The press release issued by HM Treasury on 19 September 2001.

NEW EUROPEAN CLEARING HOUSE TO BE IN LONDON

The Treasury has given a new European clearing house leave to locate in London. European Central Counterparty Limited (EuroCCP) will clear for the new pan-European Nasdaq Europe market.  Economic Secretary Ruth Kelly has given leave for EuroCCP to be recognised as a clearing house.

Ruth Kelly said:

“I welcome the addition of EuroCCP to the list of UK Recognised Clearing Houses.  The decision to set up EuroCCP in London is a clear vote of confidence in our financial regulatory system and in London as a place to do business.”

The press release issued by HM Treasury on 31 October 2001.

The Financial Action Task Force (FATF) today agreed tough new Special Recommendations to combat the financing of terrorism.  The recommendations – which include criminalizing the financing of terrorism, powers to freeze and confiscate terrorist assets, obligatory reporting requirements on financial institutions, and reports on implementation of promised action – should ensure that all member countries introduce regulation as comprehensive as that in place in the UK.

The Chancellor of the Exchequer, Rt Hon Gordon Brown MP, commenting on the agreement said:

“I welcome today’s agreement by the FATF to adopt new standards against terrorist financing. I am pleased to say that the UK already complies with all of them – one of the very few countries to do so.

It is essential that every country adopts and implements these standards as soon as possible and certainly by the FATF deadline of 30 June 2002. The UK is ready to share its experience in fighting the financing of terrorism with other countries and to provide technical assistance, as necessary.

Those who finance terror are as guilty as those who commit it. We are determined to ensure that just as there is no safe haven for terrorists there is no safe hiding place for their funds.”

The press release issued by HM Treasury on 30 October 2001.

From 1 November, UK airlines will be able to choose between commercial and government-backed insurance for third party liability for terrorism and war risks.

The Government announced on 22 October that it would renew the scheme set up to fill the gap in the commercial insurance market to ensure that UK airlines could continue to fly in the wake of events in the United States last month. The Government intended that from 1 November airlines would find commercial cover for the first $100m, with the Government backed Troika scheme providing cover for liabilities above $100m. However the planned increase in commercial cover is not becoming available as fast as originally hoped, and cover above $50m is only available from a limited number of providers.

Airlines will therefore be offered the following choice from 1 November:

To purchase the commercial cover for liabilities up to $100m. The Government backed Troika scheme will provide cover above that level and waive the premiums until midnight on 24 November, or

To retain cover under the Troika scheme for all liabilities above $50m. Premiums for this cover are currently waived, but the Government will start charging from 8 November, in line with European Commission guidelines.

The current 30 day scheme expires on 24 November. The Government intends to renew the scheme but will introduce commercial charges for all the airlines covered by Troika, informed by consultation with the industry about the most appropriate basis for charging.

Chief Secretary Andrew Smith said:

“We are taking a pragmatic view which aims to give airlines flexibility to choose the most appropriate insurance option for them. The Government’s objective remains to withdraw from the market as soon as practicable. However commercial cover is not yet available across the board for third party liability up to $100m. Therefore the Government is ensuring an option is available for all airlines through Troika, in addition to the commercial insurance available.”

The press release issued by HM Treasury on 29 October 2001.

Chancellor Gordon Brown and Trade and Industry Secretary Patricia Hewitt today welcomed the four CBI and TUC reports into improving the UK’s productivity, and the proposal to create a permanent CBI-TUC Productivity Group.

Attached is the text of a letter from Chancellor Gordon Brown and Trade and Industry Secretary Patricia Hewitt to Director General of the CBI Digby Jones and General Secretary of the TUC John Monks.

Digby Jones                                                                                      29 October 2001

John Monks

We are writing to thank you for your letter of 26 October and the final reports of the four joint working groups on productivity.  We are delighted that the CBI and the TUC have been able to work so successfully together on these challenging and important issues.

The UK’s productivity gap with our major competitors remains substantial.  US productivity is 42 per cent higher than that of the UK.  Productivity in France and Germany is 14 and 7 per cent higher respectively.

The reports have identified a whole range of substantial areas for action for employers, employees and Government.  It is through joint action and shared responsibility that together we will make progress closing the productivity gap.

