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2003 Asia Pacific Regional Meeting


 

Welcome Reception
Michael Samuel
Michael Samuel and his team from Miller Samuel opened the 2003 European Regional Meeting by welcoming the delegates and companions to Glasgow. The reception was followed by dinner for the delegates and companions in the adjoining Smolletts Restaurant in the Cameron House Hotel.

Chairman’s Comments

Lowell Lifschultz, Chairman of the ILN, opened the ILN Business Session by welcoming all the members to the European Regional Meeting 2003 in Glasgow, Scotland. Lowell began the session by announcing the appointment of two new members to the Board of Directors, Ms. Marga Wolpert (Goehmann Wrede Haas Kappus & Hartmann) and Mr. Simon Pithers (Fladgate Fielder).

Ms. Marga Wolpert
Mr. Simon Pithers

These appointments further reflect the importance and emphasis of the European Region to the future development of the ILN. This recommendation was approved with unanimous support of all the European members in attendance. Both Marga and Simon will provide invaluable support and help, allowing us to implement and achieve our stated goals for the region. Lowell ended by noting that the ideals of the Network remain the same, the developing of a coherent ability to refer business back and forth with a consistency of performance to satisfy all members and their clients. Lowell handed the meeting over to Alan Griffiths.


Following is a summary of the main issues that were covered during the ILN Business Meetings, beginning with a list of the members who attended.

Austria - Andreas Bauer Netherlands - Peter Kirpensteijn
Belgium - Johan Vanden Eynde Northern Ireland - Patrick O’Driscoll
Channel Islands - Jersey Anita Lovell Scotland - Douglas Lamb
Czech Republic- Pavla Prikrylova Scotland - Michael Samuel
Denmark Kield-Gustav Erichsen Scotland - Marie Macdonald
England - Andrew Kaufman Scotland - Robert Skelly
England - Simon Pithers Sweden - Thomas Ekenberg
England - Robert Muir Sweden - Peeter Aspe
England - Jane Marsden Switzerland - Urs Kaelin
England - Nick Davis Switzerland - Urs Wehinger
France - Robert Bijloos USA - Alan Griffiths
France - Vincent Lunel USA - Marianna Metzger
France - Simon Lowe USA Washington DC - Stuart Gerson
Germany - Marga Wolpert USA Florida - Timothy Murphy
Germany - Dr. Jorg-Rainer Hens USA Florida - Richard Leslie
Germany - Oliver Wiethaus USA Georgia - William Poole
Ireland - Donal Creaton USA Minnesota - Susan Ginsburg
Israel - David Schottenfels USA New York - Kenneth Kelly
Italy - Milan Marco Frigessi Di Rattalma USA New York - Sidney Todres
Italy – Rome Alberto Lupoi USA New York - Lowell Lifschultz
Latvia - Ivars Grunte USA Texas - Martin Beirne
Liechtenstein - Harry Gstohl USA Texas - Sawnie McEntire
Liechtenstein - Sabine Mohr-Egger USA Texas - Blake Tartt
Luxembourg - Luc Schaack USA Washington - John O’Donnell
Netherlands - Marc Udink  

Alan Griffiths welcomed all the delegates to the meeting. Alan commented that as the ILN continues to grow, evident by the many new members attending their first European Regional Meeting, it is important to continually make sure that all members are aware of each others firm’s capabilities and expertise. In order to achieve this, not only the new member firms but some of the long standing members, will be asked to give a presentation about their firm at future Regional Meetings. Alan then asked Marga Wolpert to proceed and give her presentation detailing the abilities of our German member firm, Göhmann Wrede Haas Kappus & Hartmann.

Marga Wolpert - Göhmann Wrede Haas Kappus & Hartmann (to view the PowerPoint presentation go to http://www.iln.com/presentations_scotland.htm)

The firm of Göhmann Wrede Haas Kappus & Hartmann was established in 2001 with the merger of the law offices Göhmann Wrede Haas and Kappus & Hartmann. Having grown continuously over many years, it is now comprised of more than 80 attorneys and notaries public, making the firm one of the largest in the business law sector in Germany.

