HM Treasury News Release

145/98                                        7 September 1998
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  GEOFFREY ROBINSON ANNOUNCES SMALLER QUOTED COMPANIES WORKING
                          GROUP (SQCs)

Paymaster General Geoffrey Robinson today announced the setting
up of a new Working Group aimed at identifying potential barriers
to growth of a key group of entrepreneurial publicly-owned
smaller companies, crucial to the UK economy.

Under the chairmanship of Derek Riches, Merrill Lynch Broker
Services, the Working Group will identify the potential barriers
to growth of Smaller Quoted Companies (SQCs) and make
recommendations.

Speaking in London to the CBI, Geoffrey Robinson said:

     "The UK's smaller quoted company sector is a vital part of
     the economy - a key driver of the UK's middle market.  It
     is a dynamic source of new wealth and employment and can
     act as an inspirational target for many ambitious unquoted
     companies.

     "We know from working with many companies in this sector
     that there are numerous financial and regulatory issues
     that can cause concern and frustration.  These issues can
     impede their growth and prospects.  I am sure that the
     members of the Group will be able to come forward with
     ideas which are in the best interests of smaller quoted
     companies and the wider interests of the UK economy."

The members of the Group are:

Derek Riches (Chairman)        - Managing Director, Merrill
                                 Lynch Broker Services
Brian Basham (Dep Chairman)    - Chairman, Equity Development
                                 Ltd
Andrew Baker                   - Partner, Wedlake Bell
Jamie Borwick                  - Chief Executive, Manganese Bronze
                                 plc
William Dalton                 - Chief Executive, Midland Bank
                                 plc
Cliff Hardcastle               - Chairman, Densitron
                                 International plc
Chris Higson                   - London Business School
Richard Kilsby                 - Former Executive Director, London
                                 Stock Exchange
George Metcalfe                - Chairman, UMECO plc
Katie Morris                   - Chief Executive, CISCO
Edwin Moses                    - Chief Executive, Oxford Asymmetry
                                 International 
Craig Pickering                - Head of Industry Team, HM
                                 Treasury

The Paymaster has asked the Group to report in the autumn.  


NOTES TO EDITORS

1.  There are over 2000 smaller quoted companies (SQCs) which are
outside the FTSE 350 but make up 85 per cent of all UK quoted
companies. These companies employ some 2 million people. In
addition, there are a further 6,000 or so middle sized
enterprises which are privately owned.

2. If you have access to the Internet, you can find this news
release and other Treasury material at http://www.hm-
treasury.gov.uk.



# = pounds sterling