Tag: 1997

The press release issued by HM Treasury on 13 October 1997.

The UK’s Employment Action Plan to tackle UK and European employment problems was launched today by the Chancellor, Gordon Brown.  He talked about a new European third way to get Europe back to work by combining economic efficiency with social inclusion.

The Chancellor said:

“With 18 million people out of work in the EU, no-one can be complacent about getting Europe back to work. We need to build on the best practice in Member States to make Europe’s labour markets the engines of high employment.

“We need to find a new third way between rampant free-market economics and stifling over regulation, combining economic efficiency and social inclusion.”

The Action Plan, part of the  Getting Europe Back to Work’ initiative the Chancellor launched in June, was discussed at the ECOFIN meeting in Luxembourg today. It calls on the EU to focus its efforts in five broad areas. Those areas are:

• promoting economic growth and stability;
• investing in human capital;
• helping people from welfare into work;
• improving the workings of markets; and
• through these and other actions, creating a fair and  inclusive society.

The Plan takes forward the remit from the Amsterdam European Council to exchange best practice on employment policy between Member States of the European Union.

It sets out the policies the UK Government sees as necessary to tackle unemployment and raise employment domestically, and which could form the basis of action in the European Union context. It considers which employment policies are working well in the UK and those which need changing.  The Plan notes:

“The Government is clear that we now need to set a new agenda for employability, growth, job creating flexibility and inclusion in Europe.  Employability means the development of skills and adaptable workforces in which all those capable of work are encouraged to develop the skills, knowledge, technology and adaptability to enable them to enter and remain in employment throughout their working lives.”

The press release issued by HM Treasury on 10 October 1997.

The Treasury has today published the responses from 17 pension firms which set out their strategies for speeding up the review of pension cases.

The responses were requested by the Economic Secretary, Helen Liddell when she met senior representatives of the firms on the 18 September.

The firms were: Albany Life, AXA Equity and Law, Berkeley, Burns Anderson, Canada Life, Commercial Union, Countrywide, DBS, Financial Options, Friends Provident, Godwins, Hill Samuel, IFA Network, M&E Network, Midland Bank, Standard Life, Wesleyan.

The press release issued on 10 October 1997.

The Chancellor of the Exchequer and the Governor of the Bank of England have today announced that they plan to appoint three new Executive Directors to the Securities and Investments Board (SIB) shortly. This will become the Board of the new financial regulator (NewRO) and the three proposed Executive Directors (all of whom have indicated that they are willing to serve on the Board) will become the three Managing Directors of NewRO.

Richard Farrant, currently Chief Executive of the Securities and Futures Authority (SFA) is to become Managing Director and Chief Operating Officer.

Michael Foot, currently executive Director of the Bank of England responsible for Banking Supervision, is to become Managing Director and Head of Financial Supervision.

Philip Thorpe, currently Chief Executive of the Investment Management Regulatory Organisation (IMRO) is to become Managing Director and Head of Authorisation, Enforcement and Consumer Relations.

These appointments are to be made before Royal Assent to the Bank of England Bill, which will be introduced into Parliament soon after it resumes.

The press release issued by HM Treasury on 8 October 1997.

The Government is developing a series of proposals aimed at clamping down on the money laundering activities of criminal gangs,  the Economic Secretary, Helen Liddell, announced today.

At the National Financial Investigators’ Conference in Wakefield the Minister set out a series of measures, following a review of the UK’s anti-money laundering regime, to tackle financial crime.

The proposals, currently being worked on, include:

• strengthening the role of the financial regulators in the fight against money laundering; stronger and more effective legal framework;
• increased attention to unregulated sectors, including company formation agents, money remitters and bureaux de change;
• strengthening the effectiveness of the National Criminal Intelligence Service (NCIS) at the heart of the system;
• more information for the public; and
• the removal of unnecessary obstacles to the exchange of confidential information between the police, the financial regulators and the Inland Revenue.

The Minister said that the UK already had one of the most effective and comprehensive anti money laundering regimes in the world, a fact recognised by the Financial Action Task Force.  But there is no room for complacency.  With the current reform of financial regulation, the criminal regime could not be ignored. She said:

“A City free of regulatory abuse but open to fraud, corruption and money laundering is not one that will survive and grow in the current international climate.”

She applauded the revolutionary approach the investigators were using in tracking down financial activity. The Minister said:

“This goes much wider than pure money laundering – it is about a new approach to crime fighting.

“Dismantling the financial strands of a criminal gang is one of the best ways of putting them out of business – hitting them where it hurts, in their pocket.”

The press release issued by HM Treasury on 8 October 1997.

Helen Liddell takes EMU debate to Scotland

The decision to join EMU will centre round one simple question What is best for Britain?”, Economic Secretary, Helen Liddell said today.

