Editor: Pat Williams. E-mail pwilliams@creditman.co.uk
John Arnold. E-mail jarnold@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: Vol 4 Issue 21
Dated: 28 May 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKCHANCELLOR CONFIRMS UNCHANGED MONETARY POLICY COMMITTEE REMIT
Chancellor of the Exchequer Gordon Brown on the 25 May 2000 formally renewed the Bank of England's monetary policy remit, following an announcement in his Budget Speech on 21 March.
Answering a Parliamentary Question from Ms Jackie Lawrence (MP for Preseli Pembrokeshire), the Chancellor said:
"In accordance with S.12 of the Bank of England Act 1998, I have today written to the Governor re-stating the MPC's remit and how it will be held accountable for meeting the remit.
My letter has been laid before Parliament and a copy has been sent to the Chairman of the Treasury Committee. Copies are also being deposited in the Libraries of both Houses....."
The full text of the remit, and the Chancellor's letter to the Governor of the Bank of England, is attached.
In his Budget Speech on 21 March 2000, the Chancellor said "For the third year running inflation is in line with our target. And the target of 2.5 per cent - which I reaffirm - will be met this year, next year and the year after that."
The Bank of England Act 1998 requires that the Treasury write to the Bank at least once in every period of 12 months beginning on the anniversary of the day the Act came into force, stating:
a. what price stability is taken to consist of; and
b. what the economic policy of the Government is taken to be.
Letter to:
Eddie George Esq
Governor
Bank of England
Threadneedle Street
LONDON
EC2R 8AH
25 May 2000
Dear Eddie
REMIT FOR THE MONETARY POLICY COMMITTEE
The Bank of England Act requires that I specify what price stability is taken to consist of and the Government s economic policy objectives at least once in every period of 12 months beginning on the anniversary of the day the Act came into force. I last wrote to you on this matter on 18 May last year.
As you know, I re-confirmed the target of 2.5 per cent for RPIX inflation in this year's Budget. In accordance with the Act, I confirm that the MPC's remit remains unchanged. I attach a copy of the remit, as first set out in 1998 (after the Act came into force), for ease of reference.
Yours sincerely
GORDON BROWN
REMIT FOR THE MONETARY POLICY COMMITTEE
The Bank of England Act came into effect on 1 June 1998. The Act states that in relation to monetary policy, the objectives of the Bank of England shall be:
(a) to maintain price stability, and
(b) subject to that, to support the economic policy of Her Majesty's Government, including its objectives for growth and employment.
In order to comply with the Act, this remit sets out what price stability shall be taken to consist of and what the economic policy of the Government shall be taken to be.
Price stability
I confirm that the operational target for monetary policy remains an underlying inflation rate (measured by the 12-month increase in the RPI excluding mortgage interest payments) of 2.25 per cent. The inflation target is 2.25 per cent at all times: that is the rate which the MPC is required to achieve and for which it is accountable.
My intention is to lock into our policy making system a commitment to consistently low inflation in the long term. The real stability that we need will be achieved not when we meet the inflation target one or two months in succession but when we can confidently expect inflation to remain low and stable for a long period of time.
The framework takes into account that any economy at some point can suffer from external events or temporary difficulties, often beyond its control. The framework is based on the recognition that the actual inflation rate will on occasions depart from its target as a result of shocks and disturbances. Attempts to keep inflation at the inflation target in these circumstances may cause undesirable volatility in output.
But if inflation moves away from the target by more than 1 percentage point in either direction I shall expect you to send an open letter to me, following the meeting of the Monetary Policy Committee and referring as necessary to the Bank's Inflation Report, setting out:
You would send a further letter after three months if inflation remained more than 1 percentage point above or below the target. In responding to your letter, I shall, of course, have regard to the circumstances prevailing at the time.
The thresholds do not define a target range. Their function is to define the points at which I shall expect an explanatory letter from you because the actual inflation rate is appreciably away from its target.