For Government, the next step is the Pre-Budget Report, which will have as a central theme our continuing drive to tackle the productivity gap and to open enterprise for all.  The Pre-Budget Report will take forward proposals in a number of important areas the groups have identified.

But as you have stressed, the challenge is not for Government alone.  Building on the success of the work so far, we welcome your proposal to create a new, permanent, CBI-TUC Productivity Group.  This would meet on a regular basis to:

• Monitor progress against the vision set out in the four working groups, as well as looking at further specific productivity issues, from time to time;
• Comprise a small number of senior representatives of your respective organizations – you intend to draw upon other groups and specialists for particular issues such as the Regional Development Agencies, representatives from higher and further education etc; and
• Meet us twice-yearly before the Budget and Pre-Budget Reports, jointly to review progress on the subjects under consideration by the Group, and to discuss a forward-looking agenda.
  We in turn would find it especially helpful to be able to use the Group as a sounding-board in consultation on policy development.

As we said in our joint statement in June, enterprise and productivity are central objectives for this Parliament.  Working together, we will be best placed to pursue our shared goals of high and stable levels of economic growth and prosperity for all.

The press release issued by HM Treasury on 22 October 2001.

The Treasury has today decided to renew the scheme, set up to fill the gap in the commercial insurance market, for a further 30 days. This will ensure that UK airlines can continue to fly in the wake of events in the United States last month.

Chief Secretary Andrew Smith said:

“The Government has decided to renew the insurance scheme to enable airlines to keep flying. There is still a gap in the commercial insurance market which the Government is filling to ensure the aviation industry has the cover it needs.

We have also decided to waive the premiums for airlines for a further 30 days, and are consulting the industry about the best basis for charging in the future.”

The scheme will be rolled forwards for a further thirty days, until midnight 24 November.  From 1 November airlines will be required to find commercial cover for the first $100m, and service providers for the first $50m, for third party war and terrorism liabilities. The Government scheme will provide the cover for liabilities above those minimum levels.  The Government will continue to waive the premium for the airlines.

The press release issued by HM Treasury on 22 October 2001.

Long-term care insurance (LTCI) is to be fully regulated to help prevent people from buying unsuitable policies, Ruth Kelly, Economic Secretary to the Treasury announced today.  The Financial Services Authority will have responsibility for regulating the selling and marketing of these products.

Insurance for the provision of care in old age or long-term illness is a relatively new product and its uptake is expected to grow, given the right conditions.  The Treasury believes it is important to give consumers adequate protection at an early stage of the development of the LTCI market.

Ruth Kelly said:

“As with pensions and ISAs, we want to help people to provide for their security whenever they can.

“Long-term care insurance can be expensive and tends to be sold to people at the same time as wider financial planning for the last few years of a person’s life.   We think consumers need protection when making critical decisions at this point in their lives.

“If someone eventually needs care, they don’t want to find that their insurance won’t pay out for the level of care they expected when they paid the premiums.  Regulation seeks to prevent this type of scenario”.

“By asking the Financial Services Authority to regulate the sale and marketing of long-term care insurance, we hope to protect consumers and allow the market to develop within that regulatory environment.”

The press release issued by HM Treasury on 16 October 2001.

Government suppliers, including up to 500,000 newly incorporated Small and Medium sized Enterprises (SMEs), will find bidding for government business easier, following the publication of important new financial assessment guidance, Andrew Smith, Chief Secretary to the Treasury, announced today.

In another move designed to make it easier to do business with government, he also announced improvements to liability guidance that will encourage more companies to deal with government

The specific improvements include:

•  Greater emphasis on cash flow in assessing financial stability
•  liability determined by specific contract requirement rather than “unlimited liability”

Andrew Smith, Chief Secretary to the Treasury, said:

“These improvements will bring out healthy competition in the marketplace and demonstrate this Government’s commitment to fair access for all suppliers, including SMEs. This is excellent news for business and ensures best value for money for the taxpayer.”

Nigel Griffiths, Minister for Small Business at the Department of Trade and Industry, commented:

“The removal of the need for three years worth of audited accounts, and the change from unlimited liability to a value for money liability determination will mean that thousands of small and medium enterprises will now be able to access public procurement contracts.”

