likely doomed[/caption]
Ian Hardy, the firm’s head of legal and external affairs, told MPs there was inaction from senior politicians who could have stepped in over the crisis.
Addressing Westminster’s Scottish Affairs Committee, Mr Hardy said: “There was rhetoric. There were repeated statements that they would leave no stone unturned to ensure the refinery continued to operate.
“Both governments were given the opportunity, both governments were given access to the data to make an investment decision, and neither government chose to do that.
“I can only presume that they drew the same conclusions that we’ve drawn, that continued refinery operations in Grangemouth was not an economic proposition.”
Petroineos confirmed that 405 workers had already been made redundant.
A further 105 jobs will go in the next 18 months.
Sir Keir Starmer’s government has faced intense criticism for failing to protect jobs at Grangemouth. Local Labour MP Brian Leishman has blasted the Prime Minister and Scottish Labour leader Anas Sarwar.
Project Willow, a study on the future of the plant, was commissioned by UK and Scottish ministers to examine a potential route forward with renewables.
Scottish Government-commissioned experts said last July that a failure to plan had left Grangemouth unprotected from the impact of the refinery’s closure.
Nine ideas were produced, including sustainable jet fuel production, plastic recycling and biorefining.
But Willow said it required at least £3.5billion of investment in the site.
The plans could have created 800 jobs over 15 years.
The Grangemouth complex is Scotland’s biggest industrial site and employs more than 2,000 people across oil and petrochemicals work.
It produces 80 per cent of Scotland’s fuel, makes up four per cent of its GDP and eight per cent of manufacturing. It was the main supplier of aviation fuel and provides petrol and diesel across the central belt.
A Department for Energy Security and Net Zero spokesperson said: “Petroineos were clear there was no viable future for the site and did not ask us for financial support to continue refining.
“Before July, there was no overall plan for the future of the Grangemouth refinery. Within weeks, we worked with the Scottish Government to deliver an unprecedented £100m package to support the community and invest in the local workforce, along with tailored support to help those affected to find good, alternative jobs.
“Project Willow recently identified credible long-term industrial options for Grangemouth to forge a new path in low carbon energy production, while our £200 million investment will support jobs and drive growth.”
A Scottish Government spokesperson said: “Ministers have been clear that refining at Grangemouth should continue, the closure is premature and is detrimental to Scotland’s transition to net zero. We have continued to press the UK Government to leave no stone unturned in securing the site’s future as interventions of this magnitude would require action from the UK Government.
“Our immediate priorities now, however, are to provide those who are losing their jobs with targeted skills support, and to create an investible industrial strategy for the refinery site and a sustainable future for the wider industrial cluster.
“That is why we are investing £87 million in Grangemouth, including £25 million to expedite proposals in the Project Willow study.”
Petroineos confirmed that 405 workers had already been made redundant[/caption]
