Business Diary: May 10

Just hours after Bradford-based Morrisons became the first supermarket to cut petrol prices since the Chancellor’s cut in fuel duty, Leeds-based Asda just happened to also announce plans to slash the price of fuel.

This somewhat dampened Morrisons’ claims that this would be the first retailer-led reduction in pump prices since wholesale prices started to rise last August.

While Morrisons cut 1p a litre off unleaded and up to 3p a litre off diesel, its arch rival went one better saying it would knock 4p a litre off the price of diesel and up to 1p a litre off unleaded.

As for Tesco and Sainsbury’s, they’ll be wishing a plague on both Morrisons and Asda’s houses.

Answer is in working harder and smarter

ACCORDING to Robert Peston, the BBC’s business editor, the great problem of the developed Western economies is their aggregate of debt.

In a short, but incisive, seminar at last week’s conference of the Building Societies Association, the broadcaster gave his verdict on the problems facing the UK and offered his own solutions.

“What we have witnessed so far is a reshuffling,” he said.

“What we have seen is a fix, but not a cure.”

He outlined the risks facing the world’s economy, namely inflation, probably from China, the US debt challenge, Middle East oil inflation and unsustainable debts in peripheral eurozone countries.

These, of course, are outside our control.

To prosper, the UK needs to “consume less, invest more and sell more overseas”.

“We have to work harder and smarter,” added the business journalist.

Why our companies are still the best

LORD Digby Jones, the former trade minister and full-time UK business ambassador, gave the best speech of the BSA conference bar none, although there was little in it of direct relevance to interest spreads and other things that get building society executives excited.

Instead, it was a tour de force of why British manufacturers such as Jaguar Land Rover are still among the best in the world and how it doesn’t actually matter that we don’t own them anymore. “I don’t care who owns these companies, I care enormously they do it in my country,” he said. “They employ British people and pay UK corporation tax – that’s what I care about.”

‘Ignoring’ the good news

LORD Jones lambasted the BBC for failing to celebrate success stories in British business.

He questioned why Sir Terry Leahy of Tesco and Sir John Rose of Rolls-Royce weren’t invited onto Andrew Marr’s flagship Sunday show to mark their recent retirements after incredibly successful careers helping to build up UK plc. “It’s good news. Why would they? It’s the BBC,” Lord Jones told the BSA conference.

Paul doesn’t want the Dragons’ roar

IT’S a ruthlessness that would surely endear him to the millionaire panellists of Dragons’ Den - if only they weren’t on the receiving end of it.

Barnsley businessman Paul Hoyle has taken his name off the shortlist for the hit BBC show after his application got through the initial round.

He said he wants to concentrate on growing Road to Recovery UK, his “pay as you need it” roadside assistance scheme. Membership is free and you only pay, at a discounted rate, when you use it, he said. RTR uses a database of local recovery operators, who all sign up to RTR’s pricing structure, to provide help to members quickly.

Mr Hoyle said Dragons’ Den producers even tried several times to get him to change his mind but he resisted.

“We are at a crucial stage with the business and our plans for taking it forward require my undivided attention. We are in the process of moving to bigger premises and underway with an extensive marketing and advertising push to bring more members and more recovery operators into the scheme. While I have the highest respect for the Dragons and would not rule out seeking their investment at a later stage, now is just not the right time to do it and for that reason… I’m out!”