Category: Press Releases

The press release issued by HM Treasury on 2 December 2000.

The press release issued by HM Treasury on 21 December 2000.

Welcoming continuing progress towards implementation of the Financial Services and Markets Act 2000 (FSMA), Economic Secretary Melanie Johnson today said:

“There has been good progress on implementation of the Financial Services and Markets Act since Royal Assent in June. The Treasury has issued thirteen pieces of draft secondary legislation, and the FSA has published large parts of the FSA Handbook in draft. Consultation on the major draft orders published by the Treasury in October has now closed.

“We will now move to incorporate helpful suggestions as quickly as possible. We are grateful for the comments we have received and will be studying them closely.

“It is important that firms and consumers enjoy the full benefits of the new system of financial services regulation as soon as practicable. I want to see all parties involved in the complex and detailed process of implementation working to that end.

“The target I set last July of N2 in about one year remains. It is still too early to be more precise on when the Act will come into force. As soon as I can give a firm date, I will do so. I plan to do so during the Spring. There will be a reasonable time for industry preparations between announcing a firm date and N2.”

Sir Howard Davies, Chairman of the FSA, said:

“We welcome the progress that has been made to date, the Government’s plan to announce a firm date in the Spring, and to provide a reasonable time for industry preparations between announcing a firm date and N2. We look forward to full implementation of the new legislation as soon as the necessary preparations, including industry preparations, have been made.”

The press release issued by HM Treasury on 22 December 2000.

Chancellor Gordon Brown and International Development Secretary Clare Short today welcomed the news that 22 countries have now had exceptional debt relief agreed, amounting to some $50 billion.

Speaking after the IMF and World Bank announced the news, the Chancellor and Clare Short said:

“Last year we agreed the action that needed to be taken to remove the burden of unpaid and unpayable debt on the poorest countries. The IMF and World Bank committed that 20 countries would have their debt relief agreed by the end of this year, and governments of HIPC countries, as well as the international community have worked hard to achieve this. We are pleased that we have not only met, but exceeded that target. On average these countries’ debts will be reduced by two thirds.

“More importantly, this action has enabled us to take forward our efforts to tackle the extreme poverty which affects the lives of so many millions of people in these countries. It is important to remember that the measure of success is not simply the amount of debt cancelled, but the number of people who are lifted out of poverty.

“This achievement owes much to the commitment and dedication of Horst Kohler, James Wolfensohn and their staff, and the determined efforts of countries themselves to demonstrate their commitment to addressing poverty, and to using the money freed up by this debt relief to benefit the poor.”

Continuing, they stressed that the achievement announced today was an important element in the wide ranging fight to eliminate poverty:

“We must create a virtuous circle of debt relief, poverty reduction and economic growth. The achievement announced today removes a huge barrier to tackling poverty in these countries. We are very concerned that a large number of other HIPC countries are unable to qualify for debt relief either because of their involvement in conflict, or because they do not yet have clear Poverty Reduction Strategies which show how the savings from debt relief will flow to spending on poverty reduction. We call on all concerned to work for peace, so that we can begin to work together towards poverty reduction. We are committed to intensifying our efforts to help them resolve their conflicts.

“The UK, for its part, stands ready to assist, and continues to play a leading role on debt. From this month, debt payments from the HIPC countries have either stopped, or will be held in trust, to be returned later for poverty reduction. No longer will we benefit from these historic debts.”

The press release issued by HM Treasury on 11 January 2000.

The UK today took a lead in the international effort to encourage the wider use of collective action clauses in sovereign debt contracts,  particularly by emerging market countries, when it included such a clause for the first time in a UK sovereign debt contract denominated in euros.

Greater use of collective action clauses in debt instruments is one method of facilitating coordination between creditors and debtors and  promoting an orderly resolution of financial crises. G7 Finance Ministers agreed in Cologne in June 1999 on the importance of encouraging wider use of such clauses in sovereign debt contracts.

Welcoming the development, the Chancellor, Gordon Brown said :

“The international community must continue its efforts to develop a comprehensive new framework for crisis prevention and resolution between the public and private sector.

“Greater use of collective action clauses in bond contracts is one step we can take to promote better management of crisis situations where they arise.

“We have for some time included collective action clauses in our dollar debt.  By including a collective action clause for the first time in the euro Treasury Note we have announced today, I hope further to encourage other countries, especially emerging markets, to include similar provisions in their own foreign currency bond issues.

