Weekly Blog by Philip King, CEO of the ICM - 'Banking on insurance'

There was an interesting piece in The Times on Monday talking about business lending by banks and a proposal for a Guaranteed Repayment Insurance Policy. Apparently the scheme would involve the issue of an insurance policy that could be purchased by a small business and offered to banks as security for a loan. The Government's new Business Bank is considering offering a subsidy to insurers under which it would underwrite 15 percent of the cost of any default.

The theory is that such an offering would remove one of the obstacles to business lending when the collateral demanded by the banks is so high that the taking out of a loan becomes prohibitive or too personally risky for the borrower. Small business owners would, it is thought, be more comfortable paying the premium than putting their home on the line as security.

BIS says it is only currently looking at the proposal and has made no commitment, and I agree it is right to be looking at new and innovative ways to increase the flow of money into a much needed part of the economy. I can see the attraction to a small business whose owner is fearful of losing his house if the enterprise fails but, given the paucity of cash available to businesses in their earliest days, finding additional money to pay for an insurance policy on top of all the other overheads will be a challenge.

As always the devil will be in the detail and I have no idea what the pricing model might be but I'm afraid I'm a bit sceptical. It already worries me that someone can start a limited company with no business knowledge, no awareness of their obligations and responsibilities as a director, and no capital. This scheme would, I fear, encourage the taking on of an additional expense in return for lower personal risk at a time when the business is least able to afford it. The consequence of that will be reduced profits - or increased losses - and a greater propensity for failure.

Weekly Blog by Philip King, CEO of the ICM - 'Neither borrower nor a lender be?'

I was in Basel earlier this week for the ICTF Conference. It's always a good opportunity to catch up with credit professionals from around Europe and beyond, and great to hear some of the issues being faced and how they're being addressed.

 

Flights and travel gave me the opportunity to read the FCA's recently published consultation: 'Detailed proposals for the FCA regime for consumer credit'. We'll be providing the opportunity for members to submit comments through our November ‘In Brief’, and I won't go into any detail on the 193 pages, nor the 387 pages of the Appendices here. I do though want to make just one comment about the FCA's stated intention to focus on the Payday Loans sector.

 

I've written several blogs over recent months arguing that the OFT should, in its final year, take action over the absence of evidence that affordability tests are being adequately carried out by payday lenders. I've consistently asserted that this is the key failure of the market and should be addressed with vigour. It should, after all, be the determinant in all credit decisions regardless of sector, size or nature.

I've given up hoping that the OFT is going to take any serious action on this in its final days but I was encouraged to read these words in the consultation: "Our proposals.........are based on the principle that money should only be lent to a consumer if the consumer has the ability to repay and in a sustainable way." And in his foreword, FCA Chief Executive Martin Wheatley says: "The OFT affordability guidance is good, but the OFT’s own research shows too few firms implement it. We will put it into our rules and guidance, and enforce this."

 

Martin's last two words are the most important - let's hold the FCA to account and ensure it delivers.

 

 

Guest blog by Charles Mayhew FICM, Director of Moreton Smith Limited –‘Brass Bands and Bacon Rolls’

I was delighted to be asked to be a guest blogger by Philip some months ago, and was wondering what I could write.

How the late payment act is working? Perhaps some interesting stories about collecting debts in the Middle East and so on? So while I was reflecting on a topic, I started remembering all the fascinating people I have met in our Industry, and of course being involved in International collections, many different nationalities.

I was recently made a Fellow of the ICM and a very proud one also. So therefore, having been the recipient of what should be perceived as an Oscar, I am hoping to thank a few people and share some stories of my 20 years in Credit - so far! It’s not over by any means.

It all started in 1994 just after I returned from living and working in Abu Dhabi with my wife and two (then) young children. I was interviewed by a distinguished American Gentleman, Stanley Tulchin of STA Associates who introduced me to the collections industry. His favourite saying was “Volume without yield is an unnecessary expense”. Wise advice from a wise man. Stanley was a great supporter of the American Collectors Association and also the NACM in the USA and insisted that we became heavily involved with the equivalent UK organisation which of course we did. I was lucky enough to travel to Chicago for the NACM conference, the same as the Annual ICM at Gaydon but much larger.