These improvements have been drawn up by the Office of Government Commerce (OGC) in consultation with the Small Business Service.  OGC  Chief Executive, Peter Gershon, said:

“These improvements, together with the publication in June 2001 of guidance on ‘Tendering for Government Contracts’, are a direct result of OGC’s strategy to make this market more accessible to all potential suppliers including SMEs.”

David Irwin, Chief Executive of the Small Business Service said,

“I welcome this initiative as an important step in addressing some of the barriers that small firms face when trying to sell to the public sector.  The SBS has been working closely with the OGC, and will continue to do so, to ensure that we identify and remove any further obstacles in the way of small and medium enterprises.”

The appraisal of financial stability of potential suppliers and contractors to government was previously largely based on three years profit and loss statements. This often debarred younger companies.

Under the new guidance cash flow will be emphasised more strongly in a more flexible financial assessment. This reflects good commercial practice where risk is assessed according to the specific situation, not bureaucratic formulae.

This will particularly benefit new SMEs delivering goods and services, including, but certainly not limited to, IT and consultancy.

The second improvement means that contractors’ liability will be assessed on the basis of the value for money for the particular contract, where previously it was often assumed it should be unlimited.

This unlimited liability was a barrier to competition, because it led to high insurance costs for suppliers. Invariably this simply increased the final price for the government and the taxpayer.

The main benefits of this adjustment will be in the fields of IT, management consultancy, professional advice and construction.

This all reinforces the government’s approach to procure goods and services on a value for money basis and opens up the government market, so increasing competition and innovation, benefiting the taxpayer and the wider economy.

The press release issued by HM Treasury on 12 October 2001.

HM Treasury, in liaison with US Government, today instructed financial institutions to freeze the assets of a further 38 individuals and organisations. Those on today’s list are believed to have committed or pose a significant risk of committing or providing material support for acts of terrorism.

Chancellor of the Exchequer Gordon Brown said:

“If any of those named today hold assets in the UK they will be frozen immediately. Just as there can be no safe haven for terrorists we are taking decisive action to ensure there is no safe hiding place for their assets.

Today’s list is a result of intelligence sharing and coordination between UK and US. We will continue to work with our allies, and take a leading role internationally, to cut off the ready supply of finance which is the lifeblood of modern terrorism.

These measures are part of detailed proposals being formulated to expose, isolate and incapacitate funds being used for terrorist activities.”

The list of people and organisations whose assets should be frozen is:

Entities

AL-HAMATI SWEETS BAKERIES, Al-Mukallah, Hadhramawt Governorate, Yemen.

AL-NUR HONEY PRESS SHOPS (a.k.a. AL-NUR HONEY CENTER), Sanaa, Yemen.

AL-SHIFA? HONEY PRESS FOR INDUSTRY AND COMMERCE, PO Box 8089, Al-Hasabah, Sanaa, Yemen; By the Shrine Next to the Gas Station, Jamal Street, Ta?iz, Yemen; Al-Arudh Square, Khur Maksar, Aden, Yemen; Al-Nasr Street, Doha, Qatar.

JAISH-I-MOHAMMED (a.k.a. ARMY OF MOHAMMED), Pakistan.

JAM?YAH TA?AWUN AL-ISLAMIA (a.k.a. SOCIETY OF ISLAMIC COOPERATION)(a.k.a. JAM?IYAT AL TA?AWUN AL ISLAMIYYA)(a.k.a. JIT), Qandahar City, Afghanistan.

RABITA TRUST, Room 9A, 2nd Floor, Wahdat Road, Education Town, Lahore, Pakistan; Wares Colony, Lahore, Pakistan.

Individuals

AGHA, Haji Abdul Manan (a.k.a. SAIYID, Abd Al-Man?am); Pakistan.

AL-HAMATI, Muhammad (a.k.a. AL-AHDAL, Mohammad Hamdi Sadiq)(a.k.a. AL-MAKKI, Abu Asim),Yemen.

