Kinvig's Chronicles
FIFTY members attended the Winchester area’s first lunch to be held at The Running Horse in the village of Littleton, north-west of the city off the Stockbridge Road, reports Dawn Gear.
Everyone was well looked after by Sara and all the staff. A welcome drink was served in the bar area and this was followed by an excellent two-course lunch and coffee.
Under the guidance of new owner Louisa Dickson, the premises have undergone major renovation and rebuilding work and were re-opened in March as a country gastro-pub specialising in fresh quality foods and fine wine.
Award-winning chef Alan Murchison, head chef Joe and their team work in a brand new kitchen and dining room.
It is believed that The Running Horse was originally built as a private house, the name reflecting local interest in thoroughbred horses, the village still boasting a thriving racing stud. It is thought the premises became licensed as the local pub in 1881.
The speaker was Paul Kinvig, publisher at the Hampshire Chronicle Group and sponsor of the Chamber lunches. Paul addressed the question ‘What does a newspaper do?’ by taking a light-hearted look at items that publications could have worded better!
Advertisements can certainly make you wonder about the organisation you may be doing business with, such as the one for "Looney’s Concealed Handgun Courses", or the meeting for the "Low self-esteem support group – please use the back door" – not guaranteed to make you feel better.
Paul had many examples from all newspaper sections, and it was assumed that the Situations Vacant ad seeking someone who was "self-motivated and goat orientated" did not apply to anyone present.
The chairman, Jim Sawyer, thanked The Running Horse for hosting the event and Paul Kinvig for his talk.
* Call The Running Horse for reservations on 01962 880218.
* Chamber members can get a 10% discount on business advertising with the Hampshire Chronicle: call 01962 841772.

Placements plea
THE Basingstoke Consortium, an education and business link provider, has been awarded funding from the Government to pilot a new scheme for educating students in Enterprise and Business understanding.
It is aimed at talented students with above average academic ability and those with a flair and aptitude for business.
The students are required to complete a two-week work placement with an employer, who will provide a ‘round robin’ experience of their company at a senior or managerial level.
The scheme requires 150 Enterprise work placements this year, starting in February 2005, and 250 placements the following year.
The pilot scheme presents an opportunity for employers to mould the workforce of tomorrow.
At the end of the project, the findings will be shared with Portsmouth and Southampton regions and then nationally.
Any employers who have not already signed up for this venture can telephone Jayne Fowler, Enterprise Project Manager, at the Basingstoke Consortium on 01256 840710, who will send you an Employers’ Pack or visit you to discuss the scheme.

Free – yes, free – training for businesses
BRIGHTER Prospects Ltd (Pitman Training Centre in Winchester) has joined forces with Eastleigh Borough Council and in February this year launched a new project called Southern Entrepreneurs.
Updating the Chamber on progress in the Winchester and Andover area, Martin Ladd, the Director at Pitman Training in Winchester, reports that the project – backed by the European Social Fund – is going well.
Readers may recall (Chamber News, February) that the Southern Entre-preneurs Project in Winchester / Andover, under Pitman Training Centre hosting, aims to provide free training days or self-paced courses for the proprietor or director and/or selected staff members of around 150 small businesses with 10 or less employees.
Qualified tutors conduct one-to-one training which can be tailored to business needs and can be in almost any business skills topic that will assist the small business concerned to up-skill a staff member and improve efficiency.
As an alternative, there are lots of self-paced in-centre courses and some on-line courses to choose from too.
So far, small businesses in and around Winchester and Andover have benefited from a wide selection of free training.
Martin said: "Marketing, Finance for non-Financial Managers and Sage Accounting have been popular among new start businesses and a number of companies recently have selected training in web design, Excel and Access database – in some cases at expert level tailored to business needs."
The Pitman Training centre is also co-located with Winchester Learndirect Centre so the team offer a wide range of skills courses (Numeracy and Literacy with Adult Testing at GCSE equivalent level, Health & Safety and DDA) many of which are free of charge to businesses.
In addition, there are modular courses in all kinds of business skills – some leading to Institute of Leadership and Management (ILM) Certificate and Chartered Management Institute (CMI) Diploma accreditable units and some at lower levels such as ECDL.
"There are even courses as varied as Call Centre Operations and Fork Lift Truck driving," Martin added.
So, whether it is an IT skills requirement, marketing, accounting or another management / personal development skill that is needed, small businesses just starting up and those established but needing some training in Winchester, Andover or surrounding areas are encouraged to contact Southern Entrepreneurs at the PITMAN Training Centre in Winchester.
Martin told Chamber News: "Training days will continue to be allocated to qualifying businesses on a first come, first served, basis – so proprietors or selected employees are advised to arrange to meet with the Southern Entrepreneurs Team at the Pitman Training Centre as soon as they spot a training need with which the project may be able to assist.
"If we in Winchester cannot offer the training needed, we are in touch with other partners in the project and it’s very likely the right level of professional advice and training will be available."
For more information, applicants should call Martin Ladd – today! – on 01962 849092.