I compared notes on the ICM with Ted Brown, who was spotted in window of the Hotel opposite me in a John Cleese type moment. We couldn’t believe the massive brass band marching through the exhibition halls, the amount of people in attendance, and the lavish stands that many companies had invested in. I also attended the New Orleans NACM conference a few years later, and that was an experience. Then coming back to the UK I remember well the Liverpool and Merseyside conference and Lynne Mills enticing us all to arrive promptly with the lure of Bacon Rolls, which were delicious. It was 1998 before I became an MICM and I actually remember saying to my older brother, himself a Lieutenant Commander in the Royal Navy, that I eventually had letters after my name.

My Mum was also impressed! I joined Richard Moreton and Mark Smith in 2003 and was grateful for my time at STA but the bright lights of London beckoned, and the opportunity to become a shareholder in a growing business. Again my previous colleagues at STA were household names, who I gained invaluable experience from. Colin Thomas and Kevin Terrel, all with great sayings such as “companies owe money but people pay bills” (I don’t think that’s copyrighted though).

Philip King, Brenda Linger, Stuart Hopewell, Larry Coltman were all encouraging me along with Richard Seadon especially to apply for my fellowship. 

I am delighted that I did, it has made me even more passionate about the industry we work in, and what it has always allowed me to do is to reflect on how many good people have had an influence on my career so far. Over the years and travelling around to see many credit managers as I do, people are always quick to give an opinion on the ICM. Another saying is you only get out what you put in.

I will continue to support our professional body, and perhaps even more importantly the people who are in our industry. Socialising with them is also a healthy part of it, we call it networking. Have a great summer.

Charles Mayhew FICM

 

Next week Philip King’s guest blogger will be Sue Chapple, Head of Revenue Management of EDF Energy Plc.

 

 

Weekly Blog by Philip King, CEO of the ICM - 'Reading, writing and credit management'

Back in February the government announced a new draft National Curriculum for England that would see financial education embedded in both mathematics and in citizenship education, making financial capability a statutory part of the curriculum for the first time. The draft programme of study for citizenship would include the functions and uses of money, the importance of personal budgeting, money management and a range of financial products and services in Key Stage 3, and wages, taxes, credit, debt, financial risk and a range of more sophisticated financial products and services in Key Stage 4.

 

This week, following a period of consultation, Michael Gove published the revised Curriculum and the financial education has been further strengthened by the inclusion of 'risk management' into Key Stage 3 and 'income and expenditure, credit and debt, insurance, savings, pensions' at Key Stage 4. Recognition is due to pfeg for its work in pushing for this enhanced content.

 

Providing education that allows children to leave school with financial literacy can only bode well for the credit profession in the years ahead if it means consumers are more financially aware. None of us wants to see people in financial difficulty through ignorance because they weren't sufficiently aware or informed.

 

In my blog last week I called for the OFT to ensure that affordability tests were genuinely being carried out by payday lenders to avoid the vulnerable being caught in a vortex of indebtedness. An interesting discussion has unfolded in response on the ICM Credit Community LinkedIn group (you can find it here) I don't agree with all the comments - simply outlawing payday lending could carry serious unintended consequences involving a growth in back street loan sharks, for example - but action in the short term is needed and, for the longer term, education will also play its part. Now we need to make sure teachers are provided with adequate tools to deliver the proposed curriculum content.

Weekly Blog by Philip King, CEO of the ICM - 'That was the week that was!'

Firstly, we had the ICM British Credit Awards at the Park Lane, London Hilton on Wednesday last and, from all the feedback I've received so far, it was our best awards event yet, and one of the best the industry has ever seen. Over and above the joy of celebrating with all those who were short-listed for awards, and particularly with the winners, the evening was a triumph with exceptional entertainment from The Three Waiters, and superb hosting by Martin Bayfield. It was great to spend a night in the company of colleagues from across the industry and a reminder of what organisations like the ICM do so well.

 

Secondly, on Thursday, Michael Gove - the Education Minister - announced that the new draft National Curriculum for England will see financial education embedded in both mathematics and in citizenship education, making financial capability a statutory part of the curriculum for the first time ever.

 

Specifically, the new programme of study for Citizenship includes the functions and uses of money, the importance of personal budgeting, money management and a range of financial products and services in Key Stage 3, and wages, taxes, credit, debt, financial risk and a range of more sophisticated financial products and services in Key Stage 4.

 

This announcement follows a prolonged pfeg (Personal Finance Education Group) campaign supported by the All Parliamentary Group on Financial Education (chaired by my local MP, Justin Tomlinson) and by hundreds of MPs, teachers, parents, and professional bodies including the ICM. It is a triumph for pfeg which coincidentally was the chosen charity for our Awards Dinner and will benefit from the many financial pledges made on the night in its mission to support education providers in giving children and young people the skills, knowledge and confidence to manage money.

