Dundee-based MSP Jenny Marra has raised Muirfield Contracts’ collapse at First Minister’s Questions.
The building firm has called in administrators and placed its staff on indefinite gardening leave, putting hundreds of jobs at risk.
Describing Muirfield as “Dundee’s last independent mid-sized builder”, Ms Marra asked: “What can the Scottish Government do for the 250 people whose jobs are under threat?”
She added: “What does the First Minister think about the economic situation where we are seeing local firms of this size and importance in our communities unable to survive?”
Nicola Sturgeon responded: “We have to do everything we can to protect local companies.”
She said the Government would work with the city council and pledged the support of the PACE (Partnership Action for Continuing Employment) team.
The First Minister continued: “Of course, there’s going to be a huge construction boost to the city of Dundee through the V&A … and we should make sure we’re doing everything we can to support smaller businesses as we recover from the recession.”
Ms Marra’s move comes after other city politicians expressed their concern about the firm’s troubles.
Dundee West MSP Joe FitzPatrick says he is “extremely concerned” by developments at Muirfield Contracts.
He said he had contacted senior ministers in a bid to ensure help would be made available to those affected.
“Muirfield is a substantial building firm and potentially around 200 jobs could be at risk,” he said.
“I contacted Fergus Ewing, minister for business, energy and tourism, to ensure that his department are involved to see what can be done.”
Dundee West MP Jim McGovern said everything that could be done to save jobs had to be done.
“The Dundee construction industry has a long, proud record and having been employed in the building trade for many years, I retain a strong attachment to the industry,” he said.
“Coming less than three years after the closure of WH Brown, this news is a very sad development.
“We are still waiting for the full details to emerge, including the next steps the company will take.”