Presentation by Hart District Council
"Where exactly do your Business Rates go to?"
Viv Evans, Corporate Director, and Averil Burton, Property Inspector in Revenues Department. This should last about 1 hour with a presentation and questions afterwards.
Tuesday, August 17, 7.00pm, at Hart District Council, Fleet (Commitee Room 1).
RSVP to Valerie Cloke on 01252 811470.

Informing Hampshire’s future
Hampshire Economic Partnership’s ‘Effectively Informing our future’ seminar was held on July 1 when over 70 delegates discussed economic forecasting techniques, and the fifth edition of HEP’s annual assessment of economic trends across Hampshire and the Isle of Wight, ‘Informing our future 2004’, was officially launched.
The event brought together all parties interested in economic forecasting, including representatives from Hampshire County Council, borough and city councils across Hampshire, and business development organisations, plus other interested parties from across south-east England.
John Latham, vice-principal, resources, at Southampton Institute, chaired the day’s proceedings and speakers in the morning session included Ahmad Eslami of Kent & Medway’s Learning & Skills Council; Mark Deas from the East of England Development Agency; the Bank of England’s agent for central southern England, John Whitley; and Alan Wilson, director of consulting services at Oxford Economic Forecasting.
During the afternoon session Alan Cole, principal researcher at Hampshire County Council, stated that although Hampshire is a nice place to live, it can be a difficult place in which to do business. Issues such as the cost of housing, shortage of labour and appropriate skills, transport congestion and limited space to grow were all cited as examples of the difficulties facing Hampshire’s businesses.
Cole went on to explain that although Hampshire’s economy is a large one – worth £24 billion – its prosperity is slipping and the gap between the county’s prosperity and the whole of the south-east region has doubled from 4% in 1995 to 9% in 2001.
However, not all was negative, and Cole outlined the key characteristics of the county’s success. These included its economic diversity, the entrepreneurial spirit and development of enterprise, the innovation currently being undertaken in Hampshire’s businesses, the connectivity to other parts of the UK and abroad, the county’s vision and skills in strategic decision-making, and finally the quality of life the region offers.
Nick Woolfenden of SEERA (South East England Regional Assembly) outlined the rationale of the South East Plan – the strategic blueprint to take the region up to 2026, which takes into account a range of economic issues such as industry sectors, locations, land supply, skills, working practices and anticipated levels of growth.
Andrew Tong of Experian Business Strategies then explained his role, having been commissioned by SEERA to undertake the economic forecasts required to develop the South East Plan.
The seminar’s final speaker, Jeff Grainger, director of the centre for local and regional economic analysis at the University of Portsmouth, introduced delegates to ‘Informing our future 2004’ (IOF), HEP’s annual assessment of economic trends across Hampshire and the Isle of Wight, which is produced in association with the University of Portsmouth and supported by the Learning & Skills Council.
IOF 2004 identifies that the region benefits from a number of key business sectors, namely: tourism, retail and leisure, the marine sector, advanced manufacturing and rural business.
The report goes on to discuss how these sectors are the key drivers to the area’s wealth and prosperity, but urges policy makers to be aware of the shortage of skills, the need to increase investment in technology and R&D to achieve and/or maintain competitiveness, and the issues surrounding identifying and developing suitable land and premises for businesses to achieve their potential. IOF 2004 also stresses the fundamental need to maintain and improve the region’s infrastructure.
Focusing on the challenges facing Hampshire and the IOW, IOF 2004 also discusses the tight labour market, exacerbated by the ageing population and the fact that the region faces more of a skills shortage than many other areas in the south-east. It also highlights the issues relating to land property, the infrastructure of the region and the current hot topic – availability of affordable housing.
Following the seminar, Simon Ward, chairman of HEP’s research and intelligence task group who organised the seminar, said: "We were delighted with the seminar both in terms of the calibre of speakers and delegates as well as the debate that came out of the Q & A sessions. The seminar also proved a perfect forum to officially launch ‘Informing our future 2004’.
"To me the seminar reiterated how valuable it is for policy makers to share timely economic data in order that we can all draw upon the insights it brings."
* The Hampshire Economic Partnership was established in 1993 with a primary purpose to effectively engage with the business community and build a valuable public-private partnership between business and government, at all levels.
www.hep.uk.com

