Category: Press Releases

The press release issued by HM Treasury on 23 January 2003.

A proposal for an International Finance Facility which could double the amount of development aid provided by the richest countries to the poorest was published today by Chancellor Gordon Brown and International Development Secretary Clare Short.

The Facility is designed to provide additional financing to help meet the internationally agreed Millennium Development Goals so that by 2015 every child is in education, infant mortality is reduced by two thirds and maternal mortality by three quarters, and poverty is halved.

The founding principle of the new International Finance Facility (IFF) is long-term, but conditional, funding guaranteed to the poorest countries by the richest countries. On the basis of these long-term donor commitments, the Facility would leverage in additional money from the international capital markets. It would seek to raise the amount of development aid from just over $50 billion a year today, to $100 billion per year in the years to 2015.

The Facility will ensure not only additional money, but also value for money. It will do this by providing, for the first time, a predictable and stable flow of aid, allowing developing countries to plan long-term investment effectively and efficiently.

It would thus build on existing agreements, between developed and developing countries, with each country:

pursuing anti-corruption, pro-stability policies and agreeing the necessary transparency in economic and corporate policies to achieve this;
committing to the Doha development agenda – a sequenced opening up of markets to global trade;
improving the environment for investment and private sector-led growth; and
as part of country-owned poverty reduction strategies, agreeing clear and costed plans for building education, health and economic capacity.
Chancellor Gordon Brown said:

“The IFF will provide developing countries that reform with the means to invest in schools and healthcare, roads and legal systems, helping to create the environment businesses need as well as create the conditions that will enable countries to participate in, and benefit from, global trade. And as families in those countries are lifted out of poverty, new and dynamic markets will be created.”

Clare Short said:

“The Facility could double the aid currently available, which would provide sufficient investment to enable every country committed to reform to make progress towards the Millennium Development Goals. This would help create a more just and safer world.”

The press release issued by HM Treasury on 10 February 2003.

The Chancellor announced to Parliament today that the Treasury is advertising this week for a new Chairman of the Financial Services Authority to succeed Sir Howard Davies.  The post will be advertised in national newspapers and through the Treasury website.

The Treasury will be looking for an individual of the highest calibre to lead the FSA in delivering a strong and effective financial services regulatory regime.

As the single regulator for financial services in the UK, the FSA has one of the widest remits of any international financial services regulator. The scope of FSA regulation will increase further when the FSA takes on responsibility for conduct of business regulation for mortgages and general insurance in 2004/5.  In light of this, it has been decided that the Chairman should be supported by a separate Chief Executive.

NOTES TO EDITORS

1. The Chairman and Board of the FSA are appointed by the Treasury in accordance with the rules of the Office of the Commissioner for Public Appointments.
2. Board members are appointed in a personal capacity and do not serve as representatives of particular interests or associations.
3. Sir Howard Davies will continue as Chairman of the FSA until his successor is appointed and takes up his post. This will happen before October 2003 when Sir Howard will move to the LSE.
4. The FSA became the statutory single financial services regulator at midnight on 30 November 2001, when the Financial Services and Markets Act commenced.

The press release issued by HM Treasury on 13 February 2003.

Economic Secretary to the Treasury, John Healey, was in Kirklees, Yorkshire, today to see some of the ways waste is put into action in the region.

As Chair of the short-term Ministerial Group on Waste, an initiative announced in the Government’s Pre-Budget Report, Mr Healey was keen to see waste technologies in use on the ground.

Visiting two Huddersfield waste management sites, Mr Healey said:

“This is proving to be a useful first-hand experience. I have seen some novel approaches to waste management in practice and I have been struck by the commitment shown by all concerned.”

The Minister toured the materials recycling facility and the energy from waste plant on Diamond Street, Huddersfield, both operated by SITA Kirklees. The materials recycling facility deals with 12,000 tonnes of material collected from local homes each year. Similarly, the energy from waste plant can deal with 136,000 tonnes of household and commercial waste annually. Waste is incinerated and, using state of the art technology, the heat produced is used to raise steam to drive a turbine and produce electricity for the National Grid.

Accompanied by Cllr David Payne of Kirklees Council’s Environment and Transportation Cabinet, Mr Healey heard how the Council and SITA are also currently considering using some of the energy produced for district heating.

From high tech turbines the Minister then moved on to more basic technology with an award-winning Huddersfield project that turns waste cardboard into caviar using little more than worms, and at the same time gives local young people a chance to gain some specialised training and national vocational qualifications.

The ABLE project, which recently won a National Grid Community 21 Award, involves a partnership between the Green Business Network, East Wakefield PCT, and Turning Point. It involves a cyclical process in which waste cardboard is put to use as bedding at a local equestrian centre, before being composted in worm beds, and the excess worms fed to sturgeon fish that, long-term, will be sold as fish and caviar to local restaurants. Met by Project Leader Graham Wiles, Mr Healey was told how the scheme has just been given 34 acres of land by Yorkshire Water to roll the scheme out in the Wakefield district.