 

As I write these words, more pledge cards are still being received so we do not have a final figure of commitments made but, from our work with pfeg in recent years, I am confident that it will all be put to good use and will help to ensure that the next generation is better equipped to deal with personal finance and debt than the current generation.

 

On that subject, the ICM Think Tank this week focused on the role of the advice sector, and particularly the work of StepChange Debt Charity that has been helping people break free from problem debt for 20 years. It was useful for the group of senior executives from across the credit industry to learn more about the charity's mission and work, and to discuss the role of the advice sector and its relationships with the creditor community.

 

Finally, it was good to see the publication by the Insolvency Service of its Debt Management Plan Protocol which aims to protect and promote the needs and best interests of consumers who take out DMPs. In particular, it should help to ensure there is a greater level of consistency and transparency and weed out some of the unscrupulous operators who are conspiring to give the sector a bad name.

 

All in all a good week then!

 

Weekly Blog by Philip King, CEO of the ICM - 'Doing the right thing'

I spent Monday afternoon as part of a panel of 'experts' on a Guardian Small Business Network online Q&A session addressing Effective Cashflow Management.

 

Much of the advice offered would have been no surprise to readers of this blog. Such basic tips as: know who your customer is; agree payment terms in advance and in writing; invoice promptly and accurately; and don't be afraid to ask for money that is owed to you and is rightfully yours. The usual reminders that cashflow is vital, and that payment terms should be discussed along with all elements of a deal and not as an afterthought, also prominently featured as good advice, as well as the reminder that credit should not be offered unless you are confident that the customer can repay the amount involved.

 

All of this leads me to Comet, where administrators were appointed after it became clear that the company couldn't pay for the stock it needed for Christmas after suppliers demanded payment in advance following the withdrawal of credit insurance cover. It's always disappointing when long-established high street names collapse, and the Comet situation is no exception, but I have to take issue with some of the media coverage over last weekend.

 

It incenses me when it's suggested that suppliers have caused the collapse of the business by unfairly refusing to supply goods on credit terms. Credit is not a right, it is a privilege and is one of the tools available to businesses in creating profitable sales through the provision of extended payment terms. As above, credit should only be granted when you're confident that the customer can repay the amount involved.

 

Several writers expressed concerns about Comet's survival when OpCapita bought the retailer in February. I'm not going to get into the debate about the financial engineering involved here but suffice to say unsecured creditors are likely to lose substantially more than the investor who was going to save the business, so if questions are going to be asked and brickbats thrown, let's aim them in the right direction. And there are certainly questions to be answered.

 

Credit professionals weren't the cause; they were dealing with the symptoms and, if they were reducing credit availability, they were doing the right thing for their own organisations.

Guest Blog by Nigel Fields, Director of International Credit at Twentieth Century Fox - 'Who the hell is Nigel Fields'

I thought, as this is my first ever Blog, that I should first start by letting you know; Who the hell is Nigel Fields?

 

OK, here I go, I think I am incredibly lucky!  In fact I feel life has been really kind to me, from being with my fantastic wife, Jackie since age of 13, (hey, I was not married then) rolling on to 32 years later with our two great kids Harry and Sally, who kindly make sure I never have any money to worry about and can continue to train and practice for myself the art of ‘Debt Management’.  I have met so many fantastic friends along the way.  And today I am working with, what I consider, to be one of the greatest businesses of all, ‘The MOVIE Business’ and in particular Twentieth Century Fox where I sit in Soho Square, London which is also probably the coolest, friendliest place in London.

 

I have been at Fox for 13 years now, and have established my role at Fox as Credit Director working with all countries outside of the USA and Canada.  Here’s a summary of what I get up to.

 

- Oversee Fox’s international risk management providing clarity of Fox’s objectives for risk and financial control to territories.

 

- Identify and monitor “at risk” customers within territories.

 

- Make recommendation for the mitigation of any risk gaps using best available and most cost effective solutions e.g. Credit Insurance, PUT options etc. and provide recommendations for doubtful debt provisions as required.

 

- Provide consolidated reporting of international Accounts Receivable.

 

- Assist Subsidiaries with debt recovery strategies.

 

- Best Practice reviews, improvements & enhancements.

 

- Provide the business with technical expertise in all areas of credit management and make best practice recommendations to territories for a structured credit management framework to improve cash flow where possible.

 

- Responsible for Credit vendor management.

