A leading Fife councillor has gained the support of the Convention of Scottish Local Authorities (COSLA) in his bid for a full investigation into the circumstances surrounding the collapse of BiFab following withdrawal of Scottish Government support for the company.
Councillor Altany Craik, Fife Council’s strategic convener for economy, tourism, strategic planning and transportation, raised his call for a probe into the collapse of the beleaguered Fife firm at the COSLA economy and environment board on Friday.
Mr Craik is pressing for answers and possible solutions in the wake of BiFab’s plight after the business called in the administrators following the Scottish and UK Government’s announcement it could not plough any more money into the company due to EU state aid rules.
“I am very pleased that the board have agreed to write to both the Scottish and UK Government asking for information on how the failure at BiFab has occurred, in support of my call for an investigation,” he said.
“The failure of central governments to support manufacturing in the renewables sector is completely at odds with the economy and environment board objective of Net-Zero by 2045.
“The support of councillors from across Scotland for my view was encouraging.”
He said: “The withdrawal of the necessary guarantee, due to interpretation of State Aid rules – which will undoubtedly change in a few weeks – has put the future jobs and industry at Methil in doubt.
“Warm words will not be enough and as a council we will continue to seek a way forward with all parties.
“I have asked council officers to arrange meetings with UK Government ministers to continue to explore what action the council might take itself.”
Mr Craik added his “disappointment” at cabinet secretary Fiona Hyslop’s continued reliance during the last three BiFab meetings held between the council and Holyrood on the state aid regime – one which saw the Scottish Government withdraw its £30m financial guarantee and led to the company falling out of the running when it came to securing work to manufacture eight offshore jackets at the firm’s yards in Methil and Burntisland.
“I have pressed for flexibility and creative approaches but so far we have been unsuccessful in finding one,” he continued.
“The community and workers most impacted would expect every avenue to be exhausted and that is what I will continue to do.
“I believe that the withdrawal of the guarantees that would underpin the work was hasty and unnecessary and ultimately has led to the firm going into administration.
Bifab: Government will only release legal advice under judicial review
“The refusal by the Cabinet Secretary to publish the legal advice she received on state aid only strengthens my view.
“It is unacceptable that this advice given to the Cabinet Secretary remains confidential given the impact on our community.”
