Penzance Chamber of Commerce

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Chamber Monthly News - August 2005

Apologies

Profuse apologies are offered to anyone who was expecting to read this page last week, the delay in publication is regretted and it is hoped that the delay has not spoilt your enjoyment!

The Chairman, Mike Waters, already has a heavy workload in running his own business as well as undertaking the role of Chairman of the Chamber of Commerce which requires him to attend numerous meetings with other organisations. He kindly offered to write the Chamber page some 12 months ago when the then Press Secretary was not available to do it himself, and Mike has been stuck with it every month since then. At every meeting he asks that members with articles for inclusion on the page send them to him, but this is invariably met with a lack of response. It is even hard at times to get members to write their own Spotlight on Business (you will note that this is missing from this month’s page!!).

It would be greatly appreciated if a VOLUNTEER could come forward who would be interested in taking over the writing of this page each month. Such a person does not have to be a Chamber member, neither do they need to have a background or interest in business. What they do need is a commitment to get the copy to the Cornishman by the due date and a reasonable command of the English language. The job is unpaid but would ideally suit a student at Penwith College , for example, who may be completing a journalism course, or may have an interest in becoming a journalist in the future.

If there is a willing volunteer please contact Mike Waters on Penzance 762888.

A-Level Results

School leavers who have passed a wad of A-levels will be in for a shock when they try applying for a job, employers are warning.

A survey of 4,000 firms throughout the UK found that many school leavers are unemployable because they can’t spell, write or speak clearly – and, what’s more, they are socially inept. “Employers are the number one consumer of the products of education, and they are rejecting school leavers because their standards are too low,” said FPB Spokesman Rex Garratt. “We are calling for the education system to engage employers more so that pupils can be better prepared for the world of work,” he added.

The survey showed that, as far as school leavers’ life skills are concerned, 46% of employers felt their young recruits’ timekeeping was ‘poor’, and 27% thought the general courtesy of school leavers towards colleagues and customers was ‘poor’. At the same time, 73% of employers rated school leavers’ ability to properly address a letter as either ‘poor or very poor’, and over 60% were equally damning of ex-pupils’ ability to take a simple telephone message.

The number of people who feel that A Levels have been “dumbed down” in recent years seems to be growing as each new batch of results is published. This seems to be compounded by the evidence accumulated by the survey and the fact that fewer and fewer A Level school leavers find employment. What may be even more worrying is that the number of students entering University continues to increase, as does the number of graduates who remain unemployed for a considerable period of time after gaining their degrees.

Mike Waters, Chairman, said: “Schools should spend more time counseling their students in their choice of career at an earlier age so that they can tailor their examinations to fit those career choices better. It appears, through personal experience, that schools seem more interested in achieving high levels of passes and university places at the expense of providing students with useable life skills and guidance on career choice. Whilst students are encouraged to participate in work experience as part of their studies, they are not necessarily directed towards matching this with their career aspirations. As a businessman one feels obliged to help students find work experience placements but due to insurance, health and safety legislation and so forth it is often not possible to offer them anything more than basic office work, and then only of they are capable of doing so. Just what they gain by this “experience” is hard to guess.”

Half of employers believe school leavers entering the workforce have poor standards of literacy and numeracy. More than 50% of the 4,000 firms polled by the Forum of Private Business (FPB) complain teenagers are leaving school without the necessary basic skills to perform effectively in the workplace. As well as falling down on reading, writing and counting, three quarters of bosses said many young workers struggle to properly address letters, while 60% were damning of ex-pupils' ability to take a simple telephone message.

"Our survey amounts to a condemnation of Britain 's education system, which is, self-evidently, turning out school leavers who are socially inept and unprepared for the world of work," said Len Collinson, FPB national chairman. Among the complaints by bosses included one by the managing director of a Bury St Edmunds electrical contractor who said: "They are ignorant, illiterate, innumerate, bad mannered, want everything handed to them on a plate, and fall apart emotionally if they don't get what they want."

David Wyld, head of Willis Organs in Liverpool , was equally damning. "Their apparent inability or complete unwillingness to follow instructions means most school leavers we have encountered are virtually unemployable," he complained. Several analysts accuse educators of making examinations easier at the expense of skills levels. Many believe the government should scrap the A-level system in favour of continental European-style baccalaureate diplomas.

Size Matters!

The postal regulator has approved plans by Royal Mail to base the price of sending letters and parcels on size and shape as well as weight. Under the new system, which has been hailed as the greatest change in postal pricing since the introduction of the penny black, charges will be higher for light but large items and lower for some heavier and small items.

The changes, to be introduced in September 2006, are expected to affect prices on around 30% of business post and 20% of consumer post. Around half will cost more to send, while the other half will cost less. Businesses posting catalogues, books and magazines, for example, will see price reductions as these items will be cheaper to post.

