Category: Press Releases

The press release issued by HM Treasury on 28 July 1998.

“Britain needs more world-class management.” This was the message from the fifth in the series of seminars aimed at boosting UK productivity hosted by the Chancellor, Gordon Brown, and the Secretary of State for Trade and Industry, Peter Mandelson. The seminar was addressed by CK Chow and Sir Christopher Hogg.

Setting out the agenda for today’s meeting, Gordon Brown said :

“Improving the quality, drive, and ambition of British management lies at the heart of meeting the national challenge we have set ourselves – to raise the productivity of the British economy. Without outstanding management at every level and in every sector of the economy then we will struggle to invest, we will struggle to innovate, and we will struggle to compete internationally.

“Too many of our brightest and best choose to avoid management as a career. We need to ask ourselves why industry fails to attract them.

“British industry has recognised the challenge. Throughout this series of high-level seminars their representatives have consistently highlighted the critical role of management. Today’s seminar therefore addresses the subject directly and represents a first step towards taking up the challenge.”

Mr Mandelson said:

“Management has a vital role to play in raising Britain’s competitiveness. Spreading best practice is a challenge for large and small firms, and is a key element of my Department’s work. Together with partners such as the CBI, TEC/Business Links and the Management and Enterprise NTO, we shall continue to seek to improve practices and business performance.

“But we must also look to the managers of tomorrow. Schools and business have a responsibility to foster the spirit of enterprise in our young people. They hold the key to building the world class management this country needs.

The press release issued by HM Treasury on 28 July 1998.

Helping more people on low incomes gain access to financial services is the main aim of a Taskforce established today by the Economic Secretary, Helen Liddell.

The Taskforce, chaired by Fred Goodwin, Deputy Group Chief Executive of the Royal Bank of Scotland, will look at ways banks can help credit unions. Its remit will be to:

• explore ways in which banks and building societies can work more closely with credit unions to increase their effectiveness;
• look at ways to widen the range of services that are provided to credit union customers; and
• encourage the continued expansion of the movement.

Its role will be to identify best practice in these areas and how this can be promoted more widely as well as proposing new areas for co-operation.

Helen Liddell said:

“Credit unions have an important role as a place for savings and source of low cost credit for the less well-off. They can also provide a first rung on the ladder of financial services for young people.

“We want to build on that. If banks and credit unions work together we could see more people having access to bank accounts and credit who do not presently do so.”

The Taskforce membership will be made up of senior representatives from banks, building societies and the credit union movement. The Treasury will provide the secretariat.

The first meeting will be held around September. The Taskforce will be asked to produce a first report by the turn of the year and a final report by the middle of next year.

The press release issued by HM Treasury on 28 July 1998.

Business is responding positively to the need to prepare for the launch of the single currency on 1 January 1999, but more needs to be done by small businesses. These are the main findings of the first six-monthly report on preparations for EMU from the Treasury’s Euro Preparations Unit (EPU), Getting ready for the euro: first report July 1998.

The EPU was established in December 1997 to provide support for businesses in preparing for the euro. It has rapidly established a team involving private sector representatives as well as Treasury and DTI staff with expertise in dealing with business.

Welcoming the report, Lord Simon said :

“Preparing for the launch of the single currency on 1 January 1999 must be a priority for British businesses large and small. Today’s report sets out what has been done so far to help businesses to ensure that they are not behind the competition when the euro arrives.

“I am pleased to see all sectors of business responding to the call to help companies – particularly small businesses – prepare for the launch of the euro. This first EPU report sets out the progress made over the past six months.

“The report looks at progress in a range of business areas, including the financial, retail,tourism, manufacturing, IT, legal and public sectors.

“It also looks at what the Government is doing to help business and the public sector prepare. We have already achieved a great deal. We have sought to find out what businesses themselves see as their priorities through a nationwide programme of seminars, then acted to provide the information which they see as the key to enabling businesses to ready themselves. Businesses can now access this directly through a telephone information line and an internet website.

“As well as continuing to produce factsheets and other material tailored to particular business requirements, we shall build on our face to face dialogue with local business through twelve regional forums which will carry forward the programme of sharing information and experience so that all can benefit.

“The business awareness campaign will continue. This week advertisements targeted at small and medium sized enterprises are appearing in national newspapers, and a television campaign and direct mail contact with 1.6 million businesses will begin in early Autumn.

“The report also summarises some of the approaches being taken in the other EU countries, so that we can learn from their approach.

“But the message is not getting across to everyone, particularly to small businesses. The first six months of the EPU has been marked by solid progress. We shall continue to build on this through the next six months and beyond.”