The following is the history of the firms’ mergers to acknowledge the synergy of the merger:

Frankfurt - Kappus & Hartmann founded in 1947
Main fields of business: Banking law, IP, Unfair Competition, Pharmaceutical Law, Environmental Law

Hannover - Göhmann, Dieselhorst & Scherrer founded in 1925
Main fields of business: Company Law, Venture Capital, Tax Law, advise in connection with awarding contracts

Braunschweig – Wrede, Ulrich & Partner founded in 1913
Main fields of business: Company Law (esp. advise of joint stock companies), Private and Public Construction Law, Patent Law

Bremen – Haas, Monnerjahn & Partner founded in 1879
Main fields of business: Restructuring of companies, including the handling of all legal aspects concerned; collective and individual labour law, pension schemes, etc. Real Estate, Spanish Law

Göhmann Wrede Haas Kappus & Hartmann basic facts:

2nd largest German law firm
25th largest law firm in economic law in Germany
90 lawyers
Represent a commercial ranging from small and medium sized firms, to industrial enterprises,
associations and corporations, public customers and private clients.

Göhmann Wrede Haas Kappus & Hartmann sent two additional delegates, Dr. Jörg-Rainer Hens, from their Braunschweig office and Mr. Oliver Wiethaus, from their Barcelona office. At this time, Alan invited Mr. Wiethaus to give his presentation on:

“Doing Business in Barcelona” - Oliver Wiethaus - Göhmann Wrede Haas Kappus & Hartmann, Barcelona

Göhmann Wrede Haas Kappus & Hartmann places great emphasis on the international training of its business lawyers, and maintain close contacts with various foreign partners. Its’ offices in Barcelona and Palma de Mallorca affords the firm special authority in dealing with questions concerning Spanish law and investments in Spain.

The Spanish economy is a balanced combination of services and industry which includes: automotive, software, design, consumer electronics, pharmaceutical, education, healthcare and chemical.

The main Spanish industry includes: textile and apparel, food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools and tourism.

There is a successful collaboration between research and industry in Spain.

Most of the lawyers of Göhmann Wrede Haas Kappus & Hartmann based in Spain speak 4 languages.

The high quality of life in Spain makes it a very interesting locale for clients.


ILN Activities Update – 2003/2004

At this time, Alan Griffiths provided the delegates with an update on the administration’s current and future planned activities, covering recruitment, the formation of two ILN Practice Groups, ILN Practice Groups planned for the future and the ILN website development. Alan noted that he had been with the Network for just over two years now and while there is much to do, it has been a very rewarding experience.

New Member Recruitment

Recruitment is still an extremely high priority. As a result of the Seattle meeting, Europe is going to be the main area of focus for the next 12 – 18 months. With this in mind, Alan began by saying that recruitment is a very important component, but equally so, is the continued commitment of all members to devote the time and resources necessary to be an active member. As we move forward, not all members can continue to devote the time and energy necessary. As a result, Alan announced that the current member for Spain, Iberforo Alzaga, Caro, G. Palencia, Sanchez-Teran & Asociados Iberforo Madrid, had been asked to resign from the Network. Alan wished them well for the future. The administration had already contacted and visited two potential member firms in Spain to discuss and explore their interest in becoming the ILN’s member for Spain. These discussions are continuing. Alan pointed out that if any member required assistance with a matter in Spain, he would be happy to make the necessary introductions to either of the firms under review. Both would be able to provide highly professional advice and service required by ILN members. In addition, members could contact, Göhmann Wrede Haas Kappus & Hartmann, Barcelona who are ably suited to assist with their inquiries until a full member for Spain is obtained.

Alan moved on to other regions of Europe and pointed out that we currently have very good representation in both Northern Europe and Western Europe, but noted it is important that we focus our attention on Eastern Europe, especially with the enlarged EU plans for 2004. The administration has recently visited firms in Poland and has been in contact with firms in Hungary, Bulgaria, Romania, Russia, Slovenia and the Ukraine. One of the prominent firms in Poland, TGC Polska, Warsaw, has shown a high level of interest to further explore and discuss the benefits of membership.

Lowell remarked that as the Network continues to grow, it is very important that the quality and consistency of the work continues to remain high and grow as well, and that this is constantly being considered when conducting discussions with potential new members.

Urs Kaelin informed the delegates that his firm, Arnold Wehinger Kaelin & Ferrari, has been in discussion with, and formed a close working relationship with, an excellent firm in Geneva and another firm in Lausanne. As a result of these discussions, Urs recommended ILN membership for both of these firms. He saw a great benefit to the Network, since Switzerland has both German and French Speaking regions with different requirements. The addition of these two firms would provide the desired coverage for these regions in Switzerland. Urs recommended that both firms be invited to the 2004 Annual Meeting in London, where they can give a more comprehensive presentation.

