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<title>Employment Scotland Top Stories</title>
<description><![CDATA[Employment news updated daily.]]></description>
<link><![CDATA[http://www.employmentscotland.co.uk/index.php/]]></link>

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<title><![CDATA[HBOS takeover good for Scotland]]></title>
<description><![CDATA[The takeover of HBOS by Lloyds TSB will be "good for Scotland", one of the banks bosses has told BBC Scotland. 

HBOS communications manager Shane ORiordain also said the deal would benefit customers and shareholders and denied the business was in "crisis". 

Meanwhile, The Scottish Governments economic advisers will meet next week to discuss the £12bn HBOS take over. 

Labour demanded public access to the meeting in the national interest, but the call was rejected by the SNP. 

Lloyds TSB is to take over HBOS in a deal which will create a banking giant, holding close to one-third of the UKs savings and mortgage market. 


Mr ORiordain told BBC Scotlands Politics Show that the Scottish-based bank had taken a "long and hard view" about its future prospects. 

"We put sentiment aside, as you must do in business, and we took the view that this was right," he said. 

"Dont judge this deal on the headlines of the last week, thats not what business is about. 

"Judge it on where this business will be in two or three years time. We believe this will be a very strong franchise and therefore good for Scotland." 

Mr ORiordain refused to comment on Scottish First Minister Alex Salmonds attacks on short-selling "spivs and speculators". 

LLOYDS vs HBOS 
Branches - Lloyds 1,900; HBOS 1,100
Customers - Lloyds 16 million; HBOS 22 million
Employees - Lloyds 70,000; HBOS 72,000
Savings - Lloyds is the UKs fourth largest savings provider; HBOS is the market leader
Retail savings balance - Lloyds £65bn; HBOS £139bn 

But the HBOS communications boss added: "There is literally a financial hurricane roaring through the banking sector - both in this country and in the United States. 

"Weve seen unprecedented developments in the last few weeks. In our judgement, the regulators have acted decisively right through that period." 

Mr ORiordain also said he was "very impressed" with the work Mr Salmond and Scotlands opposition parties had done in the past week to help ensure the best possible outcome for Scotland from the takeover. 

Next weeks meeting of Mr Salmonds council of economic advisers aims to build the case to retain headquarter functions and jobs at the Bank of Scotland. 

In a letter to Mr Salmond, Scottish Labour leader Iain Gray said the Scottish people deserved to hear what the Scottish Governments economic experts had to say, and called for a full transcript of proceedings to be published. 

A spokesman for the first minister said the council was not intended to be the "butt of Iain Grays political knockabout" and pointed out that the group reported to the Scottish Parliament.
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<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/HBOS_takeover_good_for_Scotland_520.php]]></link>
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<title><![CDATA[Judgment day for world economy]]></title>
<description><![CDATA[TODAY is Crunch Day for world markets.

In America, continental Europe and Britain, a massive breakdown in credit has pushed household names to the brink.

Previous flashpoints seemed to present a final convulsion,but today could genuinely be the cathartic moment in determining if the crisis has been overcome – or if we are destined for a massive slump.

Last night, US politicians were increasingly confident a $700 billion (£380 billion) bail-out, the largest US government intervention in markets since the 1930s Great Depression, will meet voter concerns and be passed by Congress.

In the UK, the nationalisation of Bradford & Bingley, with its £40 billion mortgage book, would be the second state rescue this year, after the Northern Rock debacle in January.

Not only does this drive up potential liabilities to the government and taxpayer, but the effective withdrawal of another mortgage provider almost certainly means house prices will fall further in the months ahead.

Meanwhile, desperate talks were being held to find a buyer for Belgian-Dutch banking giant Fortis, brought low by a collapse in shares on Friday.

It is hoped the US bail-out will lift confidence around the world. The real test will be the reception given to the US package when markets open today.
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<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/Judgment_day_for_world_economy_521.php]]></link>
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<title><![CDATA[Scotland to build worlds first wind farms under the sea]]></title>
<description><![CDATA[SCOTLAND has taken a major step towards leading the way in marine renewable energy with the announcement that the worlds first tidal farms could be built within three years.