*AL-HAQ, Amin (a.k.a. AMIN, Muhammad; a.k.a AH HAQ, Dr Amin;
UL-HAQ, Dr Amin); DOB: 1960; POB: Nangahar Province, Afghanistan.

AL-QADI, Yasin (a.k.a. KADI, Shaykh Yassin Abdullah)(a.k.a. KAHDI, Yasin), Jeddah, Saudi Arabia.

*AL-JADAWI, Saqar; DOB:1965

*AL-KADR, Ahmad Sa?id (a.k.a AL-KANADI, Abu Abd Al-Rahman);
DOB: 01 March 1948; POB: Cairo, Egypt.

*AL-SHARIF, Sa?d; DOB: 1969; POB: Saudi Arabia

*BIN MARWAN, Bilal; DOB: 1947

BIN MUHAMMAD, Ayadi Chafiq (a.k.a. AYADI SHAFIQ, Ben Muhammad) (a.k.a. AYADI CHAFIK, Ben Muhammad) (a.k.a. AIADI, Ben Muhammad) (a.k.a. AIADY, Ben Muhammad), Helene Meyer Ring 10-1415-80809, Munich, Germany; 129 Park Road, London, NW8, London, England; 28 Chausse Di Lille, Moscron, Belgium; Darvingasse 1/2/58-60, Vienna, Austria; Tunisia; DOB: 21 January 1963; POB: Safais (Sfax), Tunisia.

DARKAZANLI, Mamoun, Uhlenhorster Weg 34, Hamburg, 22085, Germany; DOB: 4 August 1958; POB: Aleppo, Syria; Passport No: 1310636262 (Germany).

HUAZI, Riad (a.k.a. HUAZI, Raed M.) (a.k.a. AL-HAWEN, Abu-Ahmad) (a.k.a. AL-MAGHRIBI, Rashid [The Moroccan]) (a.k.a. AL-AMRIKI, Abu-Ahmad [The American]) (a.k.a. AL-SHAHID, Abu- Ahmad), Jordan; DOB: 1968; POB: California, USA; SSN: 548-91-5411.

LADEHYANOY, Mufti Rashid Ahmad (a.k.a. LUDHIANVI, Mufti Rashid Ahmad) (a.k.a. AHMAD, Mufti Rasheed) (a.k.a. WADEHYANOY, Mufti Rashid Ahmad); Karachi, Pakistan.

UTHMAN, Omar Mahmoud (a.k.a Othman, Omar Mahmoud) (a.k.a. AL-FILISTINI, Abu Qatada) (a.k.a. TAKFIRI, Abu ?Umr) (a.k.a. ABU UMAR, Abu Omar) (a.k.a. UTHMAN, Al-Samman) (a.k.a. UMAR, Abu Umar) (a.k.a. UTHMAN, Umar) ( a.k.a. ABU ISMAIL), London, England; DOB: 30 December 1960 or 22 December 1960 or 13 December 1960. National Insurance Number PW581303D.

YULDASHEV, Tohir (a.k.a. YULDASHEV, Takhir), Uzbekistan.

ZIA, Mohammad (a.k.a. ZIA, Ahmad); c/o Ahmed Shah s/o Painda Mohammad
al-Karim Set, Peshawar, Pakistan; c/o Alam General Store Shop 17, Awami Market, Peshawar, Pakistan; c/o Zahir Shah s/o Murad Khan Ander Sher, Peshawar, Pakistan.

YASIN, Abdul Rahman

MOHAMMED, Khalid Shaikh

AL MUGHASSIL, Ahmed

AL-HOURI, Ali

AL-YACOUB, Ibrahim

AL NASSER, Abdel Karim

MOHAMMED, Fazul Abdullah

FADHIL, Mustafa Mohamed

GHAILANI, Ahmed Khalfan

MSALAM, Fahid Mohammed Ally

SWEDAN,  Sheikh Ahmed Salim

ABDULLAH, Abdullah Ahmed

ALI, Ahmed Mohammed Hamed

ATWAH, Mushin Musa Matwalli

MUGNIYAH, Imad

IZZ-AL- DIN,  Hassan

ATWA, Ali

The press release issued by HM Treasury on 12 October 2001.