ILN International Tax Group

Alan moved on to inform the delegates that the newly formed ILN International Tax Group was progressing well. After the initial formation of the Development Committee, a request for additional information about the ILN tax professionals had been circulated to the membership. This information has now been collected and added to the database which will be distributed to the membership. The next phase will include designating ILN Tax contacts for each member firm with a tax practice, contacting the tax professionals and asking them to supply additional practice specialty information. This will be achieved by forwarding a survey for completion. A copy of the survey and a specially prepared tax handout was distributed to the delegates for their review. Alan commented that these practice groups will greatly help with the “push down” program.

Alan noted that the next phase of the ILN website will include the data from the practice groups, allowing members to search for specific practice group information. He gave a brief demonstration on how the practice group results would be displayed.

ILN Intellectual Property Group

The Tax Practice Group is being used as the model for future ILN practice groups. Norman Zivin (Cooper & Dunham LLP, New York) and Marga Wolpert have kindly agreed to devote the time and effort necessary, and are in the early stages of forming the Intellectual Property Group. The IP develop
pment committee will include other ILN firm representatives with comprehensive IP practices.

Additional Practice Groups

In addition to the Tax and IP Group, Alan informed the delegates that the following practice areas are being considered for development:

Immigration; Litigation; Labour and Employment; Restructuring & Bankruptcy

Referral Survey Results

Alan reported that the ILN referral survey results for the period of January 2003-June 2003 had been completed and the report finalized. Members were given a copy of the final report, color charts reflecting the regional referrals results comparison for January 2002-June 2003, the estimated value of referrals January 2003-June 2003 and referral analysis by region for January 2003-June 2003. Alan provided a comparison of the latest results with those of the previously reported period, July 2002 – December 2002. The results were similar but Alan noted that due to the summer reporting period, not all firms had been able to supply the information required and he was still waiting for some data to be reported. In that context, he concluded that the number of referrals has in fact increased. He also noted that number of inter-regional referrals were growing steadily, showing the importance of continued recruitment efforts within the ILN regions. As a result of the Seattle meeting, an additional request for information about referrals had been made to provide a qualitative value to referrals. This resulted in identifying the estimated value of referrals being made. A total of 156 referrals were reported, resulting in 16 referrals exceeding a value of $ 5,000. Since this was the first request of estimated value, difficulty in assessing and reporting resulted in what Alan felt was not a totally true reflection of the values. This would be addressed in future survey requests.

At the conclusion of his presentation, Alan Griffiths asked Sue Ginsburg to give the delegates an update on the Corporate Counsel Outreach Program (CCOP) and some of its successes.


Corporate Counsel

Sue Ginsburg reported on the Corporate Counsel Outreach Program. On November 30, 2002, ILN member firms representing the six Scandinavian/Baltic regions attended the inaugural all-day Corporate Counsel Outreach Program meeting in Stockholm. The group exchanged information and identified ways to work together and to promote joint introductions to multinational companies doing business in the region.

Nordic/Baltic Group Meeting Highlights:
• Group member firms shared expertise
• Companies selected to research further
• Company information shared
• Conference call held to discuss next steps
• Group approach revised to have (a) group members provide contacts to ILN and ILN introductions, (b) members to look at local offices, not always “corporate” office or Headquarters.
• Group discussed expanding focus to other areas with business for Group
• Initial ILN “marketing” pieces shared with Group members for comments
• Conference call to be scheduled for early summer to determine next steps

Sue reported on the initial meeting of the Central Region Group, which included Chicago, Indianapolis, New Orleans, Cleveland and Houston firms. The new Oklahoma firm will be included in future meetings.
USA – Central Region CCOP Highlights
• Inaugural meeting held in April 2003
• Firms shared expertise
• Group agreed each member to make ILN introductions to own clients/contacts
• Marketing pieces discussed include customize ILN brochure, Network vs. Global Firm, Benefits of ILN, and others
• Group to reconvene during ILN Annual Meeting in Seattle and review draft marketing pieces

Sue remarked that holding a meeting at the upcoming Regional Meeting of the Americas in Salt Lake City, Utah, is under consideration. In reference to the meeting in Salt Lake City, the President of H2O has accepted the invitation to be a guest speaker.

