Tag: Press Release

The press release issued by HM Treasury on 16 November 1998.

Proposals Published to Help Credit Union Movement Develop

A package of measures to boost credit unions and help those less well-off in our communities has been announced today by the Economic Secretary, Patricia Hewitt.

In a consultation document, “Proposed Amendments to the Credit Unions Act 1979”, a series of measures are set out which aim to help expand the credit union movement while maintaining its focus on the poorer members of society.

The measures are:

• allow credit unions to borrow from external sources,
  other than authorised banks and other credit unions e.g. building societies, insurance companies;
• allow credit unions to offer interest bearing share accounts;
• allow credit unions to charge fees for providing basic
  services e.g. bill payments;
• abolish the #750 maximum limit on youth accounts, bringing it into line with the #5,000 adult limit, and lower the minimum age for joining credit unions;
• make the common bond requirement more flexible i.e. the “living or working” rules which allow people qualifying to join a credit union;
• remove the current 5,000 maximum membership limit;
• allow credit unions more flexibility to dispose of re-
  possessed collateral; and
• extend repayment periods for secured and unsecured loans.

Commenting on the proposals the Minister said:

“We have one of the most competitive and sophisticated financial services sectors in the world – but some people are still missing out. And for those people financial services mean cheque-cashing shops and illegal loan sharks.

“Credit unions have been doing invaluable work by providing savings facilities, low cost credit, and financial education to the less well off, giving them the chance to build up a good credit record.

“The Government is determined to encourage the sector and these proposals aim to build on the vital work that credit unions do, particularly in poorer communities.”

Most of the proposed changes could be made through a Deregulation Order under the Deregulation and Contracting Out Act 1994.

The Minister also published proposals for the future regulation of the credit union sector. The Government has asked for comments on two options:

• transfer to the Financial Services Authority the existing functions of the Chief Registrar; or
• bring credit unions within the scope of the FSA’s full regulatory and supervisory powers. This would involve repealing some of the provisions of the 1979 Act, leaving the FSA free to lay down new, or amended, requirements under its rule-making powers.

Commenting on the proposals the Minister said:

“We have to find the right balance for credit union regulation – allowing the sector to develop while ensuring there is adequate protection for savers.

“We will also be looking to the FSA to come forward with a fee structure that meets credit unions’ needs.”

The consultation period ends on 12 February 1999.

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

South East and East Midlands small and medium sized enterprises (SMEs) were the most responsive to a Treasury campaign to increase awareness of the introduction of the single currency on 1 January 1999, Lord Simon, Minister for Trade and Competitiveness in Europe, announced today.

Addressing the first national meeting of the heads of twelve regional euro forums, Lord Simon said :

“The Martin Skinner advertising campaign has been a great success. It has so far led to some 300,000 requests for “business preparations for the euro” factsheets from businesses and trade associations.

“It shows that at a regional and local level businesses are now much more aware that the euro is not some distant development of no concern to them, but represents a significant change in the business environment in which they will do business after 1 January 1999.

“SMEs are now getting the message – although the UK will not be joining the single currency on 1 January 1999, businesses across the UK economy will be affected.

“The overall response rate was excellent. The ten per cent response from the target audience was more than three times the average for such campaigns.

“The best response levels were from SMEs in the South East and East Midlands regions – 30 per cent and 20 per cent above the national average respectively.

“But I am concerned that some regions have not yet reached these high levels. Responses for the North East, North West and London were 20 per cent  below the national average.

“To those who have not responded, my message is simple: the euro is less than two months away. Call 08456 01 01 99 for the information you need to make an informed judgement about the likely effect of the euro on your business now.

“Or you can contact your local regional forum through your regional Government Office. They can help you to contact other local businesses and agencies which can offer advice  – often based on their own experience – to get you ready to meet the challenge and take the opportunities offered by the single currency.”

