Mike Russell: Sought assurances from SMG

The Scottish National Party has expressed "great concern" at the announcement.

SMG posted pre-tax profits of �20m for the first half of the year in September.

The figure, which was down �10m on the previous year's figure, prompted a fresh round of cost cutting.

The company's present plight is in stark contrast to 1999 when SMG posted record pre-tax profits of �50m - a rise of 9% on the previous year.

'Media industries'

Earlier this month a company spokesman said it would offer voluntary redundancies after a drop in advertising revenue was blamed for wiping one third of SMG's profits for the first half of the year.

The SNP MSP Michael Russell said: "The situation at SMG is very serious and has implications for the service that Scotland receives from its largest media group.

"It is of course of even greater significance to the individuals affected and their families who, given the downturn in the media industries, may find it difficult to get equivalent work elsewhere.

"Ninety-five redundancies represents about 5 per cent of the entire SMG workforce and the companies' view that further cuts in staffing cannot be ruled out in 2002 is an additional blow.

SMG owns Scottish Television

"I have spoken to SMG today to express my concern and to seek an assurance that everything is being done to soften the jobs blow and to ensure that the core standards in television, local programming and quality journalism are maintained.

"I am glad that only one post has gone at Grampian as the local services for the North East are particularly important given the large rural constituency which Grampian serves.

"I shall be meeting with SMG shortly to discuss these and other matters and I do hope that the company will ensure that its long term future and prospects are secured in such a way as to guarantee productive employment to the vast majority of its skilled and dedicated staff and that any further changes are handled in a sensitive way."