Government's economic policy objectives
The Government's central economic policy objective is to achieve high and stable levels of growth and employment. Price stability is a precondition for these high and stable levels of growth and employment, which will in turn help to create the conditions for price stability on a sustainable basis. In the recent past, instability has contributed to the UK's poor growth performance, not least by holding back the long-term investment that is the foundation for a successful economy.
The monetary policy objectives of the Bank of England are to maintain price stability and subject to that, to support the Government's economic policy, including its objectives for growth and employment.
Accountability
The Monetary Policy Committee is accountable to the Government for the remit set out in this letter. The Committee s performance and procedures will be reviewed by the Court on an ongoing basis (with particular regard to ensuring the Bank is collecting proper regional and sectoral information). The Bank will be accountable to Parliament through regular reports and evidence given to the Treasury Select Committee. Finally, through the publication of the minutes of the Monetary Policy Committee meetings and the Inflation Report, the Bank will be accountable to the public at large.
Restatement of the Remit
The inflation target will be confirmed in each Budget. There is a value in continuity and I will have proper regard to that. But I will also need to consider the case for a revised target at these times on its merits. Any changes to this remit will be set out in the Budget. The Budget will also contain a statement of the Government's economic policy objectives.
CBI FORECASTS HEALTHY GROWTH THIS YEAR BUT EXPORTERS WILL CONTINUE TO STRUGGLE
The Confederation of British Industry is expecting a two-speed economy to persist this year with consumer spending driving growth and exporters continuing to struggle.
Publishing its quarterly economic forecasts last Thursday, the CBI revised down growth expectations for 2000 by 0.1 per cent. Annual GDP growth is now expected to average 3.0 per cent this year and 2.6 per cent next year. The imbalance between manufacturing and services is expected to continue this year, although to a lesser extent than in 1999. Domestic demand should underpin growth while export volume growth remains weak.
Total investment is expected to rise by 2.8 per cent this year and by 3.2 per cent in 2001 in line with the previous forecast. However, the CBI has revised down its forecast for manufacturing investment expecting it to fall by 8.8 per cent this year and by 1.8 per cent in 2001 despite a modest revival through the year.
Kate Barker, the CBI's Chief Economic Adviser, said: "This forecast points to healthy economic growth this year with robust consumer spending compensating for poor export demand. However the strength of sterling is forcing manufacturers to cut back further on investment plans and if investment declines as we expect, this could constrain growth over the long term. Encouragingly, inflationary pressures remain subdued. Even though sterling has fallen back from its recent peak, we believe that there is no need for interest rates to rise next month."
Export volumes are expected to grow moderately over the next two years but below the growth in world trade. The strength of sterling will continue to hold exporters back, with exports set to rise by 5.1 per cent this year and by 4.6 per cent in 2001.
Imports are expected to grow more strongly at 6.2 per cent over this year. This means that the current account deficit is expected to deteriorate further in 2000 before stabilising in 2001 at £17.4 billion. Manufacturing output is now expected to rise by just 0.5 per cent this year, against February's forecast of 2.6 per cent, and by 1.9 per cent in 2001.
The CBI projections for interest rates assumes a rise to 6.25 per cent during the third quarter of this year. However rates are now assumed to remain at this level until the end of 2001, this is an upward revision from the February forecast when they were assumed to ease back to 5.75 per cent by end-2001. Underlying retail price inflation is forecast to remain below the Government's target, ending 2000 at 2.3 per cent and edging up marginally to 2.4 per cent by end-2001, as forecast in February. Average earnings are projected to ease slightly from current levels of 5.8 per cent to 5.1 per cent by end-2001.
Sudhir Junankar, CBI's Associate Director of Economic Analysis, said: "Our growth forecasts are fairly upbeat, but there are key uncertainties. These include; the level of sterling, the risk of a harder landing for the US economy and the pace of world trade. A sharp decline in sterling or stronger pay growth could fuel inflation. Equally, a cooling of home demand, reflecting recent rate rises, coupled with strong competitive pressures could mean lower inflation next year than in our forecast."
