Grangemouth's Future Saved In Last-Minute Deal

Grangemouth petrochemicals plant has been saved following a last-minute deal.

The 800 workers who were due to lose their jobs at the Falkirk plant - Scotland's largest industrial site and its only refinery - were told the news at 11am on Friday.

It came after the Unite union confirmed it would now "embrace" a survival plan in an effort to reverse a decision by Swiss-based owner Ineos to close the business.

Calum MacLean, chairman of Ineos' petrochemicals division, told a news conference a "great cheer" went up from workers as he told them their jobs were safe.

But he said "very limited redundancies" would have to be made.

Asked by one reporter if he had held a gun to Scotland's head, he replied: "I don't think that's the case."

He pointed out that Ineos had invested £1bn in the business and would invest another £300m to secure its future for at least the next 15 years.

Another £300m will be invested at the site, Ineos says

He said it was "only right" that by making such a "huge investment" the company had to make sure it had a "long-term sustainable base".

The agreement was to see fuel production resume at the company's oil refinery on Friday after a shutdown of more than a week.

The closure would have been a major setback for the Scottish National Party, which is leading the campaign for Scotland's independence from the UK.

Scotland's First Minister Alex Salmond said: "This news is a tremendous fillip for the workforce and the whole Grangemouth community, following what could have been a potential disaster."

Later, in an interview with Sky News, Mr Calum MacLean declined to say how many redundancies would be made. He said the £300m would be spent on building a new gas terminal at the site.

Asked what he thought of union tactics during the negotiations, he said it would have "saved a lot of traumatic effects" if union officials had begun the talks a week ago with the same attitude they had had over the past two days.

The closure would have been a huge blow for Alex Salmond

Jim Ratcliffe, chairman of Ineos Group, said: "This is a victory for common sense. Unite advised employees to reject change and vote for closure. Thank goodness people finally came to their senses. Grangemouth now has a great future."

Ineos said Unite had made a "dramatic U-turn" and had agreed to a three-year pay freeze, no strikes for three years, and moving to a "modern" pension scheme.

Earlier, Unite's general secretary Len McCluskey said shop stewards had decided to accept the company's survival plan "warts and all" in the wake of the closure decision.

Unite's Scottish secretary, Pat Rafferty, said: "Grangemouth is the powerhouse of the Scottish economy - it now has a fighting chance of upholding this crucial role into the future.

"Obviously today's news is tinged with sadness - decent men and women are being asked to make sacrifices to hold on to their jobs, but the clear wish of our members is that we work with the company to implement its proposals."

Ineos caused shockwaves on Wednesday when it announced it could not continue to operate its loss-making petrochemicals division, leaving hundreds of staff at risk and many more contractors facing the axe.

16.01 | 0 komentar | Read More

UK Economy: GDP Growth Accelerates To 0.8%

The Chancellor claims there is now "real momentum" in the UK's economic recovery after GDP growth of 0.8% was measured in the third quarter.

The Office for National Statistics (ONS) said it marked the strongest period of growth in more than three years - with services, construction and manufacturing all expanding.

It was also the third successive period of improving output, in line with the expectations of economists, though some had forecast growth to have reached 1%.

The ONS said construction - a sector bolstered by Government initiatives such as Help to Buy - surged by 2.5%.

George Osborne said: "This shows that Britain's hard work is paying off & the country is on the path to prosperity."

Prime Minister David Cameron tweeted: "Today's encouraging #GDP growth figures are another sign we are turning a corner."

Labour argued the growth was "long overdue".

Overall GDP was 1.5% ahead of the same period last year - a time when the economy was being boosted by the Olympics and Paralympics.

But the economy remains 2.5% off its pre-recession peak at the start of 2008.

During the third quarter, construction was boosted by new work on private housing and private commercial building as well as domestic home repair and maintenance but remained 12.5% off its 2008 high.

Housebuilders have been buoyed by the Government's Help to Buy scheme, which recently launched a new phase offering mortgage guarantees.

Production grew by 0.5%, though this remains 12.8% off its 2008 level, while within this manufacturing improved 0.9% in the third quarter.

The powerhouse services sector, which represents three-quarters of economic output, grew by 0.7% and is now 0.6% above its pre-crisis peak.

The largest contributions here came from business services and finance, followed by distribution, hotels and restaurants.

But the wider statistics highlighted one piece of bad news - in terms of UK growth.

The contribution from utilities - including gas and electricity - tumbled by 6.8% in the period, possibly a result of the warm summer compared to the same period last year which was largely a washout and cool.

The figure was seen as a potential factor behind the decision among energy suppliers to increase household bills - to make up for lower demand.

Chris Williamson, chief economist at Markit, said: "Britain is booming again with the economy showing the most sustainable and robust-looking upturn since the financial crisis."

But Alan Clarke of Scotiabank said the figure was a "tad disappointing" - given survey data indicating growth nearer 1% - and "wasn't a home run".

Shadow chancellor Ed Balls said: "After three damaging years of flatlining, it's both welcome and long overdue that our economy is growing again.

"But for millions of people across the country still seeing prices rising faster than their wages this is no recovery at all."

Dave Prentis, general secretary of the Unison union, said growth figures will "mean nothing to the vast majority of people in this country faced with mounting household bills and stagnant wages."

16.01 | 0 komentar | Read More

Family Not Seeing 'Green Shoots' Of Recovery

By Emma Birchley, East Of England Correspondent

The green shoots of economic recovery might be growing stronger but the Horton family is not feeling the effects.

"It's been really, really tough. We are struggling to make ends meet," said Spencer, 39, from Felixstowe.

He has his own recording studio and band, Mohawk, but he makes much of his money from teaching guitar, bass and drums as well as vocal coaching.

The past year has been difficult as the luxury of music lessons has been dropped by those struggling to meet the cost. Pub closures mean fewer gigs.

But there are tentative signs that things may be on the up.

He said: "The lessons have started picking up in the last month or so. I've got five new students so that helps but I don't know how much of that is a sign that the economy is improving."

