Scottish Business Briefing - Wednesday 21 October, 2009

Published on Wednesday 21 October 2009 09:38

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.

BANKING & INSURANCE

Bankers under fire over 'business as usual'

BANK of England Governor Mervyn King last night hit out at the "business as usual" culture in Britain's banks (Scotsman). In a high-profile speech to the CBI in Edinburgh, he criticised the lack of reform in the banking sector and warned against a return to the big bonus culture that has been blamed for threatening the safety of the financial system. His remarks came amid an outcry over a report claiming City financiers are set to pocket bumper new year bonuses of more than 6 billion, 50 per cent more than a year ago.

FSA rejects MPs' Dunfermline report and denies any blame

THE City watchdog has refused to accept any blame for the collapse of the Dunfermline Building Society earlier this year (Scotsman). The Financial Services Authority (FSA) yesterday rejected the conclusions of a report by MPs on the Scottish affairs committee that it had failed in its supervision of the society and that it had, likewise, failed to issue specific warnings to the lender about its higher-risk activities which led to the collapse of Scotland's largest building society in March.

Read all today's banking news from scotsman.com

FOOD, DRINK & AGRICULTURE

BrewDog out to raise 2.3m in share issue

BREWDOG, the controversial Scottish micro-brewery responsible for producing the UK's strongest beer, is hoping to raise 2.3 million through a pioneering online share issue to fund a carbon neutral brewery in Aberdeen (Scotsman). The Fraserburgh-based firm, whose marketing strategies have often landed it in hot water with health lobbyists and industry watchdog the Portman Group, has put 10,000 shares up for grab at a cost of 230 each in a scheme called "Equity for Punks". The move comes on the back of a major investment in the brewery from US drinks magnates Keith Greggor and Tony Foglio, the pair who built Skyy vodka before selling it to Campari for $1 billion (600m) in 2007.

Expansion of Greggs will create 800 Scottish jobs

GREGGS, the high street baker and takeaway chain, yesterday unveiled a huge expansion that will bring 800 jobs to Scotland (Scotsman). Ken McMeikan, the Scots-born chief executive, will boost the number of Greggs outlets in Scotland by 70 or more as part of a five-year plan to develop the company across the UK. The group also plans to expand its bakery in Glasgow, which it established two years ago, to supply the increased number of shops. Greggs will invest 9.1 million in the new shops across Scotland. The bakery chain currently has 170 outlets north of the Border.

Read all today's food, drink and agriculture news from scotsman.com

INDUSTRY

Mobile phone and vaccine projects share award windfall

A low-power smart micro antenna for next-generation mobile phones and a vaccine to prevent diseases in goats and sheep are among projects to share a prize of more than 800,000 awarded by Scottish Enterprise and the Scottish Government (Herald). The Proof of Concept awards aim to support innovation and commercialisation at universities and research institutes north of the border and to date have invested 40 million in 226 projects. However, this 12th round of funding marks the first under the programme's new set of rules aimed at boosting the commercialisation rate of the recipient companies.

Read all today's industry news from scotsman.com

TRANSPORT

BAA agrees Gatwick airport sale

BAA has agreed to sell Gatwick, the UK's second busiest airport, to Global Infrastructure Partners (GIP) for a fee of 1.51bn (BBC). BAA said the proceeds of the sale would be used mainly to repay part of its existing debt. Investment fund GIP already owns London City Airport. BAA was ordered to sell Gatwick after an inquiry found that customers were suffering from a lack of competition between airports. It has also been ordered to sell Stansted and one of Glasgow or Edinburgh, but is appealing against the decision.

Read all today's transport news from scotsman.com

Scotsman Business Club

Get to the heart of the issues affecting Scottish business at www.scotsman.com/businessclub. Features include blogs from The Scotsman's formidable team of business writers - including Bill Jamieson, Martin Flanagan, Peter MacMahon and Scott Reid, a diary of forthcoming company announcements and networking events and video interviews with leading business experts covering a wide range of useful topics."