ECONOMYInflation holds at 2.5 per centDespite claims to the contrary, inflation held steady at 2.5 per cent last month as a squeeze on high street prices offset higher transport costs. The Consumer Prices Index r
emained at 2.5 per cent, below the expectations of economists who had been predicting a spike in inflation. Office of National Statistics numbers had shown inflation being pushed up by the increasing cost of air travel, but the compensatory fall in retail sales appears to have kept the rate on an in even keel to the relief of the Bank of England's Monetary Policy Committee.
(The Scotsman) Read all today's economics news from scotsman.comENERGY & UTILITIESIberdrola says no to BEScottishPower owner Iberdrola has all but ruled itself out of making a bid for British Energy. However, the Basque group did express an interest in being part of plans to build the next generation of British nuclear power station. It has been rumoured that East Kilbride-based British Energy may have been in Iberderola's sights with German utility giant RWE and French group EDF already confirming an interest in the nuclear generator. ScottishPower's Spanish chief executive Jose Luis del Valle commented: "What we are interested in is the future – the future development of nuclear in the UK is something that is clearly of interest to us. There might be opportunities if someone else buys British Energy, there might be sites become available, from British Energy or sites from the nuclear decommissioning authority… there will be other opportunities in the UK for nuclear besides British Energy."
(The Scotsman)Wind firm appeals to EuropeLewis Wind Power has appealed to the European Commission to back its plan for a 181-turbine wind farm on Lewis' Barvas Moor. The group will be present at a European Parliament event to discuss the Natura 2000 designation which currently offers protection to the peat bogs on the island. However, LWP contends the designation should not hinder the proposed development which has proved hugely controversial on the island. Director of LWP, David Hodkinson commented: "Natura 2000 designations should not prevent developments, particularly where these will bring significant advantages to some of Europe's remote rural areas, suffering from depopulation. There are ample case studies from across Europe of sensitive developments adjacent to or in Natura 2000 designated land. We recognise the importance of the Lewis peat lands, which appear to be releasing CO2, and the habitats that they provide for many species of wildlife – that's why we have effectively designed our wind farm around bird populations and movement."
(BBC Scotland Online) Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTUREOatcake maker avoids crunchEdinburgh's Nairns Oatcakes has booked increased pre-tax profits of £2.2 million, up from £2.1 million on the previous year. The former Simmers of Edinburgh put the rise down to the continuing success of its oatcakes and the growing popularity of oat biscuits in general. Operating profits were hit by a £5 million investment in a new production line and building extension at the group's Peffermill factory which did, however, increase capacity by some 40 per cent and increased the workforce to 110.
(The Herald) Read all today's food, drink and agriculture news from scotsman.comRETAILTesco's see earnings surgeTesco has avoided the gloom on the British high street to book record annual profits of £2.8 billion. The supermarket giant has pledged to increase its Scottish operation on the back of the profits, opening news stores and taking on additional staff. Chief executive Terry Leahy is predicting the firm will continue to grown at between three and four per cent this year, despite the ongoing financial turmoil. He commented: "It is not all gloom, there are opportunities. Customers are more likely to look for value and value is one of the strengths of Tesco. We are a company for all seasons." Commenting on Tesco's impressive figures, analyst ay Hargreaves Lansdown Stockbrokers, Richard Hunter said: "Given the wider economic backdrop, the double-digit growth which Tesco has maintained takes on more significance. In addition, the company displays every sign of continuing to be a growth stock whilst maintaining its defensive qualities and strong diversification."
(The Herald) Read all today's retail news from scotsman.comTRANSPORTDredging to begin at LerwickA £12 million dredging project to improve vessel access to Lerwick Harbour is set to get under way next week. Nearly 490,000 cubic metres of material is expected to be removed from the seabed allowing the creation of deeper berths in the scheme which will prove to be the largest capital project undertaken at the Shetland harbour. Lerwick Port Authority chief executive Sandra Laurenson commented: "The deeper and wider access and the deepened berths will suit the larger vessels now operating and will be of particular benefit to the pelagic fish sector and offshore industry decommissioning, while the reclaimed land will offer opportunities to decommissioning and other industries."
(The Herald)Stranraer plan angerDumfries and Galloway Council has accused the Scottish Government of downgrading a plan to overhaul the waterfront at Stranraer. The project had been designated by Scottish Enterprise as being of national importance but since the reorganisation of the government agency has slipped from the agenda. Council leader Ivor Hyslop hit out at the government: "Stranraer is an international gateway to Scotland. It is one of the busiest sea crossings in Britain and it is a priority route to Ireland and a key link to Europe. Perhaps it is just too far from the central belt to have an impact on policy." A Scottish Government spokesman responded: "Regeneration of Stranraer waterfront is an important local regeneration project. The Scottish Government wants to see this project succeed and deliver benefits for the community and wider region. In line with our stated policy of enterprise network reforms, responsibility for the Stranraer waterfront regeneration project will transfer to Dumfries and Galloway Council."
(BBC Scotland Online) Read all today's transport news from scotsman.comPROPERTYHousing slowdown set to biteA leading economic adviser at Stirling University has claimed Scotland will not escape the housing market slump, with prices set to fall within the next six months. Professor David Bell believes the slowdown in the south will 'ripple out' and start to affect the Scottish housing market despite Royal Institution of Chartered Surveyors data appearing to show the market holding steady. However, the economist does not believe the seeming inevitably fall will greatly affect the price of homes north of Border. He said: "I think we are looking for a period of (something] between stability and mild decline (in value]. I suspect it will be towards the decline, but not something that's going to dramatically affect the value of people's houses that they have built up over the years. If there is a decline, it would not be a very marked decline. We might get a decline from June to July, but we are not looking at a substantial decline in value over, say, what the prices were a year ago. I would be very surprised if Scottish house prices were still rising three months from now."
(The Scotsman) Read all today's property news from scotsman.com
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