His wife, Morgan, is training to be a counsellor and volunteers her skills, but is also a self-employed massage therapist and has seen her business suffer.

She said: "I used to have a lot of clients who have a massage as a luxury or to treat chronic back pain but it got to the point that they had to make a choice because of money and the massage went.

"We have both chosen to be in professions that give back to the community and that keeps us going yet the Government does not value or recognise that."

The couple have two children, April, five, and Coby, two.

Keeping the house warm and the family well fed has meant putting up with increasing costs.

Mrs Horton said: "We don't buy luxuries very often and our food bill is still big. It's gone up by about a third in the last year or so.

"Energy is really expensive too. They say the national average is £1,400 a year and we pay close to double that in gas and electricity."

Keeping up with the bills meant they recently had to get a £10,000 loan.

She added: "It really frustrates me because I wanted to spend it on doing up the house but the overdraft kept creeping up so we had to pay that off."

16.01 | 0 komentar | Read More

Samsung And Microsoft Report Rising Profits

Samsung achieved a new quarterly profits record in its third quarter while Microsoft has also impressed with better earnings than forecast - as sales of devices dominates.

But Samsung Electronics, which is now the world's largest maker of smartphones, memory chips and televisions, credited the surge on sales of cheaper smartphones - rather than its premium products.

Chip sales and a revival in its semiconductor business also boosted the performance.

Net profit for the July-September period rose 26% over the previous year to $7.5bn (£4.6bn) - just ahead of expectations - though sales of premium smartphones were flat, having been the driver of profits growth in previous quarters.

The new curved Galaxy Round will be available only in South Korea

Growth in demand for the Galaxy S4 and the Galaxy Note 3 ground to a halt during the third quarter, perhaps feeling the heat from Apple's latest models, and the firm forecast that overall smartphone sales growth would remain at less than 5% for the remainder of the year.

Samsung's mobile business contributed nearly 70% of the company's total operating profit.

Steve Ballmer is to leave Microsoft in 2014

However, growth in premium smartphones, the Galaxy S4 and the Galaxy Note 3, came to a halt during the third quarter, staying at the same level as the previous quarter.

Before Microsoft's earnings update attention was focused on who might succeed current boss Steve Ballmer following confirmation of his intention to retire but there was no update on the process.

Investors welcomed a 17% rise in profits and healthy forecast with shares rising almost 7% in after-hours trading.

The quarterly revenue and earnings report easily topped Wall Street forecasts, marking a healthy start to a company-wide overhaul announced by Ballmer in July that should help the software giant transform into a devices and services company.

Microsoft's first quarter net profit came in at $5.24bn (£3.23bn) while revenues topped $18bn with its Surface tablets bringing in $400m.

That was helped by a price cut to its slimmed down Surface RT model in July.

Amazon also updated the market on its third quarter progress - reporting a narrower group net loss of $41m (£25m) on stronger sales.

In the UK, the online retailer said its best sellers were dominated by big video game releases and Kindle books.

16.01 | 0 komentar | Read More

UK Economy: GDP Growth Accelerates To 0.8%

The UK economy achieved growth of 0.8% in the third quarter - marking a slight acceleration in the recovery across 2013 as a whole.

The Office for National Statistics (ONS) said it marked the strongest period of growth in more than three years - with services, construction and manufacturing all expanding.

It was also the third successive period of improving output but in line with the expectations of economists though some had forecast growth of 1%.

The ONS said construction - a sector bolstered by Government initiatives such as Help to Buy - surged by 2.5%.

Chancellor George Osborne said of the GDP figure on Twitter: "This shows that Britain's hard work is paying off & the country is on the path to prosperity."

The housing market recovery is reflected in the GDP growth

Overall GDP was 1.5% ahead of the same period last year - a strong comparison with a time when the economy was boosted by the Olympics and Paralympics.

But the economy remains 2.5% off its pre-recession peak at the start of 2008.

During the third quarter, construction was boosted by new work on private housing and private commercial building as well as domestic home repair and maintenance but remained 12.5% off its 2008 high.

Housebuilders have been buoyed by the Government's Help to Buy scheme, which recently launched a new phase offering mortgage guarantees.

Lower gas and electricity demand over the hot summer hurt growth

Production grew by 0.5%, though this remains 12.8% off its 2008 level, while within this manufacturing improved 0.9% in the third quarter.

The powerhouse services sector, which represents three-quarters of economic output, grew by 0.7% and is now 0.6% above its pre-crisis peak.

The largest contributions here came from business services and finance, followed by distribution, hotels and restaurants.

But the wider statistics highlighted one piece of bad news - in terms of UK growth.

The contribution from utilities - including gas and electricity - tumbled by 6.8% in the period, possibly a result of the warm summer compared to the same period last year which was largely a washout and cool.

The figure was seen as a potential factor behind the decision among energy suppliers to increase household bills.

More follows...

16.01 | 0 komentar | Read More

'Heat Your Homes' To Stop Winter Deaths

People are being urged by the Government keep their homes heated and get their flu jabs this winter in a drive to prevent thousands of deaths.

The Cold Weather Plan For England says people should keep their houses warm, with living room temperatures of 21C (70F) and bedrooms and the rest of the house heated to 18C (65F).

The Government's winter advice says temperatures above this "may waste money" but below this "may risk your health".

The plan also says if people are unable to afford to heat all their rooms, they should heat their living room during the day and bedrooms just before going to bed.

The Government's advice - which also mentions loft insulation, keeping curtains closed to trap heat and eating hot food - comes as households face significant increases to their energy bills this winter.

Consumer groups and charities are warning that many will be forced to choose between "heating or eating".

Bosses of Britain's "Big Six" energy firms have been summoned to appear before MPs next week to explain a new round of price rises after SSE, British Gas, npower and ScottishPower all announced increases of more than £100 per household a year.

