CREDIT CRUNCH: Part 2

COOK
Rose Jackson, 58, a cook at Clovenstone House - a council-run nursing home near Wester Hailes in Edinburgh - earns £6.41 an hour. Jackson, who makes the 30-mile round trip from her home in Pumpherston, West Lothian, said: "I'm spending a lot more on petrol. I used to fill the car up with petrol for £25, which would last a few trips, but now it costs more than £40. Food costs are also far higher. I have to watch what I'm spending money on, and the price of bread has gone up. I thought I was getting a good deal when I bought a loaf for £1.09 in Marks & Spencer. We also have rising heating bills. "Public sector workers such as myself have received some of the lowest rises and have been on 2.5% a year for the past four years, despite rising inflation. "We have a difficult job, looking after vulnerable elderly people who have worked hard all their days, and our home is now being charged a surcharge for fuel costs by the firm delivering fresh fruit and vegetables. "My union, Unison, is currently balloting employees about strike action. I don't want to go on strike because my clients are vulnerable elderly people, but the UK government's stance will discourage people from working in public services. I could get a job at Tesco, Asda or McDonalds and earn more."

ESTATE AGENT
John Raeside, senior partner at Stewarts & Murdochs solicitors and estate agents, said: "Lots of estate agents are really feeling the crunch. Houses that would normally sell in days are now sitting on the market for three months. "People with high value properties are taking their homes off the market as they can't sell them. I'm saying to people: Don't advertise your home at the moment. There's no point'." Raeside hopes things will pick up, but can see no end to the crisis. He said: "I just don't know how bad things will get. I don't think Gordon Brown knows either, but something needs to happen to kick start the market." He believes banks can help housing through the slump by increasing mortgage lending.

"Price drops in housing are definitely not the answer," he said. "Banks and building societies need to start lending again."

WOMEN'S AID WORKER
LOUISE Roberts, a support worker with Dumbarton District Women's Aid, said: "We have noticed a substantial change in how far money goes for clients who are finding basic things like travel and food more expensive. "Trying to make ends meet is difficult enough when you are on your own on benefits after leaving a violent partner. They have to go to charity shops and buy clothes and are having to get cheaper food that is not such good quality, at a time when the Scottish government is telling people to eat more healthily.

"Unfortunately, they don't have the choice between good quality food and cheaper food. Our clients have been feeling the pinch. These women often don't have anything.

"Women are having to decide whether or not they can feed their children properly because everything is going up in price. They receive community care grants to redecorate their homes when they move out of abusive relationships, but it is paltry compared to what an MP receives to redecorate their homes. A woman with three children will get £1500 if she is lucky."

ADVERTISING EXECUTIVE
Andy Carolan, chairman of the Tangible Group, said: "Tangible's business, which is largely focused upon responsive advertising, which is measurable and can readily demonstrate a return on investment, has so far been unaffected by the credit crunch. We have just completed our financial half year and our results are in line with expectations. "Anecdotally, we are hearing of budget cutbacks and other signs of slowdown; for example, we are seeing a rise in the flow of CVs of quality people looking for jobs. Finding good people to help grow our business has been a traditional challenge for us, and we are now - unusually - seeing supply outstrip demand. "Beyond our business, there is a feeling the real' inflation rate is greater than the official rate, with big rises in household costs (groceries, fuel, energy, mortgages) being experienced. This situation, if prolonged, will surely have an effect on disposable income and ultimately the fortunes of all businesses in the UK. "As to a solution? If I knew the answer to that, I'd be a very wealthy man In the meantime, we are closely managing our businesses with an eye to continuing to achieve profitable growth."

USED CAR DEALER
Eugene Callaghan, owner of Abbey Autos used car dealership, said: "The credit crunch is affecting the trade really, really badly. It's stone dead; nothing's selling. Dealers can't shift large cars particularly, which is now anything from a two-litre upwards. I've been buying at the smaller and cheaper end of the market, so I've been fortunate enough to be carrying on. "It's going to get even worse, and not just for car dealerships. There are no mortgages available so the building trade is suffering too. One friend who has a plant hire business is struggling really badly. He spent a fortune on heavy machinery and it's just lying in the yard. There would need to be a lot of money released to help the public, and the way the government is pricing fuel is ridiculous. Everybody's feeling it. Duties should be lowered because the government is taking too much out of it. I know the price of oil has risen, but that doesn't mean it should take more money. The government is having a bonanza at the moment and it's trying to keep the people down. It's not on."

JEWELLERY DESIGNER
Sarah Raffel, jewellery designer and owner of Brazen Studios in Glasgow, said: "It's still too early to tell for the jewellery sector. In previous recessions, economists noted people still invested in high-end pieces of jewellery or paintings. They're seen as pieces that hold their value. With regards to our bespoke commission service and our higher-end goods, I hope it doesn't have a significant impact. It may have an impact on the lower end of the market, however. "Ultimately, people are still going to get married and have birthdays. Jewellery is always regarded as occasion pieces, and usually holds sentimental value. "There is a psychology about how people spend their money. People still want to invest in good pieces of design and items that are going to be a good investment for the future. However, everyone will be watching their purse strings, so maybe the more indulgent and frivolous spending might tighten up. "The cost of raw materials is one area we have been affected in. Platinum and gold have fluctuated for some time and steadily increased. Platinum has increased significantly recently. However, that is something we get around when designing a piece - you have to be more creative. Certain diamond types have gone up in price too. But the nature of the materials are that they are expensive and customers expect that."