Better communication and cooperation between central and local government agencies and the voluntary and community sector has a key role to play in improving public service delivery, Financial Secretary Paul Boateng said today.

Announcing the terms of reference (see link below) of a cross cutting review of the role of the voluntary sector in public service delivery, Mr Boateng said:

“The voluntary and community sector already makes a significant and extremely valuable contribution to the delivery of high quality public services. We now need to explore further ways in which central and local Government can work more effectively with the voluntary sector on public service delivery to ensure that, together, we are delivering high quality services.

The cross cutting review is an important part of that process. I very much hope that the widest possible range of individuals and organisations working in this area and benefiting from the work being done will let us know their views on how this initiative can be taken forward to develop new and better ways to work together.”

The terms of reference for the review, which Mr Boateng will chair, are:

“To examine the relationship between the voluntary sector and the Government in public service delivery, taking account of the key role that the sector can play in strengthening civil society and building capacity in local communities. The review will do this by:

i.  Mapping the extent and the variety of means by which the voluntary sector is already involved in overseeing and delivering public services;

ii. Examining best practice in effective partnership between the voluntary sector and the public sector, suggesting practical ways in which the principles in the Compact can be applied in the delivery of public services;

iii.Drawing common lessons to guide the public sector in working in partnership with the voluntary sector;

iv.Establishing whether and how barriers to voluntary sector involvement, and lack of capacity, might be overcome to promote successful partnership with the public sector and how the Government might be able to assist to that end.”

The cross cutting review, one of seven announced by Chief Secretary Andrew Smith on 25 June, is an important initial phase of the wider Spending Review 2002 and aims to report early next year.

There are important links between this cross cutting review and work in other Government Departments:

• the Performance and Innovation Unit (PIU) review: Modernising the Legal and Regulatory Framework for Charities and the Voluntary Sector;
• the Regional Co-ordination Unit Review of Regeneration Funding for Voluntary Sector and Community Groups
• ongoing work within the Active Communities Unit, including the current consultation on the funding of Community Groups.

The cross cutting review will build further on the principles set out in the Compact on relations between Government and the voluntary and community sector, including the continued independence of the sector.

Organisations and individuals wishing to register an interest in the review should email using the link below.

The press release issued by HM Treasury on 10 October 2001.

An innovative interagency scheme on Teesside to help prisoners return to the community with a reduced likelihood of reoffending is the overall winner of the first Invest To Save Budget (ISB) ‘Progress In Partnership’ awards, Chief Secretary Andrew Smith announced today.

The “Prisoners? Passport” project is one of four winning initiatives which show how closer joint working can underpin smarter, better services in diverse areas of the public sector. It offers advice on jobs, housing, health and benefits to inmates due for release in two prisons on Teesside. In its first year, the reconviction rate among 375 prisoners involved in the scheme was around 5%, compared to around 40% nationally. This was achieved with an investment from the ISB scheme of £18,000 to fund a full-time adviser to the project.

Mr Smith said :

“This project is a striking and valuable example of what can be achieved by public sector agencies coming together and pooling resources to deliver better services across the country. It cuts crime by helping prisoners go straight, to the benefit of their families and communities, as well as addressing the financial and social consequences of criminal behaviour.

“Other winning ISB projects support bereaved families in Wolverhampton, help young people into adult life in West Lothian and offer one-stop access to national databases for local authorities and local delivery agencies across the country.

“What all these projects have in common is that they deliver important and innovative public services at local level, directly to citizens and communities. The integrated approach they have used so successfully in these projects is one that all agencies can learn from and adapt to improve their own service delivery.

“These first success stories under the Invest to Save Budget initiative show how a relatively modest investment in drawing agencies together can generate new and better public services. The real winners are those who benefit from these imaginative schemes.”

The Prisoners’ Passport project works with prisoners preparing for release in Holmehouse and Kirklevington prisons. As well as reducing the likelihood of reoffending, the initiative helps offenders, their families and their communities generally by increasing the chances of their finding work and accommodation, improving skills and opportunities and helping to keep families together.

The awards were presented at “Joining Forces”, the second Invest to Save Budget Conference, held at the Queen Elizabeth II Conference Centre in Westminster.