Energy giant SSE has admitted it no longer sees bringing any of the 700 renewables jobs touted for Dundee as a priority.
After The Courier revealed no manufacturing employment has arrived in the three years since the fanfare signing of a Memorandum of Understanding, the Perth-based utility company delivered a downbeat assessment of its future by the Tay.
In a letter to city-based MSP Jenny Marra, director of procurement and logistics Sandy Biggar said the firm’s “position is now very different” to when the document was drawn up.
He added that SSE’s focus has “narrowed significantly” to the Beatrice project in the Moray Firth, but he insisted “support” would still be available for Dundee.
Mr Biggar said: “As part of the offshore wind development costs SSE has already committed, it has incurred significant costs in trying to pursue this opportunity in Dundee.
“While the focus of SSE’s near-termdevelopment plans has narrowed significantly,there has been no change to Dundee’spotential to support offshore wind developments and the company will do what it can to help the local authority and enterprise agenciesin their efforts to deliver businesses and jobs to Dundee.”
The agreement, trumpeted by FirstMinister Alex Salmond when it was signed by SSE, Forth Ports, Scottish Enterprise and Dundee City Council in December 2011, ceases to be “current” this winter and anSSE spokesman admitted withdrawal is an option.
When asked by The Courier whether the company would remove itself from the agreement, he said: “We will consider that nearer the time.”
Ms Marra wrote to both Mr Salmond and Lord Smith of Kelvin, chairman of SSE, questioning progress in the bid to bring work to the banks of the Tay.
She wrote: “As you will know, people in Dundee want good quality skilled jobs. These jobs were promised to our city, signed by four parties in a document and heralded as a major jobs boost.
“The people of Dundee would like to know what progress you are making on this understanding.”
A Scottish Government spokeswoman added: “Despite continued investment by the Scottish Government, the UKGovernment’s protracted Electricity Market Reform process has made investment in the industry a lot more uncertain.
“Scottish Enterprise and HIE willcontinue to work with inward investors who have expressed an interest in locating in Scotland to take advantage of Scotland’s excellent offshore wind industry.”
A spokeswoman for Scottish Enterprise said: “We are working closely with partners to realise Dundee’s potential to support offshore wind developments. However it is widely recognised that the industry has not progressed as quickly as first anticipated when the memorandum of understanding was signed.
“Whilst there are a number of projects in development which could utilise Dundee, due to market conditions these will develop over a longer period of time.
“The Port of Dundee remains a vibrant and busy port bringing skilled employment opportunities and significant economic benefit through its work in the growingoffshore oil and gas market, and it continues to be in a strong position to accommodate offshore renewable energy operations in line with the sector’s development.”
Plans for the proposed £10 billion Seagreenwindfarm development off Scotland’seast coast were thrown into jeopardy in March when SSE confirmed it was scaling back its offshore renewables programme.
Just a few weeks ago Fife’s Burntisland Fabrications said work to increase the capacity of its base in Methil would begin between “early 2016 and 2017” much later than the early 2014 to 2015 timescale initially proposed when plans were revealed in September. SSE holds both a 15% stake and manufacturing options in BiFab.