Twelve regional forums, covering the whole of the UK, coordinate practical advice to local businesses, especially SMEs, about the possible impact of the launch of the single European currency. Welcoming the progress they have made already, Lord Simon said:

“Each of the regional forums have now met at least once to encourage euro preparations in their local area. They are a vital part of our strategy to prepare British business,  bringing together key regional partners, including Business Links, the CBI, Chambers of Commerce, trade unions, local authorities and other public sector bodies.

“They enable participants to share their concerns and their experiences trading in Europe and preparing for the euro, and to develop coordinated strategies to sustain and  enhance regional as well as individual company competitiveness after 1 January 1999.

“They look specifically at what needs to be done at a regional level to ensure that business has the support it needs to compete in a changed market place. They are able  to deal with SMEs at a local level, bringing an understanding of the particular pressures and difficulties which these businesses face on a daily basis.

“I am grateful that the twelve Chairmen here today have agreed to play this crucial role. I am sure that their invaluable local knowledge, contacts and experience will make a significant difference to the commercial prospects of their regions in meeting the challenges ahead.”

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

Building societies were today challenged to contribute their ideas to tackling financial exclusion in our most deprived  neighbourhoods by the Economic Secretary, Patricia Hewitt.

Speaking at the Building Societies Association Annual Lunch the Minister pointed out that there were between 2.5 and 3.5 million people, concentrated in the most deprived neighbourhoods, without a bank or building society account. The main reason being that people did not think that traditional bank our building society facilities were suitable for them. The Minister said:

“The big challenge for banks and building societies is to redesign the products on offer to better suit the circumstances and preferences of those currently without access to them.

“One important step forward is the availability of the new accounts where on-line debit cards replace cheque books and access to credit is withheld until both the customer and the institution feel comfortable with it.

“The creation of these new accounts signals the industry’s growing awareness of profitable banking opportunities among these sections of the community.”

The Minister said that building societies have shown a tradition in community involvement. She said:

“Based on your principle of mutuality and tradition of community involvement, building societies have a vital contribution to make to tackling financial exclusion. Many  of you are already involved – indeed most of you carry the name of your community, and many support local activities too.

“Combined with your expertise in financial services, you are ideally placed to be at the heart of this initiative. So I would like to challenge you to contribute your own ideas to tackling financial exclusion – to think hard and imaginatively about how financial services might be available to all in our society.”

The Minister also urged building societies to think about how they could help credit unions. She said:

“I urge all building societies to think about how you can help credit unions, not out of a sense of duty to those worse off than yourself, but because it will give people the opportunity, currently denied to them, to become valued members of your society.

“So, by playing your part now you will help to build new customers for the future. We are not talking about charity, but about developing a market which in every sense of the word will be mutually beneficial to all concerned.”

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

A review of the Private Finance Initiative (PFI) and Public Private Partnerships (PPPs) is to be conducted in advance of the expiry of the Taskforce’s mandate in late summer 1999, Paymaster General Geoffrey Robinson announced today.

Sir Malcolm Bates, Chairman of Pearl Group, has been asked to examine the progress made in the delivery of PFI and PPPs by this Government and in the light of this new experience, recommend any changes to the existing arrangements which could further improve the government’s approach to PPPs.

In launching the Review, Mr Robinson said:

“We have made great strides with PFI in the past year. But we must continue to improve, identify and develop new opportunities and partnerships with both the public and private sectors. As well as improving value for money to the taxpayer this will ensure the delivery of a higher sustainable level of public sector investment.

“I want to see such partnerships extended beyond PFI. We need to exploit all commercial potential and spare capacity in public sector assets through a sensible balance of risk and reward. Sir Malcolm Bates’ first report reinvigorated PFI and I very much look forward to reading the outcome of his second review.”

The first review under Sir Malcolm Bates proposed the creation of the Treasury Taskforce to help central government departments and agencies road-test significant projects for their commercial viability. The Treasury Taskforce’s two-year life comes to an end in late summer 1999. The Government wants to look ahead and ensure that the best possible arrangements are in place for a smooth transition at that time.

Sir Malcolm Bates will commence his review immediately and complete his work by mid February 1999.

