Jim Mather, Argyll’s MSP and Minister for Enterprise, Energy and Tourism, is in touch with the Bank on this urgent matter and sees value in the suggestions For Argyll has made in a previous article on alternative solutions for independent business banking and business development that Islay might explore.
His view is that, in taking the action currently under dispute, the Bank may well have precipitated consequences beyond its anticipation and to its disadvantage. He is to make this point to Susan Rice of the Bank of Scotland in putting what we have suggested in front of her.
He is also laying before her the evidence of the informed responses from the Islay business community to the Bank’s action posted to this site.
For this reason, we suggest that all comments on this broad issue – whatever they are – should be posted at the foot of the original article here, forming a coherent body of opinion.
In our view, Islay would be better protected in the long term by investigating the mutuality and investment approaches we have suggested. They have the potential to be viable and they offer the protection of community control. As Diageo and now HBOS has shown, there is no protection at all against the corporate predator intent on shaving costs to grow profits for shareholders.
Other areas as well as Islay might consider exploring the same actions - and indeed an Argyll-wide initiative would have a great deal to commend it in scale and in bonding this dispersed region in so important a communal resource.
Jamie McGrigor MSP, who wrote to the Bank of Scotland to express concern at its intention to remove its Business Manager from Islay, has had a reply from the bank – not from the CEO to whom his letter had been addressed but from Andy Maciver, Government Relations Manager in Lloyds Group Communications.
McGrigor is disappointed with the response and has no intention of letting the mater drop. He will be going back to the Bank. What follows s the text of Mr Maciver’s letter to him.
‘Thank you for your letter to the Chief Executive. He has asked me to respond on his behalf. I’m sorry for the time taken to get back to you since your initial correspondence.
I understand the unease that our decision has caused on Islay and, while this is a matter of regret, I do believe that many of these concerns are capable of being addressed. Our Direct Bank, which primarily deals with customers over the telephone, has been in existence for over 5 years and already over 75% of our Scottish SME customers use the service. We believe that they have been reassured by the professionalism and knowledge of their relationship managers and I would encourage those constituents of yours who are concerned to give the service some time in order to dispel the understandable concerns they have.
Our teams are very professional, and they quickly understand the products and services their customers need to help their business grow. However we are, of course, still happy to arrange a face-to-face meeting with our customers if it is required.
We do listen to the concerns expressed by you and your constituents and we will always seek to provide as much support as is practically possible. However, I should be clear that we do not intend to return full time representation on Islay. The size of the local economy does not support this and we are not the only Bank to come to this conclusion.
I am aware that this is perhaps not the outcome you desire, for which I apologise. Please do get back in touch if you wish to discuss the issue further’.
This matter, like Diageo’s decampment from Kilmarnock, is a test of the nature of government today and of the Scottish Government in particular. The extent to which the actions of major corporations are beyond the reach of government intervention in the public interest is arguably the political issue of the time.
Update Note: Gus Newman of Islay boatbuilding business, Storm Cats, has added a comment to our original story on this matter in which he has set sections of Andy Maciver’s reply to Jamie McGrigor against a set of challenging interrogations and interpretations. Worth checking out – comment was posted this morning – 20th November.