 

 - Privileged to be a Member of the Institute of Credit Management and sit on the ICM Editorial Panel and Think Tank.

 

- Having to attend Premiere’s, meeting film stars and personalities, attending Awards e.g. Bafta’s, travelling the world and watching loads of films.  This makes it all so very hard.  It is a great business and I never ever get bored.

Weekly blog by Philip King, CEO of the ICM - 'Confidence or availability'

The Government Funding for Lending programme has been launched this week. Under the scheme, the Bank of England will lend money at below-market rates to banks who, in return, will have to increase their lending to businesses and households; progress will be monitored and, if they fail to deliver, the interest rate will increase. There have been some interesting comments and opinions expressed including those who say it's just another in a long line of schemes such as the National Loan Guarantee Scheme that this one will, over time, replace to encourage the banks to lend more.

The initiative is creative and good but I have to say I'm with Jonathan Portes, Director of the National Institute of Economic and Social Research, who said on yesterday's Radio 4 Today Programme that making more money available at competitive interest rates is not going to fundamentally address the underlying lack of confidence in the economy. He observed that the scheme will allow businesses who want to borrow to do so more cheaply but it won't encourage the banks to lend more since they will still carry the credit risk. In other words, it will reduce the price of lending rather than increase the volume. What is needed is a boost in confidence to encourage businesses to invest and households to spend more.

Mark Hoban, Financial Secretary to the Treasury, countered that the availability of loans at a lower cost will encourage the bringing forward of projects and spending, and encourage investment that would otherwise not have happened, or at least not happened yet.

We'll see over the coming months but I don't sense any increase in confidence in the many businesses and business owners I speak to. I don't know the answer I'm afraid but it's the level of confidence we need to stimulate; when that happens, the demand problem will take care of itself.

    www.icm.org.uk www.twitter.com/philipkingicm www.twitter.com/icmorg www.linkedin.com/groups/ICM-Credit-Community-94851/about

Weekly Blog by Philip King, CEO of the ICM - 'Watching and learning'

I attended my third Start-Up Loans Company Board Meeting this week, and it was a masterclass.  If you've read James Caan's autobiography, you'll know that he attributes much of his success in the recruitment sector and subsequent businesses to his skill at asking questions, teasing out meaningful responses and, as a result, choosing the right people.

As each director presented an update on what had been achieved in their area of activity since the last board meeting and set out their key challenges, it was fascinating to observe him use questions to unearth underlying themes, and then use further questions to identify the priorities for the month ahead, and commitment to getting them achieved.

It's difficult to pinpoint the specific techniques or words used, hard though I tried since I always like to watch and learn from people I meet.  I guess it's more of an inert talent that just seems to work, and it's amazing to watch in action.

Individuals aside, the progress made in the last 60 days is incredible and the next 60 days are going to be really exciting as Start-Up Loans become available and the scheme fully operational. Watch this space for more details to follow and, in the meantime, I've been reminded of the power of people-watching and learning. I'll keep hoping that some of the positives rub off on me now and again!

To find out more about the Institute of Credit Management visit www.icm.org.uk or follow Twitter Http://www.twitter.com/ICMorg and http://www.twitter.com/philipkingicm

Weekly Blog by Philip King, CEO of the ICM - 'A journey of discovery'

In my blog last week I mentioned that I'd seen a really good example of the Government working with the wider business community to deliver growth through tangible and practical support.  I said that sometimes Government has to create an environment in which something can be created and delivered without its direct and ongoing involvement.

I was referring specifically to the launch of the Start-up Loans Company, which many of you will by now have seen in the press.  You may also have learned from our own ICM announcement that I've been invited to join the Start-up Loans Company board.

The Start-up Loans Company is different from any previous Government scheme I have ever seen.  It is not a case of ministers throwing money at a problem just to say that they are doing something – money that is often squandered. This scheme is much more focused, and has a specific purpose.

The Start-up Loans Company is a limited company with an independent board chaired by respected entrepreneur James Caan.  While the funds come from the Government purse, our role as a board is to be responsible for identifying appropriate delivery partners, and for setting the ground rules that they will have to follow. Government is stepping back, letting the board lead the initiative, and giving us the autonomy to be able to drive the scheme forward.

Loans will be at a competitive interest rate, and are likely to average £2,500 (though not a maximum as has mistakenly been reported elsewhere).  They will be repaid over a period of up to five years.  Crucially, the initiative – as Lord Young stressed as the launch event – is not just about the cash; it is also about the support the young entrepreneurs (aged between 18 – 24) will receive from a network of mentors across the country, to help turn their dreams into reality.