Household consumption is expected to grow by 3.5 per cent in 2000 and by 2.4 per cent in 2001, contributing 2.3 percentage points and 1.6 percentage points respectively to economic growth. The household savings ratio is expected to average 5.3 per cent in 2000, rising to 5.7 per cent by the end of 2001. Public Sector Net Borrowing (PSNB) is expected to be in surplus by £8.7 billion in 2000/2001 and by £6.9 billion in 2001/2002.
Unemployment (on an ILO basis) is expected to continue to fall, to 1.61 million by end-2000 and 1.58 million by end-2001.
A more user-friendly website for the Court Service, providing access to information about the courts - from leaflets on how to make a small-claim to High Court judgments - went live on the 22 May at http://www.courtservice.gov.uk
The previous site, launched three years ago, has been attracting between 150-200,000 page hits (around 128,000 unique hits) per week from all around the world, even from countries as far away as Senegal. It has now been redesigned to improve navigation and its accessibility for people with visual impairment.
Ian Magee, Chief Executive of the Court Service said:
"The crucial element of an effective presence on the Internet is good content. We have developed what I consider to be a site which is rich in authoritative and up-to-date content. It aims to be well written, to cater for the needs of a wide range of audiences and to be easily accessible. The Court Service site is consistently in the top ten government sites, and I hope that new site will encourage even more of our customers to use this valuable resource."
The most popular pages are those providing access to:
Daily lists of cases for the High Court, Court of Appeal and Crown Court - 7,000 hits per week;
Over 300 High Court and Court of Appeal judgments - between 45-77,000 hits a week;
Over 200 court forms and a vast variety of information leaflets for people who want to know how to use the courts, from getting a divorce to making a small claim or obtaining probate (the legal document giving authorisation to a person dealing with the estate of someone who has died) - around 32,000 hits a week.
The site also provides access to information and forms for some Tribunals, including the Immigration Appellate Authority and Office of the Social Security and Child Support Commissioners.
The Court Service is an Executive Agency of the Lord Chancellor-s Department. The purpose of the Court Service is to carry out the administrative and support work of the courts and tribunals and to promote their impartial and efficient operation.
OFT CONSULTS ON PROFESSIONS
The OFT on the 26 May 2000 published a consultation document [1] setting out the scope of its review of restrictions on competition in economically significant professions.
Customers and consumer bodies are among those asked to contribute to the competition authority's review of anti- competitive practices within the professions. Ministers have specifically asked that the review should focus on the more economically significant professions. The review will therefore cover legal and accountancy services and related professions such as auditors and insolvency practitioners, and may extend to a range of other professions, for example pharmacists, actuaries, architects, engineers and surveyors. Teacher's and the medical professions, whose major customers are in the public sector and in relation to whom work is in hand elsewhere are unlikely to be covered. The review will not be limited to identifying restrictions which originate in professional rules or conduct but will consider significant restrictions whatever their origin. This might include situations where a third party will only accept the services of a certain category of professional. Restrictions emanating from national or Community law will also be covered.
Three types of restrictions have been identified at this stage for consideration: conduct, entry and demarcation.
Restrictions on conduct
Information is sought on fee scales or rules, regulations and codes that affect charges. While set fees have all but disappeared, the Director General is concerned that recommended fee scales exist for a number of professions. Similarly although advertising of professionals is now generally permitted, the Office will examine limitations to advertising to ensure that they are justified and proportionate.
Restrictions on entry
These include disproportionately tight standards for obtaining and retaining the right to practise. Views are sought on what training and qualifications is needed for entry to the professions and on requirements for ongoing professional training.
Restrictions on demarcation
These include restrictions that require certain professional services to be conducted only by certain members of the professions with particular qualifications and seniority. Since 1996 the Director General has been advocating the pro-competition benefits of multi-disciplinary practices.
John Bridgeman, Director General of Fair Trading, said:
'Customers need a choice of professional services which are provided efficiently and to a high standard. This can only be achieved if the professions are competitive and unfettered by unnecessary restrictions and free to adopt business practices best suited to meeting their clients' requirements.
'The review will balance the maintenance of professional and ethical standards with the restrictive effect on competition that their rules, regulations, conventions and codes might have.
'This review is not an inquiry into value for money or the level of charges. But it is about practices which could be expected to have an adverse impact on them.' The DG is aiming to get advice to Ministers later this year.
