Category: Press Releases

The press release issued by HM Treasury on 17 February 1998.

The UK today launched an initiative aiming to increase the amount of European technical assistance available to the troubled economies of Asia.  The initiative will focus on financial sector restructuring and poverty impact assessment, and  is being developed in the run up to the ASEM 2 Summit on 3-4 April, when Asian and European Leaders will meet in London.

Chancellor Gordon Brown and Secretary of State for International Development Clare Short discussed their ideas with World Bank President Jim Wolfensohn when they met earlier today.

The initiative involves two parts: the establishment of an ASEM Trust Fund at the World Bank to help countries to assess the poverty impact of the crisis and to assist with financial sector restructuring; and more effective co-ordination of technical assistance in the financial sector.

The Chancellor said:

“Countries in Asia restructuring their financial sectors will need a good deal of technical assistance.  Europe has great expertise to offer in this area, and we are putting in place arrangements to ensure this can be mobilised effectively”.

The Secretary of State for International Development said:

“It is vital that countries receive help with financial restructuring and that the poverty impact of Asia’s current financial difficulties is properly understood.  We are working closely with the World Bank to assess the impact on the poor and ensure that the appropriate policy response is taken.”

The press release issued by HM Treasury on 17 February 1998.

The Government has announced that it is willing to make a supplementary contribution of up to $10 million towards relieving the debt burden of Mozambique.

The announcement, made by Chancellor Gordon Brown and Secretary of State for International Development Clare Short, follows a meeting today with James Wolfensohn, President of the World Bank, the Archbishop of Canterbury George Carey, the Catholic Archbishop of Liverpool Patrick Kelly, David Bryer from Oxfam and Sir Humphrey Maud, Deputy Director General of the Commonwealth Secretariat.

The Ministers commented:

” This Government is determined to work together with other countries, the World Bank and other international institutions to help deal with the proportion of the world’s population which is living in extreme poverty. The top priority is to deal with the most needy and deserving debtor countries as fast as possible. Mozambique has a strong track record of economic reforms yet still faces a growing debt burden. The Government is willing to make a contribution of $10million as part of a solution towards filling the $100million gap left by the Paris Club which will help give Mozambique the fresh start it so badly needs.”

It is important that the international community meet the target set out in the Mauritius Mandate statement that all eligible poor countries should have at least have embarked on the process of securing a sustainable exit from their debt problem by the year 2000.

The UK, working with the World Bank and other creditors, is seeking to put together an exceptional package which will provide the level of debt relief provisionally agreed for Mozambique by the World Bank and IMF Boards late last year.  The need for such a package was a result of the Paris Club’s decision in January to provide $170million of its $270million share of debt for Mozambique, leaving a gap of $100million.

The Chancellor will keep the issue of debt relief, and particularly the consequent funding arrangements, before G7 and EU colleagues. The Birmingham Summit will consider the issue as part of the wider development agenda.

The press release issued by HM Treasury on 6 February 1998.

The next step in the Government’s wide-ranging plans to modernise the financial regulation system was announced by the Chief Secretary, Alistair Darling today.

In a speech to the Securities Institute in Edinburgh, Alistair Darling said that the London Stock Exchange would continue as the competent authority for listing in the UK.  He went on to say:

“The London Stock Exchange enjoys a substantial reputation throughout the world.  However, whilst listing is a distinct function, it is closely related to the regime for which the FSA is to become responsible for.

The Stock Exchange will carry on as the listing authority.  But we recognise that circumstances may change.

The Bill reforming financial services regulation will therefore allow the Government to transfer all or part of the London Stock Exchange’s function to the Financial Services Authority should that prove necessary in the future.

Before a change was made, we would need to be sure that it was fully justified on the balance of arguments and that arrangements for satisfactory transition were in place.”

In response to a Parliamentary Question, Mr Darling said:

“The London Stock Exchange (LSE) is currently, under the Financial Services Act 1986, the competent authority for listing in the United Kingdom. I have considered future arrangements against the background of our decision to have a single statutory regulator for financial services, the Financial Services Authority.

I have concluded that the case for change at this stage is not made. The LSE is operating satisfactorily in creating and enforcing listing rules in a way which gives confidence to investors, while meeting the commercial needs of users. Before any changes were made we would need to be sure that this was fully justified on the balance of the arguments, and that arrangements for satisfactorily transition were in place.

Accordingly this will be a matter kept under review.  Among the factors which may be relevant to any decision to transfer functions could be the institutional arrangements for tackling market abuse and the impact of increased competition in the UK’s securities markets.

The new bill to reform the 1986 Act will therefore name the LSE as competent authority. However, I also intend that the bill will include a power for the Treasury to transfer the competent authority functions, in part or in whole, to another body by secondary legislation.”