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

The Diana, Princess of Wales Memorial Committee met today to consider progress on the four proposals set out in its preliminary advice to HM Government, published on 24 June.

Commenting on the progress made, Chancellor Gordon Brown said:

“I am delighted to outline progress on the proposals for community children’s nursing teams, awards to celebrate the achievements of young people, a memorial in Kensington Gardens and the commemorative coin.

“The Department of Health has today invited bids from local health authorities for teams for the first phase of this scheme. As this service expands across the UK, it will become a permanent memorial to Diana, Princess of Wales’s own care and compassion for children and their families especially in times of sickness. The Department of Health will make a detailed announcement shortly.

“The Memorial Committee was impressed with the detailed proposals developed by the Department of Health. We feel that, by providing hands on care and practical and emotional support, community children’s nursing teams will provide significant additional support to the care already available from the NHS and the voluntary bodies who have led the way in this area of care.

“Good progress has also been made on the Diana, Princess of Wales Memorial Award for young people at secondary school. The DfEE has received tenders from a large number of organisations to run the Central Awards Office which will administer the scheme. The bids are being analysed and a further announcement will be made in due course.

“The Memorial Committee have considered the results of a preliminary consultation exercise held locally on the early, outline proposals for Kensington Gardens. Having listened to local people, the Memorial Committee recommend that these proposals should be significantly improved.

“The Memorial Committee propose that a memorial walk through Kensington Gardens, Hyde Park, Green Park and St James’s Park should be established to celebrate the life of Diana, Princess of Wales. This would be one of the most
magnificent urban parkland walks in the world passing many points of interest, with spectacular views across the Serpentine, St James’s Park Lake and across the Round Pond towards Kensington Palace.

“In recognition of Diana, Princess of Wales’s love of children and in particular the disabled, the Memorial Committee have recommended that this memorial walk be complemented by improvements to the children’s playground to the North of Kensington Palace. This would create an area where disabled and able-bodied children could play together, dedicated to Diana, Princess of Wales. The Department for Culture, Media and Sport will also consider how designs developed for the playground in Kensington Gardens might be used as a blueprint for children’s play facilities around the country.

“It is also intended that necessary repair work in the Dial Walk area South of Kensington Palace should be implemented.  This will help accommodate the extra numbers who, surveys confirm, continue to visit that area.

“The Royal Parks Agency will be asked to take these proposals forward. And they will do so in close consultation with the local authorities and local residents’ groups.

“The commemorative coin will be released for general circulation on 1 July 1999, the anniversary of the birthday of Diana, Princess of Wales. Collector versions will be available from early next year. The proceeds from the sale of the commemorative coin will go towards the memorials recommended by the Memorial Committee and the ongoing costs
will be met by the Government.

“On behalf of the Memorial Committee, I should like to thank Frank Dobson, David Blunkett, Chris Smith and all the agencies involved for the work which has been done to develop all four proposals so promptly.

“The Memorial Committee feels that, together, these will form a fitting, long-lasting national tribute to Diana, Princess of Wales which will recognise her unique contribution and the example that she set, particularly in enriching the lives of children and encouraging them to play the fullest possible part in the life of their communities.”

The press release issued by HM Treasury on 10 November 1998.

Following the first UK-China Financial Dialogue meeting today, Chancellor Gordon Brown and Chinese Finance Minister Xiang Huaicheng welcomed agreement on the need for further strengthening of prudential regulation and financial systems in emerging markets. They also agreed on the scope for greater partnership between the two countries in financial sector development and commercialisation of state owned enterprises in China.

Mr Brown said :

“I was very pleased to welcome Finance Minister Xiang and his colleagues to London for the first in a regular series of meetings between the Finance Ministries, Central Banks  and Financial Regulators of our two countries.

“China’s economic transformation over the past twenty years has been remarkable.  It is now amongst the largest economies in the world, and is increasingly becoming integrated into the world economy.  As such we clearly have a common interest in pursuing greater dialogue on financial and economic issues.