Two tidal projects, each with up to 20 turbines, could be installed on the seabed in the Pentland Firth and the Sound of Islay. A third is planned off the North Antrim coast in Northern Ireland. The aim is that all the underwater turbines would be constructed in Scotland, kickstarting the renewables industry in this country.

ScottishPower Renewables will apply for planning permission for the three tidal projects next summer. If permission is granted, they would be the first commercial underwater tidal turbine farms built anywhere in the world.

The structures stand 30 metres tall and can work as deep as 100 metres. The 20-metre blades would turn at least 10 metres below the surface to avoid shipping, developers said, and the zones would be off-limits to trawlers for safety reasons.

ScottishPower said tests in Norway proved the blades moved slowly enough for marine life to avoid them.

Scotland, which aims to reduce its greenhouse gas emissions by 80 per cent by 2050, has the best tidal resources in Europe and it has been calculated that at least a third of Scotlands energy demand could be met by tidal renewables. 

The tidal farm sites would have a combined output of 60 megawatts, enough to power 40,000 homes in Scotland and Northern Ireland. If planning approval is granted, ScottishPower Renewables says the projects could be operational by 2011.

The company is also hoping to build a factory in the north-east of Scotland where all the turbines will be constructed, and the projects would be expected to bring hundreds of jobs.

Keith Anderson, the director of ScottishPower Renewables, said this was Scotlands chance to become the global leader in a new renewable energy industry.

He said Scotland has the best tidal resources in Europe, with the Pentland Firth alone containing enough energy to meet a third of Scotlands power requirements. "The rapid technological advance of tidal power has been startling and is now allowing us to progress plans for substantial projects delivering major environmental and economic benefits," he said.

"Tidal power is completely renewable, being driven by the gravity of the sun and moon, with no carbon dioxide emissions, plus the added benefit of being entirely predictable."

First Minister Alex Salmond, who will visit Caithness, near the potential site of the tidal farms, described the announcement as "significant". He said: "We have an estimated 25 per cent of Europes tidal resource and 10 per cent of its wave potential. That is why this announcement is so significant."

Before it can be deployed, a £6 million prototype will have to be tested for about a year in Scottish waters, probably off Orkney. 


Engineers rising to the challenge of harnessing tidal power

THE tidal farms will use a machine known as the Lànstrøm device, which was invented in Norway and has already gone through four years of successful testing.

Even though the devices seem likely to be the first to be used in a large-scale commercial tidal farm, many other machines are in development in what is set to become a very competitive market.

Marine Current Turbines, based in Bristol, installed a 300kw tidal turbine called Seaflow off Lynmouth, Devon, in 2003. 

Its a two-bladed rotor connected to an electrical generator mounted on a single steel tower drilled into the seabed. 

Irish firm OpenHydro Group has developed the Open-Centre Turbine, which has a single rotor. A single prototype turbine was installed at the European Marine Energy Centre in Orkney in 2006. In May 2008 it became the first tidal device to export power on to the UK grid.

The Engineering Business, based in Newcastle, is developing the Stingray tidal generator, which uses the flow of the tide over a hydroplane, similar to an aeroplane wing, to generate electricity. In 2002 the 180-tonne, 150kw machine was tested in the Yell Sound, Shetland.

SMD Hydrovision, based in Tyne and Wear, has developed the TidEL concept, which consists of a pair of contra-rotating 500kw turbines, mounted together on a single crossbeam. 

The unit is buoyant and tethered to the seabed, allowing it freedom of movement. The turbines can automatically align themselves downstream of the tidal flow as it changes during the day. 

IN NUMBERS

40 - Turbines that could be built in Scottish waters by 2011.

40,000 - Homes that could be powered by the three turbine farms.

