Five questions answered on Grangemouth petrochemical plant closure

What has the government's response been?

Owners Ineos announced this morning that the petrochemical plant at the Grangemouth complex in Scotland will close.  We answer five questions on the closure.

Why is the plant closing?

Ineos made the announcement following a meeting with the workforce at the plant and its associated oil refinery this morning.

The decision comes after a long dispute between workers and management. The company had said if the workforce rejected new proposed changes to pay and pensions the plant would close.

Staff rejected both proposals to freeze pay for three years and to reduce pensions.

In a statement the company said:

"The company made it clear that rejection of change would result in closure. Regrettably, the union advised union members to reject any form of change.”

The outcome of the employee vote on the company's survival plan was a 50/50 split.

How many people work at the plant?

About 800 people are employed at the petrochemical plant, as well as other sub-contractors.

What else have Ineos said?

The company statement goes onto say:

"The shareholders met yesterday to consider the future of the business following the result of the employee vote.

"Sadly, the shareholders reached the conclusion that they could not see a future for Grangemouth without change and therefore could no longer continue to fund the business".

 "As a result of this decision, the directors of the petrochemicals business have had no option but to engage the services of a liquidator. It is anticipated that a liquidation process will commence in a week."

What has the government said?

Nothing official as yet. Ministers, including the Scotland Secretary Alistair Carmichael and the Energy Secretary Ed Davey, are meeting in London to decide on a response to the decision.

Labour's Shadow Energy Secretary, Caroline Flint, has requested an Urgent Question on the Government's contingency planning regarding Grangemouth Refinery.

What financial problems has Grangemouth faced?

According to Ineos the plant, which has been shut for a week due to the ongoing dispute, is losing £10m a month.

It had said it was ready to invest £300m in Grangemouth, but only if workers agree to the new terms and conditions.

The Scottish government said at the beginning of the week it had been trying to find a buyer for the site. 

The Grangemouth Oil Refinery in March, 2012, in Grangemouth, Scotland. Photograph: Getty Images.

Heidi Vella is a features writer for Nridigital.com

Photo: André Spicer
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“It’s scary to do it again”: the five-year-old fined £150 for running a lemonade stand

Enforcement officers penalised a child selling home-made lemonade in the street. Her father tells the full story. 

It was a lively Saturday afternoon in east London’s Mile End. Groups of people streamed through residential streets on their way to a music festival in the local park; booming bass could be heard from the surrounding houses.

One five-year-old girl who lived in the area had an idea. She had been to her school’s summer fête recently and looked longingly at the stalls. She loved the idea of setting up her own stall, and today was a good day for it.

“She eventually came round to the idea of selling lemonade,” her father André Spicer tells me. So he and his daughter went to their local shop to buy some lemons. They mixed a few jugs of lemonade, the girl made a fetching A4 sign with some lemons drawn on it – 50p for a small cup, £1 for a large – and they carried a table from home to the end of their road. 

“People suddenly started coming up and buying stuff, pretty quickly, and they were very happy,” Spicer recalls. “People looked overjoyed at this cute little girl on the side of the road – community feel and all that sort of stuff.”

But the heart-warming scene was soon interrupted. After about half an hour of what Spicer describes as “brisk” trade – his daughter’s recipe secret was some mint and a little bit of cucumber, for a “bit of a British touch” – four enforcement officers came striding up to the stand.

Three were in uniform, and one was in plain clothes. One uniformed officer turned the camera on his vest on, and began reciting a legal script at the weeping five-year-old.

“You’re trading without a licence, pursuant to x, y, z act and blah dah dah dah, really going through a script,” Spicer tells me, saying they showed no compassion for his daughter. “This is my job, I’m doing it and that’s it, basically.”

The girl burst into tears the moment they arrived.

“Officials have some degree of intimidation. I’m a grown adult, so I wasn’t super intimidated, but I was a bit shocked,” says Spicer. “But my daughter was intimidated. She started crying straight away.”

As they continued to recite their legalese, her father picked her up to try to comfort her – but that didn’t stop the officers giving her stall a £150 fine and handing them a penalty notice. “TRADING WITHOUT LICENCE,” it screamed.


Picture: André Spicer

“She was crying and repeating, ‘I’ve done a bad thing’,” says Spicer. “As we walked home, I had to try and convince her that it wasn’t her, it wasn’t her fault. It wasn’t her who had done something bad.”

She cried all the way home, and it wasn’t until she watched her favourite film, Brave, that she calmed down. It was then that Spicer suggested next time they would “do it all correctly”, get a permit, and set up another stand.

“No, I don’t want to, it’s a bit scary to do it again,” she replied. Her father hopes that “she’ll be able to get over it”, and that her enterprising spirit will return.

The Council has since apologised and cancelled the fine, and called on its officials to “show common sense and to use their powers sensibly”.

But Spicer felt “there’s a bigger principle here”, and wrote a piece for the Telegraph arguing that children in modern Britain are too restricted.

He would “absolutely” encourage his daughter to set up another stall, and “I’d encourage other people to go and do it as well. It’s a great way to spend a bit of time with the kids in the holidays, and they might learn something.”

A fitting reminder of the great life lesson: when life gives you a fixed penalty notice, make lemonade.

Anoosh Chakelian is senior writer at the New Statesman.