Today’s report sets out progress achieved and future strategies to :

assess business awareness and preparedness for the launch of the euro on 1 January 1999; help business achieve readiness by 1 January 1999;

look at what needs to be done to prepare to give the UK the option of joining the single currency if the essential tests set out by Government are met in the future.

The press release issued by HM Treasury on 20 July 1998.

The 1000th participant of the Chancellor’s Financial Sector Scheme was this evening welcomed by Chancellor Gordon Brown and Economic Secretary Helen Liddell at a reception at No. 11 Downing Street.

The Scheme, which since 1992 has offered work placements to young high-flyers from Russia and the other 14 successor states to the Soviet Union, has chosen Alexander Antipov, aged 25 from Moscow, as its 1000th  participant. Mr Antipov has been placed with Scudders Investment UK to research international bond markets.

Thanking the 500 companies who have taken part in the Scheme, Chancellor Gordon Brown said:

“This Scheme has been a major contributory factor in the development of the economic future of Russia and its neighbours. It is an excellent example of public and private sectors working together, building relationships between high-flying individuals and leading British companies. Alexander is typical of the high calibre of all those who have been involved in the scheme since it began, and I am delighted to welcome him to Britain.”

Former participants in the Scheme have risen to positions of prominence in their home countries.  One of the first participants who came to the City in 1992 and worked at Royal Sun Alliance is now the Deputy General Director of Ingosstrakh, one of Russia’s top five insurance companies.  Another participant who did a work placement at Allied Dunbar in 1995 is now on the Board of the National Reserve Bank where he heads up the Treasury function, while another is a financial advisor to President Yeltsin’s Government.

A similar scheme for China has recently been announced by the Secretary of State for International Development, Clare Short, following the success of the Chancellor’s  cheme.  The first participants in the China Financial Training Scheme are expected
to arrive in the UK in 1999.

NOTES TO EDITORS

Chief Executives of over 40 major City companies will attend the reception at No 11 as will most of the Ambassadors from the states of the former Soviet Union.

The Chancellor’s Financial Sector Scheme started in 1992 following an offer made by the then Chancellor, Norman Lamont to President Yeltsin to help Russia make the transition to a market economy.  The Scheme was devised to offer short work placements to young high-flyers from Russia and the other 14 successor states to the Soviet Union.  In the early days of the Scheme, most participants did their work placements in the City in the financial sector.  More recently, the Scheme has broadened out to include legal and accountancy work and to take in other regions of the UK.

The Scheme is funding through DFID’s Know-How Fund, and is managed by the British Council and Digby Morgan Consulting.

The press release issued by HM Treasury on 9 July 1998.

Helen Liddell speaks to Local Government Association Conference.

Local authorities have a key role to play in preparing their local business communities and must also prepare themselves for the introduction of the euro on 1 January 1999, Economic Secretary Helen Liddell said today.

Speaking at the Local Government Association Conference in Bournemouth the Minister said that as part of the public sector, local authorities were vital in ensuring the UK is ready for the introduction of the euro. She said:

“It is vital for local authorities to encourage local business communities to think strategically about theeuro, to prepare for its launch, and fit that into the changing economic environment.”

But she also emphasised that they themselves must be ready, particularly in the area of procurement policy. The Minister said:

“Public procurement policy will be a key area for consideration. Suppliers may expect to invoice in the euro. If you insist on paying in sterling there may be a premium to pay.

“Many of you will also be involved in public private partnerships, and other consortia. There may be pressure to deal in euros in some of these. It is vital to assess the implications.”

Mrs Liddell called on local authorities to pay their full part in the twelve regional forums that have been set up to identify key regional issues arising from the introduction of the euro. She said:

“We are setting up regional groups across the country to bring together key strategic partners with an interest in gearing UK business up to the challenge of the euro. I urge you to play a full and active part in ensuring they are a success.”

The Minister also pointed to the creation of a working group which brings together key local government representatives, chaired by the Department of Environment, Transport and the Regions. The aim of the group is to ensure that ongoing preparations and information about the euro is effectively communicated to local government.

On a national level, the Government was playing its part in preparations, including:

the creation of a Business Advisory Group to look at private sector preparations and a Euro-Coordinators Group to examine preparations in the public sector;

the Treasury Euro Preparations Unit which has already produced publications, set up a telephone help-line and a website; and

preparations for an advertisement campaign on television and in newspapers and journals to raise awareness and help make sure the UK is ready for the euro.

The press release issued by HM Treasury on 7 July 1998.

Independent Financial Advisers (IFAs) were today blasted by the Economic Secretary Helen Liddell for their lack of progress in sorting out personal pensions misselling.