As public anger over rising energy prices intensified, Mr Cameron surprised MPs this week when he made an apparent U-turn on costly green levies, saying he would roll back some of the measures following mounting claims by providers that they are one of the main factors forcing up prices.

Fuel poverty campaigners, under an alliance called the Energy Bill Revolution, have urged the Prime Minister to invest in "super insulation" for homes to solve the "national crisis" of cold homes.

Energy Bill Revolution campaign director Ed Matthew said: "Our political leaders are falling over themselves to come up with headline-grabbing ways to cut energy bills yet they fall woefully short of a true solution to the energy bill crisis.

Four of the "Big Six" energy firms have raised their prices so far

"By far the biggest opportunity to cut energy bills is to fully insulate the UK's leaky homes."

The Government's health advice said there are "too many avoidable deaths each winter", with just over 24,000 each year in England and Wales.

The "causes are complex, interlinked with fuel poverty, poor housing and health inequalities, as well as circulating infectious diseases, particularly flu and norovirus, and the extent of snow and ice", it added.

Public health minister Jane Ellison said: "The elderly and those with long-term illnesses are particularly at risk during the winter months so it's crucial that people stay warm and that we all find time to check in on those who may be vulnerable."

She added: "We are also investing £500m over the next two years to help ensure A&E departments are well prepared for winter."

16.01 | 0 komentar | Read More

Marikana Massacre: 'Damning' Evidence Emerges

By Alex Crawford, Special Correspondent

The Marikana Miners Support group has called for South African police to be prosecuted after apparently unearthing new evidence which disputes the authorities' version of what happened on the day more than 30 striking miners were shot dead by police.

The evidence was uncovered by a film-maker - who is also a member of the campaign group - while he was doing research for a documentary on the incident at the Lonmin mine in August 2012.

It appears to throw more doubt on the police claim that they acted in self-defence when they opened fire on striking miners.

As well as the 34 miners killed, nearly 80 others were left wounded.

The footage has been submitted to the Commission of Inquiry which is continuing into just what went wrong at Marikana.

Film-maker Rehad Desai called it "damning" evidence which showed - in his opinion - that the police had not only engineered the situation which led to the miners being shot, but had then lied repeatedly to the South African public and the inquiry to cover up their actions.

New video shows a miners' leader (circled) who was shot dead minutes later

The footage is shot from what Mr Desai called a "fourth" angle that was mostly unseen and unexamined.

It depicts a large group of the miners being led away from the hillock, or koppie as it is known in South Africa, where they had been demonstrating.

They are filmed walking away slowly, apparently passively and quietly, as they are shepherded by their leaders towards the informal settlement where many of them lived.

The footage, which is shown in the order which it was filmed and apparently has an embedded time code showing what time it was recorded, then shows increased activity among the police.

They are seen moving armoured police vehicles to block the miners' path and forming a barrier between them and the informal settlement.

The footage shows police with guns drawn, apparently before trouble started

The miners are corralled down a relatively narrow path alongside police vehicles and in the direction of a waiting line of armed police.

As they pass a row of police trucks, one policeman can be seen to the left of the picture shooting birdshot into the crowd of passing miners.

Other police then follow suit. The miners, who are already cowering with some crouching over, then start to panic.

One can be seen turning towards the police who are side-on to the crowd and firing his handgun directly at the police.

There is some smoke seen which is thought to be tear gas. Miners start running away from the gas and the shooting coming at them from the side.

Film-maker Rehad Desai says the new evidence is 'damning

They run directly towards the line-up of police and within seconds, a cacophony of noise is heard as the police open fire with live ammunition.

The latest allegations follow a statement by the Commission a few weeks ago that it had managed to obtain documents which the police had previously said did not exist.

The Commission also managed to get access to police computer hard drives.

At the time, it issued a statement saying: "We have obtained documents which in our opinion demonstrate that the (police) version of the events at Marikana ... is in material respects not the truth."

16.01 | 0 komentar | Read More

UK Car Production Back At Pre-Recession Level

High demand for cars built in the UK has helped production return to pre-recession levels, according to industry figures.

The Society of Motor Manufacturers and Traders (SMMT) said production soared last month and has now topped the one million mark for the year so far - 1.5 million over the past 12 months which is its best performance since 2008.

A total of 140,888 cars were built in the UK in September 2013 - 9.9% more than in September last year, the SMMT said.

But manufacturing of commercial vehicles slumped more than 27% as companies continued to hold back on investment - particularly on the continent.

A total of just 67,609 such vehicles have been produced in the year to date - down 17.9% on the first nine months of last year.

Nissan's Sunderland operation has grown to build new models

On the car production figures SMMT chief executive Mike Hawes said: "Boosted by strong domestic demand, September's 9.9% rise in car manufacturing reinforces how the sector is one of the UK's biggest success stories of recent years.

"This year alone, more than £2.6bn has been committed across the UK automotive sector, from the supply chain to global car manufacturing brands.

"This long-term financial commitment and robust demand for UK-built products demonstrate the global appetite for high-quality, desirable products borne of the UK's world-class design, research and development and engineering."

Prime Minister David Cameron welcomed the news, writing on Twitter: "Great to see a sharp rise in car manufacturing in the UK.

"More than a million cars have been made so far this year. #GlobalRace."

Mr Hawes went on: "Commercial production remained subdued in September, with continuing uncertainty in the EU and restructuring of UK operations.

"While the overall market is striving against tough conditions, there remains cause for optimism in some areas, with the truck sector out-performing the market in September."

The SMMT also announced that a total of 230,743 engines were manufactured in September - up 8.3% on the September 2012 figure.

Year-to-date growth of 1.2% sees UK engine output approach two million units for 2013.

16.01 | 0 komentar | Read More

Grangemouth Plant Closure U-Turn Is Possible

The owner of the Grangemouth petrochemicals plant says it could reverse Wednesday's decision to close it if "substantive" talks today yield "very significant" union concessions.

Sources at Ineos were speaking to Sky News ahead of a meeting with Unite which began at 8am but they insisted that any agreement on reopening the chemical side of the operation at the peace talks would have to be rubber-stamped by a full meeting of Ineos shareholders.