Inspiring evening at The Elvetham
THE ELVETHAM near Hartley Wintney was the idyllic venue chosen for a special Ladies Business Evening on July 15.
Over 40 ladies enjoyed Pimms on the lawn of this 19th century mansion, and they were welcomed by Greville Dare, managing director of Richmond & Hampshire Ltd, owners of The Elvetham.
The guest speaker was Jan Kaye from Thomas International, a specialist company leader of learning systems and sponsors of the event, who led a lively discussion explaining the four main character groups into which people fit, and how the analysis of these personality profiles can help place the right person in the right job. Jan also highlighted famous women in business with examples of their personality traits.
If a few people were left shifting rather uncomfortably in their seats when Jan pointed out the rather less appealing aspects of certain character groups, there was immediate consolation when The Elvetham offered some superb cuisine.
Everyone enjoyed a wonderful barbecue and the chance to do some further networking as they looked out over the magnificent grounds where an oak tree planted by Elizabeth I stands.
In this fine company it was impossible not to enjoy such a perfect summer’s evening and the comments the Chamber received following the event certainly reflected this:
"Brilliant event" – "Great people" – "Friendly and approachable" – "Fantastic and inspiring evening"
John Harrocks, NHCCI chief executive, said: "The event was unashamedly aimed at business women. More women than ever are choosing to start their own business.
"Today women run nearly one million companies in the UK with a turnover of up to £1million – almost one-third of all small businesses. Statistics show that women account for 51% of the workforce and 27% of those are self-employed."
The next event in the North East Hants area is at Farnborough College of Technology on Tuesday, September 28, when the speaker will be Tim Bridgman of QinetiQ.
For more details about this event, please contact Sue Collinson or Valerie Cloke on 01252 811470.
For more information about The Elvetham, telephone 01252 844871 or visit the website at www.elvethamhotel.co.uk

Women in Business: Going Great Guns
THE Women in Business Group, which is affiliated to the Chamber, was due to return to Tylney Hall for its evening event on July 29, after Chamber News went to press.
Sue Brown, president, who is Corporate Tax Adviser with Tenon accountants, said the July meeting has always been a superb opportunity for business women from a wide range of sectors across North Hampshire to meet in a friendly, elegant atmosphere, network and do business.
"There is no question that we find from experience that women who talk together do business together. At each of our 12 monthly meetings throughout the year we aim to provide a friendly forum for women to make new contacts and learn from each other and our speakers," she said.
"The Women in Business Group has been very fortunate to have a variety of interesting speakers throughout 2004, and July is no exception. We are especially keen to hear from the managing director of Great Guns Marketing, Liz Jackson, who has developed her appointments-making agency in just six years to a turnover of more than £1.5 million."
Liz was expected to tell the group that there are three things she believes have made her business so successful: being thankful for staff, clients and all those she does business with; to listen first; and to see everyone you deal with as a partner, all of whom can contribute.
"I firmly believe that if you think you can do something, you can. If you think you can’t, you won’t," said Liz. "All my staff contribute to the business with their ideas whatever their job title and I am especially proud of them."
Great Guns marketing has just won the Customer Focused Award, part of the National Business Awards, for demonstrating its ability to place the customer at the heart of its business.
If you would like details of how to join Women in Business and what’s coming up each month, contact Caroline Daymond, email cdaymond@bmihealthcare.co.uk
For information about Great Guns Marketing, contact Sima Kotecha, 01256 330571.
Future meetings of Women in Business:
August 26 – Networking lunch at Ciao Baby.
September 30 – Evening meeting at the Red Lion Hotel: ITN editor and media management consultant Chris Smith advises on "Taking on the media"
* Tributes have been paid to Diana Giordmaine-Blade who has died in St Michael’s Hospice just a year after the death of her husband Dr Patrick Blade.
Diana, 60, who set up her Folly Interiors firm in 1980, founded the Basingstoke Women in Business group and was president of Basingstoke Chamber of Commerce, in which role she was involved in the formation of the NHCCI.
Former Basingstoke and NHCCI president Peter Durrans said: "She was an outstanding president of the chamber and represented it in a great style."