Speaking to an audience of businessmen and women and local authority leaders in Glasgow the Minister re-affirmed that the Government’s position had not changed and that there remained formidable obstacles to entry in the first wave.

Mrs Liddell said:

“We will keep our options open. Take the right decisions at the right time. Not weaken our negotiating position.

“We must be confident that the single currency will deliver higher growth, stability and a lasting increase in jobs for the UK.”

Britain’s decision to join would be set against five key tests – tests that would ensure that our best interests are protected. The Minister went on to outline those tests:

“What’s best for Britain means what’s best able to provide more jobs, secure jobs, greater prosperity, higher growth and economic stability, without ever weakening or damaging our democracy.

“EMU must create better conditions for investment, have a     beneficial effect upon our financial services, which are unrivalled in Europe, be flexible enough to deal with problems as they arise and ensure that the business cycles and economic structures of the UK and the rest of the membership of the EU look likely to remain compatible.”

For countries to benefit from EMU there has to be genuine convergence among the economies taking part. EMU must be built on the strong foundation of long-term growth and jobs in Europe, the Minister said.

She continued:

“Every single country in Europe, whether or nor they intend to join in the first wave, has a strong vested interest in ensuring that EMU goes ahead on a sustainable basis and is good for prosperity, jobs and stability.

“Currency union is not a  suck it and see’ option.”

The Minister also set out the measures which the Treasury had taken to widen the debate on EMU. She said:

“We want to make sure that the people, as well as business, have the maximum understanding of what a single currency will mean.”

The measures include:

• a summary of the Currie report on the pros and cons of EMU. 17,000 copies have been sent to businesses, universities, schools and the wider public;
• a practical guide for businesses to inform them about  preparations they need to make for EMU. 35,000 copies  have been sent out; and
• a new advisory group, appointed by the Chancellor, to examine the practical implications for business of EMU.

The Economic Secretary was also clear that flexible labour markets are very important to creating and maintaining jobs but she also stressed that flexibility means the right conditions for workers and must not be a short cut to low employment standards.

The Minister also said:

“We are clear that we need to set a new agenda for employability growth, job creating adaptability and social inclusion in Europe.”

In her speech Mrs Liddell went on to outline what the Government means by employability’ – ensuring that people have the skills, knowledge and adaptability to enable them to get a job and keep it.

The press release issued by HM Treasury on 7 October 1997.

Two victims of personal pensions mis-selling today met with the Economic Secretary, Helen Liddell to discuss their cases.

Stella Gardner, a home care officer from Poole,Dorset and Christine Culbert, a school administrative assistant from London told the minister about their experiences of trying to get redress from the pension companies.

Following the meeting, Mrs Liddell said:

“This is the human face of pensions mis-selling. The statistics tell a grim tale but cannot give a true picture of just how much distress is caused. However,at last, it is heartening to meet people who have taken their complaints forward and – finally – received the redress they deserve. Their experiences illustrate the need for all firms involved in mis-selling to start looking after their customers. Delays and buck passing must stop.

“The very best customer care must be deployed if the industry is to regain the trust of its customers.”

The Minister urged people to check their pension provisions and if they believe they have a complaint, to pursue it. With compensation payments averaging 7,500 Pounds being made into people’s pension funds, it could make a real difference to their pension entitlement.

She said:

“We all get a lot of junk mail and it is very easy for   questionnaires from pension firms on the review to get overlooked. If your company is requesting information please reply.

“Don’t be put off: where it is due, redress will be made.”

When she met 17 firms in September, Mrs Liddell asked each firm to provide a statement setting out the policy they had adopted and the practical plans they had made to complete their reviews and better the targets set for them by the Personal Investment Authority (PIA). These plans will be published later this week.  The 17 firms have also provided the first monthly update on the progress they have achieved.

These figures, which cover the period to the end of September, were published alongside information provided by the 24 firms with the most cases to review.

The September figures show that:

• 5 of the 41 firms have resolved over half their cases;
• 25 firms have resolved between 25-50 per cent of cases; and
• 11 firms have resolved under 25 per cent.

On the figures, the Minister said:

“I want the public to have information to help people judge for themselves just how committed each firm is to achieving real progress.”

“The latest figures illustrate in stark terms how important it is that firms pull out all the stops. Clearly it is possible to make progress, though some firms are still lagging far behind.”

The press release issued by HM Treasury on 24 November 1997.

The first ever list of the Government’s assets was published today by the Chief Secretary to the Treasury Alistair Darling.

In a statement, he said:

“Today sees the publication of the first ever National Asset Register – the 1990s Domesday Book. All 550 pages of it. For the first time ever the nation can see what it owns.