The first-class price of a large letter weighing 750g and less than 25mm thick will drop from 2.71 to 1.23 but a large greetings card weighing less than 60 grams, which currently needs a 30p stamp to send first class, will cost 42p.

Royal Mail says the changes, approved by industry regulator Postcomm, more accurately reflect its costs. It claims lightweight but large and bulky post currently costs more to transport, sort and deliver than regular size mail.

Lorna Clarkson, from Royal Mail, said: "We need to be able to set our prices to cover our costs and to generate revenue to invest in our company and our people. A fair and flexible pricing system is key to Royal Mail being able to maintain the services on which we all depend as customers."

From January, Royal Mail's 350-year monopoly over letter delivery ends, opening up the market for independent operators.

Lazy Staff

Managers and staff almost unanimously agree that employees who do not pull their weight pose a problem for their organisation, according to a new study.

The poll by Investors in People shows three quarters of bosses and 79% of staff believe that workers who consistently under-perform at their job are an issue of concern for their business. What's more, the findings reveal that the problem is widespread, affecting firms of all sizes in all industries. Nearly half of employees said they are working directly with someone who does not carry their weight.

However, while four in 10 bosses complained of workers not doing their fair share of work, an equal four in 10 of their staff complained that management turns a blind eye.

"Left unchecked staff who don't pull their weight can breed resentment amongst colleagues and cripple an organisation's productivity," said Ruth Spellman, chief executive of Investors in People UK. "It's vital that managers are equipped with the skills and confidence to tackle the issue before it becomes a problem."

Spellman said that employers must act early and establish clear methods and guidelines to motivate their staff and take action against those who persist in shifting their burden. "Prevention is always better than cure," she said. "It's key to the success and future growth of any organisation."

Retail Sales Fall

Retail sales continued their tumble through July, as consumers shied away from spending on non-food items, according to official data.

The Office for National Statistics (ONS) revealed today that retail sales dropped 0.3% from their June total, keeping in line declines reported in all other major surveys of the sector. The fall was less than the 0.6% drop that analysts expected, but this was helped by back revisions.

"The lower than expected annual rate of just 1.8% was due to downward revisions in the rate of growth of sales in May and June…rather than upward revisions to levels a year ago," said George Buckley, UK economist at Deutsche Bank. "Because of these revisions and the fact that non-food sales fell more sharply, this is a weaker report than the headline numbers suggest."

Non-food sales declined by 0.8% last month, led by non-specialised stores, which saw sales plummet by 2.9%, and sales in footwear, which slipped down 1.3%. Today's report offers mixed news on the economy, according to experts.

Buckley said a fall was "on the cards" due to the large, unexplainable rise in June, the rise in inflation and continued evidence of weakness in the survey. However, he said that consumer confidence appears not to have suffered following the London terror attacks, but actually improved. He said this lends support to those who claimed consumers were "waiting for lower rates".

Others went further, calling for additional rate cuts. "With unemployment gently rising, average earnings growth not excessive and the prospect of tax hikes next March, we are not sure where fresh impetus for consumer spending is likely to come from without further interest rate cuts," said Philip Shaw, of Investec.

"We remain of the view that the Bank of England will revise down its growth outlook at the start of next year and cut rates to 4.00% by the middle of 2006.

Accounting Law Changes

The government has announced new regulations to amend businesses' accounting and reporting requirements. Minister for employment relations and consumer affairs Gerry Sutcliffe introduced the three new sets of regulations which will extend the option to prepare and distribute summary financial from companies listed on a stock exchange to all firms that have had their accounts audited.

The laws will also ensure that businesses preparing their accounts in line with International Financial Reporting Standards (IFRS) can continue to use summary financial statements. Sutcliffe said the changes are deregulatory and the government expects them to have only a minor impact on most firms. He promised the government will provide information, support and extra flexibility for those firms that will be impacted by the changes.

Other minor amendments included in the legislation concern the voluntary revision of the Operating and Financial Review and Directors' Remuneration Report, the requirements for adjustment and disclosure of corresponding amounts and the distribution provisions as they apply to investment companies.

The regulations will take effect from 1 October, save for the changes for small financial services companies, which come into force on 5 September.

Protect yourself from Fraudulent Emails

Some members have reported receiving deceptive emails claiming to come from banks or other trusted companies. The people who send these emails (also known as "spoof" or "phishing" emails) hope that unsuspecting recipients will reply or click on a link contained in the email and then provide sensitive personal information or open a file which contains a virus

  • DO NOT ANSWER THE EMAIL or give out any info that the link takes you to
  • DO NOT GIVE OUT YOUR PASSWORDS
  • DO NOT CLICK ON ANY LINKS IN THE EMAIL
  • GET SOME REPUTABLE “SPOOF” “SPAM” AND VIRUS SOFTWARE
We strongly encourage you to be cautious when responding to any email request for sensitive personal information or opening a file.