The Chancellor of the Exchequer in his March 2000 Economic and Fiscal Strategy Report, announced that the OFT had been asked to review restrictions on competition in the professions.
The review is being conducted under Section 2 of the Fair Trading Act, under which the Director General of Fair Trading has a general duty to keep under review commercial activities in the UK so that he can find and evaluate monopoly situations or uncompetitive practices.
The Competition Act 1998, which came into force on 1 March this year, identified certain professions whose rules could be excluded from the prohibition on anti-competitive agreements. (Professional rules and practices had been excluded from the previous legislation on anti-competitive agreements, the Restrictive Trade Practices Act 1976.)
Schedule 4 of the Competition Act 1998 provides that rules of listed professions will be excluded from the Chapter I prohibition if 'designated' by the Secretary of State for Trade and Industry. The profession has to apply for its rules to be designated. The OFT has a duty to maintain a list of designated rules, to keep the list under review and to advise on whether decisions to designate should be revoked. Schedule 3(5) will, in any event, operate to exclude rules of some professions from the scope of the prohibitions to the extent that such rules are made in order to comply with legal requirements.
The OFT publishes a wide range of consumer leaflets which are available free from: OFT, PO Box 366, Hayes UB3 1XB 0870 6060321
Information about publications: http://www.oft.gov.uk
[1] A Review of Competition Restrictions in the Professions http://www.oft.gov.uk
TOMMY SHERIDAN TO OPEN THE INSTITUTE OF CREDIT MANAGEMENT'S SCOTTISH CONFERENCE
Contributed by Stephen Cowan, Yuill & Kyle, Debt Recovery Lawyers, Scotland. www.debtscotland.com
E-mail Stephen Cowan scowan@yuill-kyle.co.uk
In a bold and imaginative move the committee organising the Institute of Credit Management's Scottish Conference have invited Tommy Sheridan to give the opening address.
Sheridan's controversial Bill, before the Scottish Parliament banning poundings and warrant sales (the equivalent of English execution), is due to scrutinised by the Parliament's Justice Committee in October. So his appearance at Hampden Park on 3rd October will be timely.
The Institute, which is composed of over 9,000 credit professionals, will hope to be told by Sheridan what the Parliament intends to replace warrant sales with. And as the procedure has been statistically proven to be an effective mechanism for the recovery of commercial debt the delegates will be intrigued with what Sheridan has to offer.
However it is unlikely he will come up with any thing at all. He has said on two occasions when I have publicly debated the Bill with him that as warrant sales are an immoral enforcement measure against individuals then their immorality are also transposed to the commercial arena .So, in his opinion, both have to go. This is not the view shared by the Scottish Executive (the Scottish Government) who have said whilst they agree poindings and warrant sales should be banned something will require to be put in their place to ensure those who can pay their debts honour their contractual obligations.
It is anticipated 500 delegates will attend the event which Charles Kennedy, leader of the Liberal Democrats, will also address-hopefully in a less controversial fashion.
When Sheridan was invited to speak he is reported to have said "I think they thought I wouldn't do it and maybe use it against me. I decided to call their bluff." It is a little surprising he should take this view. After all it is his bill, which is to become law, and he will be on one of the Parliament's Committee scrutinising the measure during its passage. It seems a little strange he feels he needs to call the bluff of those in business and commerce who will be most affected by the legislation which he has initiated.
But that's politics for you!
The Scottish Conference and Exhibition will take place on the 3rd October 2000 at Hampden Park Football Stadium, Glasgow. Anyone interested in attending (or exhibiting) should contact David Ancliffe on (0131 200 8686).
GOVERNMENT GRANT AID HELPS SHIPBUILDER WIN CONTRACT AND SECURE JOBS
A North Devon company has secured a £15 million-construction contract and a £6.5 million-expansion project thanks to a £2 million cash injection from the Government.
During a debate on the UK Shipbuilding Industry Competitiveness Minister, Alan Johnson, told the House of Commons that he had a double helping of good news for Appledore Shipbuilders Limited.
