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Wetherspoon boss: Business leaders and politicians talking 'nonsense' on Scotland | |
(about 1 hour later) | |
The boss of pub chain JD Wetherspoon, Tim Martin, has accused business leaders and politicians of talking "nonsense" over Scottish independence. | |
He told the BBC "Scotland could do very well on its own". | |
"There is a lot of nonsense talked by businessmen and politicians that it is impossible for Scotland to survive by itself. We think we can trade well there." | |
Others have warned independence will bring higher costs. | |
They include the former head of Sainsbury's, Justin King, Asda and John Lewis. | |
Mr King told the BBC supermarket prices would rise, investment put on hold, and food producers be hit. | |
In an interview with BBC economics editor Robert Peston, Mr King, who was one of UK's most successful retailers, said supermarkets currently spread the cost of doing business across the UK. | |
"But it is more expensive to do business in Scotland today. Business rates are higher, distribution costs are higher. | |
"If Scotland was to be an independent country, with businesses run separately in Scotland - as inevitably will be the case - prices would be higher," said Mr King, who resigned from Sainsbury's in July after 10 years. | |
But Mr Martin said he believed Wetherspoon's could "trade well" in an independent Scotland. | |
"I think Scotland could do very well on its own," he said. "New Zealand has a comparable population and does pretty well. Singapore has a very small population and does very well. | |
"Maybe if it gets independence we will get some VAT parity between pubs and supermarkets." | |
Record profits | |
On Friday the pub chain reported a 3% rise in annual profits and forecast a "reasonable" outcome for next year following record sales. | |
It said pre-tax profits for the year were £79.4m, compared with £76.9m a year earlier. | It said pre-tax profits for the year were £79.4m, compared with £76.9m a year earlier. |
Like-for-like sales - which count sales in pubs open for more than a year - rose 5.5% in the year. | Like-for-like sales - which count sales in pubs open for more than a year - rose 5.5% in the year. |
Menu improvements and longer opening hours, as well as new pub openings, helped total sales grow 10% to £1.4bn. | Menu improvements and longer opening hours, as well as new pub openings, helped total sales grow 10% to £1.4bn. |
In the first six weeks of the new financial year like-for-like sales were 6.3% higher, Wetherspoon's added. | In the first six weeks of the new financial year like-for-like sales were 6.3% higher, Wetherspoon's added. |
Mr Martin said he was "pleased" with the pub chain's progress, pointing out it now employed 34,000 people, 3,000 more people than a year ago. | |
He added that £29.2m was paid in staff bonuses and free shares. | He added that £29.2m was paid in staff bonuses and free shares. |
'Fashion' | 'Fashion' |
But Mr Martin warned the pub industry still faced a considerable threat from "the VAT disparity between supermarkets and pubs" which he has previously said meant supermarkets have been able to undercut the pub industry. | But Mr Martin warned the pub industry still faced a considerable threat from "the VAT disparity between supermarkets and pubs" which he has previously said meant supermarkets have been able to undercut the pub industry. |
He also questioned the corporate governance of other pub chains with "so-called independent non-executive chairman and dominated by non-executive directors, often with a very small number of executive directors," which he said "tended to be excessively influenced by City fashions, creating instability and poor performance as a result". | He also questioned the corporate governance of other pub chains with "so-called independent non-executive chairman and dominated by non-executive directors, often with a very small number of executive directors," which he said "tended to be excessively influenced by City fashions, creating instability and poor performance as a result". |
Wetherspoon's said it had opened 46 pubs in the year and planned to open a further 30 to 40 pubs over the next financial year. | Wetherspoon's said it had opened 46 pubs in the year and planned to open a further 30 to 40 pubs over the next financial year. |