“Indeed, with one quarter of the world in recession, the ongoing world economic turmoil has highlighted more than ever before the very real interdependence of national  economies and financial structures in today’s globalised economy.  Both the UK and China  therefore have a clear mutual interest in seeing a positive resolution to both  short-term problems facing the world economy today, as well as the challenges for the longer term.

“The meeting today with Minister Xiang sets the ground for increased cooperation and partnership on all then economic and financial challenges that both our countries face.”

The press release issued by HM Treasury on 10 November 1998.

A new trust fund for Honduras and Nicaragua, with #10 million backing from the UK, was proposed today by Chancellor of the Exchequer, Gordon Brown and International Development Secretary, Clare Short. It is one of three proposals for international
assistance put forward by the UK following the recent natural disaster in those countries.

The proposals, outlined in letters to G7, IMF and World Bank colleagues, are to consider urgently :

• a trust fund to which bilateral and multilateral creditors can contribute  assistance to meet short term debt service obligations, with a UK contribution of #10 million.
• shortening the timetable for completing debt relief programmes for post-catastrophe countries as for post-conflict countries
• a moratorium on official bilateral debts.

The #10m UK contribution is additional money for Nicaragua and Honduras. The Treasury has guaranteed access to the reserve for this extra money.

A copy of the joint letter is attached. Announcing these proposals, Gordon Brown said:

“In addition to emergency relief aid which many countries and agencies are already giving to the victims of Hurricane Mitch, it is essential to consider longer term assistance to help the countries affected back on track towards sustainable development.

“The proposals announced today will do a great deal to support the aid efforts. We shall continue to work closely with other Governments and international financial institutions to deliver practical, effective assistance.”

Clare Short said :

“We are willing to explore the possibility of providing help to Honduras and Nicaragua through some kind of moratorium on official bilateral debts with other bilateral creditors.

“It is essential that the post-catastrophe countries themselves, not other creditors, benefit from any actions taken. Any combination of IFI and bilateral aid will be designed to achieve this vital safeguard.”

Reminding members of the public how they can most effectively support Government efforts, the Chancellor said :

“Individual contributions to help Honduras and Nicaragua can be made free of tax through the Millennium Gift Aid scheme. This scheme, which came into effect earlier this year, enables anyone giving at least #100 to qualifying projects before the end of the year 2000 to reclaim tax on their gift.

“I know that many thousands of people have been moved by the plight of the people of these countries and wish to add their own contribution to that being provided directly by Government. Through Millennium Gift Aid, we shall help them to make their assistance go that much further.”

10 November 1998

M. Michel Camdessus

Managing Director

International Monetary Fund

700 19th Street N W

Washington DC 20431

WASHINGTON

USA

POST-CATASTROPHE COUNTRIES

We are all aware of the terrible devastation that Hurricane Mitch has caused to the social and economic infrastructure in Honduras and Nicaragua – two countries that were amongst the poorest in the world even before this disaster.

Many countries have already made emergency contributions to the international aid effort, and these donations must continue.  It is essential that emergency aid is delivered immediately to help the homeless and injured and to minimise the chances of further damage being caused through disease.

However, it is not too early to begin to think about how to put these countries back on a sustainable track towards development.  The catastrophe caused by Hurricane Mitch has left both Honduras and Nicaragua in need of substantial sums of money.  Given the drastic reduction in their exports as a result of the hurricane, this money is necessary to finance essential imports as well as to allow the necessary rebuilding of the countries’ infrastructure.  We must now consider how this money is best delivered.

For the reasons above, in addition to providing rapid disbursing assistance under existing mechanisms for disaster relief, we ask you to look urgently at possible mechanisms that could mitigate the debt service payments that these countries are due to make to International Financial Institutions over the coming months.  We would support the temporary suspension of debt service payments to the International Financial Institutions.

We suggest one way forward is to set up a Trust Fund for Honduras and Nicaragua into which bilateral and multilateral creditors could contribute to help meet the debt service obligations that these countries have to these Institutions in the near future.  The UK stands ready to provide money for any such fund alongside its continuing emergency aid donations.

