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Criticalskillsshortagecosts Region Major Investment AcNorcothunEasttancyAwards2008 Business Echo Sponsored by FOR THE BEST COVERAGEINTHE REGION businessecho.co.uk The NorthernEcho TUESDAY,FEBRUARY 5,2008 NEWS IN BRIEF Ryanairprays forshelterfrom profit‘storm’ £2.5m faceliftfor business park BUDGET airline Ryanairwarned a“perfectstorm” of higheroil ABUSINESSparkistoundergo pricesand weakerconsumerde- a£2.5m facelift.OceanaGroup mand could hitthe firmnext Holdingsisredeveloping and year. refurbishing its 12-acreOceana The company,whichoperates Business Park,in Wallsend, flights out of Newcastle Interna- Newcastle.The site,adjacentto tionaland DurhamTeesValley the SwanHuntershipyard,was airports,said therewasasignifi- oncehometothe Wallsend cantchancethatits profits could ResearchStation and morethan fall in the yeartoMarch2009asa 400 workers.Itnowhouses weakerpound and higherairport officesand units. chargesweighed on the carrier. Chief executiveMichael CONTRACT WINS: Harrogate- O’Leary said:“The Europeanair- based CicadaCommunications line sectorispresentlyfacing one hasclinched workwithYork of thesecyclicaldownturns,with ACM-Pivotal,whichprovides apossibility of a‘perfectstorm’.” laboratory servicestothe The gloom came asRyanair’s pharmaceuticaland biotech profits forthe three monthsto industries,the Academyfor the end of Decemberfell 27 per Sustainable Communities,and centto35million euros(£26.4m) twocompaniesin Leeds.Cicada –described byMrO’Leary asa said itwill berecruiting more “creditable performanceinvery staff tocope withits growth. adversemarketconditions”. Ryanairsaid itwas“essential- MERGER PLAN: Punch lyunhedged” against rising oil Taverns,the UK’sbiggest pub costs–currentlystandingat firm,hasconfirmed amerger about 90US dollars abarrel – proposalforrivalchain whichisexpected toimposesig- Mitchells&Butlers.The all- nificantlyhighercosts asthe air- shareofferwould see Mitchells line lookstoexpand capacity by &Butlers shareholders own50 about 20 percent. percentof the enlarged Last week the Dublin-based op- company,and alsoreceivea erator,whichfliesto26 European sweetenerof £175m. countries,increased its online fee ■ Full story –Page 11 forplacing itemsin the plane’s hold from £5to£6 perbag. NEW EXAM: Areceptionist ata The cost of checking in lug- veterinary practiceinCounty gage atthe airport –double the Durhamhasbecomethe firstin internetfee –increased by£2to the UK toachieveaqualification £12peritem. AIRLINE WARNING: Chief executiveMichael O’Leary said weakening profits would bepart of the downturn in front-deskskills.ErikaMason, from The PrinceBishop Veterinary Hospital,in Leadgate, nearConsett,hasbeen awarded level twoforVeterinary PracticeReceptionists. Criticalskillsshortage costs CATTLE FARMERS CATTLE farmers havebeen warned theycould face expensivefallen stock chargesnext year.The region majorinvestment NationalBeef Association believesdisposalcharges could beashigh as£150per animalinEngland,£176 in THE North-East hasmissed out EXCLUSIVE mabeing piloted in Middles- billionsof poundsworthofin- speakers from Amecand Sonhoe Scotland and £115 in Wales. on majorinwardinvestmentpro- ByJuliaBreen brough and Hartlepool would vestmentwhichwill pour into –the companybehind the £2bn Itestimatesatotalannual jects becauseofconcernsabout Business Editor provide agood routeintoengi- the region in the next ten years. Teesside crude oil plant–and skillsshortages,anindustry neering. “Although the majority of com- will focus on skillsshortages,fu- collection and disposalbill [email protected] of £31m if the Government leaderhaswarned. The University of Teesside is paniescurrentlyhavemorework turemarketopportunitiesand endsthe presentfree service Malcolm Potter,chief execu- alsolooking toprovide flexible thantheycanshake astickat, support forsmallerbusinesses. forcattle over24monthsold tiveofthe TeesValleyEngineer- planton Teesside,whichwill cre- coursessopeople cangain quali- thereareanumberof smaller Partners4Engineering 2008is atthe end of the year. ing Partnership,said the key ate2,500 jobs,and the rebuilding ficationswhile theywork. companieswho areperhaps being organised byWashington issuefacing the region wasskills of Hartlepool PowerStation, Hesaid:“Wehavethen gotthe working belowcapacity because marketing and eventmanage- RURAL AFFAIRS Page 5 and capabilitiestodeliverpro- whichwill create3,000 jobs, existing workforce,whichisold theyareinaniche areawhich mentcompanyAllanciaLimited, jects. meantmanymoreengineers and and grey,and animported one. hasfaded away. in conjunction withthe North- Speaking toThe Northern skilled workers wereneeded in “Wehaveused workers from “Ifwecanidentifythosecom- East Process IndustryCluster Echo aheadofanengineering the region. EasternEurope alot,but weare paniesand talk tothem,theycan (NEPIC). Inside