The press release issued by HM Treasury on 17 February 2003.

Increasing the momentum of economic reform in Europe at this time of global risk and uncertainty is the key theme of a new report issued by the Government.

Today’s report ‘Meeting the Challenge: Economic Reform in Europe’ evaluates the progress made on economic reform within the EU since the March 2000 Lisbon European Council, and identifies the priorities for future action.  It finds that while some progress has been made towards meeting the Lisbon Council objective of transforming the European economy into the most dynamic and competitive in the world, there is much more to do.

The key priorities for reform set out in the report, which should form the basis for discussion at the Brussels European Council under the Greek Presidency on 21st March, include:

• Policies to boost employment, skills and to make labour markets more flexible, with each country taking action domestically to tackle unemployment.
• Promotion of well-regulated, dynamic and flexible markets by dismantling regulatory barriers in order to simplify the burdens on business. In future, all new legislation must be thoroughly examined to ensure that it improves the climate for business and reflects the views of European firms.
• Measures to promote Research and Development and to tackle barriers to innovation, by both increasing R&D spending and improving the effectiveness and commercial use of research.
• A more strategic approach to competition policy, with competition authorities that look at markets as well as reacting to cases, with genuine liberalisation across the single market in goods and services, and a focus on results not just legislation.
• A modernised and streamlined state aids regime, to ensure the rules and their implementation support economic growth both at the national and regional level.

The Treasury’s main report is accompanied by ‘Structural Indicators of European Economic Reform: Measuring Europe’s Progress, February 2003’, which examines progress over a wide set of indicators.  Achieving the Lisbon goal requires economic reform based upon robust evidence and complemented by rigorous monitoring of outcomes.  A comprehensive set of structural indicators has been developed in recognition of this.  Indicators on key policy areas help to identify best practice, to monitor progress against targets and to highlight strengths and weaknesses.

Commenting on today’s report the Chancellor, Gordon Brown, said:

“At this challenging time for the world economy each continent has to play its part to maintain the conditions for stability and growth. In the US, alongside action on monetary and fiscal policy, steps are being taken to reform accounting and auditing standards. Japan is in the process of reform of its financial and banking sector. And in Europe we must do more to reform our product, labour and capital markets so as to make our economies more flexible.

“While some progress has been made, the collective challenge we face is immense. Levels of productivity, employment and growth have consistently underperformed those of the US in the past decade. If Europe is to fulfil its ambition to be a world economic leader, and not remain vulnerable to the ups and downs of the world economic cycle, then it is vital that we demonstrate our commitment at next month’s Brussels Council to implement the ambitious goals we have set for ourselves.”

“As we push ahead with these reforms we need a common understanding that in a world where businesses must respond quickly and people must adapt to change, flexibility in product, labour and capital markets is the means to achieve, not the enemy of, social justice. We should recognise that the right kind of flexibility in European product, labour and capital markets can advance both economic efficiency and social cohesion.”

The press release issued by HM Treasury on 21 February 2003.

Chief Secretary to the Treasury, Paul Boateng, will today meet representatives in Edinburgh of Scottish business and trade unions with Helen Liddell, Secretary of State for Scotland, to hear their views on the Treasury’s November 2002 Pre Budget Report. As part of his two day trip to Scotland ahead of the forthcoming Budget he will also see for himself the positive impact on Edinburgh and Glasgow of Private Finance initiative (PFI) projects and the Scottish Executive’s delivery on public services.

Welcoming the opportunity to consult with local groups Mr Boateng said:

“The Government is committed to working in partnership with the Scottish Executive to build a stronger Scottish economy and fairer Scottish society. The Pre Budget Report last November set out our proposals, which will help to raise productivity and promote enterprise and employment opportunities in Scotland, build a fairer society and tackle poverty in Scotland, and protect the Scottish environment.

“The policies followed by the Chancellor, Gordon Brown, have provided a stable and successful macroeconomic framework, delivering low inflation, low interest rates and low unemployment in Scotland.

“As a result of our prudent policies, the Government has been able to provide the Scottish Executive with the resources to deliver well funded devolved public services in accordance with the priorities of the people of Scotland.

“Scottish business and trade unions have a vital role to play in modernising the Scottish economy and I welcome the opportunity to discuss with them the proposals in the PBR ahead of the impending Budget.

“Through PFI, Scotland has seen £2 billion in investment in new schools and hospitals and over 65 separate projects – a massive investment in public services. It shows that a partnership approach between the public and private sectors delivers complex infrastructure projects on time and on budget.”