PUBLICAN
KEN Storrie, owner of the Pot Still and the Cask and Still in Hope Street, Glasgow, said the pub trade had been badly affected by the credit crunch. "We've seen a considerable effect," he said. "There has been a massive drop in midweek turnover, and the weekend trade has been dropping as well. Last Friday our profits were down by a third. "Of course, there are lots of other factors to take into consideration - the poor weather, T in the Park and the generally negative perception of the pub trade at the moment. I think the real problem is that, although people still have money, they are not willing to spend it because they don't know what's around the corner." His assessment of the industry's future is so bleak he has even considered leaving it altogether. He said: "If I could find a way to get out of the pub trade quickly, I would take it. "It seems like everyone is just on a downer at the moment. But maybe some investment in basic infrastructure would help. "There is no incentive for people to come into town and spend money, especially in the middle of the week. It's just too expensive."

TV PRODUCER
SEONA Robertson, managing director, Caledonia TV Productions, said: "The credit crunch hasn't really affected the independent TV production companies too much in Scotland. We're working on many things at the moment, like the new Gaelic TV channel as well as work with all the channels. The issues are still the same as they ever were - all the commissioning power and money is still very London focused. There are ripples of change beginning, particularly within the BBC. There is no doubt London is taking it more seriously that they need to move more money into the regions. But I don't think the credit crunch has made any difference. "ITV and Channel 4 have been affected by the squeeze in advertising, which has had a knock-on effect on the economy. ITV are really feeling the crunch. Whether it has passed on to us directly is debatable."

POLICE OFFICER
Norrie Flowers, president of the Scottish Police Federation, said officers such as firearms experts and detectives who use their own cars for "non-essential" duties were struggling with the service's 20p mileage allowances following recent fuel rises. Flowers, who described the 2.3% pay rise offered to police last week as "absolutely dreadful", said: "Essential users such as firearms experts or detectives, who are on call 24 hours a day and are frequently called from their homes to deal with incidents or have to travel between police offices, are paid 20p a mile once they exceed a certain mileage, which includes wear and tear. "They are paying more than they get back in mileage, thanks to the recent fuel rises. "We want the Police Negotiating Board to have a mid-term review of the mileage figures because it doesn't take into account the price hikes in the last three months."

FARMER
Stewart Wood, a farmer on Orkney, said: "Two years ago, we were getting 30% less for our product than we do now. In the last 12 months, the price of cattle has gone up by more than 25%, which is a huge rise, but when you add in the cost of the three Fs - feed, fertiliser and fuel - we're back to square one. I'm probably making even less than I was 12 months ago. "The industry can stand one of the three Fs being high, but when it's all three, we can't stand it If the price we get for our produce doesn't change, farmers are going to go out of business."

TRAVEL AGENT
Mark Brock, spokesman for Barrhead Travel, said: "The number of people travelling has actually gone up from last year. The credit crunch hasn't really affected us yet. "Most people have booked their holidays in advance, and are still taking them. As for last-minute holidays, people are going away because they are fed up with the Scottish weather." Bookings for next year have been good - a trend Brock hopes will continue. However, he does see potential problems. "Fuel surcharges are the most frightening thing at the moment. That and the strength of the euro will have a big effect on our future bookings," he said. "Looking ahead, we would like to see the pound stronger against the euro, and the dollar weaker against the pound. We would also like it to rain solidly next summer." Brock believes the traditional summer holiday will continue to be a big part of people's lives. He said: "At the end of the day, the annual holiday is the one escape people have from all the doom and gloom."

HOUSE BUILDER
DAVID sutherland, chief executive and chairman of Tulloch Homes Group, said: Like other house builders, the credit crunch has affected the Tulloch Homes Group in that many of our customers simply can't get a mortgage, can't sell their own houses and/or lack confidence in the economy. "However, people are still looking at our houses with a view to buying and we are still selling. We have a range of measures to assist potential buyers like special mortgage products and a part-exchange scheme. Of those who come looking for a new home, many will buy one provided they can get the right deal and sell their own property. "I think there are signs of the green shoots of recovery beginning to emerge on the confidence front. Politicians appear to be reacting to the issues giving the public most concern and a robust budget statement towards the end of the autumn might be the stepping stone to the final process for interaction next year. "Liquidity, interest rate reductions and inflation being kept under control will go a long way to helping alleviate the challenging market conditions our customers face."

HEADHUNTER
Richard Fletcher, a financial services industry headhunter, said: "The situation is not as bad in Edinburgh, which has a couple of major banks, as it is in London. It will more affect the banking and management side, although the stock market situation doesn't help. "If somebody has served their time as a chairman or director, the board will appoint somebody else to fill their job regardless of the climate, although they could be making redundancies at a lower level. "However, change represents opportunities for business. We have been doing this for 20 years and managing directors of major firms change in good and bad times. In fact, some areas of management are still very competitive and there has been a lot of movement in Scotland and other parts of the country. "The financial services sector is still booming and we've had a good year. I am pretty confident there will be a continuing demand for us."