ECONOMYMortgage numbers up in short termNew figures from the Council of Mortgage Lenders have revealed lending for house purchase rose slightly in May. While the number of home loans rose to 52,700 in May – and i
ncrease of four per cent on the previous month – the total had fallen by 44 per cent on the same month last year. Director general of the CML, Michael Coogan commented: "Lending levels continue to be lower than last year and recovery is still some way off, with little sign of the special liquidity scheme increasing the flow of funds to the industry or lowering the cost of funds as hopes." He added: "The growing popularity of fixed-rate mortgages, despite the relatively high rates, suggests that many borrowers are prioritizing certainty in their monthly payments."
(The Scotsman) Read all today's economics news from scotsman.comENERGY & UTILITIESEnergy to waste plans revealedA £250 million project to develop a waste to energy plant and recycling centre in North Lanarkshire has been revealed by a subsidiary of the Gillespie Investment Group. Airdrie North, a development arm of the investment group, claim the plans would see the creation of 65 new jobs at the station and work for a further 150 construction staff. The planning application follows consultations with North Lanarkshire Council, Scottish Natural Heritage and the Scottish Environment Agency while the developer has also consulted residents in the area. Under the plans, the completed power plant would burn up to 300,000 tonnes of waste every year and produce enough heat for 30,000 homes, local businesses and public buildings. Managing director of Airdrie North, Scott Gillespie said: "Our proposals focus on creating an exemplar centre, which will deliver a substantial amount of energy from waste. It will also deliver real economic benefit to the area through the creation of jobs in both construction and the ongoing operation. We have looked at the best possible models abroad and are committed to developing a facility for Scotland that will be among the best in the world."
(The Scotsman)£750bn remains untapped in North SeaOil industry leaders have claimed that up to £750 billion in untapped oil and gas reserves remain in the North Sea and the Atlantic frontier west of Shetland. However, Oil and Gas UK have warned the reserves will never be recovered without new technology and investment incentives from the government. The industry group claims there are up to 25 billion barrels of oil available but only 10 billion will be extracted under the current regime. Chief executive of Oil and Gas UK, Malcolm Webb commented: "Barrels left in the ground do not pay taxes, do not sustain jobs, do not help secure the nation's energy supply and provide no support to the country's balance of payments. While we may have produced nearly 38 billion barrels of oil and gas over the last 40 years, the UK still has substantial oil and gas potential. It is estimated that somewhere between 16 and 25 billion barrels of oil and gas remain to be recovered." He added: "Plans currently in place should reach about 10 billion of those barrels so the challenge in the hands of the government and industry is how to achieve the remaining 15 billion barrels. While realizing this goal will require massive further investment from the industry, at $100 per barrel it is worth $1.5 trillion to the British economy and this is a prize which the country should not contemplate losing. There need to be targeted incentives for companies wishing or willing to invest the very, very considerable sums that are going to be needed to get up to that 25 billion target, but, my word, that is a target worth going for."
(The Scotsman) Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTUREJohn Swan into the redBorders livestock auctioneer John Swan has posted a pre-tax loss o £72,605 for the year as the impact of last summer's foot and mouth crisis continues to be felt across the sector. However, the company which also operates in Northumberland predicted a positive future after recording a strong recovery in the second half of the year amid rising livestock prices. Chairman George Neill said: "The increase in livestock values has obviously had a beneficial effect on our income and the strength of sterling will be a major factor in maintaining these values. The position is unclear regarding arrangements for the autumn, with bluetongue restrictions constantly changing."
(The Herald) Read all today's food, drink and agriculture news from scotsman.comINDUSTRYAirbus deal to secure 750 jobsPrestwick-based Spirit Europe has secured two new contracts to design wing components for the new Airbus A350 XWB and continue producing parts for other Airbus planes. The deals will secure up to 750 jobs for the next nine years according to the firm which bought the Prestwick facility from BAE Systems for £80 million two years ago. Vice president and managing director of Spirit Europe, Neil McManus said: "We already have a long history of producing major wing structures in the UK for current Airbus models such as the A320 and A380. This contract win means that we will be playing just as vital a role in the newest model, the A350 XWB. It is fantastic news for aerospace manufacturing in the UK."
(BBC Scotland Online) Read all today's industry news from scotsman.comMANAGEMENTMB into liquidationMB Designs (Scotland) the double-glazing company pursued by the Office of Fair Trading following a raft of complaints over the quality of its doors, windows and conservatories has gone into liquidation. The OFT eventually obtained interim enforcement orders from the Court of Session to protect consumers in the first such case of its kind in Scotland.
(The Herald) Read all today's management news from scotsman.comPROPERTYPersimmon cut 1100 jobsPersimmon is the latest housebuilder to announce significant job cuts as the housing sector continues to be hammered by the fallout from the global credit crisis. The builder confirmed there would not be a significant write-down on the value of its land holdings but confirmed that a quarter of its workforce would go. A spokeswoman told the Herald that 85 staff in two of the firm's Scottish offices would lose their jobs amid falling sales north of the Border. Analyst at Landsbanki, Simon Brown commented: "The decline in sales has been faster than predicted although not by much and pricing and margins have suffered accordingly. The group announces a cost-cutting programme that should result in annualised cash savings of £45m and an overhead reduction of £20m. The shortfall in sales is likely to deteriorate in the second half and for this reason we are reducing our forecast for the full year by 27 per cent to £175m at the pre-tax level. The prices being put on houses are attracting potential buyers and deals are being done but the finance is not there to complete the exchange. This position will result in fewer completions in the first half than expected and a lower forward sold position, down 30 per cent on last year at £650 million at weaker margins going into the second half."
(The Herald)Tulloch to cut jobs across Scottish operationHighland housebuilder Tulloch Homes has admitted it is set to cut 40 jobs across is Scottish operation. The Inverness-based firm has already paid off 18 staff this year and is expected to shed up to another 40 posts in the Highlands.
(BBC Scotland Online) Read all today's property news from scotsman.com
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