He said the Government had approved, subject to the usual conditions:
Mr Johnson said:
"I had planned to make these announcements during a visit to Appledore, but parliamentary business has prevented that from happening.
"Nonetheless, I am pleased to be able to make the announcement, even if it is from a distance, and confirm that, subject to the usual conditions being met, both grants have been approved.
"It is good news for UK shipbuilders and good news for local employment. The RSA grant is intended to create at least 230 new jobs and safeguard 82 existing jobs. It is hoped that with the benefit of today's good news, Appledore Shipbuilders Limited will expand its workforce to a total of 751 within three years. I wish the company every success in winning the orders to bring this about."
Regional Selective Assistance grants are available is Assisted Areas. The grants are available to support projects that will create or safeguard jobs. Grants are individually assessed against national criteria. The amount awarded depends on the area, the needs of the project, the number of jobs created or safeguarded and the impact the project will have on the economy.
The Shipbuilding Intervention Fund is Government grant aid available to help UK Shipbuilders win contracts. It is a contract related grant which is available to assist UK shipbuilders win orders against low cost non-European yards. Grants to shipyards are regulated by the EU's Shipbuilding Regulation and the UK pays the maximum rate permitted which is 9% for ships costing over 10 million euros and 4.5% for smaller ships. All contract aid (including Shipbuilding Intervention Fund) is to be abolished on 31 December 2000.
Further details about SIF and RSA can be found on the DTI's website at http://www.dti.gov.uk
Boo.com provisional liquidator Mick McLoughlin of KPMG said on the 22 May: "Negotiations with potential purchasers of Boo.com began over the weekend and are continuing throughout this week. We are looking towards making a decision on a possible sale of the business in whole or in parts within days. But there remains the possibility that a successful sale will not be achieved and the liquidation will continue to its conclusion.
"To protect the business' remaining funds, we have today had no option but to make some 220 redundancies among the company's 250 staff. We are aware that a number of agencies and outside parties are making job offers to many of those made redundant.
"We continue to receive extremely valuable co-operation from the remaining Boo.com staff who are assisting with the sale process."
*** Forthcoming Creditors Meetings ***
Contributed byhttp://www.insolvency.co.uk
For more detailed information and ALL the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.co.uk
From 29/05/2000 to 06/06/2000 Number of Creditor meetings : 134 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 30/05/2000 Capital Foods Investments Ltd 10.00 am Glasgow SSD Realisations Ltd 11.00 am Glasgow 31/05/2000 A & P Krebs Ltd 11.00 am Aberdeen 01/06/2000 Headmasters Properties Ltd 12.00 pm Glasgow 23 Administrator Calling a meeting of Creditors 30/05/2000 First Aid Service Ltd - The 10.00 am Rochdale 31/05/2000 Benford Plant Hire Ltd 11.00 am Birmingham 48 Receiver calling unsecured Creditors Meeting 02/06/2000 DJM Group Ltd 10.30 am Newcastle-u-Tyn Sharpfact Ltd 10.30 am Birmingham 06/06/2000 North End Oil Ltd 11.00 am Guildford Pedley Retail Practices Ltd 10.30 am Sheffield 84 N. Ireland - Creditors Voluntary Liquidation 02/06/2000 Picture Framing Factory Ltd -The 