MP outrage as jobs move south to Tyne

Electronics Times, Oct 5, 1998 by John Walko

Local MPs for the 950 people being made redundant by Viasystems' closure of its two PCB plants in the Borders region of Scotland are calling for an inquiry into the use of public subsidies to help build and equip another PCB plant owned by the US company on Tyneside.

Electronics Times first revealed that the Galashiels and Selkirk plants of Viasystems, originally owned by Exacta and later Forward Circuits, were under threat last month (1 September).

The closures are a huge blow to the region, already reeling from hundreds of job losses in the textiles industry.

Border region MPs Michael Moore and Archie Kirkwood say the inquiry should focus on the aid given to the Viasystems Tyneside plant, to which much of the production from Scotland is scheduled to be transferred.

It should also examine closely any grant aid the company is seeking for a planned expansion of the plant there, which is already one of the largest and most modern PCB making operations in Europe.

Moore said: "People feel their jobs are simply being transferred in such a way that the export of jobs is being subsidised by the taxpayer."

He adds that the closure underlines the unfairness of regional selective assistance.

But Derrick Bumpsteed, MD of Viasystems Selkirk, says the closure has nothing to do with subsidies and there is no linkage between the Scottish job losses and transfer of production to and expansion of the Tyneside operation.

He said: "The fact is that because of the huge price pressures on everyone in the industry, the Selkirk and Galashiels plants were no longer profitable."

Bumpsteed also denies that Viasystems asked for or received any assistance to keep at least some production going in the Borders region. But Helen Liddell, Scottish Office minister for industry, is reported to have said some help was offered but Viasystems made it clear it was not interested in getting assistance.