The company had announced that it could not continue to operate the loss-making petrochemicals division, leaving 800 jobs at risk at the plant with many more contractors facing the axe too.

Ineos also confirmed that while it was not planning to close down the oil refinery, which produces 80% of Scotland's fuel supplies, it would remain shut for now pending reassurances from Unite that there would be no strike action.

The union's general secretary Len McCluskey arrived at Grangemouth this morning to join local efforts to resolve the dispute, hours after officials accused Ineos owner Jim Ratcliffe of deliberately engineering the chemical plant's closure.

It said on Wednesday that it had put a "plan to save jobs" to the company.

Unite's Scottish secretary Pat Rafferty added: "The ball is now in the court of Jim Ratcliffe and the respective governments in Edinburgh and Westminster and we await their responses."

Ineos argued it was left with no alternative but to close the petrochemical business, which makes products used in the manufacture of household goods such as plastic packaging.

The firm cited a failure to persuade its staff to accept a survival plan, which included a pay freeze, ending of a final salary pension scheme and other changes to terms and conditions.

Ineos said white-collar workers such as administration staff had backed the plan but workers represented by Unite had rejected it.

Politicians had urged the two sides to resume talks to prevent the closure, while efforts are expected to continue to find a potential buyer in case the peace efforts fail.

16.01 | 0 komentar | Read More

Energy Bills: Major Calls For 'Windfall Tax'

By Jon Craig, Chief Political Correspondent

Former Prime Minister Sir John Major has dropped an energy price hike bombshell on David Cameron by calling for a windfall tax on power companies this winter.

In a move that stunned the Tory high command, he said the recent price rises were unacceptable and many people would have to choose between heating and eating.

And he said that if there was severe cold weather this winter and the Government had to help vulnerable people it should impose an "excess profits tax" on the energy companies.

But within an hour the former Prime Minister was slapped down by Downing Street, with the Prime Minister's spokesman declaring: "We have no plans for this."

Labour seized on the apparent disarray.

Ed Miliband, whose price freeze pledge has put the Government on the defensive for weeks, tweeted: "Sir John Major makes Labour's argument: David Cameron stands up for the energy companies not hard-pressed families."

Ed Miliband said Sir John was making "Labour's argument"

Sir John's shock intervention in the energy price row came in a comeback speech to political journalists at Westminster in which he made a passionate plea to the Tories to win back the support of blue collar voters.

Asked about energy price hikes of up to 10%, Sir John said: "I do not see how it can be in any way acceptable that with energy prices rising broadly 4% in terms of costs that the price to the consumer should rise by the 9-10% that we are hearing.

"I do not regard that as acceptable at all by the energy companies.

"And it is not acceptable to me, it ought not to be acceptable to anyone, that many people are going to have to choose between keeping warm and eating. That is not acceptable.

"So if we get this cold spell the government, I think, will have to intervene and if they do intervene, and it is costly, I for one would regard it as perfectly acceptable for them then, subsequently, to levy and excess profits tax on the energy companies and claw that money back to the Exchequer, where their primary job is to get the economy working and people back to work."

Asked if he was backing the Labour leader, the former Prime Minister said: "When Ed Miliband made his suggestions just a few weeks ago I think his heart was in the right place but his head had gone walkabout.

"But he did touch on an issue that's very important. The private sector is something the Conservative party support but when the private sector goes wrong or behaves badly I think it is entirely right to make changes and put it right."

David Cameron's spokesman said it was an "interesting contribution"

Sir John told reporters that with interest rates at a record low, energy companies should be looking to borrow money to pay for investment rather than funding it "out of the revenue of families whose wages have not been going up at a time when other costs have been rising".

"I believe there will be difficulties this winter without action and, if there are those difficulties, the Chancellor will have my total support if he acted in the way I suggest and imposed an emergency impost upon the energy companies to claw back the money that we will have to give to people to help them see the winter in any form of warmth," he said.

Shortly after Sir John's speech, Mr Cameron's spokesman told reporters: "The Prime Minister's view on this is that this is an interesting contribution. We have no plans for this.

"What the Government is doing is legislating around forcing energy companies to put customers on their lowest tariffs and more competition in energy markets."

Asked about Sir John's concerns about people having to choose between eating and heating this winter, the spokesman said: "There are a number of initiatives that the Government has to support vulnerable people, such as the cold weather payments.

"We have a range of ways in which support is given and those are the right ones."

16.01 | 0 komentar | Read More

Whiplash Insurance Claims Face Fraud Crackdown

By Enda Brady, Sky News Correspondent

Fake whiplash claimants are facing a fresh crackdown under Government plans to tackle the rising cost of motoring in Britain.

Justice Secretary Chris Grayling said the measures would cut insurance premiums for all drivers by targeting "whiplash fraudsters".

From now on only evidence from accredited professionals will be considered when whiplash claims are assessed.

The Government also plans to freeze the price of an MOT at £54.85 until 2015 and motorway service stations will be forced to advertise their petrol prices on signs along the route to increase competition.

"We are turning the tide on the compensation culture and helping hard-working people by tackling high insurance premiums and other motoring costs," said Mr Grayling.

"We have already helped families by cutting income tax for 25 million people by raising their personal allowance, by freezing council tax and by helping with tax free childcare for example. But we want to do more.

"It's not right that people who cheat the insurance system get away with it while forcing up the price for everyone else, so we are now going after whiplash fraudsters and will keep on driving premiums down."

There were more than 500,000 whiplash claims in the UK last year, costing the insurance industry some £2bn.

Roads minister Robert Goodwill said: "The costs of owning and running a car are felt by millions of households and businesses across the nation. The Government is determined to help keep those costs down.

"That is why we are freezing the price for an MOT test and looking again at the costs associated with getting a driving licence.

"We also want to make it easier for people to get a better deal on fuel at motorway service stations, for instance through a trial of motorway signs that will show motorists the different fuel prices on offer on their route."

