HM Treasury 3
25 November 1997
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HIGH-TECH GROUP TO ADDRESS GROWTH BARRIERS FOR INDUSTRY
The Chancellor and the President of the Board of Trade will be
taking a wide-ranging look at ways of improving the UK's record
of investment in R&D. As a first step, the financing of high-
tech companies, and barriers which may prevent their growth, are
to be examined by a new Working Group sponsored by the Paymaster
General Geoffrey Robinson.
The Group, chaired by Dr Keith McCullagh, Chief Executive of
British Biotech plc, includes senior figures from high-tech
companies, financial services and venture capital, and aims to
identify practical proposals which will address any barriers.
The Paymaster General said:
"Dr McCullagh has gathered together a very distinguished
group, and I am delighted to sponsor it. Any practical
proposals the Group makes to address the barriers to growth
for companies at the leading edge of technology will be
given very careful consideration. I look forward to
receiving their report early in the New Year".
Notes to Editors
The Working Group will begin work shortly. The Treasury will be
providing the Secretariat. The Association of British Insurers
has also been involved in organising the group.
Its membership is at Annex A.
Financing of high-technology companies is widely
acknowledged to be a key issue currently. In recent years
the Bank of England, the CBI, the Bio-industry Association
and others have held meetings and discussions and issued
reports on the issues facing high technology and emerging
companies in raising capital in the UK. There have been
improvements, but it is widely recognised that there are
still a number of barriers which make investment in such
companies either unattractive or difficult, to the perceived
detriment of UK growth and competitiveness.
Dr McCullagh envisages that the group will meet a number of
times over the next six months, with an interim report in
January and a final report at the end, with a strong focus
on practical proposals to address any issues that the group
identifies.
Two related (though distinct) initiatives are being launched
by the DTI.
The Competitiveness Working Parties established by the
President of the Board of Trade will identify and prioritise
barriers to business investment and innovation, and put
forward practical proposals for action. Among the issues
to be considered by the Investment Working Party, chaired
by Lord Hollick, are the cost and availability of capital and
the attitude of managers and finance-providers to long-term
investment.
A Steering Group is being set up, supported by the DTI, the
Treasury, the CBI and the Bank of England, to stimulate and
oversee action to address the barriers to growth, faced by small,
technology-based businesses, such as those identified in the
recent CBI "Tech Stars" report. The areas likely to be
considered include building management teams, developing
entrepreneurship and market focus, raising finance and realising
the potential of corporate alliances.
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Annex A
FINANCE ADVISORY GROUP MEMBERS
Dr Peter Williams Dr Derek Higgs
Executive Chairman Chief Executive
Oxford Instruments Group plc Prudential Portfolio Managers
Mr Geoff Lindey Sir David Cooksey
Head of UK Institutional Investment Chairman
JP Morgan Advent Ltd
Mr David Quysner Mr Peter Meinertzhagen
Managing Director Chairman
Abingworth Management Ltd ABN Abro Hoare Govett
Mr Craig Pickering Dr Alistair Keddie
Head of Industry Team Director, Innovation Unit
Treasury Office Department of Trade and Industry
Mr Peter Agar Mr Richard Regan
Deputy Director General Head of Investment Affairs
Confederation of British Industry Association of British Insurers
Mr Mike Smith Ms Christine Soden
Head of Business Finance Division Finance Director
Bank of England Chiroscience plc
Dr Herman Hauser Mr Hugh Stevenson
Director Chairman
Amadeus Capital Partners Ltd Mercury Asset Management
Dr Keith McCullagh
Chief Executive
British Biotech plc