Grants for Small Firms to Enable “Payroll Giving”

Cornwall Community Foundation are giving out grants to small firms to allow their staff to take advantage of payroll giving, which is an extremely tax-efficient and time saving way of donating money to charity through their pay packet.

If you are part of a small, medium enterprise with no more than 500 employees and are based in Cornwall , you are eligible for a Government Grant of £300-£500 to set up a payroll giving scheme. Setting up is very easy and the grant is payable as soon as one member of staff makes a donation of at least £1 to any charity. In addition for the first six months, the government will match fund up to £10 per month for each employee who donates. The employee can choose from any charity and gets the benefit of donating before tax is deducted (so is better off if they already donate to a charity and switch to your scheme). The scheme ends soon.

To learn more about Cornwall Community Foundation visit their website at www.cornwallfoundation.com

Market Jew Street

Refurbishment work has been suspended for the summer period in Market Jew Street but major works will re-commence on 19 th September. The Chairman has asked Cornwall County Council to suspend works over the Xmas period and they have agreed to do so with effect from 8 th December so that the 3 late night shopping nights will not be affected.

The Chamber will continue to campaign for the removal of the “bus gate” outside of St John’s Hall. The gate was installed with the idea of reducing the flow of traffic along Alverton Street and thence down Chapel Street , however this has not worked at all due to the fact that traffic can turn left at the bottom of Clarence Street thereby by-passing the bus gate. This has led to an increase in traffic down Chapel Street and those roads leading to it which has led to significant congestion at times and problems for those entering or leaving the car park opposite the Post Office Sorting Office. In addition numerous vehicles are either not aware of the bus gate or choose to ignore it which may have the effect of increasing the enforcement work of Traffic Wardens and the Police when their services would be better utilised elsewhere in the town.

What is needed is a detailed survey of the effects of the changes to the flow of traffic around the town, especially the use of Chapel Street by HGVs which increases pollution in this historic street thereby making it an unpleasant experience for pedestrians, to say nothing of the chaos which is often found at the bottom of the road as HGVs try to negotiate their way back onto the main roads. It would be much better if HGVs were restricted to coming into the town, say between the hours of 10am and 4pm , as they are in numerous other places in the Country.

Your Chamber needs you

Joining up has numerous positives benefits for all businesses

Have you considered joining your Chamber of Commerce? Membership of the Penzance Chamber of Commerce has numerous positive benefits to businesses. Firstly, and most importantly, you have the opportunity to make your voice heard on any issue that affects you and your business. We have an outstanding reputation amongst local government and other organisations with whom we liaise on a myriad of subjects and are, therefore, able to represent you extremely effectively. We have been able to solve several problems for our members, including planning issues - and continue to be consulted by the County, District and Town Councils regularly.

Another very important reason for joining is the opportunity to network with other similar minded business people, thereby realising that you are not alone and that we all have the same problems. Members also have the opportunity for a spotlight on their business on our monthly Comishman page, free of charge!

We have been very actively involved in the regeneration programme for Penzance and the surrounding area. Indeed our Chairman, Mike Waters, also chairs the Penzance Regeneration Steering Group. While we have not got exactly what we wanted, what we will end up with will meet the objectives of securing current employment and creating sustainable jobs, while contributing to the financial growth of the district. In order for us to continue to campaign effectively for all local businesses we need the support of as many local businesses as possible.

Contrary to popular belief we are not an organisation of retailers, we encompass all business sectors. We need a strong membership base in order to enhance our standing as THE voice of local business. With the current programme of developments locally there has never been a more opportune time for all businesses to come together in solidarity.

If you would like a membership pack please contact the Secretary on 01736 793811. We welcome membership from businesses throughout Penwith, not just Penzance.

We have meetings on the first Tuesday of each month in the Penzance and Newlyn Rugby Football Club in Alexandra Road commencing at 7.30pm, you are most welcome to attend whether you become a member or not and whether you currently run a business or not. Chamber meetings are a useful forum for those who are interested in starting a business as well as for members of the public who are interested in local issues that have an impact upon us all. We look forward to meeting you,

We invite membership applications from individuals and businesses large or small. For further information, visit the Membership Enquiry or Membership Application pages on this site.

Forthcoming Meeting

The next meeting will be held on Tuesday 6th September at 7.30pm at the Pirates Rugby Club, Alexandra Road, Penzance.

As usual ALL members are urged to attend but anyone, whether running a business or not, is free to attend this open meeting to make their views known on any matter affecting Penzance and the immediate area.

Secretary contact details

Everyone can now contact the Chamber as follows:

By post - The Secretary, Penzance Chamber of Commerce, Sycamores, Relubbus Lane, St Hilary, TR20 9EG
By phone/fax - 01736 793811

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