New statistics from the AA show motor insurance premiums are now falling at the fastest rate since 1994 - a fall of 12.3% in the year to October for an average comprehensive insurance policy, from £648 in October 2012 to £568 in October 2013.

Each whiplash compensation payout costs an average of £2,400 insurers say, with an additional £2,000 in legal costs.

16.01 | 0 komentar | Read More

Grangemouth: Oil Workers To Learn Their Fate

By James Matthews, Scotland Correspondent

Workers at the Grangemouth oil refinery will discover today whether the plant has a future or faces permanent closure amid a bitter dispute over pay and conditions.

Owner Ineos says shutting the plant is a possibility if it does not get the response it wants from the workforce.

Employees were given a deadline of 6pm on Monday to accept what the company called a "survival plan".

The Unite union, which represents more than two thirds of the Grangemouth workforce, said a majority had opted to reject the company's demands.

The Grangemouth plant employs 1350 workers and 2000 contractors

Amid the threat of closure, the Scottish Government has begun a worldwide search for a potential buyer for the plant. 

Politicians at Holyrood and Westminster have urged both sides in the dispute to return to the negotiating table.

The Secretary of State for Scotland, Alistair Carmichael, told Sky News: "The UK and Scottish governments have had more discussions on the Ineos situation.

"We both agree there is a great deal at stake for Scotland over this issue and the primary aim is to see both sides return to the negotiating table with the Advisory, Conciliation and Arbitration Service (ACAS) to secure the long-term future of the Grangemouth site.

"DECC and other UK government departments are in regular contact with both the company and the union and we are sharing information with the Scottish Government at official and ministerial level.

Unite says a majority of the workfoce have rejected the company's demands

"The next day or so will be an important phase in this situation and it is imperative we keep trying to bring the two sides together. That is what is best for Scotland and we will keep working hard to make that happen."

The Grangemouth refinery provides 80% of Scotland's fuel needs and also supplies parts of the North of England and Northern Ireland. 

A spokesman for the Scottish Government told Sky News there are no immediate concerns over fuel pump supplies. 

The plant employs 1,350 workers and 2,000 contractors. An estimated 10,000 further jobs rely on the facility. 

Ineos claims that Grangemouth is losing £10m per month and, to survive, it needs fresh investment and a cut in workers' terms and conditions.

The Unite union claims that employees are being bullied with regard to the proposed changes and are, effectively, being told by the company to "sign up or be sacked".

16.01 | 0 komentar | Read More

Grangemouth Refinery Workers 'Reject Deal'

Two-thirds of workers at the Grangemouth oil refinery have refused to accept new terms and conditions, their union says.

Ineos had set a deadline of 6pm on Monday for the workforce to agree to its "survival plan", which amounts to a cut in pension entitlement, overtime pay and redundancy terms.

Without agreement and without fresh investment, management has said it could close the plant by 2017.

Ineos said the Scotland's biggest oil refinery, which has been shut down since last week because of the dispute, is losing £10m a month. 

Ineos Grangemouth site manager Gordon Grant talks with Unite's Pat Rafferty

Ineos group director Tom Crotty told Sky News that the risk of the refinery having to shut permanently was very real and that the workers needed to show commitment to persuade shareholders to increase investment.

He said: "The shareholders will consider the over all view of the workforce and we have to consider have we got enough people supporting the company to make it a viable proposition to restart the plant because we have serious safety concerns over this type of operation.

"It's a big site, three time the City of London, and to restart it we cannot take the risk of having to restart it and then stop it again. It's very risky.

"Until we know we have got the support of the people on the site we cannot do that."

Ineos sent out a letter on Thursday to all 1,350 worker at the plant asking them to either reject or accept the plan, and said that hundreds had agreed to the new deal.

However, according to Unite, 65% of workers had rejected the plan.

Ineos says if workers do not agree, the refinery will close

Unite's Scottish Secretary Pat Rafferty said: "The people who have so far rejected Ineos' ultimatum are the backbone of the plant, the people who keep the site running and the oil flowing.

"The people of Grangemouth and Scotland will be expecting Jim Ratcliffe and the Ineos shareholders to now take heed. Do the right thing tomorrow, drop the threats to the workforce, fire up the plant and get around the table at Acas.

"This is an overwhelming rejection of the company's blackmail and threats. This workforce has said that they want to secure a future for Grangemouth, free from fear, based on negotiation not confrontation."

A shareholders meeting is expected to take place on Tuesday to discuss the dispute.

The plant processes around 200,000 barrels of oil a day and supplies most of Scotland's fuel, however, Ed Davey, the energy secretary has said that the shutdown would not hit petrol and diesel supplies.

Ineos and Unite have been embroiled in a bitter dispute for weeks, initially over the treatment of Unite convenor Stephen Deans, who was involved in the row over a selection of a Labour candidate in Falkirk, where he is chairman of the constituency party.

He was suspended, then reinstated, and is facing an internal investigation, which is due to report on Friday.

16.01 | 0 komentar | Read More

Nokia Reveals Lumia Tablet And Windows Phone

Nokia has revealed a 10-inch tablet device, the Lumia 2520, as well as a new Windows phone with a massive 6-inch display.

The announcements were made at is showpiece Nokia World event in Abu Dhabi.

Apple is also expected to reveal its new iPad devices later today.

The Nokia tablet is its first to run on Windows and comes with a 2.2GHz Snapdragon 800 processor.

It also has fast LTE connectivity for mobile use, a 6.7 megapixel camera, and can also hook up to Nokia's slimline Power Keyboard.

Too big for your pocket? Nokia's Lumia 1320 has a very large screen

Nokia's smartphone line-up has also been updated.

Its brightly-coloured Windows Phone devices now come with a 6-inch display.

The display size of the 1520 and 1320 Lumia phones trumps that of rivals such as Samsung's Galaxy S4, reflecting a trend towards 'bigger is better' when it comes to flagship handsets.

