Labour group leader accuses Fife Council of being the 'catalyst' in Kingdom Bakers' demise
Fife Council has been accused of speeding up the demise of a crisis-hit bakery.
- By Claire Warrender
- Published in the Courier : 03.02.12
- Published online : 03.02.12 @ 02.51pm
The local authority's Labour leader Alex Rowley claimed the council's move to freeze Kirkcaldy-based Kingdom Bakers' funds brought the firm's financial problems to a head and put 185 jobs in jeopardy.
Although Mr Rowley accepts the council did not close the bakery, he said its actions were the catalyst in stopping it trading. He has now called for a new ''rapid reaction'' approach to support any Fife businesses experiencing difficulties.
The Courier revealed this week that the bakery, which supplied bread, cake and pancakes to the likes of Tesco, Sainsbury's and Morrisons, owed the council £93,000 in non-domestic rates arrears when it called in the receivers on Monday.
The local authority had worked with the company over a number of years to try to address the arrears but sheriffs officers were called in and £42,000 of funds were arrested.
''My experience particularly in recent weeks has led me to believe that the council is not geared up to provide the relevant support at the right time for companies who are struggling, juggling their creditors and trying to keep trading in difficult times,'' said Mr Rowley.
''In the case of Kingdom Bakers, there is no doubt that the actions taken by Fife Council finance services brought the crisis to a head. This is not to suggest that Fife Council closed the company — but their actions were the catalyst in it stopping trading.
''I have nothing but respect for the finance service. However, you need a more joined-up approach across the council that is not driven on the basis of recovering monies owed to the council.
''We also need expertise in business going in at an earlier stage and we need to flag up to any company struggling that we want to help and we have the resources to do so,'' he said.
Mr Rowley drew a comparison with the amounts of public money going into attracting and encouraging companies to locate in Fife and said more must be done to support existing companies in the region.
He said: ''We see major investments of public money to bring companies to the area and just this week everyone was celebrating the possibility of 500 jobs emerging from the green energy industry.
''But, at the same time, we froze an account of a company for £42,000 which blocked that company's trading and speeded up their demise with the loss of 185 jobs. This does not stack up and we need an honest discussion around what is available to help companies and what needs to be put in place.''
He added: ''If you do not work tirelessly to help local companies already here in Fife then the 185 jobs in Kingdom Bakers will keep happening. How many jobs will we have to create and how much public money will we have to spend to bring in replacement jobs?
''This is not good sense and not a good use of public money and we must get a balance that does everything possible to protect the jobs already here.
''As I understand it we are no nearer getting the £42,000 we froze or the other £48,000 that was owed to us. I will be putting forward a proposal in the coming weeks and will introduce a rapid response unit that coordinates work with business across the council as one of the first acts of a Labour administration after May.''
11.57am - 06.02.2012 In debt - Kirkcaldy, Fife Report This
I owe, I owe so it's off to Mr Rowley I go!
08.06pm - 07.02.2012 Simon - Utopia, Cloud cuckoo land Report This
One of the first acts of a Labour administration in May? I do admire an optimist but don't hold your breath!
07.44am - 08.02.2012 Peter - Dunfermline, Scotland Report This
Fife Council Supporting Local Businesses! You could not make it up! They did "Businesses can get advice, practical support and grants to help them locate, grow and prosper in Fife." Fife Direct Website!
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