Alan informed the delegates that the Network is in touch with the Governor of Utah’s office for their assistance in putting together a panel to discuss the problems they face when dealing with other jurisdictions, particularly Canada, Central and South America.

Lowell emphasized that all regional meetings should aim to create higher profile and higher awareness of the firms and the ILN.

Sue concluded her presentation with an overview of the CCOP plans for 2003/2004:

• Individual market visits
• Marketing professionals contacted and surveyed
• Regional Meeting of the Americas, Salt Lake City, Utah
• 2004 16th Annual Meeting, London
• In-house counsel advisory board

• Member panel presentation to ACCA NY Chapter

• Additional sub-regional ILN groups to be formed; Western Europe, Southern Europe, Eastern USA
• How can CCOP help you?
Ask ILN for materials
Push down
Seek out other ILN members at industry meetings
Joint presentations with other ILN members
Visit ILN offices in cities where you travel
Introduce visiting ILN members to others in your firm

After the afternoon session, Sue met with some of the invited guests to discuss mutual benefits of ILN member firms and future potential of supplying legal services. This was very well received by the guests and many positive comments were received. The administration, in cooperation with Miller Samuel, will continue to stay in touch with these guests and provide any further information about ILN members, as required.


Alan Griffiths informed the delegates that the next Annual Meeting was scheduled to be held in London, June 2004 and would be co-hosted by Memery Crystal and Fladgate Fielder. The venue of the meeting speaks for itself as a wonderful and exciting setting for our ILN delegates and companions, and should be very well attended due to the ease of traveling to London.

Upcoming 16th Annual Meeting – London

Presentation by: Simon Pithers and Jane Marsden.

Simon reported that the Annual Meeting is scheduled on June 2-6, 2004 at the Mandarin Oriental Hotel, which is located on the south side of Hyde Park. Simon advised any delegates wishing to arrive early or remain later than the dates of the conference should make the necessary arrangements with the hotel since this period is a very popular time in London and there are many other events taking place in and around the city. The ILN has currently reserved 100 rooms.

Jane reported that they are still in the early stages of planning and are very open to suggestions. On the business side, discussions are ongoing to provide the delegates with extremely interesting and productive programs, including breakout sessions for litigation, employment and tax. Currently under discussion are trips to the High Court and Lloyds of London as locations for these sessions. On the social side, a trip to Windsor is being considered on the Saturday, as well as an evening boat trip and a Jack the Ripper Tour.


Breakout Sessions

As the breakout sessions continue to receive positive feedback as an ideal way of stimulating discussion and bringing together certain groups of ILN members, the following breakout sessions were included in this year’s program for the European Regional Meeting: Employment, Corporate and Taxation. Below are some of the topics discussed at the sessions:

Employment – Sex Discrimination & Using European Law to Make Changes to Domestic Law. How Helen Marshall Changed the Landscape of Sex Discrimination Law by Going to the European Court of Justice.

Chair: Marie Macdonald – Miller Samuel LLP

Speaker: Muriel Robison, Principal Solicitor of the Equal Opportunities Commission

Muriel Robison covered the following topics in her presentation:

• Promote equality of opportunity between women and men

• Work towards the elimination of discrimination between women and men

• Review the Sex Discrimination Act 1975

• Equal Pay Act 1970

• Employment Rights Act 1996

• The Founding Treaty

• Each member state shall ensure that the principle of equal pay for male and female workers for equal work or work of equal value be applied

• The Consolidated Treaty of Rome

• Article 141

• Defrenne vs. Sabena 1976

• Equal Treatment Directive

• The Sex Discrimination Act 1975 is amended by the Sex Discrimination Act 1986. Exclusions relating to death or
retirement was removed.

• The Sex Discrimination Act is amended – “Nothing in this Act shall render unlawful an act done for the purposes of ensuring combat effectiveness of the naval, military or air forces of the crown”.

• The Sex Discrimination Act originally not relied on by pregnant woman. Thereafter, it was decided that comparison would be made with men in analogous circumstances.

• ECJ in Webb vs. EMO Air Cargo 1993 decide comparison with a man is not appropriate because pregnancy is a condition unique to women.