The 1520 model has a full 1080P high definition display.

Looking to build on its reputation for having some of the best smartphone cameras, Nokia also includes a 20MP camera on the new models.

Apple's big reveal takes place in San Francisco at 6pm UK time, with weeks of speculation pointing towards a thinner and lighter iPad that should also feature a faster processor.

The higher resolution 'retina' display is also expected to be introduced for the iPad Mini.

Other likely updates include a refreshed MacBook Pro laptop and a release date for Apple's latest operating system, called Mavericks.

More follows...

16.01 | 0 komentar | Read More

Energy Regulator Moves To Protect Fixed Rates

The energy regulator has confirmed new rules governing fixed rate energy deals while announcing an £8.5m penalty against ScottishPower over misleading sales techniques.

Ofgem said ScottishPower would pay £7.5m to benefit vulnerable customers and establish a £1m customer compensation fund  for breaching the terms of its market licence between October 2009 and January 2012.

It said Scottish Power provided customers with inaccurate estimations of annual charges and comparisons with their current supplier both on the doorstep and over the phone.

The settlement, the company said, meant that more than 140,000 people on the Warm Home Discount scheme would automatically receive payments of around £50 each.

ScottishPower said it would write to 336,000 households that may have been mis-sold but was criticised by the consumer group Which? for asking people who thought they may have been mis-sold to call an 0845-chargable phone line number.

The company said it accepted the selling failings but insisted it had now rectified the problems. It stopped door-to-door selling in 2011.

The penalty comes at a sensitive time for the big six energy firms - under fire from customers over inflation-busting increases to bills ahead of winter while politicians scrap over intervention in the market.

To date, three of the firms have announced average rises of between 8 and 11%.

As part of moves to ensure the market acts fairly, Ofgem said new rules were now in force meaning energy suppliers were banned from increasing prices on fixed term tariffs over the course of a contract and banned from automatically rolling householders on to another fixed term offer when their current one ended.

The regulator said it wanted to end loopholes in fixed rates including fixed deals linked to standard tariffs, meaning they would rise as standard prices increased.

From December 31, firms will have to cut the number of tariffs they offer customer to just four for gas or electricity while from March companies will have to show the cheapest tariff they offer on every customers' bill.

Andrew Wright, Ofgem's chief executive, said: "Ofgem is resetting the energy market in consumers' favour to make it simpler, clear and fairer.

"Today's extra protection for consumers on fixed prices is just one of a range of reforms we are bringing in over the next six months to hold energy companies to higher standards.

"If suppliers fail to deliver, then Ofgem stands ready to take enforcement action to protect consumers.

"In an era of rising prices it is vital that competition works as effectively as possible. Our reforms seek to give consumers the tools they need to find the best energy deal for them and to ensure that suppliers have to treat them fairly.

"Ofgem is going to make it easier for consumers to "vote with their feet" and for new suppliers to enter the market and take on the Big Six.

Now we are looking for energy suppliers to pick up the baton and put their efforts into restoring consumer trust.

"Encouragingly suppliers have shown a willingness to start on this journey by signing up to our reforms and are now acting to implement them."

:: We want to hear from you - if you've signed up for a fixed tariff, only to find your bill has gone up, or if you've been a victim of mis-selling please get in touch. You can email your comments - or a video of yourself making them - to news@sky.com.

16.01 | 0 komentar | Read More

Hinkley Point Nuclear Plant Deal To Go Ahead

David Cameron has hailed a landmark deal to build Britain's first new nuclear plant in a generation.

Hinkley Point C in Somerset will be funded by a consortium led by French firm EDF energy, with Chinese investment, and should begin operating in 2023.

Ministers argue it will help secure Britain's future energy supplies, hasten the move to low-carbon power and lower generating costs.

But critics warn it could lead to even higher household bills because the Government has guaranteed the group an electricity price of twice the current levels.

Consumer group Which? has already said the deal should include a claw back so that consumers will receive a refund if it turns out the Government has overpaid.

Highlighting the problem of rising bills, confirmation of the project came shortly before Npower became the latest of the "Big Six" energy firms to hike its prices.

The 'strike price' gives EDF a guaranteed rate for producing electricity

The supplier's electricity and gas bills will rise by 9.3% and 11.1% respectively from December 1, in a fresh blow to struggling homeowners.

The Government has been negotiating with EDF for more than a year over two new plants.

A deal was eventually secured after an agreement to pay £92.50 per megawatt hour of electricity produced at the Somerset site - around double the current market rate.

It will be the first new nuclear power station to be built since Sizewell B, which started generating electricity in 1995.

Anti-nuclear campaigner Theo Simon

The so-called "strike price" could fall by £3 if another mooted development in Suffolk goes ahead, allowing for efficiencies in development and testing.

The contract is due to run for 35 years, with the electric price increasing annually in line with CPI inflation. At full capacity, the two reactors could provide up to 7% of the country's energy needs.

It is understood that China General Nuclear Power Group and China National Nuclear Corporation will be investing in the estimated £14bn scheme.

The project will cut the UK's carbon emissions by nine million tonnes a year, and create 25,000 construction jobs as well as 900 permanent positions once operations begin.

One of the last stumbling blocks was removed last week when Chancellor George Osborne announced Chinese firms would be allowed to invest in civil nuclear projects in the UK - even potentially taking a majority stake.

David Cameron said: "As part of our plan to help Britain succeed, after months of negotiation, today we have a deal for the first nuclear power station in a generation to be built in Britain.

"This deal means £16bn of investment coming into the country and the creation of 25,000 jobs, which is brilliant news for the South West and for the country as a whole.

"As we compete in the tough global race, this underlines the confidence there is in Britain and makes clear that we are very much open for business."

Energy Secretary Ed Davey insisted he had secured "good value" following more than a year of intense negotiations.

"We think it would be good value if (the strike price) was a little higher," the Liberal Democrat Cabinet minister said.

"I was determined to get them below £90 so I could prove to everybody we had got a good deal...