Vera meets again…
‘Forces Sweetheart’ Dame Vera Lynn took a trip down memory lane when she was guest speaker at the Ladies Luncheon Club event at Tylney Hall.
The lunch, attended by 105 ladies, was a sell-out success and Dame Vera answered questions from the audience about her wartime singing career and the many different places she visited during the war.
She said: "I was a professional singer since the age of seven. I say professional because I was paid 7s 6d for singing three songs, which was a lot of money in those days!"
Dame Vera’s more recent career has been in the field of charity work and she also spoke about her involvement with the Dame Vera Lynn Trust for Children with Cerebral Palsy. The registered charity runs a school in West Sussex and works in partnership with parents to develop and recognise each child’s individual qualities and achievements and help them overcome problems associated with cerebral palsy.
The event was the latest in the series of ladies’ lunches that are held at the hotel at Rotherwick, near Hook, throughout the year.
Tylney Hall general manager Rita Mooney said: "We were delighted to welcome Dame Vera Lynn to the hotel. She is a very popular speaker and everyone thoroughly enjoyed the event."
The next lunch is on September 24 when there will be a talk on autumn and winter fashions.
Membership of the ladies’ lunch club is free and all local ladies are welcome to attend, subject to availability.
For further information and reservations, call 01256 764881.

Farnborough International sees launch of Enterprise Hub
FARNBOROUGH ENTERPRISE HUB took off officially on the opening day of Farnborough International.
Hub champion Sir Donald Spiers explained that it is the first hub in the UK to focus on the aerospace and defence sector.
Its key aim is to build on the south-east’s reputation for technology and to create new business opportunities for a region which relies heavily on the aerospace and defence sector for its economic well-being.
Sir Donald said: "The Farnborough Enterprise Hub aims to be the focus for bringing aerospace-related business into the south-east of England. This new venture has developed from key players who are convinced that there are great opportunities for British business in the defence and aerospace sector, and SEEDA has been particularly supportive.
"Britain has the opportunity to be a leader in providing technology solutions for customers around the world who need high quality work from specialised firms. We expect there to be considerable demand from firms in the USA for the solutions that our companies will be able to provide. So much of the world’s defence and aerospace knowledge is still only available in England."
He said the south-east has a strong economic reliance on the aerospace and defence industry, with over 1,000 related companies based in the region, many of them SMEs, employing around 40,000 people and generating an annual turnover of £7bn.
South East England Development Agency (SEEDA) chairman James Brathwaite said it is the 19th hub in the network of business incubators across the region, representing a key component of SEEDA’s strategy to provide support for local entrepreneurs and increase the survival rate of young companies.
The hub will have a particular responsibility for facilitating technology transfer from the region’s research and development base and universities to stimulate innovation, and this point was stressed by Glenys Wolsten-holme, director of marketing at the Defence Diversification Agency (DDA), who listed some of the many world-class organisations in the north Hampshire area.
The hub will assist high-growth knowledge-based companies with investment and funding, flexible workspace solutions, mentoring and mutual support, and thus provide rapid incubation and growth.
Partners in the hub initiative being delivered by SEEDA include the DDA, QinetiQ, Farnborough Aerospace Consortium (FAC), Hampshire Economic Partnership, Rushmoor Borough Council, the University of Surrey and the NHCCI.
Based in Cody Technology Park, the hub will house a 1,500 sq.ft ‘hatchery’ for new businesses, with plans for a larger incubation centre.

Fizz and chips hail Hallmark's success
WINCHESTER-based public relations consultants Hallmark PR celebrated its 20th birthday on July 9 with a fish, chips and champagne party held at Winchester Cathedral’s refectory.
Clients, partners and other guests were invited to join directors and staff in celebrating the consultancy’s birthday with a special reference to its beginnings 20 years ago.
Hallmark director Helen Symes said: "We decided to celebrate with a fish and chips party because Hallmark PR began its life above a fish and chip shop in Basingstoke in 1984.
"But just to ensure that the evening was as unhealthy as possible, guests were also offered a large slice of birthday cake for dessert!"
Mike Kean, head of communications at Mott MacDonald, who has been a client of Hallmark in his current and previous roles for 17 years, said: "The public relations industry achieves the success it does because of the high calibre of staff it employs. Hallmark PR fall into this category. It has been a pleasure working with them for all this time.
"I congratulate them for reaching their 20th anniversary and wish them every continued success in the future."
Soon after its launch in Basingstoke, Hallmark PR moved to Winchester and spent time in different offices in the city before settling at Canister House in Jewry Street, where it has been based for the last nine years.
In February 2003 the company underwent a management buyout when managing director Tom Watson returned to his home in Australia to take up a teaching post. The three directors, Helen Symes, Steve Osborne-Brown and Steve Wilson, now own the company.
The consultancy’s clients are from varied sectors, including IT, finance, property, social housing, engineering and sustainability.
Hallmark: 01962 892900, www.hallmarkpr.com