In the longer term, it is also important to ensure that these post catastrophe countries receive the debt relief that they so desperately need.  We therefore urge you to look at how we might ensure that the HIPC initiative is used as effectively as possible as a means for providing debt relief for these post catastrophe countries, as you have constructively begun to do so for post conflict countries.  It is important that debt relief is not stalled for these countries because of Hurricane Mitch and that creditors are ready to provide the full debt relief necessary at the decision or completion points to ensure that their debt burdens are reduced to sustainable levels.  In particular we would press for consideration of shortening the timetable to permit an earlier completion point.

The UK is also willing to explore with other bilateral creditors the possibility of providing help to Honduras and Nicaragua through some kind of moratorium on official bilateral debts.  Any combination of IFI and bilateral aid will of course have to be designed so that the beneficiaries of any actions are the post catastrophe countries themselves, and not other creditors.

We have written in similar terms to James Wolfensohn and Enrique Iglesias, and am passing a copy of this letter to G7 and EU Finance Ministers.

GORDON BROWN

CLARE SHORT

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

Further details of the Public Service Agreements being entered into by each Government Department will be announced by Chief Secretary Stephen Byers later today.

Mr Byers will explain for the first time that each Agreement, to be published together in December, will contain an efficiency statement detailing specific efficiency targets and demonstrating how  each Department will improve its own productivity.

The efficiency statement will include substantive information on progress and plans in three key areas which will contribute to the overall effectiveness of the public services:-

• dealing with fraud against the taxpayer;
• better procurement practice;
•  reducing sickness absence amongst public employees.

Stephen Byers said:

“Public Service Agreements will be ground breaking documents. We have already said that they will include clear performance targets.  But we need to go further and ensure that we achieve value for money for every pound of taxpayers’ money spent. High quality public services and greater efficiency go hand in hand.

“Last Tuesday the Chancellor announced targets to cut down on public sector absenteeism. Each Government Department is now carrying out an audit of its own procedures, recognising the large variation in absence levels.

“Dealing with fraud has to be a key responsibility for each Department, and I want every Department to have a clear and effective strategy for tackling fraud. Every pound saved is a pound more for front-line public services. The Government is also a major purchaser of goods and services, and we should use our position to achieve savings for the public purse.”

Average Working Days Absence per Staff-Year by Civil Service Department, 1996

 

Department	Working Day’s Absence
National Savings Department	14.3
DSS Group	12.2
Employments Group	11.8
Inland Revenue	10.8
Home Office	10.8
Lord Chancellor’s Department	10.7
Crown Prosecution Service	10.2
Land Registry	9.9
Customs and Excise	9.0
Trade and Industry Group	8.8
Scottish Office	8.5
MoD	7.9
MAFF	7.8
Cabinet Office Departments	6.4
Treasury	5.1
Civil Service Average	10.2

NOTES TO EDITORS

The attached table gives details of absences in major Civil Service Departments in 1996.

The Comprehensive Spending Review, published in July 1998, announced that each Government Department would agree a Public Service Agreement. The Agreement will include each Department’s objectives and measurable efficiency and effectiveness targets. Progress will be monitored by a continuous process of scrutiny and audit, overseen by a Cabinet committee  chaired by the Chancellor. The Committee will be advised by a Public Services Productivity Panel, drawn from business and the public sector, on ways of improving the productivity of public services and announced by the Chancellor in the Pre-Budget Report.

The Government has commissioned a review, announced in the Pre- Budget Report and to be led by Peter Gershon of GEC-Marconi, which will examine current arrangements for civil procurement and recommend any changes that would support the Government’s efficiency, modernisation and competitiveness objectives.

Data covers major departments (and their agencies) of 5,000 staff and over, plus the Cabinet Office and Treasury.  These account for 91% of all non-industrial civil service employees.

Source: Analysis of Sickness Absence in the Civil Service, 1996, BMI Health Services.