‘Significant’ government cash failed to save Galloway Group

Dundee engineering firm Galloway Group was given “significant financial support” by the Scottish Government before it entered administration, it has been revealed.

More than 160 workers lost their jobs when the ductwork contractor and fabricator announced it was going into administration this week.

Minister for business, innovation and energy, Paul Wheelhouse, who had visited the company as recently as last month, confirmed the firm received financial support for several years to try and keep it afloat.

After the collapse he said: “I am very disappointed to learn that Galloway Group, Dundee, has entered administration. This will be an extremely difficult time for those affected, their families and the local area.

“The Scottish Government, Scottish Enterprise and the Scottish Investment Bank, have been engaging intensively with Galloway Group for a number of years, providing significant financial and business development support to try to help secure a sustainable future for the business.

“Last month I visited the company to make clear the on-going support for the company and its employees, from the Scottish Government and its agencies.

“Sadly, despite our support, it has ultimately not proved possible to keep the company from entering administration, but Scottish Enterprise will remain closely engaged with the company and the administrators, to explore all possible support for the business and jobs in Dundee.”

Galloway, which first started trading as tinsmiths in Dundee in 1872, specialises in areas such as ductwork fabrication and acoustic enclosures.

The firm has worked on iconic buildings such as the British Museum in London, Glasgow’s Sir Chris Hoy Velodrome and the Scottish Parliament in Edinburgh.

He said: “Partnership Action for Continuing Employment (PACE), the Scottish Government’s initiative for responding to redundancy situations have organised a multi-agency meeting for next week to support those individuals affected.Mr Wheelhouse added ongoing support is being offered to affected employees.

“Through providing skills development and employability support, PACE will aim to minimise the time individuals affected by redundancy are out of work and, based on an impressive track record, I am confident that the PACE response here will provide valuable assistance to those employees who face uncertain times ahead.”