• Q&A


Corporate – International Terrorism Hartmann (to view the associated PowerPoint presentations go to http://www.iln.com/presentations_scotland.htm)


Chair: Mr. Douglas Lamb - Miller Samuel LLP

Speakers:

Mr. Pat O’Driscoll - Cleaver Fulton, Rankin, Belfast
Mr. Jeremy Canvin (Head of Insurance) – CB Richard Ellis, London
Mr. David Geer -Royal Sun Alliance Insurance, London

This session addressed the increasingly difficult and complex issues of International Terrorism and how to best assess the associate risks.

* Jeremy Canvin delivered the first talk. Jeremy is Head of Insurance
at CB Richard Ellis in London, the world's largest commercial surveyors with 14,000 employees worldwide. Jeremy covered the History of Terrorism Insurance in the UK.
* Next was David Geer. David is Manager, UK, Global & Risk Managed
Business with Royal & Sun Alliance. RSA are one of the world's leading multi-national insurance groups with 38,000 employees and 20 million customers around the globe. David dealt with an international comparison of terrorism insurance (i.e. USA, Australia, France, Germany and Holland).
* Finally Pat O'Driscoll gave a talk on the Northern Ireland
experience in that they haven't had terrorism insurance there since the start of the troubles in 1969.


ILN International Tax Group Planning Session

This planning session was the second meeting of its kind in the relatively young life of the ILN International Tax Group. The meeting was ably chaired by Peter Kirpensteijn, who began by expressing his thanks and excitement by the number of attendees, compared to four at the inaugural meeting recently held in Seattle. It is obvious there is a growing enthusiasm for this young initiative.

Outlining the purpose of this meeting, Peter began to review the current status of the Group and discussed the vision of the Development Committee on how they see the future for this initiative. The attendees were informed that the first objective to identify tax practitioners in each ILN member firm had now been achieved. This stage of data collection had taken a longer time to complete than was originally contemplated but now with the completion of the comprehensive database, future information should be more readily available. Peter explained that the next steps would include designating ILN Main Tax Contacts and further identifying the individual tax areas that the tax practitioners are engaged in. In order to achieve these goals, a draft survey had been produced and circulated to the attendees for their comments. Members were invited to address further comments to Peter by email, once they had time to review the survey in more detail. It is anticipated that the survey will be circulated to all ILN tax practitioners and ILN main contacts within two weeks.

In summation, Peter noted that the level of enthusiasm, in addition to the numerous suggestions from the Group on how they would like to see this initiative move forward, was extremely positive, and provided the needed stimulus to move forward. He then went on to identify the action items that would be implemented to proceed in a timely manner:

Summarize and circulate minutes detailing the discussion points of the meeting.
Amend the proposed survey to include recommendations from the meeting.
Concentrate on the 2004 ILN London Meeting and the Tax Group’s contribution.
Develop a consensus for identifying the best method to promote communication among the tax practitioners as they continue their daily routines.

The group dispersed with the feeling that the meeting had been extremely useful, and although there is much to be done, the opportunities and potential rewards from making a success of the group are very great. The attendees thanked Peter for arranging and chairing the meeting with such distinction.

Afternoon Business Session

Michael Samuel addressed the ILN delegates and distinguished guests. Miller Samuel LLP has been a member of the ILN for 6 years and during that period has built up very strong relationships/friendships with the member firms for the benefit of its clients. Michael paid special tribute to Douglas Lamb and Marie Macdonald and his colleagues in Miller Samuel for taking on the considerable burden of organizing the meeting, in addition to looking after their considerable regular workload. Michael also expressed his gratitude to Alan Griffiths and his team for all their work and effort in making the meeting both enjoyable and successful.

Michael welcomed and thanked the prestigious group of guest speakers for the afternoon session: Rt. Hon. Douglas Alexander MP, Minister for the Cabinet Office, Mr. Martin Togneri, Mr. Willie Haughey, Mr. Andrew McLaughlin and Mr. Neil Davidson QC.

Michael introduced Duncan Tannahill, Chief Executive of the Glasgow Chamber of Commerce - The Chairman of the Seminar. Mr. Tannahill has held the Chief Executive position at the Chamber of Commerce since 2000 and as such is very closely involved in the Glasgow business community.