Fifty years not out
LANGDOWNS DFK are celebrating fifty years of accountancy by sponsoring Hampshire cricketer John Crawley.
The amount is based on every half century he achieves this season, and the money will go to the Hampshire Cricket Youth Trust.
"I hope to win some £1,000 for the Howzat Appeal," says John, who made his intentions clear when he scored 301 in the recent match against Nottinghamshire – his personal best and the third highest total ever by a Hampshire batsman.
John explained: "The trust helps provide future cricketers, and encourages youth cricket in the county at clubs and schools. I was lucky because I was exposed to cricket at the age of five. My father was an amateur and I had two older brothers who played. But I don’t want other youngsters to miss out. I am certainly hoping to play cricket with my son and new daughter."
Crawley moved to Hampshire three years ago having played several seasons for Lancashire after leaving university.
"The sponsorship money is likely to mount up, because Crawley has an impressive track record," said Andrea Campbell Smith from Langdowns – and that was before Crawley hit his triple century.
She joked: "Our sponsorship offer will test a few people’s arithmetic, which is the idea!"
Langdowns DFK: 023 8061 3000, www.langdowns.co.uk

People on the move
Winchester-based solicitors Shentons have appointed Nicola Sommers to join their Civil Litigation team.
Nicola gained a law degree at Lincoln College, Oxford, after which she trained with a London-based firm and qualified as a solicitor in 1989. She then practised in London and on the south coast covering a wide range of civil litigation matters which included working for the Transport and General Workers’ Union where she specialised in employer’s liability and occupational disease cases. She also has experience of road traffic accident, public liability, criminal injuries claims and infant claims.
Nicola lives with her husband and son in Fareham. She is a keen motorcyclist and rides a Honda LBR400 RR.
Gary Johnson, civil litigation partner, said: "I am delighted to welcome Nicola to the firm where she will assist in the future growth of the department and in particular assist clients with her wide experience and skills."
Shentons Solicitors: 01962 844544

Richard Burnett has joined accountants Langdowns DFK at Eastleigh. He specialises in commercial company insurance and professional indemnity. He said: "I enjoy finding out what clients really need, and helping like-minded people."
His appointment is unusual for an accountancy practice. Chief executive Bob Law explained: "As our clients often ask us about insurance, we decided to offer this service as part of our business advice, and Richard has the right breadth of experience. Langdowns DFK now deliver a one-stop shop for business owners."
Professional Indemnity (PI) insurance is required by solicitors, accountants, surveyors and many professionals who are not allowed to practise unless they are covered. In the event of an expensive claim, adequate insurance protects their reputation. "We provide cover for when professionals make mistakes… you could say we ‘cater for catastrophe’," says Richard.
Richard has a Law degree and is an Associate of the Chartered Insurance Institute. "My work involves understanding client business, which can be hugely varied. For example, I have arranged the insurance for a cattle breeding centre. They carried out artificial insemination and used liquid nitrogen refrigeration."
As a young trainee broker at Lloyds, his most amusing claim involved a young Great Dane dog which ran out of his owner’s drive into the path of a new Jaguar. There was a nasty bump, which stove in the front of the Jag. But the dog got off the road, shook itself and continued to chase the cat! The loss adjuster said in his report: "It would seem that Danish dogs are better built than British cars." The house owner’s insurers settled the Jaguar’s repair costs under the public liability section of his house insurance policy.
At Lloyds, Richard was involved with multi-national clients for several years before returning to Southampton with a young family. With a partner he co-founded a computer insurance firm, Burnett and Associates plc, which insured the systems of many national household name companies. He sold his interest in 1990 but the company continues to thrive. He has worked for some 30 years in the insurance industry.
Langdowns DFK: 023 8061 3000, www.langdowns.co.uk