80 - The percentage of the UKs potential tidal power in Scottish waters.]]></description>
<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/Scotland_to_build_worlds_first_wind_farms_under_the_sea_522.php]]></link>
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<title><![CDATA[Should Alex Salmond go to the Middle East to fund public projects?]]></title>
<description><![CDATA[Yes

ALEX NEIL SNP MSP and member of Holyroods finance committee

The SNP are working toward a fairer and wealthier Scotland. As part of that, we are consistently working to secure new jobs and investments for Scotland, and to build the infrastructure that can deliver economic growth.

With people around the world having a strong affinity for Scotland, building our trade links is an essential part of making Scotland a wealthier nation.

Already the Scottish Government is delivering an impressive series of infrastructure projects and, importantly, is doing so without creating the extreme profits for private sector investors that were allowed to escalate wildly under the previous Labour administration.

In building Scotlands infrastructure, it is vital we secure the best possible value for the taxpayer. Thats why the Scottish Government will no longer use ridiculously expensive PPP and PFI schemes backed by Labour, which deprive communities of access to their assets.

The Scottish Futures Trust, chaired by the well respected financier Sir Angus Grossart, is an essential part of delivering that value for money, making sure the benefit to taxpayers comes before the profits of private investors.

Last week the SNP Government was not only promoting Scottish business and tourism in the USA, but it was also building business links in Hong Kong, putting Scotland on the world stage. With global financial markets increasingly dominated by countries in the Middle East and Asia, the First Ministers plans for a visit to Qatar will be welcomed by all those with an interest in seeing new jobs and new investment in Scotland.

No

ANDY KERR MSP and Labour finance spokesman

Alex Salmonds plans for a Scottish Futures Trust are in ruins. In opposition, the SNP promised to match Labours investment in new schools "brick for brick".

Since they won the election, we have had 18 months of wasted time, in which ministers have failed to commission a single new school. Alex Salmond promised dynamism, but he has done nothing but dither, and our children are paying the price. 

When SNP ministers came to Parliament, they offered precious few details about the Scottish Futures Trust.

Instead, we were dazzled by the appointment of leading banker Sir Angus Grossart and told that this "poacher turned gamekeeper" would sort it out.

Alex Salmond is reported to be travelling to Qatar to seek funds for the new Forth Road Bridge and other major infrastructure projects.

If he expects to be received with an open cheque book, then good luck to him, but here too he may have dithered too long, as much of these sovereign funds have been affected by the global credit crunch.

This visit also suggests to me that even the First Minister has lost faith in the Scottish Futures Trust.

Worse still, the SNP now look likely to break another promise. We were told they would explain how the new Forth Road Bridge would be funded before the end of the year.

Alex Salmond should also show some humility and accept that his Scottish Futures Trust is utterly discredited. He recklessly ditched PPP, basing much of his criticisms on old models of PFI, and now he has no alternative.]]></description>
<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/Should_Alex_Salmond_go_to_the_Middle_East_to_fund_public_projects_523.php]]></link>
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<title><![CDATA[Scottish firms pay £2.4m penalty over late accounts]]></title>
<description><![CDATA[ALMOST one in ten Scottish companies were fined in the financial year 2007-8 for failing to declare their annual accounts in time, figures obtained by The Scotsman have revealed.

Almost £2.4 million in penalties were issued to Scottish businesses, accounting for 5.6 per cent of fines issued to all UK limited companies.

Companies House received £42m for late accounts last year, representing an 8.2 per cent increase on 2006-7, when it recovered £38.8m.

As of 1 February, 2009, the penalties for late accounts will be hiked by 50 per cent in an attempt to reduce the amount of late filing. A spokesman for CBI Scotland said: "This is certainly a hefty sum of money and, although there are occasions of unavoidable circumstances which delay some companies from filing their accounts, the future increase in fine levels will encourage firms to strive to meet future deadlines." 

Some 2.7 million UK companies are registered with Companies House, of which 143,266 are based in Scotland. Privately-held companies account for more than 98 per cent of all UK firms.

Andy Willox, Scottish policy convenor at the Federation of Small Businesses, blamed government bureaucracy as a reason for the large volume of fines, many of which will be paid by small- business owners.