Mr. Tannahill opened the afternoon session by welcoming all the delegates to Loch Lomond. Duncan proceeded to give a brief overview of the challenges faced by Scotland today:

• Unemployment – Scotland ILO rate 5.6% v. UK at 5.0% - but encouragingly the gap is closing at a reasonable rate
• GDP – Scottish growth in last 12 months = 0.5% compared to the UK at 1.9% although forecasts for the next 12 months show respective growth rates in region of 2.4% and 2.9% i.e. the gap is closing
• Manufacturing output is still in decline not helped by the global decline in recent years
• Exports in Q1 this year have shown modest year on year growth 2.4%
• New business formation, retail sales, domestic and commercial property prices, visitors to our tourist attractions, air passenger numbers, and manufacturing confidence are all showing positive upward trends which would support the more positive growth outlook mentioned.

Mr. Tannahill provided a brief overview of the first speaker, Mr. Martin Togneri, Director (International Operations), Scottish Enterprise before giving him the floor.

Mr. Martin Togneri was born in Stirling and went on to gain an MA with Honours (First Class) in Political Economy and Politics from Glasgow University, and an MBA from Strathclyde University. He joined Locate in Scotland, the government’s foreign direct investment agency for Scotland, in 1984 and become its Director in 1995.

In 2000 he took up his current post with Scottish Enterprise as Senior Director, International Operations. He oversees Scottish Enterprise’s international activities, which encompass its efforts to attract knowledge into Scotland through inward investment, partnering opportunities between Scottish companies and overseas companies, foreign VC involvement in financing Scottish technology company growth, and efforts to persuade people with key skills to pursue careers in Scotland.

Mr. Martin Togneri, Senior Director (International Operations) Scottish Enterprise
“Inward Investment in Europe”

The document “Locate in Scotland” established in 1981 created a perception of loss of opportunity in Ireland.

Global Foreign Direct Investment (FDI) Trends
•2001 economic downturn and slow recovery
•Slump in technology sectors characterized by high FDI flows and overcapacity in others

European Inward Investment Flows
• Number of projects has decreased by almost 30%

• Manufacturing accounts for 46% projects; 48% to non-EU and accession countries
• 33% decline in Research Development & Demonstration (RD& D) projects
• EU countries attracted 89% of RD&D projects
• Intra-European Investment accounts for 49% of projects, US 33%
• UK share of EU total down from 30% in 1997 to 19% in 2002
• Top 5 sectors; software, automotive, business services, electronics and pharmaceuticals

Inward Investment into Accession Countries (1991-2001)
Impact of Accession on FDI Distribution
• Future impact could be less dramatic
• Nature of competition will change

Ireland - tax incentives remain a powerful attraction
Rest of the UK- competing in many similar markets

Global Connections Strategy (GCS)
Contribution of FDI to the GCS
• Focus on more “knowledge intensive” forms

Q&A

Mr. Tannahill thanked Mr. Togneri for his informative presentation and wished him a safe journey on his trip to China the following day.

Mr. Tannahill introduced the next speaker, Rt. Hon. Douglas Alexander MP. Mr. Alexander was born in Glasgow in 1967 and was educated at school in Renfrewshire before winning a Scottish Scholarship in 1984 to attend Lester B. Pearson College, an international college in Vancouver, Canada, for two years.

In 1986 Mr. Douglas Alexander returned to Scotland, where he studied Politics and Modern History at Edinburgh University. In 1988 he won a scholarship to study at the University of Pennsylvania. He completed his degree in 1990, graduating MA (Hons) 1st Class. He spent a year working as a speechwriter and researcher for Gordon Brown MP before he returned to study law in 1991 at Edinburgh University, graduating LLP (dist) in 1993. In 1994 he gained his Diploma in Legal Practice and then worked as a litigation solicitor in Scotland. Mr. Alexander is married with one son.

The Rt. Hon. Douglas Alexander MP, Minister for the Cabinet Office
“Bridging the Digital Divide in our Companies and Communities”

• Frictionless flow of data is essential as we face challenges both here and abroad. The social and economic transformation has been brought on by technological innovations.

• Telephone connections in Manhattan are greater than in the entire continent of Africa. This is due to a lack of technology, fear of misconception, cost and skills. Those most reluctant to get online are those who would be best served by getting online.

• Best anti-poverty economic program is to invest in education.

• Society needs to build digital opportunities.

• The Lisbon Summit marked a change in European thinking by liberalizing technology markets.

• There must be an increased productivity in Scotland in (1) Internet (2) development of digital skills

• Law firms old and new fully utilize technologies full potential and re-engineering.