Basingstoke-based commercial property consultants Vail Williams have promoted Graham Puddle to Partner.
Graham, who is a member of the Royal Institution of Chartered Surveyors, joined the firm as Associate Partner in April 2001 and was recently promoted to Salaried Partner.
Stuart Hawkes, Partner at Vail Williams’ Basingstoke office, said: "Graham is a highly experienced and integral member of the firm’s Basingstoke building consultancy team specialising in professional and project management. He is responsible for assisting the head of department in day-to-day management."
Graham said: "I am delighted to have been promoted to Partner at a time when my role plays a major part in the development of the building consultancy team in conjunction with the growth plans of the business."
In his spare time Graham is a keen traveller and enjoys most sports including skiing and golf.
Vail Williams: 01256 489800, www.vailwilliams.com

Expanding accountancy firm Jordan Brookes has appointed Mark Day and Jamie Lambe as new trainee accountants at the Winchester office.
Mark (29) from Chandler’s Ford and Jamie (22) from Clanfield are both studying for their ACCA qualification and will be training at the firm, gaining relevant work experience including audit, accountancy and taxation.
Ian Talbot, staff partner at Jordan Brookes, said: "We take on trainees every year, and have become a dedicated training office for ACCA and ACA.
"We pride ourselves in offering excellent opportunities for trainees and our two new recruits are already settling in well."
Jordan Brookes: 01962 852263, www.jordanbrookes.co.uk

India: A land of dreams and romance…
SHALINI Agarwal, senior partner with ALMT Legal, was the guest speaker at a meeting of the International Trade Forum held at Farnham Castle.
ALMT Legal is one of the leading Indian law firms in the UK, and the subject was "Doing business in India: making sense of Indian laws and business practices".
India has one of the fastest growing economies in the world, and provides extensive opportunities for UK goods and services, as well as being one of the world’s leading markets for foreign direct investment.
India, the world’s largest democracy, has an open and uninhibited market. It has a huge diversified manufacturing base with an abundant supply and availability of quality raw materials, is well endowed with agricultural, mineral and natural resources, and contains a large reservoir of scientific and technical manpower as well as skilled, semi-skilled and unskilled people.
The Government of India has recognised the importance of foreign investment and is well on its way to moving the country to the centre stage of international business.
In an excellent and entertaining presentation Shalini described the country today and covered the themes of:
* Cross-cultural perceptions – myth and reality, positive and negative
* The operating environment and business practices in India
* Cultural differences in business practice
* Entry strategies and considerations
* Managing off-shore transactions
Her first slide began with a picture of the Taj Mahal and the headline above followed by the words "… a land of fabulous wealth and fabulous poverty, of tigers and elephants, of genies and giants and Aladdin lamps, 1,000 religions and 2 million gods".
Particularly appreciated were the Indian perceptions of the British, not all of which were flattering!
John Harrocks, NHCCI chief executive and secretary of the ITF, who chaired the meeting, said: "India is a highly topical subject for UK businesses and indeed for businesses throughout the western world, with outsourcing and call centres very much on the agenda of many companies, quite apart from the huge potential of India as an export market.
"We are delighted that Shalini was able to join us and give us the benefit of her wit and wisdom on such a big subject.
"We are also very grateful to Business Link Wessex for their generous sponsorship of the event."
The next meeting of the International Trade Forum, which meets four or five times a year, is on Monday, September 27, when the topic will be security for UK business people abroad.
* For further information please contact John Harrocks, International Trade Forum, on 01256 352275, email itf@nhcci.co.uk