He said: "Its no surprise that so many Scottish businesses are failing to hand in their accounts on time with the mountain of paperwork that government at all levels demands from business owners.

"However, the information that Companies House carries is vitally important in ensuring that small firms can make informed and rational decisions about who they go into business with. 

"Therefore, a sensible balance has to be struck where a variety of incentives and fines are used to ensure that as many limited companies deliver their accounts on time."

He added: "Smaller limited companies will have fewer staff to deal with their accounts and suffer disproportionately from arbitrary fines that are only broken down in to two categories, private firms and plcs, with no real accounting for size."

James Barbour, director of technical policy at the Institute of Chartered Accountants of Scotland said: "Most companies should be able to send in their accounts on time and avoid the penalty in the first place … but Im not sure that raising the fines will have much of an effect."

Barbour said that the current financial climate might have contributed to a number of companies filing late. He said: "There may be genuine reasons why companies are missing the deadline, owing to a number of companies changing banks. 

"However, the overall amount of Scottish companies not getting their accounts in on time should be much less."

The maximum civil penalty for a private company that does not return its accounts for over a year is £1,000 and £5,000 for a public company. As of February, this is will rise to £1,500 and £7,500 respectively.

Company directors can also be liable for a maximum fine of up to £5,000 if their company does not file its accounts on time.
]]></description>
<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/Scottish_firms_pay_2.4m_penalty_over_late_accounts_524.php]]></link>
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<title><![CDATA[Councils replacing teachers with nurses to cut school costs]]></title>
<description><![CDATA[COUNCILS across Scotland have been cutting the number of nursery teachers they employ in a bid to save cash.

Education and schools generally form the largest part of council budgets so when local authorities face financial issues, such as Aberdeen and Glasgow, it is an area vulnerable to cuts.

Glasgow City Council has already been criticised by teachers unions for replacing nursery teachers with nursery nurses, who are paid less and although well-trained do not hold teaching degrees.

Childrens minister Adam Ingram had a warning for local authorities who flouted the Scottish Governments policies and the outcomes agreed to in the concordat funding deal.

He described the policies as popular with voters and said they would likely become disillusioned with Labour as shown by the Glasgow East by-election, if they continued.

He said: "Councillors in Glasgow have to take on board that they are accountable to their electorate and people will be comparing the provision that is available elsewhere with their own provision."

Edinburgh City Council this week revealed it had placed a freeze on recruitment of all nursery staff in the light of plans to close schools to fill a financial black hole. 

A council spokeswoman said: "It is normal practice during a period of potential change to hold vacancies for a limited period of time. 

"We anticipate that there may be some redeployment. We are trying to ensure that any staff member involved is given the best possible opportunity to move into a suitable position.

"We are consulting fully with the unions regarding this process."

BACKGROUND

NURSERY teachers hold the same degree in education as primary teachers with salaries starting at £24,501 and rising to £32,583.

Nursery nurses salaries start at around £15,000.

As well as education to degree standard, nursery teachers also serve a years probation before becoming fully registered with the General Teaching Council Scotland. 

Nursery nurses undergo a shorter college course but do not have a national pay scale so pay varies across the country depending on the council.

Teachers are more focused on cognitive development and learning while nurses focus on care, although they do effect learning through play.

An HMIe report in 2007 said meeting childrens needs is better in centres with a teacher than in those without. 
]]></description>
<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/Councils_replacing_teachers_with_nurses_to_cut_school_costs_525.php]]></link>
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<title><![CDATA[Fears of rising job losses as financial sector takes hardest hammering]]></title>
<description><![CDATA[BUSINESS volumes and profits in the financial sector have dived at record rates and job losses are set to "rise sharply" in a bleak outlook for the industry, a new survey says.

Financial firms volumes and profits had "taken their hardest hammering yet" in the three months to early September, one year after the credit crunch took hold, the CBI/Pricewaterhouse-Coopers report said.