"What has driven a tougher deal is the fact that I made clear we could walk away from the table. We had other nuclear options."

The funding agreement will almost certainly mean that the new reactor at Hinkley will be a mirror image of the Taishan plant in China.

During a visit to the Taishan plant last week, Mr Osborne said: "It is an important potential part of the Government's plan for developing the next generation of nuclear power in Britain.

George Osborne visited a Chinese nuclear power plant last week

"It means the potential of more investment and jobs in Britain, and lower long-term energy costs for consumers".

But anti-nuclear activists living near the site say they have been misled by the decision process to site the plant at Hinkley.

Campaigner Theo Simon told Sky News: "We were told it would mean lower energy bills, but actually the announcement of the strike price is really the last nail in the coffin of this project.

"We were told that it would provide cheap energy; we were told it would help us to bridge the energy gap in the early 2000s, and now it seems it won't be built (until) 2025 and we will all be paying for the profits of EDF and Chinese nuclear corporations for the next 40 years."

Energy policy has shot up the agenda since the party conference season, when Labour leader Ed Miliband pledged to freeze retail prices for 20 months.

The Tories have branded this a "con" that is unworkable because of fluctuations in wholesale prices but the wave of price hikes has ensured the issue remains a major political issue.

Shadow energy secretary Caroline Flint said on Monday that the potential costs of the nuclear deal made it even more crucial that "rip offs" in the energy market were addressed.

"This agreement shows that long-term certainty is what really matters to unlock the investment we need to keep the lights on, not allowing overcharging to continue now," she said.

"David Cameron is now in the ridiculous position of saying that they can set prices 35 years ahead for the companies producing nuclear power, while insisting they can't freeze prices for 20 months for consumers while much-needed reforms are put in place."

The Government claims building a new fleet of nuclear power stations could reduce bills by more than £75-a-year in 2030.

But Which? executive director Richard Lloyd said: "Everyone will want to be assured that the price the Government has agreed for new nuclear power is fair.

"The Hinkley deal commits billions of pounds of bill-payers' money but it has been done without transparent, independent scrutiny.

"If it emerges that the Government has overpaid, we believe there should be a mechanism to refund consumers instead of a windfall to the suppliers."

Greenpeace was also highly critical of the deal.

UK executive director John Sauven said: "It will lock a generation of consumers into higher energy bills via a strike price that's nearly double the current price of electricity, and it will distort energy policy by displacing newer, cleaner, technologies that are dropping dramatically in price."

16.01 | 0 komentar | Read More

Npower Energy Bills To Go Up On December 1

Energy giant npower has announced an increase in household tariffs of 9.3% for electricity and 11.1% for gas.

The price rise will be imposed from December 1.

It is the third of the so-called big six energy firms to raise its prices in recent days.

On Thursday British Gas become the second major supplier of household energy to announce a rise in its prices - by an average 9.2%.

The company said its electricity and gas prices would rise by 10.4% and 8.4% respectively from November 23 - affecting 7.8 million households.

Rival SSE announced a price hike almost two weeks ago, raising its bills by 8.2% from November 15.

Prime Minister David Cameron has called the latest increase "disappointing" and urged households to try to save money by switching suppliers.

But critics say it is more important to lock into a fixed tariff to avoid future rises.

E.ON, Scottish Power and EDF Energy are the other big providers and are yet to make announcements on their winter pricing.

The price boost by npower came after the Government confirmed a deal for EDF to build Britain's first nuclear power station in a generation.

But the Chinese-backed plant at Hinkley Point in Somerset is not expected to be commissioned until 2023 at the earliest.

16.01 | 0 komentar | Read More

Co-op 'To Lose Control' Of Its Banking Arm

The Co-op Group is to lose majority ownership of its banking arm, according to Reuters.

In June, the bank announced it needed to raise £1.5bn pounds to plug a capital shortfall.

The bank now admits it needs an additional £105m to deal with increased provision for payment protection insurance (PPI) and other product mis-selling claims.

The recapitalisation from outside the mutual comes after the Co-op previously set aside £269m to compensate customers mis-sold PPI.

This has been recalculated due to more customers coming forward as well as the Financial Conduct Authority providing fresh guidance on appropriate levels of compensation for customers.

The sum also includes a compensation for mortgage customers affected by a newly-discovered flaw in which they were charged only interest on their first mortgage instalment - meaning further payments were higher than they should have been.

Customers who took out Platform and Optimum mortgage products would have been affected although the bank has not yet notified any of them and further details of the scale of the issue remain unclear.

The bank said the overall new provision of up to £105m also took into account "the identification of a technical breach of the Consumer Credit Act".

This was thought to relate to failing to inform some loan customers that they could reduce their outstanding balance.

The overall provision from the bank also includes money put aside because of overdue payments and unpaid cheques.

Co-op disclosed the figures as it prepares for its recapitalisation plan - which will mean it has to publish financial details to the stock market.

The attempt to plug the £1.5b black hole in its balance sheet through a painful fundraising will force losses on to owners of its bonds and leave it with a stock market listing - ending its prized mutual status.

Hedge funds represented by investment bank have demanded the bank tear up its rescue plan, instead proposing an alternative plan of converting all its bonds into shares, giving it a bigger stake in the lender.

The wider Co-op Group had insisted there is "no plan B" to saving the bank but now appears to have had to acquiesce to the demands.

16.01 | 0 komentar | Read More

HS2 Rail Link: 'Cities Could Lose Up To £220m'

Some cities in the UK could lose as much as £220m if a new high-speed rail link is built, previously unseen figures have shown.

If HS2 goes ahead, it will leave more than 50 areas worse off - details that were omitted from a Government-commissioned report in September, it is claimed.

The full findings of the KPMG study into the north-to-south rail route were released under a Freedom of Information request by the BBC's Newsnight programme.

Last month, the Department for Transport hailed the study, which found the UK economy would be boosted by £15bn a year, with Greater London benefitting by £2.8bn and the West Midlands by £1.5bn.

