Scots CBI and SNFU join forces on interest rates

24 September 1998

Scots CBI and SNFU join forces on interest rates

THE Confederation of British Industry (CBI) in Scotland has joined forces with the Scottish National Farmers Union to call for a cut in interest rates.

CBI Scotland director Ian MacMillan said the combined problem of the strength of the pound and interest rates was very serious. There were now increasing signs that the service sector was beginning to suffer, adding to the risk of a full-blown recession.

Mr MacMillan was speaking after a meeting with George Lyon, SNFU president. Mr Lyon also met Bill Speirs, STUC general secretary, to underline the unions concern over job losses in the rural sector.

Mr Lyon warned that the collapse of international markets could very quickly damage the Scottish market. Russia was one of the main markets for Irish beef but the weakness of the rouble meant a lot of meat diverted from Russian exports would find its way on to the UK market, putting further pressure on prices.

• The Herald 24/09/98 page 30