The National Asset Register is an essential part of the Comprehensive Spending Review. It demonstrates our commitment to greater openness and accountability. It will help ensure that the Government achieves value for money.”

Announcing measures to help departments get better use from their assets he said:

“Publication of the National Asset Register is a real landmark in open and efficient Government. It will be an essential starting point for departments to identify whether they are making best use of their assets.”

“Looking to the long term means that Government has to ensure that every penny of public spending is geared to delivering its priorities and objectives. The NAR is an essential part of that.”

The press release issued by HM Treasury on 24 November 1997.

Learning the lessons from the past is the key to successfully running Britain’s public finances, says a Treasury paper published today.

The paper, ‘Fiscal policy: lessons from the last economic cycle’, identifies two key lessons for fiscal policy based on the experience of the last economic cycle:

• adopt a prudent approach; and
• an open and transparent fiscal policy.

Chancellor of the Exchequer Gordon Brown said:

“The Government is determined to prevent a return to the boom-bust cycles of the past, and that means learning the lessons from the last economic cycle.

“These important lessons have been taken on board in the design of the new fiscal framework, which will be set out in more detail in Tuesday’s Pre-Budget report. They confirm that this is the time to remain vigilant; there will be no relaxation of our tough approach to public spending.

“Just as the new framework at the Bank of England was designed to deliver low inflation, so the proposed Code for Fiscal Stability aims to encourage economic stability and will help to prevent history repeating itself.”

The press release issued by HM Treasury on 20 November 1997.

Retailers – large and small – were invited to follow the lead of some of their competitors in the sector by signing up to the Government’s New Deal bringing young people into work, Paymaster General Geoffrey Robinson said today.

Mr Robinson said:

“The retail sector represents 10 per cent of the workforce and has the potential to play a very important part in the delivery of the New Deal. What we are proposing is a new approach, engaging the business community as a partner in bringing people into work. It is working and businesses are signing up to get on board.”

Mr Robinson, who was addressing the British Retail Consortium in London, said he was encouraged by news of retailers offering their support for the New Deal.

“The British Retail Consortium are playing an extremely valuable role by providing a link between the Employment Service and retailers who wish to participate in the New Deal. I would like to express my support for the commitment from the retail sector.”

The press release issued by HM Treasury on 18 November 1997.

A package of sanctions aimed at maintaining the pressure on pension firms to meet their targets for resolving pensions mis-selling cases was outlined today by the Economic Secretary, Helen Liddell in a statement to the House of Commons.

Mrs Liddell said the measures were to ensure that such a scandal never happened again and that those who suffered can now look to speedy redress. She said:

“Justice for them has been too long delayed. This Government is determined to ensure it is delivered.”

The Minister said that while some companies had made some progress in resolving cases, there was still a long way to go. Publishing the table of the progress of the top 41 companies, she said:

“Far too many firms across the industry – from big insurance companies to small independent financial advisers (IFAs) – have been far too slow to act. Some firms have hardly started. They have not yet grasped the severity of the situation.”

The Minister stressed that the most pressing challenge for most of the companies was to complete 90 per cent of the highest priority cases, due by the end of December. Looking further ahead, she announced that once they had hit their second targets, due at the end of 1998 at the latest, their names would be taken off the list that is published every month.

Mrs Liddell drew attention to the recent use by the regulators of their powers to fine and censure firms. Rigorous discipline would continue, however for some firms a stronger armoury was called for. Under a new regime of individual registration with the Personal Investment Authority (PIA), due to come into force next year, individual directors, managers or sales staff found at fault could be liable to fines, reprimands or restrictions on the type of work they can be involved in.

The Minister noted that the PIA can require firms to advertise their misconduct and the grounds on which they are disciplined.

The Minister said:

“The Government believes that the time has come for a whole range of sanctions to come into play.

“The only way for a firm or an individual to avoid disciplinary action is to avoid the conduct which warrants it.”

Mrs Liddell said that she would continue to look for ways to maximise pressure on the industry. The PIA is currently exploring how to inform customers directly of firms’ misdemeanours.

She urged the industry to act quickly to restore confidence. Evidence of firms putting investors at risk would be acted upon. This might include:

• use of the PIA power to put firms out of business where compliance is so poor that investors are put at risk. This could include firms or IFAs using the review process to sell more products to customers; and
• taking action to exclude senior people who are not fit and proper from involvement in financial services business or to remove them from their posts.

The Minister also said that firms’ records on settling pension cases could be taken into account in future policy decisions on stakeholder pensions and individual savings accounts. She said:

“We anticipate that future decisions on the regulatory approval of stakeholder pensions would take into account the conduct and corporate governance of those involved. This would include, of course, their record in settling cases of mis-sold personal pensions.”