John Cridland, the CBI deputy director-general, said the report painted "an increasingly bleak picture, but the dramatic turbulence across the world of finance over the past fortnight and renewed paralysis in interbank markets, will only have depressed market confidence even further".

Business was lower across all the financial services sectors customer bases, particularly in dealings with other financial institutions and individual consumers.

Meanwhile, incomes fell heavily, and the cost of credit rose for the third quarter running.

Asked how their business volumes had fared in the period, 61 per cent of firms interviewed said they had fallen, while 10 per cent said they had risen.

"The resulting balance of minus 51 per cent – the difference between the percentage of firms reporting an increase and those reporting a decrease – was much worse than expected, and the weakest result since the survey started in December 1989," the report said.

Volumes were expected to fall again over the coming three months, but at a slower rate of minus 31 per cent.

Profitability in the sector declined at a record rate, as a net balance of 49 per cent of firms reported a fall. Numbers employed in the sector, which ranges from banks and insurers to building societies, fund managers and share traders, showed a net balance of minus 16 per cent. 

But a much bigger fall is expected over the next three months ahead – down 44 per cent.

Cridland said firms had become more fearful about the extent and length of the credit crunch, and were now looking to cut more jobs and scale back investment.

"Difficulties in this crucial sector will have huge implications for the rest of the UK economy," he added.

Asked about the credit crunch, virtually all financial services companies (99 per cent) expect it to be more than six months before "normal" financial market conditions resume.

Andrew Gray, UK banking advisory leader at PwC, said the sector "remains more depressed than at any time since 1998 and has given its most downbeat prediction for profitability in 19 years".

Gray said falling profitability in banking was "putting market consolidation back on the agenda".]]></description>
<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/Fears_of_rising_job_losses_as_financial_sector_takes_hardest_hammering_526.php]]></link>
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<title><![CDATA[Chancellor faces challenge over ‘vindictive’ move on offshore staff]]></title>
<description><![CDATA[Tax concession there for good reason, says union – and MP seeks a meeting

Pressure is mounting on Chancellor Alistair Darling over tax changes which could hit thousands of offshore workers.

A maritime union is protesting to UK ministers over the “vindictive and damaging” move, while Aberdeen South MP Anne Begg wants a meeting with Mr Darling.
Nautilus, which has 18,000 members, said new guidance from HM Revenue and Customs meant some vessels doing offshore work can no longer be classed as ships.

The change affects workers in the dive support and remotely operated vehicle industries, who may no longer qualify for seafaring income tax concessions.
The HMRC says it is duty-bound to apply the law.
Nautilus warned that “thousands” of North Sea workers would be hit by the tax change – particularly in Scotland – and has written to Mr Darling and Shipping Minister Jim Fitzpatrick outlining concerns.

A spokesman for the union said: “It’s an absolute outrage. This isn’t the first time HMRC has messed around with it. It’s incredibly damaging.”

The union said the existing settlement was arranged in 1991 to safeguard British employment against cheaper foreign competition. “It’s there for a very good reason,” the spokesman added. “These are people who spend a lot of time outside of the country having to compete against low-cost foreign labour.

“This erosion of the concession, we believe, is going to be potentially devastating for the UK offshore skills base.

“We’ve made high-level protests to the chancellor and the shipping minister.

“They keep doing it – it’s vindictive and damaging.”
Miss Begg has also written to the chancellor, requesting a meeting so she can ask that the UK Government seriously reconsider the implications of the decision.

The MP has been contacted by constituents who work in the offshore oil and gas industry in both the North Sea and around the world after they were told by HMRC that the vessel they work on no longer qualifies under the Seafarers’ Earnings Deduction scheme. This means they cannot claim a 100% deduction from income tax.

She said: “To add to the frustrations, the tax liability has been backdated to April 2007.
“I do not believe that the original legislation intended that these workers should be penalised in this way and I have, therefore, written to the chancellor, requesting a meeting in order that I can raise my concerns direct.”