“By making the use of collective action clauses the market norm, the international community may continue to improve its approach to crisis management.”

The clause is included in contracts for the auction of a new UK Government Euro Treasury Note announced by the Bank of England today. This makes the Note programme consistent with other UK Government foreign currency issues.

The press release issued by 9 February 2000.

Chancellor aims for £1 billion more to be given to charity

Measures to encourage more people and companies to give more money and time to voluntary action were set out today by the Chancellor Gordon Brown in a speech “A Civic Patriotism” at the NCVO annual conference in London today.
The Chancellor outlined the case for a “new and stronger relationship between individuals, communities and government” in a four point plan. The plan includes:

• tax changes to promote individual giving;
• tax changes to promote corporate donations;
• measures to promote the giving of time and volunteering; and
• measures to develop a new role for voluntary organisations.

The Chancellor said:

“I want to outline the case for a new and stronger relationship between individual, community and government – for the renewal of British civic society – or a great British society which not only defines the importance of voluntary organisations, but engenders a civic patriotism.

“I want to propose a new financial foundation for this civic renewal – a modern financial foundation for charitable, voluntary and community action.”

The Chancellor confirmed his pledge to “put charities on a firm foundation for the future.” He encouraged charities to exploit the new tax regime which makes it easier for individuals and companies, to give with the aim – “millions more giving so that by the end of the year 2002, as a people, have given a £1 billion more.”

But encouraging more people to give more time rather than money was an important part of the strategy. The Chancellor said:

“Our next task is to encourage new volunteers, create new volunteering opportunities and to build networks that match those who can give help to those which need help.”

Work is already underway working with charities and the voluntary sector on key initiatives but the Chancellor announced that:

“To advance both and the giving of money and time, we will bring together all relevant parties – the voluntary sector, key government departments, business leaders, employees’ representatives and media experts – to examine proposals for a national campaign based on a partnership with the voluntary sector.”

The Chancellor stressed the importance of the voluntary community and charitable organisations’ involvement in projects like Sure Start and the proposed new children’s fund. He said:

“These are partnerships in which the voluntary community and charitable organisations can take the lead, using their local knowledge and skill to put their ideas and projects to work.

To encourage the social enterprise sector in Britain, which can play a vital role in the economic regeneration of deprived communities the Chancellor also announced the setting up of a Social Investment Taskforce.

The Chancellor made clear he wanted to see “more investment in the UK in social enterprises – projects which have social objectives, and are not simply profit orientated.”

The Taskforce will look at:

• the case for social investment and a social investment fund;
• identify barriers to the further development of this field; and
• propose solutions and models for the future development of social investment.

It will report by autumn 2000.

The press release issued by HM Treasury on 11 February 2000.

Peter Gershon is to be Chief Executive of the new Office of Government Commerce, Andrew Smith, Chief Secretary to the Treasury, announced today. Brian Rigby will be the Deputy Chief Executive.

The Office of Government Commerce (OGC) is being set up to improve the efficiency and effectiveness of the Government’s £13 billion annual civil procurement budget. The appointment of Peter Gershon and Brian Rigby will ensure that the OGC will spearhead a new era of Government efficiency.

Speaking about the appointments Andrew Smith said:

“I am very pleased to have secured the services of Peter as Chief Executive and Brian as Deputy Chief Executive. It was Peter who was instrumental in carrying out the review of central government purchasing last year and we have at the helm two people who can deliver on the Government’s modernisation and competitiveness agenda.

“Peter is highly respected in the private sector and we are fortunate to have acquired his services. His skills in IT, industry and business are second to none and, along with Brian’s own civil service experience in procurement balanced with his private sector skills, we have the ideal partnership.

“In the developing electronic age, we must seize the opportunity to combine a new era of central Government efficiency with the huge potential from its civil procurement buying power to deliver real savings for the taxpayer.”

Sir Richard Evans, Chairman of BAE Systems, commented :

“Peter Gershon’s appointment to this key new government body is fitting recognition of his outstanding capabilities as a manager. Whilst we are naturally sorry to lose him from the BAE SYSTEMS team, we recognise the importance Ministers attach to this move and wish him every success.”

The Office of Government Commerce will oversee the purchasing activity of some 200 Government departments and agencies employing some 5000 staff on procurement tasks and spending some £13 billion of taxpayers’ money every year. The OGC will perform an important role in the Government’s modernisation and competitiveness agenda and will ensure the best value for this major element of public expenditure.