• Extending Broadband will create greater productivity across the economy.

• Internet access can truly revolutionize how children learn. There must be a computer in every classroom. Every individual must have Internet access.

• Society must use technology to eliminate poverty, instead of exacerbate it.

Q&A

Mr. Alexander had to leave shortly after his speech. Mr. Tannahill thanked him for providing the delegates with his insight into the digital divide.

Mr. Tannahill introduced the next speaker as a true entrepreneur. He remarked that Mr. Willie Haughey has a track record in the refrigeration industry which leaves his competitors – in the cold!

Mr. Haughey set up the company with his wife, using his savings from working in Abu Dhabi as chief engineer with what was then the largest air-conditioning company in the world (Carrier). His drive and ambition have seen his company, City Refrigeration Holdings Ltd., become one of the UK’s largest specialist refrigeration and facilities management companies, employing over 9, 600 people today.

Mr. Tannahill handed over the floor to Mr. Haughey to present an account of the entrepreneurial skills required in building a major facilities management company and the challenges for the future.

Mr. Willie Haughey, Executive Chairman City Group

“Challenges for Facilities Management Companies – Applying the Business Model to the EU and USA”

• City Refrigeration Glasgow Ltd. formed in October 1985

• Strong belief that a niche market for refrigeration company that would specialize to the license trade. The major brewers became City Refrigeration’s best customers

• Tennent Caledonian becoming one of the biggest customers for the first eight years

• In 1994 City Refrigeration had 87 employees. A turnover of £6m with a net profit of £830k

• ’91 to ’94 the company had doubled in turnover and profit. This was quite an achievement as there was a mini-recession during this period

• July 1994 the company structured an MBO with 3i’s the venture capital company who took a 33% stake. The finance from this sale helped the company grow from £6m to £60m turnover n less than six years

• 1999 WH/SH successfully negotiated to buy back the shares, and 3i’s were very happy with their return on the investment.

• 1996 the company had its very first “strategy meeting” and decided that it should become more of a Facilities Management Company than a specialist Refrigeration Company

• 1997 the company was awarded the FM contract for ASDA for Scotland and North East England (50 stores). Contract value £5m per annum.

• In September 19998 the company was awarded the ASDA contract for the whole of the UK. Contract value
£40m per annum (5 year contract).

• 1999 the company is the largest refrigerator company in Britain with over 2200 employees and the company is now recognized throughout the UK as a major player

• 2001 the company took on the cleaning of the ASDA store for the whole of the UK and now employs 9500 people

• 2001 City Group signed a new 10-year contract (partnership agreement) with ASDA Wal-Mart (value 2 billion pounds)

• The Blue-Chip client list includes: ASDA/Wal-Mart, Budweiser, Coors, Interbrew, Esso, Shell, Ernst & Young, Punch Taverns Group

• Among Mr. Willie Haughey’s many awards, the OBE awarded in the Queen’s Birthday Honours List for Entrepreneurship in the West of Scotland – June 2003.

Q&A

Mr. Tannahill thanked Mr. Haughey for a most enjoyable and informative presentation. The next speaker, Mr. Andrew McLaughlin, is the Deputy Chief Economist with the Royal Bank of Scotland. Before handing the floor over to Mr. McLaughlin, Duncan provided a short summary of his background.

Mr. McLaughlin began his career in academic research following completion of his PhD. He first joined the Royal Bank of Scotland as an economist in the mid 1990s. During that time he specialized in the property, personal finance and automotive sectors. He rejoined the Royal Bank in 2001 after working 3 years for Ernst and Young. Whilst at Ernst and Young, he established a new housing finance business within their Corporate Finance division. Mr. McLaughlin published a book on the European Automobile Industry in 1999.

Mr. Andrew McLaughlin, Deputy Chief Economist Royal Bank of Scotland
“Scotland’s Competitiveness in Europe”

• Small open economy still in reasonable shape

• Eleven years of un-broken economic growth

• Appalling geo-political attacks and economy still in reasonable shape

• Absolute improvement in Scottish employment rate

• Deep seeded problems in supply side of the economy

• Competition in any country has to be continually upgraded

• Inter-competitiveness in Scotland lacks an overall strategic perspective.

