Seòmar agus comataidhean

I refer the member to the answer to question S4W-16850 on 10 September 2013. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.

I refer the member to the answer to question S4W-16850 on 10 September 2013. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.

When Railcare was placed into administration on 31 July 2013, through our Partnership Action for Continuing Employment (PACE) initiative, we immediately contacted the administrators BDO to offer support for any employees who may be facing redundancy at the Springburn site.

BDO made 33 employees redundant at the Springburn site on 2 August 2013. PACE representatives were on site that morning to offer support to affected employees and all employees being made redundant received information on PACE. 23 employees also took advantage of the offer of a one to one interview with a PACE Adviser.

Unite the Union held a “Railcare Back to Work Forum” on 23 August 2013 which PACE representatives attended to deliver a presentation on PACE support and to provide support to attendees.

We have also offered to deliver PACE Presentations and stand ready to provide support to remaining Railcare staff at Springburn in the unfortunate event of any further redundancies being made. We await a response to this offer from BDO.

Scottish Enterprise, acting on behalf of Scottish Ministers, has supported Railcare as an account-managed company. This has meant regular dialogue with the company and support for the developments that have been undertaken.

Scottish Government Ministers were informed the company might be about to go into administration on Tuesday 30 July 2013.

I had a very useful discussion with the administrator BDO, and was assured that they were actively pursuing possible purchasers for the company. I offered active support from the Scottish Government in trying to reach a solution. I was therefore delighted to hear the announcement on 27 August that Railcare has now been bought by the German company, Knorr Bremse. I understand Scottish Enterprise will now engage with the new owners to assist them in consolidating and strengthening their operation in Scotland.

Scottish Enterprise have been providing support to Railcare at Springburn through the account management approach. Through this dialogue Scottish Enterprise was aware that Railcare was in talks about new ownership.

Scottish Government officials in Transport Scotland were advised on 29 July 2013 by the Department for Business, Innovation and Skills (DBIS) that it was likely Railcare would be placed into administration within the next 24 to 48 hours.

DBIS again contacted Transport Scotland officials on 31 July 2013 and advised that Railcare had unfortunately been placed into administration.

Scottish Government officials were advised on 29 July 2013 by the Department for Business, Innovation and Skills (DBIS) that the company was having difficulties and again on 31 July 2013 when the company went into administration.

On 27 August 2013, DBIS informed Scottish Government officials that Knorr Bremse had bought Railcare on 26 August 2013.

Scottish Enterprise (SE) has enjoyed a good relationship with the company meeting the management in Scotland every six months. SE had been aware that new owners were being sought for Railcare. SE became aware of Railcare’s current difficulties on Tuesday 30 July 2013, when Scottish Government officials contacted the organization, looking for confirmation of the support being provided to the company in Scotland.

I met the administrator BDO on 7 August 2013 and emphasised that the Scottish Government is committed to providing assistance to achieve the best possible outcome for all involved. I also met union representatives and gave them my assurance that I would take any steps possible to secure the future of the company.

Through our Partnership Action for Continuing Employment (PACE) initiative, we have supported Railcare staff since the company went into administration. Representatives from our local PACE team were on site to provide support when employees were made redundant and have continued to provide support to those employees.

I am delighted to see that Railcare has now been bought by the German company, Knorr Bremse, and very much welcome their commitment to pay staff their wages. Railcare has a loyal workforce and a healthy order book and I am sure the company will now go forward on a healthy footing, helping to deliver the significant rail investment programme underway in Scotland. I understand Scottish Enterprise will now engage with the new owners to assist them in consolidating and strengthening their operation in Scotland.

I met the administrators BDO on 7 August 2013. In addition, PACE colleagues first made contact with BDO on our behalf on 31 July 2013 to offer PACE support to Railcare employees, and are in continuing contact.