Scottish Business Briefing – Thursday 17 April 2008

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.

ENERGY & UTILITIES
New thinking requested by Chambers over nuclear power
The Scottish Chambers of Commerce (SCC) yesterday put pressure on the Scottish Government to reassess its nuclear power stance. (Aberdeen Press & Journal) Since coming to power the SNP Government has insisted that new nuclear plants will not be coming to Scotland. However, The SCC has asked that a balanced energy policy be drawn up to include nuclear power. Liz Cameron, the SCC chief executive said: "This is a time for government to develop new economic policies to deal with the new business environment and to help sustain growth at a time of higher costs. It is clear that the manipulation of interest rates by the Bank of England alone is not an effective means of achieving this. Additionally we need to take a long-term strategic view on areas such as energy – how this is supplied, where and by whom – if we are to get to the root of the issues that affect the way in which we do business in the 21st century. The Scottish Government could lead the way for the rest of the UK in this regard, by shifting away from the narrow, outdated and sterile nuclear versus renewable debate of the 1970s and 80s and embracing a balanced strategic energy policy fit for the economic needs of tomorrow's Scotland."

Reservoir adds Omega to its portfolio
Reservoir Group yesterday announced its second multi-million-pound deal in under a fortnight. (Aberdeen Press & Journal) The Aberdeenshire-based firm, which specialises in downhole drilling products for the oil and gas sector, has acquired Omega Data Services. Omega provides supply, manufacturing and design services of downhole memory tools. The acquisition is another step towards Reservoir's aim of becoming a global leader in the industry. Reservoir chief executive Pascal Bartette said: "Omega's success is based on its reputation for getting new, high-quality, cost-effective products to market quickly. The primary design criteria for all Omega products is that they allow operators to get the best data from their wells and can be safely and successfully operated by field personnel with no specialised training or knowledge. As part of the Reservoir Group, we anticipate Omega will be able to quickly replicate its performance in other oil and gas provinces through our international network.
Read all today's energy and utilities news from scotsman.com

FOOD, DRINK & AGRICULTURE
Angry meat wholesalers to speak with Health Minister
The Scottish Association of Meat Wholesalers (SAMW) is to request an immediate meeting with Health Minister Shona Robison. (The Herald) SAMW are furious with a series of meat-inspection charges and issues. SAMW president Allan Jess said: "Our industry is currently being appallingly treated on meat-inspection charges by the Meat Hygiene Service (MHS), with the very real danger that such treatment will severely damage future production capacity in Scotland. Our first annoyance is the MHS totally ignored the views of UK meat associations when consulting on a proposed 8% increase in meat-inspection charges. All meat associations opposed the increase on the grounds that it could not be justified and that it would threaten the financial viability of many businesses. MHS neither justified the increase nor had the courtesy to adequately address our concerns. Instead, without any prior notice, they wrote to member companies requiring the new charges to be paid from April 1, 2008. Adding insult to injury, MHS is currently set to benefit hugely next year from the continuing strength of the euro against sterling. MHS sets its charges in euros at the end of September each year, for the next financial year, but issues its invoices to meat plants in sterling."
Read all today's food, drink and agriculture news from scotsman.com

INDUSTRY
Jobs market in Scotland outperforming the rest of the UK
The jobs market in Scotland has continued to outperform the rest of the UK, despite the increasing problems in the credit markets. (The Herald) Official figures have shown that unemployment in Scotland and England has fallen in the latest period. The findings from the Office for National Statistics also show modest wage growth, which could be used as sufficient evidence for the Bank of England, who would prefer to counter the downturn on the economic front with cuts in interest rates. Unemployment in Scotland was reported as falling by 300 in March to 68,700 leaving the claimant count at a record low of 2.5%. The ONS reported that consumers in Scotland remain in a better condition than in other parts of the UK. Furthermore it was reported that house prices in Scotland increased during March – the only part of the UK to do so. However, Vicky Redwood, UK specialist at Capital Economics, said: "The latest UK labour market figures bring further tentative evidence that the economic slowdown is starting to dent labour market activity. Overall, the labour market remains in fairly good health - but the unambiguous robustness seen just a few months ago is starting to fade."
Read all today's industry news from scotsman.com

RETAIL
Staff cuts by sportwear giant could be avoided by north-east employees
As many as eighteen north-east branches of JJB Sports could be safe from closure despite the sportwear retailer announcing that 72 stores nationwide are to be closed. (Aberdeen Press & Journal) JJB Sports has 409 stores in the UK and has announced that 800 jobs will be cut along with 400 staff being relocated. The changes come after a business review carried out by new management following a 28% drop in adjusted profits. However staff at a north-east store remained positive, insisting that the changes were only going to effect English stores. One manager, who chose not to reveal his identity, said: "We've just been told that there's nothing in our area, nothing in the north of Scotland." Roger Lane-Smith, chairman of JJB, said: "We are taking significant action to improve the performance of JJB's retail stores. While we have identified a number of stores for closure, which will itself strengthen our remaining store portfolio, we are also investing to improve the quality of our stores and products with further store refits, the introduction of new products from our own brands and the implementation of staff training and incentivisation programmes."
Read all today's retail news from scotsman.com

TECHNOLOGY
Optos add new device to product range
Scottish eyecare specialist, Optos, yesterday announced it would be adding a third device to its product range. (The Herald) Optos believes that the device will fulfil the needs of a vital market segment. The device, known as P200C is used for retinal imaging and was designed for patients with more advanced ocular diseases, allowing optometrists to see parts of the eye that were difficult to access before. The Dunfermline-based firm is confident the new product will fulfil the gap in the market. Chief executive Thomas Butts said: "We look forward to marketing the P200C primarily on a pay-per-patient basis to an estimated 10,000 addressable practice locations in our existing markets."

Report claims technology should not be for its own sake
Businesses introducing new technology should apply more caution to the process according to a new report. (The Scotsman) Former chairman of Aegis Marketing Philip Forrester has delivered a report in which he suggests that many businesses bring in new technology for the wrong reasons. For the report, Forrester analysed the business practises of over 200 businesses, which were entrants in the National Business Awards last year. Forrester said: "There is some evidence that technology-for-technology's-sake may not be an improvement. The automated call-centre technologies or voice-recognition systems are one example of how technology can be frustrating for the end-user. It can also have a negative effect on the prospects of the business. Those that recognise the correct innovation opportunity have shown that they understand their customers' needs." In his report Forrester said: "Overall, UK plc is more of a following nation than a leading one in the field of innovation. There are shining examples of organisations that are leaders, but across the study, the evidence seems to paint a picture wherein UK plc is the adopter of the ideas of others rather than being the provider of innovative ideas to others. UK plc needs to review its approach to research and development to ensure it retains its competitive advantage."
Read all today's technology news from scotsman.com