HSBC Economic Commentary
Missing the boat
THE latest set of trade figures released on July 9 show that British firms are still finding it tough to win business in overseas markets. Despite the continuing strength of the American economy and a modest recovery in the eurozone, the bottom line is that for many businesses sterling remains uncomfortably high.
Unfortunately for those involved in exporting, their plight is not at the top of the Monetary Policy Committee’s list of priorities. A host of factors are pointing towards a build-up of
inflationary pressures over the next few years, and hence a need for higher interest rates.
The state of the housing market is the most obvious, with the Governor of the Bank of England issuing stark public warnings about the need for people to rein back their spending and borrowing. At the same time, the strength of the global recovery has caused the prices of most commodities to firm, and oil markets have been in turmoil, fuelled by renewed fears about political instability in the Middle East. At home, further falls in unemployment are driving an acceleration of earnings growth.
With interest rates in the UK expected to hit 5.5% by the early months of 2005, the gap between rates here and in the eurozone and the US is unlikely to get much smaller in the foreseeable future. These differentials are important in driving trends in exchange rates. It means that so long as financial markets remain reasonably upbeat about the UK’s economic stability, there is little prospect of sterling falling to more comfortable levels for exporters.
There is now clear evidence that a recovery is under way in the UK’s beleaguered manufacturing sector. But it would seem that this has more to do with a revival in capital spending by businesses here at home than any resurgence of demand for our products from abroad. The deficit on trade in goods remains at record levels. Having notched up a shortfall of £23.2 billion in the first five months of the year, it is an odds-on certainty that 2004’s deficit will easily exceed 2003’s record of £47.2 billion.
The problem isn’t that imports are flooding into the country, but rather that export sales remain subdued. The best that can be said is that the value and volume of British exports is no longer falling.
Nothing illustrates the difficulties faced by British exporters in recent years better than their poor showing in China. The Chinese economy continued to expand rapidly throughout the recent global downturn, with GDP growth in 2003 topping 9%. Much of this has been driven by capital spending, which means that China has imported huge quantities of all manner of raw materials and machinery.
In view of the close ties between China and Hong Kong, including the huge amount of re-exporting, it makes sense to consider them together. Britain’s exports to these two economies amounted to £4.4 billion in 2003. Despite the phenomenal growth of demand for imports, in the three years from 2000 sales by UK businesses rose by a meagre 6%, while the value of merchandise arriving in the UK from Hong Kong and China rocketed by 47%. But Britain’s share of imports into these pivotal markets has slumped from 1.7% in 2000 to just 1% in 2003. The upshot is that exports to China and Hong Kong account for just 2% of the total in the case of the UK, well below the contribution made to the exports of most other advanced economies.
Other examples of Britain’s weak export performance are not hard to find. In 1999 the UK traded at a small surplus with the ten countries which joined the EU in May. By last year, that had turned into a sizeable deficit, with £130 of goods being imported for every £100 of exports.
This woeful performance is not easy to explain. Part of the widening trade gap is clearly down to the fact that the British economy has done relatively well in recent years, and has therefore tended to suck in imports at a time when conditions in many export markets have been tough.
But given that the global economy will grow by more than 4% this year, with even the sickly eurozone showing signs of a modest revival, there should by now have been a clear improvement.
The real killer for British exporters seems to have been the surge in the value of sterling against the dollar. Back in 2000 when the global economy was growing rapidly and the pound was languishing at around US$1.40, the volume of the UK’s exports surged by 10%. The US and most other ‘dollar zone’ economies are again in fine fettle. But firms in the UK are struggling to make headway with the pound at more than US$1.80.
With the huge US current account deficit still casting a long shadow over the currency markets, there is little chance of an imminent rebound in the dollar. British firms have no choice but to adapt to this reality. Because Britain’s current account position is nothing like as bad as that in the US, a trade gap of £50 billion or more is a problem for manufacturers and exporters, but not for the Government’s management of the economy.
* If you have any queries or would like further information, please contact Ann Rice at HSBC Bank plc, 8 London Street, Basingstoke RG21 7NU, tel 01256 726025.

Speaking up for taxpayers
ACCOUNTANTS and business advisers Baker Tilly in Basingstoke have leapt to the defence of self-employed taxpayers who have been wrongly led to believe they will undergo an Inland Revenue investigation.
‘Enabling’ letters, sent out by the Inland Revenue, have led to mounting fears amongst taxpayers of an investigation resulting in extra tax, interest and penalties.
Tim Smith, Partner at Baker Tilly in Basingstoke, said: "The letters are tantamount to treating taxpayers as if they are guilty until proven innocent.
"At one point in the letter, it states that from a risk review of 2003 returns, the Inland Revenue has identified [quote] ‘an aspect of the Self Employment pages of your return which may need particular attention’. However, the letter is not specific about what needs attention, and has caused much unease amongst taxpayers."
Baker Tilly say that although they understand the Inland Revenue approach, driven by concern that many businesses may be over-claiming certain expenses, the letters are being sent indiscriminately. For example, some recipients of these letters are not claiming the expenses in any of the categories described in the appendix to the Revenue letter.
Tim added: "The Inland Revenue gives the impression, intentionally or unintentionally, that it is consciously using scare tactics on SMEs, even when those businesses are already expending huge amounts of time and effort in complying truthfully and accurately with the complex Self Assessment process."
Baker Tilly: 01256 486800