The press release issued by HM Treasury on 5 February 1998.

“The New Deal is working – providing new hope and new opportunities for thousands of young people across the country. Giving them the new skills and support they need,” said Chief Secretary Alistair Darling tonight.

Commenting ahead of a visit to Levi Strauss in Dundee tomorrow, as part of the Government’s drive to implement its Welfare to Work programme, he pointed to the evidence of the early success of the New Deal:

“Almost 5000 young people have already signed up for the New Deal across the country – 400 in Tayside alone. Almost 2000 interviews with employers have already been set up. The Government has provided new opportunities for young people where there were none before.  The opportunities are there, everyone has a responsibility to take them.  There is no justification for refusing to take part.

“We are investing in young people and the skills and experience they need to have for the future. We are determined to provide opportunities for work and to make work pay.

“Everyone connected with this scheme has so far responded with enthusiasm – especially young people eager to take up these new chances, who have everything to gain.

“In nine short months the Government has begun to deliver its priorities. Constitutional change.  Modernising the Welfare State.  Investment in Education and Health of 4 billion Pounds.  And the New Deal for the young extending to the long term unemployed in June.”

The press release issued by HM Treasury on 30 March 1998.

Young unemployed people who are participating in the Government’s New Deal are to benefit from cheap local coach and bus fares when looking for work, Paymaster General Geoffrey Robinson announced today. The initiative is endorsed by the major coach and bus companies around the country.

Under the new initiative, to complement the New Deal, young unemployed people will be able to take advantage of up to a 50 per cent discount in coach and bus fares across the country to reduce the cost of public transport during the search for work. The discount will also apply during the four New Deal options; subsidised employment, work in the voluntary sector, a job on the environmental taskforce or full-time education and training.

Mr Robinson was in Manchester to launch cheap coach and bus fares across the UK in the week prior to the national expansion of the New Deal which aims to increase the employability of 18-24 year olds who have been unemployed for at least six months.

Mr Robinson said:

“This cut price travel scheme shows that the Government is determined to leave no stone unturned in making it easier for young people to look for work.

“The story of young people declining to attend interviews because they could not afford the fares can now be a thing of the past. Cheap travel and the prospect of a job under the New Deal is what young people want. This is great news for young people in search of work.

“I pay tribute to all those coach and bus companies who have shown the imagination to sign up to this scheme. This will stimulate job opportunity, generate increased coach and bus travel and increase the scope for job fulfilment.”

New Deal Minister Andrew Smith said:

“This means a New Deal job ticket for the young unemployed. I am delighted that so many transport companies are backing the New Deal with concessionary fares for the young.”

Under the initiative First Group, Arriva, Stagecoach, National Express and Go-Ahead Group have all joined with the Confederation of Passenger Transport in participating in the Government’s New Deal programme.

Speaking for the industry, Trevor Smallwood, OBE, Executive Chairman of First Group said:

“First Group welcomes the Government’s New Deal initiative.

Agreements have already been reached at local level on reduced fares and First Group is also actively pursuing the opportunities presented by New Deal to offer employment to people currently seeking work.

“I would like to pay tribute to the role played by the Paymaster General and in particular the way he has worked closely with the bus industry to promote schemes that benefit not only the industry, but actively stimulate the national economy.”

Mr Gordon Hodgson, Chief Executive of Arriva said:

“Cheaper bus travel for New Dealers will mean that more people will be able to get to more interviews for more jobs and the Arriva Group is pleased to play its part.”

Brian Souter, Chairman and Chief Executive of Stagecoach said:

“Stagecoach is pleased to play its part in the Government’s New Deal initiative. We look forward to working with the Government to open up new career opportunities for many unemployed people as well as assisting with their travel through our discounted bus fares scheme.”

Phil White, Chief Executive, National Express said:

“New Deal will give opportunities to people to enter the employment market that they have never had before. I am proud that National Express is able to play a full part in bringing this initiative forward.”

Chris Moyes, Commercial Director, Go-Ahead Group plc said:

“New Deal will open up new employment opportunities and Go- Ahead is glad to play its part.”

The press release issued by HM Treasury on 26 March 1998.

Economic Secretary Helen Liddell today welcomed Thailand’s progress in implementing the agreed International Monetary Fund (IMF) programme of reform, reiterated Britain’s commitment to Thailand and the British Government’s confidence that the implementation of the reform programme will restore confidence and prosperity. Mrs Liddell expressed her confidence about Thailand’s future prospects.

The Minister has been undertaking a two day trip to Thailand to show the British Government’s support to the country during its current financial difficulties, to encourage the reform effort, and to learn at first hand about the country’s current situation.