12.00 pm Dungannon 98 Creditors Voluntary Liquidations 30/05/2000 Apex Fabrications Ltd 11.30 am Liverpool Auto Alarm & Sound Systems Ltd 11.30 am London Bretton Fisheries Ltd 03.45 pm Peterborough Brighton & Hove Racial Equality Serv L 11.30 am Brighton Cardphone International Ltd 12.00 pm London Centrefirm Ltd 11.30 am Manchester Clubmoor Developments Ltd 12.00 pm Warrington Designspace Ltd 12.00 pm London Disk Media Ltd 10.30 am London European International (Trading) Ltd 12.00 pm Sheffield Freshpack Produce Ltd 12.30 pm Manchester M G Contracts Ltd 12.00 pm Glasgow MIC Fabrications Ltd 11.00 am Holywell New Dawn Training & Recruitment Ltd 11.00 am London Permatic Engineering Ltd 11.30 am Chandlers Ford Pine Market Ltd 12.00 pm Ashford R M B Fabrications Ltd 02.15 pm Birmingham Red Crest Foods Ltd 11.45 am Manchester Rightscan Ltd 02.30 pm Chandlers Ford Roman Keflay Ltd 10.30 am Weybridge Sabre Connective Systems Ltd 10.15 am Gatwick Shampaan Balti House Ltd 11.00 am London Wheatcroft Bakeries Ltd 11.00 am Southend-on-Sea 31/05/2000 Alchymie Ltd 11.30 am London Attwood & Sawyer Ltd 12.00 pm London Belmont Plastics Ltd 11.00 am Barnwood Cubacohiba Cafe Bar Restaurant Ltd 02.00 pm London D W Kersey Ltd 12.00 pm Reading Design & Print (Sussex) Ltd 02.30 pm Crawley Flexible Technology Solutiuons Ltd 01.30 pm Arundel Ganus Engineering Co Ltd 11.00 am Dartford Glendale Freight Ltd 11.30 am Preston Greenwich Mean Time Ltd 12.30 pm Portsmouth Icefield Ltd 11.00 am Bristol K S D Self Drive Ltd 10.30 am Leeds M-Tech Connector Technology Ltd 11.15 am Bately Miles Smith Plc 11.00 am London P J Ambler Construction Ltd 11.30 am Chatham Penarth Ltd 11.00 am Harpenden Pershore Poultry Ltd 11.00 am London Prime Drive (UK) Ltd 10.30 am Liverpool Riverbest Ltd 12.30 pm London Salida Exhibition Services Ltd 11.00 am Bristol Segar Electrics Ltd 12.00 pm London Showguard UK Ltd 11.30 am Southampton Speed 7209 Ltd 11.30 am Arundel Tag Sale Co Ltd - The 02.30 pm Lutterworth Theme Leisure Co Ltd - The 11.15 am Bately Xknot Ltd 10.30 am Birmingham 01/06/2000 Alugraphics Ltd 11.00 am Croydon Aura Business Systems Ltd 11.30 am London Bettermake Ltd 12.00 pm Cardiff Campsie Chocolates Ltd 12.00 pm Glasgow Carnell Automotive Ltd 10.15 am Bately Chartmere Ltd 11.30 am Ilford Cliffe (Holdings) Ltd 12.00 pm London Cliffe Construction Ltd 12.00 pm London Cliffe Plant Ltd 12.00 pm London Cowbridge Valeting Centre Ltd 12.00 pm Cardiff Eastgate Motor Co (Cowbridge) Ltd 10.30 am Cardiff Evolution (UK) Ltd 11.00 am Leicester Goldlyne (UK) Ltd 11.30 am London HGV Commercial Centre Ltd 11.00 am Birmingham JMB Fuels Ltd 11.30 am Cardiff Lewis Radio (Southgate) Ltd 10.30 am London Lightfoot International Ltd 11.30 am Lutterworth M G Foundry Ltd 11.00 am Nottingham Motacity UK Ltd 10.15 am Bately NCK Ltd 12.00 pm London Newton Construct & Manage Serv Ltd 10.30 am Castle Orange Park Couriers Ltd 02.30 pm Richmond Premium Music Co Ltd - The 03.00 pm London Smart Technology (UK) Ltd 11.00 am Birmingham Staffordshire Comm Warehousing Ltd 11.30 am Stoke-on-Trent Thames Valley Heat Treatment (1986) Lt 01.15 pm London Utopia Landscapes Ltd 11.00 am St Albans Whites Restaurant (Oxford) Ltd 11.00 am Worcester 02/06/2000 Allfast Ltd 11.30 am London Appleshield Ltd 12.00 pm Ashford Blenrose Ltd 11.00 am Northampton Celtic Electronic Services Ltd 10.30 am Cardiff Centrestop Ltd 12.00 pm Manchester Collingwood Barham Ltd 11.00 am Birmingham Direct Lamps Ltd 10.15 am Southend-on-Sea Estate Marketing Services Ltd 11.00 am Bristol GND Engineering Ltd 11.00 am Prescot