The board is also comprised of experts chosen to help the scheme succeed.  Each board member has a particular area of responsibility and will be expected to deliver real tangible results.  It is especially gratifying to see the importance of cashflow and credit management being recognised and getting their rightful place. My brief is to ensure we have the right mechanism, process, procedure and drawdown facilities in place to enable the smooth running, and monitoring, of the issuing and recovery of loans.  The sort of things that credit professionals do every day, but not what you'd necessarily and ordinarily expect to see included in a government initiative.

I can't wait to get started, and I'm going to enjoy working alongside Lord Young, James Caan, Bev James, Julie Meyer, Duncan Cheatle and the other directors.  I believe they are going to teach me more than a thing or two along the way and I know I'm going to get as much out of this journey as I put in.  Seeing youngsters set up their own businesses and take steps towards their dreams is a massive opportunity and I feel privileged to be part of it.

Weekly Blog by Philip King, CEO of the ICM - 'Men behaving badly'

The ITV 'Exposure' programme aired on Monday night used covert recording of a bailiff behaving very badly indeed. Shocking revelations that - in many respects - beggared belief. What was even more surprising was the assertion that no complaints had been received by his employers during the three years he had worked for them. Was this because the people he called upon didn't know their rights or what standards of behaviour they could expect? Or was it because they felt that any complaints they did raise would simply fall on deaf ears?

If the Tribunal, Courts and Enforcement 2007 had been fully implemented, the bailiff concerned would have been subject to an enhanced certification process that would have included aspects such as diversity awareness and conflict management; both would clearly have been useful, and complaints would have been dealt with by the Courts. As events have unfolded, the Act was only partially implemented and a parallel consultation proposing regulation instead by an independent body was never taken forward either, even though the enforcement industry would have welcomed such an additional regulation (my thanks to Chris Bell of Shergroup for his validation of the facts here).

I've been involved in meetings with various bodies and the Government for several years discussing the proposals and alternatives interminably but - as has frequently been highlighted in the credit press - no progress has been made and the issues remain. I don't believe the problems are endemic, but it only takes one bad apple to spoil the whole barrel and damage the reputation of the entire industry. The reality is that bailiffs are only acting to recover money that is the subject of a warrant issued by the court and is rightfully due, yet that fact gets lost in the noise of behaviour and attitudes that can't be condoned. They also get confused with the world of 'Lock, Stock and Two Smoking Barrel's' that is as far away from professional enforcement as it is possible to be, but make for a good photo-caption!

Self-regulation is not a viable option unless and until it is carried out in a much more rigorous way. I've been encouraged by recent initiatives like the 'video recording badges' being piloted by some Marston High Court Enforcement Officers. I don't know how feasible such measures would be on a widespread scale but technology like this would allow for closer monitoring of activity and would help rebuild confidence. The last thing we need is a belief that enforcement of warrants is unfair.

Weekly Blog by Philip King, CEO of the ICM - 'The changing 'Face' of Debt Guidance'

Since mentioning the publication of the new OFT Debt Collection Guidance in my blog last week, I've now had chance to look through it in detail. No great surprises; it's very similar to the draft on which we were consulted some time ago and says what I guess we'd all largely expect it to say. It is, after all, only an update of the version of the document issued in June 2003.

The aspect that seems to have caused the greatest debate on the ICM Credit Community LinkedIn group, and elsewhere, is the OFT warning to debt collectors not to use social networking sites such as Twitter and Facebook to pursue people who owe them money. I don't want to be pedantic here but I'm not sure that's exactly what it says. Actually what it says is that unfair or improper practice would include 'acting in a way likely to be publicly embarrassing to the debtor...' which includes, as one of the examples quoted 'posting messages on social networking sites in a way that might potentially reveal that an identifiable person is being pursued for the repayment of a debt'. That's a long way from banning the use of Facebook!

I might be showing my age here but I remember lecturing ICM evening classes at Watford College in the 1980's and recall teaching about s40 of the Administration of Justice Act 1970 which addressed the unlawful harassment of debtors and included the works: 'A person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under a contract, he harasses the other with demands for payment which, in respect of their frequency, or the manner or occasion of making any such demand, or of any threat or publicity by which any demand is accompanied, are calculated to subject him or members of his family or household to alarm, distress or humiliation'.