During the trip Mrs Liddell met:

• HE Tarrin Nimmanhaeminda, Minister of Finance;
• HE Suthep Thueksuban, Minister of Transport and Communications;
• HE Abhisit Vejjajiva, Minister in the Office of the Prime Minister;
• HE Dr Savit Bhodivihok, Minister in the Office of the Prime Minister;
• HE Pisit Leeahtam, Deputy Minister of Finance; and
• HE Dr Chaiyawat Wibulswasdi, Governor, Bank of Thailand.

Commenting on Thailand’s commitment to the IMF Programme, Mrs Liddell said:

“I have a very strong impression of commitment to reforms following my meetings in Bangkok. There are now signs of a real improvement in confidence in Thailand as a direct result of decisive action. Much, however, remains to be done. Further implementation of reforms to build a solid platform for growth will cause confidence to return bringing renewed prosperity.

“The UK is committed to ensuring that Thailand’s IMF programme remains fully financed at all times and the UK will support the provision of additional financing if appropriate through the IMF’s new Supplemental Reserve facility.”

The UK is looking to put in place arrangements to ensure European expertise can be effectively mobilised in providing technical assistance to help Asia. Britain has considerable experience of privatisation. A visiting team of British privatisation experts, from both the public and private sectors, explored how to share their expertise. Mrs Liddell said:

“The widening of the structural reform agenda to include an ambitious privatisation schedule is to be welcomed. This will lead to important efficiency gains in the Thai economy, as well as significant proceeds which could be used in recapitalising the financial sector.”

Mrs Liddell stressed the importance of limiting the impact of the current financial difficulties on the poor of Thailand. Mrs Liddell said:

“A well-designed social safety net in Thailand has to be developed as a high priority. I would like to see the rapid progress on this with international financial institutions and other donors working in close cooperation.”

Mrs Liddell said there was a deep European interest in Thailand. The ASEM 2 Summit in London in early April would be hosted by the Prime Minister Tony Blair, and would be an important forum for discussion of the financial difficulties affecting some Asian countries and practical steps towards their resolution. Britain has proposed an ASEM Trust Fund at the World Bank and was exploring ways of improving the flow of  echnical assistance.

Mrs Liddell said:

“The ASEM 2 Summit in London will be an important step forward in the practical and mutually beneficial dialogue between Asia and Europe. It will build on the foundations so successfully laid at the first ASEM Summit in Bangkok. I know that the Prime Minister is looking forward to welcoming Prime Minister Chuan Leekpai to London.

“Britain supports the idea of an ASEM Trust Fund and the World Bank is exploring with others how best to improve the flow of technical assistance and advice to Asia.”

The UK would also be using its position as Chairman of the G7/8 and the European Union to consider how best the international monetary system should be strengthened in the light of the financial situation in Asia.

Mrs Liddell said:

“The Chancellor, Gordon Brown, began the ‘Birmingham process’ of consultation through which we are seeking to learn the lessons from Asia’s financial difficulties and I had very useful discussions with my Thai colleagues.”

The press release issued by HM Treasury on 12 March 1998.

Helen Liddell Encourages Constructive Contribution

Further progress has been made in clearing up pensions mis-selling, Economic Secretary Helen Liddell announced today.

Mrs Liddell published the monthly figures of the 41 companies she is monitoring. The table shows:

• about 65 per cent of the priority cases identified for review are now completed;
• eight firms have yet to complete half their cases;
• one is still some way short of the 10 per cent mark; and
• seven of the 41 companies have now completed over 75 per cent of their cases.

Publishing the figures, the Minister said:

“A number of firms have now resolved over three quarters of their cases identified for review.  Some of the firms are now getting close to the point where they will have completed their priority cases. This is welcome news.

“The first priority has rightly been to address the more pressing categories of cases. But they are not the only victims of pensions mis-selling and it is now important to look ahead at how to address the less pressing cases.  Recent research that revealed that as many as 1.8 million people might need their cases  looked into is alarming. “

Mrs Liddell welcomed the publication of a Financial Services Authority (FSA)/Personal Investment Authority (PIA) consultation document setting out proposals for taking forward the review of pensions mis-selling into its second phase and urged everyone with an interest, including investors, occupational pension schemes and firms, to take part. The Minister said:

“I welcome consultation by the regulators because this is the only way to see that the final policy adopted is the best way forward, in the interests of the investors and ultimately in the interests of the industry. I hope that everyone will make a constructive contribution.”

Mrs Liddell also welcomed the PIA’s announcement that it is investigating apparent failures to meet the regulator’s targets by about 600 small firms, with a view to taking disciplinary action. She said:

“Both the Government and the regulators are determined that all firms, including small firms, take all possible steps to complete their reviews. Far too many small firms appear to have failed to tackle even these most pressing cases. This is simply not acceptable, and the PIA’s action is to be commended.

The press release issued by HM Treasury on 11 March 1998.

