Tag: Press Release

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.”

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

The Government will make full use of its Presidency of the European Union during the first half of next year to push forward an active agenda to deal with fraud and waste, Economic Secretary Helen Liddell made clear today.

Commenting on the publication of the Annual Report of the European Court of Auditors she said;

“This report makes disturbing reading, but it is also a useful tool in the UK’s fight against fraud and mismanagement in the Community Budget. This report highlights the good sense of the Government in making fighting fraud a key priority of our Presidency of the EU.

Our determination to make better use of taxpayers money was highlighted in our manifesto. At the Amsterdam Intergovernmental Conference we obtained Treaty changes which strengthen the powers of the European Court of Auditors and will make it easier to fight fraud in the Community Budget.

A modern European Union must be fair and strong, fraud and waste hold back the achievement of our aspirations.”

The press release issued by HM Treasury on 17 November 1997.

The Chancellor of the Exchequer has, with the agreement of the Prime Minister, appointed Mr Gus O’Donnell as Director of the Treasury’s Macroeconomic Policy and Prospects Directorate. Mr O’Donnell succeeds Sir Alan Budd who retired from the Treasury on 14 November. In addition to the existing functions of the MPP Directorate, Mr O’Donnell has been asked to take responsibility for, and give additional emphasis to, long-term economic analysis across the range of Treasury policies and interests. He will also be head of the Government Economic Service.

Notes for Editors

1.  Mr O’Donnell will be head the Treasury’s Macroeconomic Policy and Prospects Directorate. The responsibilities of the Directorate include fiscal and macroeconomic policy, economic prospects, EMU, debt and resource management and the Bank of England Bill. He will normally attend meetings of the Bank of England’s Monetary Policy Committee as the Treasury representative. This is in addition to the responsibility for long-term economic analysis announced above.

2.  Mr O’Donnell will also be head of the Government Economic Service, consisting of around 520 economists working in all the major Government Departments.

3.  Mr O’Donnell is 45. He is currently the Economic Minister at the British Embassy in Washington and the UK’s Executive Director of the IMF and World Bank. He took his first degree at Warwick University and a second degree at Oxford. He lectured in Economics at Glasgow University and then joined the Treasury as a Senior Economic Assistant in 1979. In a varied career, Mr O’Donnell has not only filled a number of economic posts in the Treasury but has served as the First Secretary (Economics) in Washington and as Press Secretary to both the Chancellor and the Prime Minister. Before returning to Washington earlier this year, he was a Deputy Director in the Treasury, responsible for monetary policy and EMU.

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

Helen Liddell calls on building societies to show their commitment Building societies must seize the challenge and start promoting mutuality, Economic Secretary Helen Liddell said today.

Speaking at the Building Societies Annual Lunch Mrs Liddell told societies that they were effective and efficient organisations which should have the confidence to put forward the case for mutuality to their members and the public more widely. She said:

“Mutuality does have a future. Millions in the country do believe in it. And it is worth fighting for. But you have to be in the front line.

“The more people who know and understand the benefits of mutuality, the less likely they are to be seduced by the arguments for conversion or takeover.”

The Minister announced that the threshold on turnouts for conversions will be increased from 20 to 50 per cent. This will bring it into line with the threshold for takeover votes.

Mrs Liddell said it was now time to draw a line under the 1997 Building Societies Act and look to the future. The third and final Commencement Order was made earlier this month and the Act is now fully in place.

She said:

“This new Act has given you the ability to compete freely in offering the services which your members demand. It sweeps away the restrictions on commercial freedom that had been holding back development, and which had artificially disadvantaged societies compared to banks and other providers of financial services.

“It removed the quality asset threshold, so that there is no longer a distinction between the powers of smaller and larger societies.

“So the challenge for societies is to make the most of these new powers, combined with the unique benefits that their mutual status brings, to compete even more efficiently in the market place.”

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

The UK is leading the world in its fight against drug smuggling, Financial Secretary Dawn Primarolo said today during a visit to the Czech customs headquarters in Prague.

Ms Primarolo said:

“HM Customs and Excise staff play a crucial role in the world-wide fight against drug smuggling, placing the UK at the forefront of the battle. Help is provided on a practical level to law enforcement agencies throughout the world as the UK is widely recognised to be highly skilled and effective at smashing drug smuggling organisations.”

Ms Primarolo praised the work of UK Customs & Excise International Assistance (IA) officers working operationally alongside their national counterparts in providing expertise and on-the-ground assistance to improve international cooperation and increased intelligence flows. Officers also provide support with the customs and indirect tax fields worldwide, helping with the implementation of legislation and resources to help drug source and transit countries.

“During training provided by UK Customs, Czech authorities seized over 12 kilos of heroin and 7.25 tonnes of herbal cannabis. I am delighted at the level of cooperation which has been established.”

The press release issued by HM Treasury on 6 November 1997.

The IMF Executive Board today endorsed the Government’s economic policies in a discussion on the UK’s Article IV.

Chancellor, Gordon Brown, said:

“I am delighted with the Executive Board’s endorsement of our policies. They confirm that we are now on course to get the UK economy back on track and to achieve our objective of high and stable levels of growth and employment.”

The Board discussion focussed on the IMF’s Staff and Selected Issues Papers which commend the governments actions:

“The new government has set itself a high standard, aiming to consolidate stability and foster long-term growth, while seeking fairness and developing human potential. It has made a bold start toward achieving this standard, winning credibility by delivering on key commitments and setting vigorously to work on an ambitious agenda”.

“The new government has stressed its commitment to macroeconomic stability, sound public finances, and flexible markets, while emphasizing the need to raise the quality of public services (particularly in health and education), promote fairness, and foster long-run economic growth through investment in physical and human capital”.

The press release issued by HM Treasury on 4 November 1997.

Plans to allow an additional range of open ended investment companies (oeics), giving a wider choice for investors were announced today by the Economic Secretary, Helen Liddell.

Speaking to the Association of Unit Trusts and Investment Funds, Mrs Liddell said that she supported allowing oeics to establish cash funds and funds of funds and was currently considering the best way to introduce them.

The Minister said:

“The Government is very well aware of its part in ensuring the UK financial services industry continues to be successful.

“We are also aware that there is a need to develop further and adapt to meet the changing needs of the marketplace.

“These new oeics will have a useful role to play for retail investors.”

The ability for oeics to take advantage of these powers will allow the industry to build on the success of the oeic as a UK investment vehicle and provide a greater choice for investors.

The press release issued by HM Treasury on 3 November 1997.

British exporters must persevere and keep their presence in the markets if they are to compete successfully in the European market place, Paymaster General Geoffrey Robinson said today.

Speaking to the British Exporters Association’s annual conference in London,  Geoffrey Robinson paid tribute to the resilience of British exporters.

“A healthy export sector is vital to the success of the British economy.

“Our aim is to help British exporters. We want to remove barriers to growth and strengthen the economy’s wealth creating base. This means putting in place policies that will promote competition, promote long term investment and reduce unnecessary burdens on business.”

Commenting on the rise in sterling he said:

“The pound has fallen back somewhat since the summer and export markets in Europe are beginning to pick up.

“Latest news from the October CIPS survey shows export orders may once again be on the rise.

“But we must reckon with a continuing tough period in our export markets.

“Exporters have shown great resilience in holding up their share of export markets.  It has not been easy. I sympathise and I urge you to hang in there.”