Hudson Crown Ltd 02.30 pm London Ink Jet Addressing Ltd 11.00 am London Oceanlite Ltd 02.00 pm Hartlepool Pegasus European Ltd 11.00 am Somerset Ultraline Ltd 11.00 am London 05/06/2000 21st Century (UK) Ltd 10.30 am London AGN Linkways Ltd 11.30 am Hornchurch Ambassador Data Products Ltd 11.00 am Basingstoke Birmingham & Midland Canal Carry Co Lt 01.00 pm Birmingham CBS Building & Maintenance Ltd 11.30 am Altrincham Elite Appointments (UK) Ltd 12.00 pm Gerrards Cross Encore UK Ltd 11.00 am Manchester M & J Post Ltd 10.15 am Edgware Noahs Ltd 11.30 am Winchester Precision Developments Ltd 12.00 pm Woodlesford Pristine Products Ltd 02.30 pm London Steart Hse (Burnham-on-Sea) Manag Co L 11.00 am Salisbury TGI Digital Ltd 10.30 am Watford 06/06/2000 69 Diving Ltd 11.30 am London Activecross Ltd 11.30 am Preston Agrispares (UK) Ltd 11.00 am Corsham Alperton Supplies Ltd 11.30 am Birmingham B + E Technology Ltd 10.45 am Bromley Caledonia Golf & Leisure Ltd 10.00 am East Linton Coleway Service Stations Ltd 10.30 am Newport Display Imaging Services Ltd 02.30 pm Paddington Lynch Contracts Ltd 10.45 am London Memonew Ltd 10.30 am Newport Mosaic Direct Ltd 10.15 am Salisbury Old English Taverns Ltd 11.00 am Swindon P C Warehouse (MK) Ltd 11.30 am Leighton R & D Draughting Ltd 11.00 am Leeds Rose & Tyler Transport Ltd 11.00 am Nottingham Rosedale Developments Ltd 11.30 am Southampton Scon Ltd 11.00 am Harpenden Wakefield Group Ltd - The 10.30 am Wakefield World Sports Agency Ltd - The 10.30 am Droitwich Spa
Sorry but this service is not available this week - we hope to resume normal service next week.
The decline in technology shares forced many European firms to postpone flotations. In Italy, Tiscali, an Internet service provider, pulled plans for a share sale. A Swedish online retailer, letsbuyit.com, put off its listing in the German Neuer Markt. In the UK, Telecity, an Internet infrastructure company, and YES Television, a video-on-demand supplier, also cancelled flotations. However Prudential Assurance said it would proceed with the sale of part of its Internet bank, EGG, which it values at 1.1 pounds billion-1.5 billion ($1.6 billion-2.3 billion).
British Airways announced annual losses of 244m pounds ($393m), but its new chief executive, Rod Eddington, hinted that BA would still be at the forefront of European consolidation. KLM Royal Dutch may be an acquisition target after the collapse of its joint venture with Alitalia.
Falling profits at Marks and Spencer, forced it to cut its dividend for the first time to secure future investment. However, business seemed to be improving as profit forecasts were revised upwards. That is lucky for the chairman, Luc Vandevelde, who has pledged to resign if profits and sales do not improve. The company's shares jumped 18%.
iX, an exchange being created by the merger of Deutsche Borse and the London Stock Exchange, came a step closer with the approval of the deal by the Frankfurt exchange's supervisory board. The next hurdle is that both exchanges must get the agreement of 75% of their shareholders -- a tricky task in London, where small and medium-sized brokers fear added costs and loss of business to Germany.
Tradepoint, a London-based electronic exchange, and the Swiss Stock Exchange, the world's ninth-largest, said they were in exclusive negotiations about a possible merger to create their own pan-European share-trading system. Unlike iX, the merger would include clearing and settlement systems, all-important in driving down costs and grabbing a larger share of European business.