So nothing has changed really; in those days, the example of harassment was parking a van outside someone's house with the words 'debt collector' written on the side. Surely all we're talking about here is the 2011 equivalent? There's nothing wrong with using social networking tools to find people or to learn more about them but harassing people by any means is - and must be - unacceptable. Those who have seen me present using a baseball bat as a visual aid will know that such a bat is an equally unacceptable collection tool!

I am intrigued by the following words in the Foreword: 'This guidance document is not intended to provide a basis for debtors to avoid the repayment of debts duly owed. We consider that debtors should take responsibility for engaging appropriately in the debt recovery process...'. On the one hand, I am encouraged by its inclusion; on the other, the fact that they have to write these words at all makes me think that the document is weighted heavily in favour of debtors. We shouldn't lose sight of the fact that taking on debt carries with it an obligation to repay it, and that should always be the starting point.

The Guidance carries considerable detail and Consumer Credit licence holders would do well to read it and ensure they, and any third party organisations working for them, are complying with it.

Weekly Blog by Philip King, CEO of the ICM - 'Change the insolvency landscape'

I've spent a good deal of time over the last few days reading and reviewing the Insolvency Service's 'Consultation on Reforming the Regulatory Framework for Insolvency Practitioners' which has been produced following the OFT Market Study into Corporate Insolvency published last June.

It's large document (c90 pages), so not an easy read but nevertheless vitally important for credit professionals. Indeed the press release that accompanied the launch highlights a principal objective of the consultation in considering ' the three main issues to address the problems associated with the weak position of unsecured creditors.'

When I'm out and about, our Members and those in the credit community frequently complain to me about the insolvency process and how they lose out. This then is our opportunity to influence the insolvency landscape of the future. If we ignore it, we do so at our peril, and to this end the ICM will shortly be issuing a survey that will enable anyone interested to give their opinion and comment on aspects of the paper that are relevant to them. Please take the time and trouble to allow us to take your thoughts and feedback into account when we produce our final response to Government.

Elsewhere I see that David Kern, Chief Economist at the British Chambers of Commerce has reacted to the recently published minutes of the Monetary Policy Committee http://bit.ly/h77WrS. He's absolutely right when he says '...the factors pushing up prices in the short-term are outside the MPC's control...' Raising interest rates now would be too soon and would damage the prospects for recovery.

Finally, I'm writing these words ahead of the ICM's Regional Roadshow at the National Motorcycle Museum in Birmingham which has the highest number of registrations yet for our Roadshow programme. To find out more about our Roadshows and when we're going to be near you visit: http://www.icm.org.uk/default.asp?edit_id=1286-56

Weekly Blog by Philip King, CEO of the ICM - 'EU directives, Eire misery, and meaningless forecasting'

Having recently returned from a meeting of FECMA (the Federation of European Credit Management Associations) in Paris, it's interesting, as always, to catch up with my colleagues and share their experiences. There was much animated conversation about the new EU Late Payment Legislation, particularly with French and Spanish delegates who now have real experience of domestic legislation that sets a statutory limit on payment terms of 30 days. I accept this is anecdotal rather than hard scientific evidence, but their views are crystal clear: the legislation hasn't made the slightest difference.

They found that businesses experiencing late payment are still reluctant to take action against their customers for fear of upsetting them and losing future contracts. There's a lack of real knowledge about how the legislation should be applied, and businesses that want to exploit their suppliers will find a way of doing so, legislation or not!

The legislation will still be some time coming; there are nearly two years before the Directive has to be implemented by member states. We need to use that period to explore long and hard how we might further improve payment and business culture across the UK. I have a meeting with Mark Prisk, Minister for Business & Enterprise, next month and this is one of the subjects that I plan to raise. I've already highlighted the failings of the Directive, but let's see if some good can come of it.

Meanwhile I note that the latest Bank of England Inflation Report, published under the guidance of the Monetary Policy Committee, has some almost amusing words in its overview which ends: "...the chances of inflation being either above or below the target by the end of the forecast period are judged to be roughly equal."

I understand the complexities involved in putting such reports together, and the challenges in making accurate forecasts. But am I alone in thinking that experts should at least have a view? This just feels like a classic case of 'hedging your bets' or 'sitting on the fence' to me!

And finally, over to Ireland - metaphorically, not physically! What a sorry story, and a worrying one too for the people who live there, the businesses that trade there, and the businesses that trade with it.

I've been saying consistently to anyone who will listen that businesses in the UK are underestimating the negative impact of our public spending cuts. But I fear the pain we're going to feel is incomparable to the misery that our neighbours now face.