An HMRC spokesman said: “Revenue and Customs need to make sure the law is applied correctly – this matter went before the special commissioners.” The special commissioners are independent and are brought in to make a decision when HMRC guidance is disputed.
]]></description>
<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/Chancellor_faces_challenge_over_‘vindictive’_move_on_offshore_staff_527.php]]></link>
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<title><![CDATA[HBOS chief: "I am convinced we have done the right thing" ]]></title>
<description><![CDATA[THE chief executive of HBOS broke his silence last night to tell The Scotsman that "the vast majority" of Scottish jobs would be saved after the takeover of his bank, which he said would create "a real monster powerhouse" north of the Border.Andy Hornby spoke out on the day the First Minister called an emergency summit of the countrys business leaders. Alex Salmond said he would fight to ensure the global headquarters of the superbank would be in Scotland and promised to put pressure on Lloyds TSB at a meeting today in order to protect national interests.

However, one leading economist warned that Mr Salmonds plans were likely to fall flat – and he claimed that putting too much political pressure on the bank could discourage investment in Scotland.

Questions were still being asked over the probity of the £12.2 billion takeover deal. The Scotsman understands two separate investigations are taking place into alleged insider trading and delays in making an announcement to the Stock Exchange. Meanwhile, the FTSE fell back into the red yesterday after its record-breaking Friday, as investors awaited more details of the US governments £380 billion bail-out of banks bad debts.

Mr Hornby, whose position in the new superbank is yet to be determined, insisted the "Bank of Scotland brand is going to be absolutely to the forefront" of its operations. He said: "When you think of the scale of the Scottish business going forward, it will be even bigger than the current Scottish operations.

"Lloyds themselves have got a decent-sized Scottish operation, so it will be a real monster powerhouse in Scotland, with The Mound as the central area."

The one-time "boy wonder" of the banking industry said he was "absolutely convinced that this is the right deal for HBOS to be part of a group which will be one of the largest and strongest institutions in the European banking industry, let alone just the UK banking industry".

And he insisted that while Eric Daniels, the chief executive of Lloyds TSB, has said it would take three years to determine the final number of job losses, "the vast majority of colleagues will stay, because of the sheer scale of the combined businesses".

The Scotsman has also seen an e-mail which Mr Hornby wrote to his staff on Sunday night. In it, he admitted that the week of the takeover had been "the most tiring and emotional week in my working life". 

He also stressed that he had "done the right thing", that the new institution would be a "financial powerhouse" and that HBOS shareholders would share in the benefits.

On the question of jobs, he went on: "It is, of course, the case that the merger will inevitably lead to some job reductions. However, the majority of HBOS colleagues are likely to stay with the enlarged group, reflecting the sheer scale of our business. Moreover, for most colleagues, the impact of the merger is unlikely to be immediate, as integration will take at least two to three years to complete."

Meanwhile, Mr Salmond yesterday brought together politicians and business leaders to ensure Scotland would get the "best possible deal" in the wake of the proposed takeover.

After the Edinburgh meeting, which he co-chaired with Lesley Sawers, the chief executive of the Scottish Council for Development and Industry, the First Minister vowed to fight to have the headquarters of the new bank located in Scotland.

Mr Salmond denied it was too late to try to persuade Lloyds TSB to base the new, merged organisation in Scotland, or at least to have important decision-making in Edinburgh.

"The key decisions have not yet been taken," he said. "Therefore, we have a full opportunity to represent a Scottish view, a united Scottish view, in terms of seeking to defend jobs and decision-making and headquarters functions."

He said he had been given hope by the fact that Archie Kane, the chief executive of Scottish Widows, part of the Lloyds TSB group, would be looking at the new arrangements because of his strong Scottish links.

Mr Salmonds meeting at lunchtime today will not be with Sir Victor Blank, the chairman of Lloyds TSB, but the First Minister said he had spoken to him several times.

However, David Bell, professor of economics at Stirling University, said it would be "very difficult" to retain "any truly executive functions in Edinburgh", adding: "Itll be very difficult for the new bank to avoid taking key decisions in London."

