WELCOME to scotsman.com's Scottish Business Briefing. Every morning we bring you a comprehensive round-up of all news affecting business in Scotland today.
FOOD, DRINK & AGRICULTURENFU in tax cut callThe National Farmers Union Scotland has called for a review of fuel tax as rising prices start to impact on agricultural production costs. NFUS president Jim McLaren co
mmented: "Speaking to our members during the recent Grangemouth disruption, their biggest concern was not so much the supply of fuel, but the crippling cost of it. We have had reports today of red diesel being priced at around 67p per litre, up from 36p at the start of 2007. The situation on normal road diesel is also desperate and worsening." He added: "This is about more than getting a commitment to freeze duty or postpone tax increases. We need a wholesale review of fuel tax if ministers are to avoid making the current food supply and price concerns worse. If the UK government genuinely feels our pain, as they claim, then it is time they acted."
(The Herald) Read all today's food, drink and agriculture news from scotsman.comMEDIA & LEISUREScottish papers in crisis?A BBC Scotland investigation has claimed that Scottish newspapers are wilting in the face of competition from their London rivals. The claim comes as local newspapers ready themselves for the advertising hit they will take when local authorities shift their recruitment advertising from traditional media to an online strategy, a lead expected to be followed by the Scottish Government despite significant protests from press companies. Meanwhile, the BBC Radio Scotland investigation included comments from US academic Professor Phillip Mayer suggesting that Scotland's major quality newspapers may not survive beyond 2018. He was quoted: "If you take the rate of decline and extend it to the zero point, I would say the end of Scottish newspapers as we know them within ten years will probably happen unless there are some surprises."
(BBC Scotland Online) Read all today's media and leisure news from scotsman.comRETAILDisappointed Hunter to fight onSir Tom Hunter has pledged to continue his fight with Tesco despite failing to gain a court interdict stopping the supermarket giant pushing ahead with a rights issue for garden centre chain Dobbies. Scotland's richest man had taken the legal move in a bid to stop the issue which would significantly dilute his 30 per cent stake in the retail chain over which he fought a bitter and ultimately unsuccessful takeover war with the supermarket group. Spokesman for Sir Tom, Ewan Hunter commented following the ruling at the court of session: "We respect Lord Glennie's interim judgement. It is our intention to speak to Tesco in order to seek a fair solution for all 300 shareholders, many of whom have written to us unsolicited in support of our actions. Should a fair resolution not be forthcoming, we reserve our right to continue down the legal process."
(The Scotsman)Currys closures ramp up economy fearsThe decision by electrical retailer Currys to not renew the lease on 40 per cent of its shops has sparked further fears for the suffering high street. Parent company DSGI will close 77 branches across the UK as the credit crunch continues to impact on retail sales. DSGI has already issued two profit warnings this year and is seen as one of the major casualties of the pinch on household spending as utility bills increase and the economy slows down. Retail analyst at Pali International, Nick Bubb said: "Electrical stores are suffering, although the toughest area is furniture because consumers are holding back on the discretionary, big-ticket purchases. There is room on the high street for some sort of electrical retailer, but whether the existing format will succeed isn't clear."
(The Scotsman) Read all today's retail news from scotsman.comTECHNOLOGYProStrakan confident on US licenceThe chief executive of Borders pharmaceutical firm ProStrakan has insisted the company is confident of receiving a US licence for its latest hormone-based product. Wilson Totten said the Food and Drug Administration approval for the testosterone gel should prove 'a relatively straightforward' process as the Galashiels firm continues its bid to expand into the US market. The comments came as the company unveiled a strong trading statement and were made in light of an agreement with the FDA to lower the hormone levels in the treatment. Totten commented: "It's not guaranteed, the FDA can change their mind like any human being, but we have agreed with them what would be the terms of the trials, we've run the study and hit all its end points, so it should be a relatively straightforward process (to have the product approved)." The market for the Fortigel product is believed to be worth up to $550 million in the US alone and ProStrakan are eager to capture up to 20 per cent of the available sales.
(The Scotsman)Tough Bionics in US acquisitionA Scottish company which makes prosthetic hands has bought the US company which produces the skin to cover its products. Edinburgh-based Tough Bionics has completed a seven-figure deal for Living Skin and acquired the intellectual property pioneered by Tom Passero which mimics the three-layer dermal structure believed to give prosthetic hands the most life-like appearance possible. The acquisition of Living Skin also allows Tough Bionics to expand further into the US market as it prepares to deliver its 200th iLIMB hand.
(The Herald) Read all today's technology news from scotsman.comTRANSPORTMenzies in confident start to the yearA trading statement from distribution and aviation services firm John Menzies has revealed the Scottish firm is trading in line with expectations despite the challenge of the troubled global economy. The statement also revealed that the group's expansion into the Indian and South African markets was continuing satisfactorily. The statement read: "We have secured more contracts than expected (in South Africa), and as a result have incurred a higher level of start-up costs, which are reducing short-term profitability." Shares in the firm, which is also making a significant push in the Scandinavian market, slipped 14p to 531p by the end of trading yesterday.
(The Herald)Tram project cost risesThe cost of the Edinburgh tram project has risen to £512 million following the signing of the contract that will see the first tracks laid by August of this year. The final cost will be greater than the initial estimate in the business case but will fall within the £545 million budget set for the scheme. The announcement came as negotiations between project group Tie and the German and Spanish suppliers of the trams and track were completed. Chairman of Tie Willie Gallacher said: "I'm pleased that these negotiations have now reached a successful conclusion. These pressures on cost are not isolated to the tram project. The fact is that every major construction project in Scotland and in the UK is and will be impacted by these exact same factors. We have sought to successfully deal with them now."
(BBC Scotland Online) Read all today's transport news from scotsman.com
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