The Rt Hon Malcolm Bruce MP

February Column (#3)

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Mill closure ends an era but site must become an opportunity

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It was disappointing if not a surprise to receive confirmation of International Paper's decision to close the Inverurie paper mill. I and my colleagues, Sir Robert Smith and Alison McInnes, were aware of a number of expressions of possible interest and have followed them up as far as possible.

Although some may bear fruit in the medium term it appears that there were no firm offers. This appears to be partly because of International Paper's unwillingness to allow any competitor (in spite of earlier indications that they were reviewing their product range) and partly because of the state of the international paper market and the financial situation.

Inevitably that means that production will end at the mill by the end of March and all of the 370+ jobs will go in the next few months.

I have held a number of meetings with management and union reps and will be happy to meet any of the workforce individually or collectively to offer whatever help I can.

I am glad that a number of agencies will be on site to give employers information about their rights and opportunities and I hope that most will be able to find new employment or access to retraining opportunities.

Beyond that the mill site is a large one of strategic regional importance. The priority must be a redevelopment site to maximise its potential and its employment opportunities, Redevelopment of part of the site is already being planned

In spite of the current economic climate we must ensure that we do not compromise the long term potential for short term considerations.

Access to the A96, Aberdeen Western Peripheral Route, Airport and rail make this an extremely attractive site. We must ensure that a generational setback becomes an opportunity.

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Business surveys reveal concern and resilience

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In the current financial climate I am keeping in touch with local businesses by phone, visits and surveys. That way I hope I can get a better feel for how our area is being affected.

I have come across some people experiencing difficulties with their bank or mortgage providers. Others are noticing a slow down but not so far too severe and one or two see their business holding up quite well.

One company had made redundancies but were pleased to advise that all the people affected had found alternative employment before their redundancy notice was finished.

In the oil industry the price has led to some projects being postponed but BP, Shell and Taqa have all indicated they are maintaining their investment.

A lot clearly depends on how long the recession lasts and how deep it goes. For some people reduced interest rates will have increased their disposable income but in a climate of uncertainty people change their spending (and saving) habits.

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Government initiatives better start biting

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The Prime Minister appeared before the House of Commons liaison committee which is comprised of the chairs of select committees.

Unsurprisingly at his most recent appearance attention was concentrated on the domestic impact of the crisis and the Government's response. A substantial part of that focussed on a plethora of Government initiatives which looked a lot like headlines rather than detailed proposals.

The Government keeps taking initiatives but nobody seems to know what happens to them or how individuals or companies can access them.

The Prime Minister said that many of them would start to have an effect within a few weeks but acknowledged there is an issue.

The latest announcement is for funding for 100,000 affordable homes and for the release of mortgages for first time buyers through Northern Rock. People looking for a home and builders in search of customers will want to know urgently how it can help them.

As Chairman of the International Development Committee I challenged the Prime Minister on the department's budget which has been hard hit by the fall in the exchange rate. Not only does this mean that our overseas development money will buy less as poverty rises but our commitment to the EU was made in Euros at a time when the pound was worth about a third more than it is now.

This could take £400 million out of the development budget with unknown consequences on the UK's commitment. All the PM could say was he hoped other donors would increase their contribution. I hope so but if Italy is anything to go by I wouldn't bet on it.

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Vince triumphs at Channel 4 'oscars'…

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Throughout the growing financial crisis the Liberal Democrat Shadow Chancellor has been the acknowledged political star, anticipating the danger, predicting its direction and recommending solutions.

This was confirmed at the recent Channel 4 political awards where Vince won not one but two awards - the first politician to do so in the 11 years the awards have been going. He won Opposition Politician of the Year and the broadcasters' choice, presented by Robert Peston himself almost never off the box.

Interestingly not one Conservative won an award perhaps suggesting that the political debate is open and the future unpredictable.

Certainly, I believe that the Liberal Democrats have demonstrated their importance and relevance over a number of issues ranging from the Iraq war, through civil liberties to the response to the financial crisis.

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…and Tavish made a difference to Scottish budget

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That was perhaps also borne out by the recent Scottish budget. The SNP, which has where possible avoided votes in Parliament perhaps forgot that it is a very much a minority.

The Liberal Democrats had called for radical measures to tackle the recession - wanting to explore savings that could be passed on in tax cuts while protecting core services.

The SNP rejected that outright thinking it had its budget sewn up but so annoyed the Greens that they lost their votes.

The defeat was a shock to everyone but especially to John Swinney. It did not mean that the money stopped flowing as some tried to suggest. It was a message to go back and think again.

The Liberal Democrats did not abandon their preference for tax cuts but recognising there was not a majority for it negotiated other measures to tackle the financial crisis - not least to seek a funding for key capital projects and engage with Calman to make the case for allowing the Scottish Parliament to borrow.

The result was a better budget and a recognition that there was a proper role for opposition parties.

More surprising was the subsequent decision to abandon the commitment to a local income tax which went the way of other promises such as abolishing student debt. The explanation was that there is no majority in the Parliament for it. Well, there isn't one for an independence referendum either so what's the difference.

Maybe we need to watch how Iceland and Ireland fare. The difference between the two seems to be one letter and about six months. Iceland is desperately seeking admission to the EU and Ireland is looking for a bailout from the EU.

With the UK and USA struggling now is not the time to be an over-exposed little country. Scotland should use the powers and the budget it has got to get in place the best policies to help weather the storm.

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We must back our retained fire-fighters

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I was glad to have the opportunity to intervene in a debate in support of our retained fire-fighters initiated by my colleague Alistair Carmichael, MP for Orkney And Shetland. Most of the fire stations in Scotland and all but one in the Gordon constituency are staffed by retained fire-fighters who do a crucial job protecting the community but whose ability to continue could be threatened if the EU working time directive is applied too inflexibly.

Basically the fire-fighters have full time jobs close to the fire station by which they are retained enabling them to respond to an emergency call at short notice. However, under the proposals, they are restricted to total hours worked each week of 48 including training meaning they could easily be out of hours if they work overtime or have more than one callout.

This appears only to affect the UK and Ireland because the equivalent community fire-fighters are unpaid volunteers (although I understand some get generous expenses).

This makes a nonsense of defending it as a health and safety initiative. Our retained fire-fighters are just as committed as volunteers and do it for their community. A volunteer could have worked a full 48 hour a week and turn out for any number of fires without breaching the rules. There can be no difference to how tired they may be.

The Government must ensure that we secure a de-rogation in a form that will enable the brave men and women who make up our local fire-fighting force to carry on as they always have and as they want to continue.

ENDS