He warned the Scottish Government to "tread carefully" and not to put excessive political pressure on the new bank as "the outcome could be that it ends up putting off other companies from investing in Scotland".

After yesterdays meeting with 58 business representatives, Mr Salmond insisted HBOS was "hardwired to not only the Scottish economy, but Scottish society" in the projects it supported across the country, including sport.

He refused to be drawn on questions of whether the merger and potential loss of a major bank from Scotland was necessary after the recovery of shares in banks, including HBOS, late last week following intervention by the US government.

He also refused to comment on concerns raised about suggestions there had been "an abuse of the market", with talks going on for six weeks between the two banks before they were officially declared.

In a show of political unity, Mr Salmond was joined yesterday by the leaders of the other major parties in Scotland – Labours Iain Gray, the Conservatives Annabel Goldie, Tavish Scott from the Liberal Democrats and Robin Harper for the Greens.
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<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/HBOS_chief:_I_am_convinced_we_have_done_the_right_thing__515.php]]></link>
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<title><![CDATA[Beanscene deal is 'Sex And The City meets Bohemia']]></title>
<description><![CDATA[FIONA Hamilton and Alison Fielding, the entrepreneurs behind Glasgow\'s Fifi and Ally restaurant chain, were yesterday named as the new owners of coffee-shop chain Beanscene.

Hamilton described the deal as \"Sex And The City meets bohemia\", saying the two brands complimented one another and both had \"personality\".

The deal, for an undisclosed amount, will secure 130 jobs in Beanscene\'s 16 branches and is expected to treble Fifi and Ally\'s turnover to £6 million.

Beanscene entered administration in July when promises of finance from an outside investor were reportedly withdrawn halfway through a planned expansion, leaving it with leases on five unusable shops. 

Fifi and Ally currently has two restaurants, at Glasgow\'s Princes Square and Wellington Street. 

Hamilton said yesterday she was \"very excited\" by the deal, having tried in the past to open branches of Fifi and Ally in Edinburgh but not being able to secure a site.

She said some of the Beanscene shops would keep their name while others would be re-branded under Fifi and Ally\'s \"express food\" label, but she added it was too early to decide which shops would be re-badged. 

Beanscene has eight coffee shops in Glasgow and four in Edinburgh, along with one each in Ayr, Hawick, St Andrews and Stirling.

Hamilton told The Scotsman: \"I\'ve always been a fan of Beanscene. Alison and myself think it\'s a great Scottish brand with a lot of potential.

\"If Fifi and Ally has been described as Sex And The City then Beanscene is like Friends.

\"Both brands have personality, which is often lacking from the other bland coffee shops on our high streets.\"

Hamilton said Fifi and Ally had a large production kitchen and that structures had already been put in place to expand the chain.

She added: \"This will help us to grow much faster, pushing us two or three years further forward than we would have been if we\'d grown organically.\"

Blair Nimmo, head of restructuring for KPMG in Scotland and joint administrator of Beanscene, said: \"I am delighted that we have managed to sell the business as a going concern. Not only has this saved 130 jobs, but the sale also ensures that existing customers will continue to be serviced and that the landlords and suppliers will have ongoing business.\"

Nimmo said KPMG had originally received 29 bids for Beanscene, ranging from parties interested in buying just one store through to offers for the chain.

Hamilton, a chartered surveyor and retail strategist, set up Fifi and Ally with Fielding, an art director at a record label, in September 2005.

The pair, who are cousins, set-up the chain – which also sells clothing and homeware – with support from Bank of Scotland, with Brian Johnston, a former head of corporate at the bank, joining their company\'s board as a non-executive director.

Their shops sell a mixture of goods, ranging from clothing and accessories through to toys and homeware, alongside takeaway delicatessen food.
]]></description>
<link><![CDATA[http://www.employmentscotland.co.uk/News/2008_09/Beanscene_deal_is_Sex_And_The_City_meets_Bohemia_516.php]]></link>
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