conferencewhichwill focus on Hesaid if the areawastore- findingitisnotaninexhaustible start diversifying tomeetthe The eventwill bring together skillsshortages,he said:“Iun- main competitiveagainst other supply–intermsof Poland,we needsof the regionsotheycan leaders of morethan100 compa- Business News......................2 derstand thattherearecontracts regions,the shortage of skilled haveprobablypeaked now. win morework.” niesand organisationstoinves- Small Business......................3 thatcould havecome intothis workers needed tobetackled. “Lots of moneywill bepoured The TeesValleyEngineering tigatethe issuesand challenges Law.........................................4 areabut havegone elsewhere,be- Hesaid:“Wehavegottostart intoEasternEurope sothosepro- Partnership issupporting the surrounding the futuregrowthof RuralAffairs............................5 causepeople need convincing planning forthatbecausethere jects will requiretheirownpeo- Partners4Engineeringconfer- the region’sengineering and CommercialProp.........8 and 9 about our ability todeliver arehuge people requirements ple.” ence,whichisbeing held in the process sectors. PersonalFinance.................10 them.” there,although theyarequite Hesaid some smallercompa- WynyardRooms,Wynyard,near Organisers arehoping many MarketReport......................11 Hesaid majorprojects,suchas long-termprojects.” niesalsoneeded todiversifyso Billingham,on March12. small engineering companies the £2bncrude oil processing Hesaid anengineering diplo- theycould take advantage of the The conferencewill feature will attend. AcNocorthEunasttancyAwards2008 Count yourself in... Nominationsare nowopen Enter onlineat www.accountancyawards.co.uk Sponsored by June 5 th 2008 Hilton Newcastle Gateshead 2 BUSINESSECHO businessecho.co.uk TUESDAY, FEBRUARY 5,2008 Troubled Bede looks Joanne atall options Fryett TECHNOLOGY firmBede warned last nightitwasreview- ing all options,but could still go out of business. Naturalborn Accountants carrying out an independentreviewof the Durhamplc’sbusiness last year leaders or said doubthadbeencast overthe company’sability tocontinue trading asagoing concern. And yesterdayBede,which just people makesx-raytechnologyforsemi- conductormanufacturers,said it wasstill reviewing all “strategic withpassion? options”toaddress thisconcern. KPMG, in Newcastle,warned last yearthatthe grouphadin- ITH the US primaries curred anetloss of £2.3mduring constantlyin the news,even the nine monthstothe end of though electionsarestill nine September,and said atthe time: monthsaway,wecansee the W “Thisindicatesthe existenceofa valueweplaceupon choosing materialuncertainty whichmay the rightleader.But whatisitthatmakesa cast significantdoubton the greatleaderand isone naturallybornaleader group’sability totrade asagoing orisitpossible todevelop leadership concern.” qualities? The companysaid yesterdayit Inthe North-East,small businessesprovides wasstill in talkswithapotential the backbone of the economyand the need buyerwhichcould leadtoa forcapable,authoritativeleadership iscrucial takeoverbid –talkswhichhave tosustaining our economicgrowth. been continuing formorethan Recognition of thisfactisdemonstrated in sixmonths. One NorthEast’sRegionalEconomicStrategy Orderintake wasbelowits whereleadership isfeatured asakeyfactorin plansat£1.1m and the totalorder the region’ssuccess. book standsat£1.15m. The group However,in ordertogeneratefutureleaders said its netcashposition wors- who will provecapable and proficient,weneed ened byabout £300,000 during the toequip businessesand individualswiththe MEETING DEMAND: Preparing the ground forNetpark’sexpansion are:Stewart Watkins,of County DurhamDevelopment last quarter,and atthe end of last rightskills. Company,IanWilliams,from regionaldevelopmentagencyOne NorthEast,whichishelping CDDC promotethe development, yearnetborrowingsstood at Wehearalotabout greatleadership,but ProfessorJohn Anstee and Catherine Johns,of Netpark,and DurhamCounty Council leaderCouncillorAlbert Nugent about £1.1m. whatreallyisgreatleadership? Istheresucha InJuly,Bede said thatitwasin thing asabornleaderorcanyoudevelop preliminary discussionswithun- leadership approach? Netparkexpansion twoyears aheadofschedule named partieson apossible offer One NorthEast hasbeen sopassionate forthe company. about leadership in the North-East thatthe The company,whichwas grouphasincluded leadership in the Regional ASCIENCEparkis companiesarehaving to DevelopmentCompany CouncillorAlbert Nugent, founded in 1978byProfessor EconomicStrategy. expanding twoyears ahead movestaff intoportable (CDDC),whichisbehind leaderof DurhamCounty BrianTannerand three col- The focus hasbeen on people,placesand of schedule aftermassive buildingstocope withthe Netpark,said ithad Council,said:“Netparkis leaguesfrom
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