• UK now needs an approach fostering enterprise building to improve competitiveness

• Enterprises should get into every sector that is failing

• Economic development should be expanded into every facet of life

• Service sectors are making a huge contribution

• Manufacturing sector accounts for 12% of earnings in the Scottish economy

• Long-going debate over prioritization of needs – decline of manufacturing vs. service area

• Need to ramp up investment into infrastructure

• Need to make it as easy as possible to connect people to employment opportunities

• Replicate success of banking in Edinburgh in other sectors in other regions

• Edinburgh’s renaissance in last fifteen years is a remarkable success story

• Priority to create good quality jobs in Scotland wherever that may be

• Encourage more risk taking mentally

• Appropriate bias to development of services sector

• Implementing of existing policies has to take priority regarding competitiveness recommendations to UK government

Q&A

Mr. Tannahill thanked Mr. Mc Laughlin for his comprehensive and interesting presentation. Duncan proceeded to introduce the last speaker for the day, a commercial lawyer acquainted with many of the challenges that arise out of national security issues, Mr. Neil Davidson QC.

Mr. Davidson’s QC knowledge and experience in the areas of human rights and terrorism are clearly very appropriate in this age of challenge to liberty and freedom around the globe.

Mr. Davidson’s QC holds the following degrees;

• B.A. University of Stirling
• LL.B University of Edinburgh
• LL.M University of Edinburgh
• M.Sc University of Bradford
• Fluent French speaker


Mr. Neil Davidson QC, A Senior Member of the Scottish Bar and a Former Solicitor General of Scotland
“Aspects of International Terrorism”

• Global terrorism is different from the historical process “freedom struggles” which is associated with post-colonialism, ex. IRA in Northern Ireland

• 9/11 revealed to the world a new form of terrorism that is not a cry from desperate people oppressed

• This new form of terrorism is essentially an attack on Western democracy. It is anti-open societies, open economies, freedom of women. If this is a correct assessment, it does not leave open terms of negotiation.

• The proposition that Western democracies should be destroyed does not open any means of dialogue

• Global terrorism is not a conventional military conflict and not limited to the UK or USA

• This conflict makes us modify how we look at national security and counter terrorism and protection of human rights

• A potential threat is massive due to the destructive capacity available to Al Kaida

• Where the threat is massive, the extent of counter terrorism must be commensurate

• Many lawyers, particularly human rights lawyers, are faced with the issue of prevention of terrorism and it goes hand in hand with oppression, removal of fair trials, abuse, etc.

• Needs of national security and respect of human rights is always a difficult balance

• Lack of responsibility for human rights is a breeding ground for terrorism

• Freedoms are attacked by global terrorism and defended by soldiers, but also by judges and lawyers

• New form of terrorism not likely to disappear. Society has not yet worked through to find balancing point – defense of democracy requires respect for fundamental freedoms

• Global terrorism creates a tension between democracy and national security

• Where and how does democratic society protect itself through Rule of Law?

Q&A

Mr. Tannahill expressed his appreciation to Mr. Davidson QC for his presentation, which was both interesting and thought provoking.


Closing Remarks

Michael Samuel thanked Mr. Tannahill for his help by taking on the role of moderator for the afternoon’s session. He proceeded to thank everyone at Miller Samuel, the ILN staff, and distinguished guest speakers for making this a productive and interesting session. Michael closed the meeting and said he looked forward to seeing everyone at the evening’s special dinner in The Chapel at Stirling Castle.

Gala Evening

The Gala Evening was held at the remarkable Burrell Collection. When Sir William Burrell and his wife, Constance, Lady Burrell, gifted his collection of over 9,000 works of art to Glasgow, the city acquired one of the greatest collections created by one person. William Burrell had been an art collector since his teens, and the collection is made up of a vast array of works of all periods and from all over the world. The dinner was served while a quartet played music. As the evening commenced, Lowell presented Michael Samuel and his team with a beautiful vase from the Royal Delft collection of the Netherlands. Awards were given to the triumphant golfers – Urs Kaelin and Adrienne Bijloos; congratulations!

However, we cannot fail to mention the wonderful evening at Stirling Castle held on the previous evening, if only for the ceremony of the haggis alone! The Castle sits on a high volcanic rock, visible for many miles in every direction.

The dinner was served in The Chapel Royal, built in 1594 by James VI for the christening of his son, Prince Henry.

 

 

 

 

 

The evening concluded with an incredibly moving outdoor performance by the Stirling Pipe Band!



 


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