A national strategy for young children to increase the visibility of young children and improve services to prevent them from becoming socially excluded is being considered by Government, Tessa Jowell said today.

The strategy is one of the options being considered by the Government’s Review of Provision for Young Children. It would set out national aims and objectives and also a framework for planning at the local level.

The review is considering whether the multiple causes of social exclusion affecting young children could be more effectively tackled at the family and community level.

Ms Jowell, in her role as Chair of the Review, was speaking at the third and final seminar attended by Government, local authorities, universities and voluntary organisations. The seminars have been held to ensure that the best information is available to inform decisions.

Speaking at the seminar, the Minister said:

“At present, we are failing too many of our children before they even reach school. It must be a priority  to invest in all our young children, and to work with parents and local communities, so they can reach their full potential later in life.

“I want to see a national strategy for young children which ensures resources, across Government, are properly targeted and used effectively and which put the welfare of the child first. We need to move to a situation where the root causes of social exclusion are tackled early on, preventing the problems faced by young children and their families from causing irreversible damage. This would be both more cost-effective and better for our children.”

The Treasury is leading the Review at official level in close collaboration with the Prime Minister’s Office, the Social Exclusion Unit and other Government Departments e.g. the Department for Education and Employment and the Department  for Health.

The press release issued by HM Treasury on 5 March 1998.

Tessa Jowell Visits Centre of Excellence in Haringey

Giving children the start they deserve in life and preventing them from becoming socially excluded is a top priority for the Government, Tessa Jowell said today.

Ms Jowell was speaking during a visit to Woodlands Park Nursery Centre in Haringey. The Centre takes in a wide range of children from the local community from a socially diverse area where there are high levels of poverty and social deprivation.

The visit has been undertaken as part of the Government’s review of the provision of children’s services. The review is looking at whether the multiple causes of social exclusion affecting young children can be more effectively tackled.

Congratulating Woodlands on the work that it does, the Minister said:

“We want to help those young children, who are at present not getting the support and help from services they need in early childhood, who fall behind before they even get to school and never catch up.

“The research we have undertaken so far, suggests centres of excellence like Woodlands can play an important role in promoting effective early child care and development. It has also impressed me with the important work it does with parents and the local community.

“I want to see a national strategy for young children which ensures resources, across Government, are properly targeted and used efficiently and which put the welfare of the child first. They all deserve the best possible start in life.”

The press release issued by HM Treasury on 27 April 1998.

An initiative to use the New Deal to support a new network of training centres for the hotel, catering and leisure industries was launched today by Chancellor Gordon Brown. The New Deal will allow the hospitality industry to take on and train around 40,000 unemployed young people over the next few years.

Welcoming the biggest New Deal employers agreement yet, Mr Brown said:

“From today, a new chapter is opened in the New Deal. Here is a practical example of how central and local Government and employers can work together to tackle the skill shortages that have held this country back for too long. The economy as a whole will never be at its best unless we unlock the potential of all our people, and I appeal to employers to become part of this national crusade to ensure that opportunity is open not just to a few but to everyone.”

Paymaster General Geoffrey Robinson said:

“The New Deal is proving the smart solution for business. The hospitality industry have worked with us to make the best use of the New Deal to address their own specific needs. Many other employers are doing the same. I invite all employers to take a close look at the New Deal, to see what it can do for them.”

The Chancellor and the Paymaster General were speaking during a visit to a training centre in Kentish Town, North London, which the industry has developed as a pilot project, in conjunction with Camden Borough Council and other partners. With the support available under the New Deal, a network of centres can now be extended to every region of the country. The centres will provide places for around 40,000 young people who have been unemployed for at least 6 months, making this the largest single employer commitment to the New Deal so far.

The industry estimates that of their annual turnover of 350,000 staff, only 6 per cent can be met with suitably qualified staff. The 750 Pounds training grant available under the New Deal will help meet training costs, with the 60 Pounds a week subsidy helping to provide new jobs for the successful trainees.

David Batts, Managing Director of Radisson Edwardian Hotels and Chairman of the London Tourist Board, said:

“The hospitality industry is ideally placed to take on New Deal recruits and to train them for real jobs and careers in hotels and catering. These recruits need basic training away from the direct hotel and catering environment, before being faced with the fast pace of business”.

Jeremy Logie, Chief Executive of the British Hospitality Association, added: “We are delighted that the Chancellor is showing such a strong interest in what is a significant industry initiative.

Minister for Employment, Andrew Smith said:

“I welcome the enthusiastic support of the hospitality industry for the New Deal from firms such as Granada, Stakis and Whitbread. It is a mark of confidence in the New Deal by employers who are making a substantial commitment and opening up so many new opportunities for young unemployed people. Through the New Deal, they will get motivated recruits who can get help with relevant training to help solve the industry’s skill shortages.”