The Minister called in 30 senior representatives of IFAs and IFA networks and told them she was very concerned about the slow progress in the sector. IFAs were seriously lagging behind the major pension firms who had made big strides in sorting out their pensions cases.

Mrs Liddell said:

“Enough is enough. My patience is exhausted by the lack of progress of IFAs. I am amazed at the attitude of firms who seem to think their inaction is defensible, and when faced with phase 2 of the review choose to blame everyone except themselves.

“People have lost out as a result of having been sold products, which were wrong for them. IFAs have a clear responsibility to sort out whether any of their customers deserve compensation and provide it where it is warranted Where there was misselling, those who took the profit should now face the pain.”

The meeting followed on from an announcement yesterday by the Personal Investment Authority (PIA) that 41 IFAs were being disciplined for failings connected with the pensions review. The Minister said:

“I hope this action by the PIA makes it absolutely clear to all IFAs that discipline is a real prospect if they fail to deal with their cases. The review must be tackled with professional diligence and businesslike rigour. Nothing less will do. We are talking about people’s life savings and their future welfare.”

The Minister called into question the future of the IFA sector and said she would be keeping a careful eye on IFAs’ progress over the next few months and said if actions was warranted it would be taken. She said:

“In the long term, if the IFA sector fails to put its house in order, and genuinely command the trust of customers, it will not only call into question the viability, but possibly the desirability, of the current industry structure.”

Mrs Liddell advised the public to be very careful when using an IFA. She said:

“In my opinion anyone thinking of taking advice should check out the IFA thoroughly. Check their attitude to the consumer protection that regulation provides, and to putting right past problems – including their progress with the pensions review. Ask if they have ever been fined or disciplined by the regulators.”

The press release issued by HM Treasury on 3 July 1998.

Chancellor Gordon Brown today welcomed the accelerated announcement yesterday of the Japanese authorities ”Comprehensive Plan for Financial Restructuring’, as evidence of Japan’s commitment to tackle its economic problems.

The Chancellor said:

“This policy action marks an important step forward for Japan. The ‘bridge bank’, and other proposals to improve the disposal of bad loans, provide a firm signal of Japan’s commitment to tackling its financial and structural problems. This will be crucial to restoring confidence and strengthening the Japanese economy.”

Stressing the need for credible and rapid action, Mr Brown said:

“We look forward to the speedy implementation of these measures, and the steps necessary to restore the health of the financial sector and stimulate demand. This will be vital for sustained economic recovery in Japan and Asia as a whole.”

There have been extensive G7 discussions on the Japanese economy this year, most recently at a meeting in Tokyo on June 20 between G7 and Asian Finance Deputies, which concluded that restructuring and revitalisation of the Japanese economy and financial system was urgently needed.

The press release issued by HM Treasury on 1 July 1998.

Ministers from each Government Department met for the first time today to discuss progress  in public sector planning for the introduction of the single currency on 1 January 1999.

The meeting was chaired by Economic Secretary Helen Liddell, who said :

“Whether or not Britain decides to join the single currency in the future, both business  and public sectors will be affected by the changes that the launch of the euro on 1  January 1999 will bring. These changes will offer both opportunities and challenges which we must all be ready for.

“Government has a key role in ensuring that readiness. We are already committed to helping business to identify what it needs to do directly, and have taken steps to make sure that the necessary information is available.

“We are also working to help public sector bodies – not just Government Departments but other bodies such as local authorities – to prepare themselves where their activities could be affected directly by the single currency.  They, too, will take every opportunity  to help business prepare. The Ministerial group will play a key part in coordinating activity within Government to achieve that.

“The Government will do as much as possible to enable UK businesses to use the euro where this is relevant and beneficial for them. This includes reviewing legislation to see where we can ease the way for business. We have already identified a number of areas where action is required and are making the necessary changes.

“There are also implications for Government Departments themselves, particularly those  which have significant overseas responsibilities. We shall look at all our policies to ensure that these reflect and take account of the changes ahead.

“We shall continue to share experiences in preparing for the single currency, using the  Ministerial group as a forum to discuss and help to spread that knowledge  as widely as  possible to ensure that efficiency and competitiveness are sustained and enhanced.”

The first meeting of the Ministerial group was given a presentation by Adair Turner, Director General of the CBI, on the impact of the launch of the euro on 1 January 1999 on UK business and the steps being taken to ensure that this is seen as a positive
opportunity to benefit commercial activity.

The Ministerial group will continue to look at all areas of Government activities and contribute to the analysis of public sector planning required to inform the programme of six monthly reports on progress in preparing for the single currency and the outline national changeover plan which will be published around the end of the year.

1.   Departmental Ministers responsible for preparations for the single currency are: