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 26
Dated: 2 July 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKONE IN FOUR FIRMS CITE SKILL SHORTAGE
New research from National Skills Task Force
One in four employers seeking to fill jobs are unable to do so because of a lack of available skills, according to new research from the National Skills Task Force (NSTF), released on Tuesday 27 June 2000.
The NSTF, set up to advise Government on mismatches in supply and demand of skills to the economy, announced the research ahead of the launch of its final recommendations at a London conference attended by Secretary of State for Education and Employment David Blunkett.
The research, which included a telephone survey of 23,000 employers, shows that respondents claim almost 2 million of their employees are not fully proficient to do their jobs.
The jobs most affected by skill shortages are those in craft and technical areas (40% of all skill shortages) and the skills most difficult to find are practical and technical skills (affecting nearly half of all skill shortages).
The research highlights the low level of attainment in vocational qualifications in the UK - Germany has three times the proportion of its workforce holding a vocational qualification at Level 3 than the UK.
The low level of attainment by young people in mathematics and hard science subjects is found to be a key factor in our low level of vocational attainment. Less than half of our young people achieve a good GCSE in mathematics and only 10% go on to study mathematics at GCE A level.
Chris Humphries, Chair of the National Skills Task Force and Director General of the British Chambers of Commerce said:
“Skill shortages are impacting heavily on firms’ ability to compete, and act as a drain on business productivity. Our recommendations outline the measures necessary to ensure we develop a high skill high value added economy, one in which the right mix of knowledge and skills can enable our people to be productive, imaginative and motivated in their work.”
BYERS: £1.5M IN THE POT FOR THE CERAMICS INDUSTRY
Trade and Industry Secretary Stephen Byers on the 29 June announced £1.5m funding to help the UK's ceramics industry raise its performance so it can compete in world markets.
The five-year grant will support the Ceramics Industry Forum (CIF) in its work to improve the sector's productivity and competitiveness. It is the first of a package of measures due to be announced to help the North Staffordshire area.
The CIF will also deliver a range of programmes to improve performance in managing change, people and resources in the industry. It includes representatives from industry, business support agencies and trade unions.
Mr Byers said:
"The Forum will prove to be a vital tool for the ceramic sector as a whole, and the Stoke-North Staffs area in particular, as it strives to maintain and improve its competitiveness in today's intensely demanding business environment.
"The pace of change in the global economy means that companies in the UK will have to be right at the competitive edge if they are to prosper.
"The Ceramics Industry Forum is an initiative that has been prepared by the industry for the industry. It will involve everyone in the company from junior employees to chief executives.
"Public-private partnerships are the way forward. By working together, the Government, industry, trade unions and business support agencies, can make the industry more competitive."
The CIF programme seeks to improve performance by offering the following:
The Ceramic Industry Forum is the latest in a series of Government initiatives to encourage industrial sectors to raise their competitiveness. It follows on from the successful Society of Motor Manufacturers and Traders (SMMT) Industry Forum model. The DTI-supported SMMT Industry Forum programme is helping businesses in the automotive supply chain to achieve dramatic improvements in performance; for example, doubling of productivity and reducing defects by 65 per cent.
IMPORTANT MILESTONE REACHED FOR PART-TIMERS ON 1 JULY
Stephen Byers, Secretary of State for Trade and Industry, last week announced that new part-time rights coming into force on Saturday 1 July will help stamp out discrimination for over 400,000 mainly women workers on pay, pensions, training and holidays. This will ensure that all six million part-time workers are now treated as favourably as full-timers.
As well as giving part-timers the same rewards as full-timers on a pro-rata basis, the regulations are designed to promote flexible working as well as encouraging people to achieve a better work life balance.
Women make up 80 per cent of Britain's six million part-timers. Though the majority are treated as favourably as full-timers, the new legislation will end unjustifiable discrimination for all six million where it persists.
Stephen Byers said:
"Where discrimination remains it must be ended. On Saturday we reach an important milestone for employment rights when over 400,000 part-timers should see an improvement in their conditions.
"Part-time work is a vital part of both the modern workplace and the modern economy. It is essential that part-time work is properly valued and rewarded. The Government is strongly committed to promoting the status and flexibility of part-time work and to providing minimum standards.
"Businesses need to draw on the greatest pool of talent possible. Our measures will enhance competitiveness by encouraging more skilled people back into the labour market."
The new measures should encourage more people to consider working part-time as their circumstances change. Traditionally part-time working has been associated with parenthood. But it can also suit carers, students, the retired and those preparing to retire. And it can provide an income for entrepreneurs when they are first starting out on a new venture.
Information on the new measures is provided on the DTI website www.dti.gov.uk/er/ptime.htm This has been produced by the DTI in discussion with a broadly based working group including representatives from small businesses and the CBI, TUC, Equal Opportunities Commission and personnel specialists. Drawing on this expertise has ensured that the information is tailored for the people who need it most.
Companies House has won the Digital Britain Award for Best Content & Document Management/Workflow Solution.
The award recognises Companies House's achievement in developing a document management system that, through Companies House Direct, gives customers access within minutes to images of 25 million company documents. The system has been designed to meet the needs of a wide range and large number of customers. The judges commended Companies House for its focus on customer requirements and the consistently high level of service it provides.
John Holden, Chief Executive at Companies House, said:
"This is the second major award the team at Companies House has won this year. I am particularly pleased that on this occasion we were able to beat stiff opposition from the private sector, and to demonstrate our commitment to customers through the use of technology in the development of systems, products and services."
ECGD DETERMINED TO COMBAT BRIBERY IN OVERSEAS CONTRACTS - CABORN
Richard Caborn, the Minister for Trade, last week said that ECGD would do it all it could to help the Government in its determination to press ahead with the elimination of bribery in overseas contracts involving UK exporters.
Speaking at a meeting of OECD Trade Ministers in Paris, Mr Caborn said:
"The payment of bribes to secure overseas contracts is deplorable. Not only is the this type of payment morally indefensible but I also firmly believe that it results in a distortion of trade and so ultimately has a very negative effect on the exporting community. Bribery is bad for the importing country and also harmful to those who wish to trade with it.
"The UK has signed up to the OECD Convention on Combating Bribery and I have asked ECGD to follow this through in the Export Credit Working Party by encouraging all members to adopt systems which will enforce this on a multilateral basis.
"In parallel with this ECGD is already working hard to redraft its own documentation to ensure that corrupt activity goes unrewarded. ECGD is on course to introduce the new documentation later this summer."
The Home Office published proposals for the reform of the law of corruption a week ago. The proposals take account, among other issues, of the UK's international obligations and reflect the UK's support for the OECD anti-bribery programme.
EUROPE'S LATE PAYERS
Europe is the slowest of all world regions to pay UK exporters, a comprehensive survey of more than 900 companies revealed on Thursday, 29 June.
International credit insurer NCM, which insures some EURO 45 billion (£27 billion) of UK exports each year and the Institute of Export, jointly carried out this eighth Annual Survey of export activity. A similar survey was carried out in the Netherlands.
It showed 37 per cent of UK businesses trading in the European Union experience delays an eight per cent increase on last year. Italy, France, Spain and Greece are particularly slow.
Comparisons with other areas are:-
Middle East : reported by 22 per cent of companies as paying slowly,
Latin America : 16 per cent say it pays slowly
Far East : paying faster, with 17 per cent reporting delays - a decrease of 9 per cent over last year
Africa : 17 per cent report delays
North America : 15 per cent report delays. This is a decrease of 4 per cent over last year.
THE SURVEY BRINGS A MIXED MESSAGE FROM EXPORTERS ON THE EURO
OTHER MAIN FINDINGS
Credit Insurance
Internet
Government
Banks
Organisations used by Exporters
DUTCH EXPORT SURVEY
In a similar partnership to that of NCM UK and the Institute of Export, NCM in the Netherlands and FENEDEX (the Dutch Export Federation) also jointly commissioned a survey of Dutch exporters this year.
Main results from 280 replies (announced 28 June) were:
Cardiff-based NCM is one of the world's leading credit insurers, protecting companies whose buyers fail to pay. Last year it insured some EURO 45 billion (£27 billion) of UK exports to 250 countries. It is part of the NCM Group, a privately-owned company with headquarters in Amsterdam, which annually insures some EURO 126 billion (£85 billion) of world trade.
Swiss Re, one of the world's largest reinsurers, is the majority shareholder of the NCM Group. As an AAA rated company, it offers the strongest possible financial backing for risks exporters run and also improved access to the reinsurance market.
The Institute of Export represents UK exporters. It sets and seeks to raise standards of export management and practice by formal and informal education and training. It is an entirely private sector organisation, an educational charity, and enjoys Royal Patronage.
The Major Issue Consultancy is an independent consultancy commissioned to analyse these annual surveys and investigate the findings.
For further information , please contact: Ian Campbell (Institute of Export) on +44 (0) 20 7247 9812 (ian@export.org.uk); Gary Hicks (NCM) on + 44 (0) 20 7248 6121 (gary.hicks@ncmgroup.com); or Mark Runiewicz (The Major Issue Consultancy) on +44 (0) 20 7556 7133 (mark@majorissue.com).
On 19 June 2000 Winding Up Orders were made in the High Court of Justice against Century Mortgages Limited and Mortgage Control Services Limited, pursuant to petitions presented on 6 October 1999 by the Secretary of State for Trade and Industry on grounds of public interest. The petitions were presented following enquiries made by the Companies Investigation Branch of the DTI under the provisions of Section 447 of the Companies Act 1985.
The Official Receiver has been appointed liquidator of the companies.
Century Mortgages Limited was incorporated on 20 September 1995 and traded as a mortgage broker from Northallerton, North Yorkshire, offering remortgage packages to the public through a network of over 3,000 self-employed licensees.
Mortgage Control Services Limited was incorporated on 16 June 1998 and traded as a managed service provider from Northallerton, North Yorkshire, operating mortgage payment schemes on behalf of the clients of Century Mortgages Limited.
In making the Order to wind up Century Mortgages Limited, Neuberger J relied on the grounds put to him by the Secretary of State which included:-
Mortgage Control Services Limited was found to be an integral part of the business carried on by Century Mortgages Limited
The DTI will be issuing more information on this case shortly.
The registered office of Century Mortgages Limited and its principal trading address is Century House, Standard Way, Thornfields Business Park, Northallerton, North Yorkshire, DL6 2XQ.
The registered office of Mortgage Control services Limited and its latest trading address is Unit 2, Standard Way, Thornfields Business Park, Northallerton, North Yorkshire, DL6 2XQ.
The petitions were presented under Section 124A of The Insolvency Act 1986.
All public enquiries concerning the business affairs of the companies should be made to the Official Receiver at the following address:
The Official Receiver
The Insolvency Service
Public Interest Unit
PO Box 203
21 Bloomsbury Street
London
WC1B 3QW
*** 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 03/07/2000 to 10/07/2000 Number of Creditor meetings : 157 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 04/07/2000 Archie Crocket Finance Ltd 10.00 am Glasgow Bob Engineering Ltd 02.00 pm Glasgow Target Games (UK) Ltd 12.00 pm Edinburgh 06/07/2000 Glasgow & Rotterdam Developments Ltd 11.00 am Glasgow 07/07/2000 Westburn Trading Ltd 12.00 pm Glasgow 23 Administrator Calling a meeting of Creditors 03/07/2000 Beatties of London Ltd 10.00 am London 04/07/2000 Langlawn Construction Ltd 10.00 am Sheffield 06/07/2000 Bulgarian Vinters Co Ltd 02.00 pm London Universal Protective Coatings Ltd 11.00 am Newcastle-u-Tyn 48 Receiver calling unsecured Creditors Meeting 03/07/2000 Asys Ltd 10.00 am London Osicom Ltd 10.00 am London Otek Ltd 10.00 am London White Box Technology Ltd 10.00 am London 04/07/2000 Cumnock Knitwear Co Ltd 11.00 am Glasgow 06/07/2000 748 SPS Ltd 10.00 am London Alkron Packers Ltd 01.30 pm Leeds Ark Export Services Group Ltd 12.30 pm Leeds Shaw Export Services Ltd 11.30 am Leeds 07/07/2000 London Scottish Ventures Ltd 11.00 am Bristol Suga Europa Ltd 02.00 pm Birmingham 67 Scotland - Receiver calling Meeting of unsecured Creditors 07/07/2000 Ecosse Management Services Ltd 12.00 pm Aberdeen 98 Creditors Voluntary Liquidations 03/07/2000 Accelerated Solutions Ltd 10.30 am Warwick Adam Window Centre (Lincolnshire) Ltd 11.15 am Leeds Customflow Ltd 12.00 pm Hale Direct Accountancy (Northern) Ltd 12.00 pm Sheffield Direct Accountancy Ltd 10.30 am Sheffield F J Thornton & Co Ltd 12.00 pm Walsall Greaves of Sheffield Ltd 10.30 am Nottingham Handiland Ltd 02.00 pm Newport Harplist Investments Ltd 10.30 am Chandlers Ford Jastec Solutions Ltd 10.15 am Barnsley M & P Lighting Ltd 11.00 am Crawley Moores Marr Bradley Ltd 10.30 am Milton Keynes Ongar Industrial Flooring Services Ltd 11.30 am London P B C Installations Ltd 10.30 am Southend-on-Sea Photron Ltd 02.00 pm Shepperton Professional Development & Training Lt 12.00 pm London Red Ball Express Ltd 11.30 am Warwick Retailing Solutions Ltd 03.00 pm Hanley Rococo Restaurant Ltd - The 11.30 am Kings Lynn Spark Entertainment Ltd 11.00 am London Synchra Ltd 02.30 pm Darlington UCT (UK) Ltd 11.00 am London Wickham Building Services Ltd 11.30 am Chandlers Ford 04/07/2000 A & A Ltd 10.30 am Sheffield A J Coxhead Automobile Rest (1996) Ltd 10.30 am London Aertec Technologies Ltd 11.00 am Brighton Albion Trade Warehouse Ltd 11.30 am Manchester Blue Sky Brands Ltd 12.00 pm London Bowers Engineering Ltd 10.30 am South Normanton Bulk Earth Moving Supplies Ltd 12.30 pm London Cadi Stat Ltd 11.35 am Birmingham Childrens Funhouse Leisure Co Ltd - Th 01.30 pm London Civic Develop Trust (LTD by Guarantee) 03.15 pm London Cream (UK) Ltd 11.30 am Liverpool Fritiders UK Ltd 11.30 am South Normanton Home Heating & Plumbing 1987 Ltd 10.45 am Dundee Imperial Clothing Co Ltd 10.00 am Warwick Ivanhoe Garage Ltd 10.15 am Leeds J & R Lee Ltd 10.00 am Manchester Jayhaven Ltd 10.30 am London LCS Engineering Services Ltd 10.30 am Birmingham Luckswitch Lighting Ltd 11.00 am Wadebridge Photoarts (UK) Ltd 10.30 am West Bromwich Piercelite Ltd 11.00 am Birmingham Platinum Industries Ltd 11.30 am Cardiff Procad 3D Ltd 03.00 pm Bromsgrove Regal Products Ltd 02.30 pm London Selby Ltd 02.00 pm Halesowen Singletravel Ltd 12.05 pm Birmingham Snowstorm Technology Ltd 01.00 pm London Southern Magnetics Ltd 10.30 am Salisbury Stagbury Ltd 12.00 pm London Strachan Henshaw Machinery Ltd 02.30 pm Bristol UK Insulation Conversions Ltd 01.45 pm London UK Insulation Holdings Ltd 02.30 pm London UK Insulation Supplies (NE) Ltd 01.45 pm London Uniun Build Ltd 11.00 am Sunderland Westrope Bros Transport Ltd 11.00 am Norwich Westrope Eurofreight Ltd 10.15 am Norwich White Book Ltd 10.30 am Warrington Wigham Transport Ltd 11.30 am Bingham 05/07/2000 Computer Seminars Ltd 10.00 am London Dash Investments Ltd 12.00 pm London Guardian International Ltd 11.30 am Kingston H S Bassi & Sons (Manufacturing) Co Lt 12.00 pm London Meccano Toys Ltd 12.15 pm Croydon Middle East Market & Comm (London) Ltd 11.15 am Bromley New Taysters Ltd 10.00 am Reading Redwood Agencies Ltd 11.15 am Broxbourne Ropro Direct Ltd 12.00 pm Worcester Scrumptious Sandwich So Ltd -The 11.00 am Reading Simply Kitchens Installations Ltd 11.00 am Rotherham Tyne Valley Bulk Ltd 11.00 am Sunderland Wells Retail Ltd 12.00 pm London 06/07/2000 A Greig Ltd 11.00 am Bolton Aztec Printing Ltd 10.00 am London Churchfield (Leeds) Ltd 11.00 am Sheffield City Communications (Europe) Ltd 12.00 pm London Classic Fabrication Co Ltd - The 03.30 pm Chandlers Ford Commercial Securities Ltd 11.30 am Manchester Crown Sponsorship UK Ltd 12.00 pm Manchester D H K Ltd 11.30 am Altrincham Dalesman Glass Ltd 11.45 am Holmfirth David Elliott Produce Ltd 10.30 am Newcastle-u-Tyn Eroder House Ltd 02.30 pm London G C Securities Ltd 12.00 pm London Gold Grapes Ltd 02.30 pm London ICU Ltd 11.00 am Gosforth Jarret Electrical Ltd 11.00 am Nottingham John McCabe (Wholesale Meats) Ltd 02.30 pm Liverpool Kamate Dealers Ltd 02.15 pm London Lordcross Ltd 04.00 pm London Majestic Windows Ltd 11.30 am Manchester Millennium Wholesale Meats Ltd 02.30 pm Liverpool Oakwood Motor Co Ltd 11.45 am London P T Edge Ltd 11.30 am Blackburn Pinders of Birmingham (Aldridge) Ltd 12.00 pm Walsall Premier International Spirits Ltd 03.30 pm Lutterworth Quadrant Advertising & Marketing Ltd 10.30 am Warrington Quik Internet International (UK) Ltd 11.30 am Liverpool Rix Motor Co (Ollerton) Ltd 12.00 pm Hale Set Square Designs Ltd 02.00 pm Halesowen Set Square Management Ltd 11.00 am Halesowen Sewbic Ltd 02.00 pm Newport Silverline (Torbay) Ltd 03.00 pm Brixham Sorgana Ltd 11.00 am London Sprintgrace Ltd 11.00 am London Sticker Shop Ltd 11.00 am Harpenden Valentine Fabrications Ltd 11.30 am Manchester Wealden Press Ltd 11.00 am Hove 07/07/2000 Cameron Cleaning Services Ltd 11.00 am London DHS Engineering Ltd 11.00 am Brighton Dicas (Imports) Ltd 03.30 pm Southend-on-Sea Goldview Designs Ltd 10.15 am Bately Inter Engineering & Design Ltd 11.00 am Birmingham Maplespeed Ltd 11.30 am Preston Richard Borley Engineering Ltd 11.30 am Worthing Richardson (London) Ltd 10.30 am Sutton Roxydrive Car Care Centre Ltd 11.30 am London Simar (UK) Ltd 11.15 am Edgware Spring Lane Pro & Equal Play Ad Pk Ltd 11.30 am London T D Ltd 10.30 am Sheffield Tiltedge Ltd 11.00 am London Tinco Ltd 02.30 pm Southend-on-Sea Top Deal Trading Ltd 11.00 am Southgate do72.com Ltd 10.30 am Harrow 10/07/2000 Ask Internet Ltd 01.00 pm London Bar Clothing Ltd 03.00 pm London Budene Ltd 12.00 pm London C G Converters Ltd 03.00 pm Newport Interose Ltd 12.00 pm London Marbrook Total Office Supplies Ltd 11.00 am Marlow PDC Engineering Construction Ltd 10.15 am Wakefield Plastic Pipework Systems Ltd 11.00 am Birmingham Precise Proofing Ltd 11.30 am Manchester Xpress Vinyl Ltd 04.00 pm London
TW LW TW LW
USA 1.50 1.51 Canada 2.22 2.23
Austria 22.01 21.91 Portugal 320.70 319.27
France 10.49 10.44 Belgium 64.53 64.24
Finland 9.51 9.46 Italy 3097.38 3083.58
Germany 3.13 3.11 Sweden 13.38 13.14
Holland 3.52 3.50 Switzerland 2.47 2.47
Spain 266.16 264.98 Ireland 1.25 1.25
Australia 2.50 2.53 Denmark 11.94 11.87
Hong Kong 11.70 11.83 Euro 1.59 1.59
Africa Com 10.30 10.47 Saudi Arabia 5.63 5.69
India 67.02 67.72 Malaysia 5.70 5.76
Singapore 2.60 2.63 Norway 13.13 13.12
Japan 158.63 160.17
TW This week LW Last week.
Hornby announced pre-tax profits of 1.21 million pounds, on turnover of 21.5 million, for the year ending 31st March 2000. Earnings per share stand at 9.6p.
Precoat International announced pre-tax profits of 3.43 million pounds on turnover of 62.9 million, for the year ending 30th April 2000. Earnings per share stand at 15.5p.
Vibroplant, the construction plant hire group, announced pre-tax profits of 3.43 million pounds, after exceptional charge, on turnover of 55 million, for the year ending 31st March 2000. Earnings per share stand at 4.2p.
WT Foods, producers of ethnic foods, announced pre-tax profits of 6.65 million pounds, on turnover of 91.4 million, for the year ending 31st March 2000. Earnings per share stand at 2.65p on increased capital.
BSKYB, the British satellite-TV company, paid 1.2 billion pounds ($1.billion) for the right to show 66 football matches from Britain's premier league over the next three years. NTL, a cable company, paid 328m pounds to show 40 pay-per-view games. The BBC lost the highlights to its commercial rival, ITV.
An initial public offering of 20% of EGG, an Internet bank controlled by Prudential, the UK life insurer, was relatively successful. The float valued Egg at 1.3 billion pounds ($2.0 billion), and the shares closed up 11% in the first day's trading.
A profits warning from Computacenter, a UK computer systems and services company, sent the company's shares down 35%. The company said that spending thought to have been delayed by Y2K fears had not materialised, and that customers were delaying IT investment to assess their e-commerce needs.
Belgium's Interbrew is to buy the brewing interests of Bass, the UK leisure firm, for 2.3 billion pounds ($3.5 billion), only weeks after acquiring the beer interests of Britain's Whitbread. Interbrew will become the world's second-largest brewer, beating third-placed Heineken by a head.
Oyyx, a diamond company planning to obtain a London stockmarket listing by a reverse takeover of Petra, a Bermuda-based diamond company, was forced to pull out of the deal. Petra's adviser, accountants Grant Thornton, had said it would not act for the firm if the deal was approved. Oryx has links with Zimbabwe's army and possibly Congo's president.
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 Stanton Plc of Biwater Industries (Coney Green) Limited
Proposed acquisition by GKN Plc of the automotive driveline facility of Adam Opel AG
STEPHEN BYERS ACCEPTS UNDERTAKINGS FROM GRANADA GROUP AND RENTAL HOLDINGS
Stephen Byers, Secretary of State for Trade and Industry, announced on the 23 June that he has accepted satisfactory undertakings from Granada Group and Rental Holdings and that the proposed merger of their consumer rental businesses to form Box Clever will not therefore be referred to the Competition Commission. This decision is in accordance with the advice of the Director General of Fair Trading (DGFT).
Mr Byers said:
"Rental is an important option for particular groups in our society, including the elderly, who may not wish to buy their TVs and VCRs outright and who rent for long periods of time. This merger may give Box Clever scope to exploit this customer group and I have acted to ensure that they are protected against this.
"On 19 April I announced that I had decided not to refer this merger to the Competition Commission provided that the parties gave undertakings to remedy the competition concerns raised by the merger. On 8 June I published draft undertakings and asked interested parties to comment on them to the OFT. Following that consultation, the DGFT has advised me that the undertakings are appropriate to remedy the adverse effects of the merger.
"I agree with the DGFT's advice and have therefore decided to accept the undertakings in lieu of a reference to the Competition Commission."
"The undertakings are designed to ensure that existing customers are not only protected against any future increase in rental charges, but are also free to take advantage of any offers made to new customers on identical terms. Specifically, the rental charge under existing contracts is fixed in perpetuity (except for any tax increases); and customers (both existing and new) cannot be charged an administration fee for upgrading equipment, except under direct-to-home contracts where the current charge is fixed. The undertakings also provide a one-off opportunity for the approximately 160,000 existing rental customers who have not upgraded or added to their equipment under contract for the last 5 years to upgrade to more modern equipment at the same rental or the current rental if lower."
The undertakings require the parties:
Section 75G of the Fair Trading Act 1973 (inserted by Section 147 of the Companies Act 19898 and amended by the Deregulation and Contracting Out Act 1994) enables the Secretary of State to accept undertakings as an alternative to making a merger reference to the Competition Commission. The Secretary of State must consider that such undertakings remedy the adverse effects of the merger specified by the DGFT which would otherwise have led him to make a reference to the Competition Commission.
In the long term who will pay the real cost of internet grocery shopping and home delivery? Will it be the environment - with increased bulk transport resulting in more traffic congestion and pollution? Or will it be the retailers who already carry around two thirds of the transaction cost? These are some of the questions asked by a Foresight consultation paper on retail logistics published last week.
Foresight is the UK's Government-led programme that brings together business, the science base and government to look ahead and think about what might happen in the future and what we need to do todayto shapee the future we want.
The report, '@ Your Service', aims to spark a UK-wide debate on the future of home delivery in an age of electronic shopping.
Launching the debate in London, Alan McKinnon, Chair of theForesight Retail Logistics task force, said:
"'The growth of e-commerce presents major new logistical challenges. As our supermarket chains have among the most advanced distribution systems in the world, they are well placed to meet this challenge. However, there is still great uncertainty about the rate at which e-grocery will grow and the types of logistical system that will evolve to support it. It is the logistics of picking and delivering customer orders that will largely determine the longer-term economic and environmental sustainability of this form of retailing."
" The '@ Your Service' report aims to stimulate debate on these issues and raise questions about the wider consequences of a major switch to home shopping. It focuses on the grocery sector as it is here that home shopping presents the greatest logistical challenges and where much of the pioneering work is currently being done. We welcome your ideas and comments."
Among the issues highlighted by the report are:
The Foresight consultation on retail logistics continues until 30th September 2000 and is open to all. The results will contribute to the Retail Logistics task force's vision for the future and priorities for action, to be announced in November 2000.
The Foresight consultation paper: '@ Your Service' (URN 00/896) is available at http://www.foresight.gov.uk or in hard copy by sending a fax to the Foresight Directorate at 020 7215 6760.
The Retail Logistics task force reports to both the Retail & Consumer Services and Built Environment & Transport Foresight panels.
The Foresight panel looking at Retail and Consumer Services has published two further consultation papers: Clicks and Mortar: the new store fronts (URN 00/648), on the future for electronic retailing, published 21 March 2000; and Bridging the Gap: building a partnership between Retail and Education (URN 00/891), also published on 28 June. Copies of both papers are available as above.
The Foresight panel looking at the Built Environment and Transport will be publishing a further consultation paper in July on the Future of the Construction Industry in the UK.
The UK Foresight programme brings together business, the science base and government to look ahead and think about what might happen in the future and what we need to do today to shape the future we want.
Foresight panels are looking at the future for: Ageing Population, Crime Prevention, Manufacturing 2020, Built Environment & Transport, Chemicals, Defence, Aerospace & Systems, Energy & Natural Environment, Financial Services, Food Chain & Crops for Industry, Healthcare, Information, Communications & Media, Materials, Retail & Consumer Services. There is a further industry-led panel looking at Marine issues and a cross-panel task force looking at the implications of e-commerce for business processes. All panels consider the implications of their findings for education, training and skills and sustainable development.
All Foresight panels are running consultations. Further information is available from http://www.foresight.gov.uk
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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