The project has caused outrage in some areas

But the study shows many areas not on the line - which would connect London to Birmingham and to Manchester and Leeds - will suffer a fall in economic output.

The worst-hit areas will be Aberdeenshire (-£220m), Norfolk East (-£164m), Dundee and Angus (-£96m), Cardiff (-£68m) and Norfolk West (-£56m).

Professor Henry Overman, who was an expert adviser to HS2 Ltd, told the BBC it was obvious that as some areas reap the benefits of being better connected, other places away from the line will pay a price.

The link will cut journey times between the north and south

"When a firm is thinking of where to locate, it thinks about the relative productivity of different places, and the relative wages etc," he said.

"HS2 shifts that around. So if you are on the line, that makes you a better place that hasn't had that productivity improvement."

Alison Munro, chief executive of HS2 Ltd, told Newsnight the figures were unsurprising.

"What this is showing is that the places that are on the high-speed network ... those are the places that will benefit most from high-speed two," she said.

The first phase of HS2 from London to Birmingham

"But high-speed two isn't the only investment that the Government is making. Over the next five years it is planning to spend £73bn on transport infrastructure."

Earlier this month, the Treasury Select Committee said HS2 had "serious shortcomings" and should be put on hold.

It said a "more convincing" economic case was needed for the scheme, which is now estimated to cost £42.6bn - 17% higher than first thought.

A Department for Transport spokeswoman said: "These figures show that the new north south railway is vital to rebalance our economy and it boosts the north overall more than the south. Of course the line does not serve every city and region and these figures reflect that.

"But it is wrong to take them in isolation. HS2 is part of a much bigger boost to our transport system - £73bn in the next parliament, of which HS2 is just £17bn. This will massively benefit places HS2 will not serve long before the line opens."

16.01 | 0 komentar | Read More

Energy Bills: Welby Slams 'Severe' Price Rises

The Archbishop of Canterbury has launched a stinging attack on Britain's energy firms, warning the latest round of price hikes seem to be "inexplicable".

Justin Welby insisted the so-called Big Six energy companies had an obligation to behave morally rather than to simply maximise profit.

His intervention, published in an interview with the Mail on Sunday, came after British Gas followed in the footsteps of SSE by announcing a 9.2% increase in prices.

The head of the Church of England, himself a former oil executive, said he understood the anger the rises had generated.

"The impact on people, particularly on low incomes, is going to be really severe in this, and the companies have to justify fully what they are doing," Mr Welby said.

Last week British Gas announced a 9.2% increase in prices

"I do understand when people feel that this is inexplicable, and I can understand people being angry about it, because having spent years on a low income as a clergyman I know what it is like when your household budget is blown apart by a significant extra fuel bill and your anxiety levels become very high. That is the reality of it."

The Archbishop urged firms to be "conscious of their social obligations", saying they had to "behave with generosity and not merely to maximise opportunity".

"They have control because they sell something everyone has to buy. We have no choice about buying it. With that amount of power comes huge responsibility to serve society," he said.

"It is not like some other sectors of business where people can walk away from you if they don't want to buy your product and you are entitled to seek to maximise your profit.

"The social licence to operate of the energy companies is something they have to take very, very seriously indeed."

Electricity prices are rising faster than those for gas

But the Church Of England owns a significant number of shares in energy companies.

Sky's Chief Political Correspondent Jon Craig said: "Justin Welby has now joined in this increasingly politically charged debate about energy prices - the only embarrassment really for the Church of England really is that it owns more than £7m of shares in Centrica and about £6m of shares in SSE.

Craig added: "The remarks have been welcomed already by the Labour Party - but they will infuriate government ministers, the Prime Minister and the Energy Secretary."

An ongoing bitter political spat over energy has seen Labour leader Ed Miliband attempt to seize the initiative by pledging a 20-month-long price freeze.

Prime Minister David Cameron has dismissed the idea as a "con", and encouraged consumers to switch suppliers to keep bills down.

But polls have suggested that Labour's promise is popular with voters, putting pressure on the coalition to respond.

16.01 | 0 komentar | Read More

JPMorgan Facing Record £8bn Fine: Reports

One of America's biggest banks is facing a record $13bn (£8bn) fine for mis-selling mortgage-backed securities in the run up to the 2008 financial crisis, say US reports.

A tentative deal has reportedly been reached between JPMorgan and the US Justice Department.

Last month, the bank was fined more than £600m over the "London Whale" trading scandal arising from disastrous trades by former bank employee Bruno Iksil.

If the deal is finalised, it would be the biggest settlement of its kind ever paid by a US company.

The agreement was reached by Attorney General Eric Holder, Associate Attorney General Tony West, JPMorgan CEO Jamie Dimon and the bank's general counsel Stephen Cutler in a phone call on Friday night, according to the Wall Street Journal.

It does not resolve a criminal investigation into the bank's conduct being handled by federal prosecutors in Sacramento, California, according to the reports.

On Friday night, Mr Holder told the bank that a non-prosecution agreement was a non-starter, meaning the Justice Department will continue its criminal investigation into JPMorgan.

JPMorgan executives give evidence over the 'Whale' losses to US Senate

As part of the deal, the Justice Department expects the bank to co-operate with its probe into the sale of overvalued mortgage-backed securities, which were blamed for the near-collapse of the banking system in 2007.

JPMorgan spokesman Brian Marchiony and Justice Department spokesman Brian Fallon declined to comment on the reports.

Of the $13bn, $9bn is fines and $4bn will go to consumer relief for struggling home-owners, it is claimed.

When the US housing bubble burst in 2007, bundles of mortgages sold as securities turned sour and the investors who bought them lost billions.

In the aftermath, public outrage boiled over that no high-level Wall Street executives had been sent to jail.

Some lawmakers and other critics demanded that the big bailed-out banks and senior executives be held accountable.

In response, the US government set up a task force of federal and state law enforcement officials to pursue wrongdoing with regard to mortgage securities.

16.01 | 0 komentar | Read More