Source - The Economist
MERGER CLEARANCE
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Proposed acquisition by CMG plc of Admiral plc
Proposed acquisition by Nationwide Mutual Insurance Company of certain assets of National Westminster Bank plc, namely Asset Management Holdings plc, the holding company of the Gartmore group of companies.
Proposed acquisition by Focus Do-it-all Group Limited of Wickes Plc.
Acquisition by the Co-Operative Wholesale Society of the Co-Operative Retail Society.
The Government's commitment to making the UK the best place in the world for e-commerce took a major step forward on the 25 May 2000, when the Electronic Communications Bill received Royal Assent.
E-Minister, Patricia Hewitt said:
"This Government is determined to make the UK the best place in the world for e-commerce. To realise this vision, we need a modern, flexible market framework, confident consumers and businesses, and a government that leads the way. The Electronic Communications Act is a significant step towards achieving all of these.
"This new legislation will create confidence in doing business electronically, giving legal certainty to electronic signatures and encouraging the development of secure and trusted e-commerce services. The Act gives us powers to sweep away obstacles in existing laws, which insist on the use of pen and paper, giving people the electronic option wherever possible. This will lead to major changes in the way Government delivers its services to citizens and businesses."
Cabinet Office Minister, Ian McCartney said:
"The Electronic Communications Act is a fundamental element of the Modernising Government programme. We have already launched initiatives to make the UK a world leader in e-commerce and to make information technology available to all. This Act is an important instrument for progress towards the target of making all Government's services available electronically by 2005, ensuring that we play a full part in the digital revolution."
Earlier this week, the Cabinet Office identified some of the departmental priorities for using the new Act to update legislation to allow for the electronic option. Proposals included:
The Government has already taken steps to allow tax returns to be filed electronically.
The Electronics Communications Act received Royal Assent on the 25 May 2000. Copies are available from The Stationery Office and will also shortly be available on The Stationery Office website: http://www.uk-legislation.hmso.gov.uk/acts.htm
The Electronic Communications Bill was introduced in the House of Commons on 18 November 1999.
The Act implements a crucial element of the Electronic Signatures Directive concerning the legal admissibility of electronic signatures and is an important contribution to creating single market in secure electronic commerce.
The Act comes into force immediately, with the exception of Part I, Part II section 7 (electronic signatures and related certificates) and Part III sections 11 and 12 (telecommunications licences). Sections 7, 11 and 12 will be brought into force two months after Royal Assent (by means of a statutory instrument). Part I of the Act is subject to a "Sunset Clause". If a statutory scheme has not been set up within five years then the Government's power to set one up lapses. The Government has already announced that Part I will not be brought into force unless the Scheme fails.
Details of the Government's priorities for updating legislation under Clause 8 of the Electronic Communications Act to allow electronic communications or storage were set out in a written PQ answered by Ian McCartney on Wednesday 24 May. (Hansard 24 May col.532w)
The office of the e-Envoy is concerned that regulatory regimes affecting specific sectors of business are modernised and initial priorities have been identified. Alex Allan is initiating a discussion through his website http://www.e-envoy.gov.uk to allow people and businesses to give their views on the priority orders (set out in the PQ answered by Ian McCartney on Wednesday 24 May) and to suggest other potential uses of the order making power.
16 June 2000 The ICM Fellows Luncheon Royal Air Force Club Piccadilly, London W1.Tickets are #39.50 plus vat each. To reserve tickets contact the ICM Training Department on 01780-722907 fax 01780 721271 e-mail training@icm.org.uk 20 June 2000 The ICM AGM at 3.30pm The Water Mill, Station Road, South Luffenham, Oakham, Leics, LE15 8NB 5 July 2000 E-Commerce for the Credit Manager New ICM Conference Kenilworth, Warwickshire Contact the ICM Training Department on 01780-722907 e-mail training@icm.org.uk Tuesday 3 October 2000 ICM Credit Scotland 2000 (Conference and Exhibition) Hampden Park Football Stadium, Glasgow Anyone interested in attending (or exhibiting) should contact David Ancliffe on (0131 200 8686). Friday 20 October 2000 Millennium Annual Dinner of the ICM Drapers Hall, City of London.
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