Power price rises
could drive firms to the wall
Sep 13, 2005 - The Herald
Author(s): Mark Williamson
Scotland
BUSINESS leaders will warn ministers that power prices have now
soared to levels at which the profits of many firms will be wiped out
and some companies will be driven to the wall.
The Scottish Council for Development and Industry accepts that the
surge in oil and gas prices is largely the result of issues affecting
global supplies and UK taxation over which the Scottish politicians have
no control. However, it wants the Scottish Executive to recognise their
impact in Scotland and do what it can to ease the resulting burden on
firms today and in the future.
At a meeting with Alan Wilson, deputy enterprise minister, SCDI
executive committee members will urge him to take up the concerns of
Scottish firms with Gordon Brown, the chancellor, and to do more to help
them minimise energy use.
"The executive clearly has a role in articulating the concerns of
Scottish business, promoting energy efficiency and developing a sensible
long-term energy policy for Scotland, " said Iain Duff, SCDI chief
economist.
With world-wide competition for energy set to increase in coming
decades the executive and UK government must not close off potential
sources of supply such as nuclear generation or open-cast coal.
The effects of high energy prices were vividly illustrated last week
when TT Electronics said it was ending manufacturing at Prestwick
Circuits, the printed circuit board manufacturer, which employs 264 in
Irvine.
In June, Prestwick's managing director, Derek Mansfield, told The
Herald he had cut his energy usage by 17-per cent in the past year, yet
energy costs had still more than doubled in the past two years from
GBP470,000 to GBP950,000.
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