Syndicate fund for investors
PALMER FRY, commercial property consultants in Winchester and Southampton, have launched a syndicated commercial property fund in partnership with the independent financial advisory practice Synergie Financial Partnerships.
The aim is to provide an alternative to the poor returns from many other investments over recent years, and open the door to pension fund holders looking for a stable haven for their assets.
Pension funds can now be transferred to a plan where you can retain control over the assets, which is income tax free and with no capital gains tax to pay.
Richard Pullen, director of investment at Palmer Fry, said: "This is an opportunity to make a direct investment into a syndicated property fund whether by cash or through transferring a pension. Private investors who have been contemplating entering the residential market could also benefit from looking at commercial property investment which produces a relatively higher yield at a lower risk.
"While people may aspire to direct ownership, the ever-increasing acquisition costs of purchasing prime property are limiting. But such properties could come within the grasp of most if they pool pension funds with like-minded people and share in the potential benefits. By combining funds in a syndicate, investors have access to the more expensive properties in prime locations that attract the best tenants, especially as current rules permit up to 75% of the purchase price to be financed.
"Over the last three-, five- and ten-year periods, direct investment in commercial property has outperformed equities, gilts and cash deposits, and investors are beginning to realise the positive potential of the commercial property market.
"The fund would invest into prime commercial buildings let to blue chip tenants, offering both long-term secure income and capital appreciation. The investment would give an initial minimum rental income return of between 5% to 8% on capital invested which would be further enhanced by the fact that the income would be tax-free."
The commercial property market is widely reported by investment gurus to provide a stable platform for cautious investors.
The Personal Pension Portfolio for Syndicated Property Purchase provides the framework to enable people to share in the benefits of investing directly into a commercial property via pension funds with a small group in partnership, and for the investment to be made in the local regional economy.
Palmer Fry will provide the expertise to find the right property in the right location and each scheme will be co-ordinated by Synergie as clients’ financial adviser for this investment.
Mr Pullen said: "Anyone who has assets of £50,000 or more in a pension scheme at present could potentially take advantage of this new scheme, and this exciting property fund partnership is also open to investors with other sources."
* For an information pack, contact Nigel Coleman, managing director of Synergie Financial Partnerhips, on 0870 855 4051, or Richard Pullen at Palmer Fry on 023 8022 7337.

High Street business booming
DESPITE speculation of a potential property market crash, Waterfords Estate Agents reported an overall increase in business of just over 40% for the first five months of trading in 2004.
Their most prominent High Street offices in Fleet and Camberley are experiencing the greatest success in new sales.
"We are delighted to report such an increase in business at a time when the property market is under fierce criticism and speculation," said managing director Brendan Cox.
"Although we have experienced a noticeable reduction in the number of new properties to the market this year, this has meant that there has been a growth in demand, which in turn has led to a steady increase in asking prices across all our offices."
And as for the rest of 2004…
"Mervyn King’s comments and the second increase in interest rates in June certainly damaged confidence in the market, but we will be interested to see the actual effect this will have across our offices in the coming months," said Brendan (pictured).
"On average 30% of all house moves are generated by those who need to move due to work or family commitments, and a good house at the right price, will sell whatever the market.
"Reducing house prices in agents’ windows should not be seen by buyers as evidence of a falling market, more an indication that home owners continue to be over-ambitious with their asking prices in the first place."
Brendan concluded: "Media speculation will always make the market wary, but the bottom line is that property still remains a good long-term investment."
* Waterfords have offices in Camberley, Yateley, Bagshot and Chobham, and an Internet Property Showroom in Fleet. They are to open their sixth office in Sunningdale later this year.
www.waterfords.co.uk

To Rent: Attractive Offices
Two offices, approximately 300 & 400 sq ft, in 15th-Century barn, pleasant views, quiet yet accessible. Rotherwick. Flexible terms. Tel: 01256 762113

Telecoms Q & A
supplied by Telequip
Question: We still use BT for Line Rental and Call Charges. We get calls every week from companies offering Least Cost Routing, saying they can save us enormous amounts of money. Is this safe and secure, and how does it work?
Answer: Yes, it is safe and secure provided you choose a reputable supplier within the corporate marketplace rather than domestic.
Domestic Least Cost Routing tends to use very cheap services that compromise quality and service against overall price (this can sometimes be referred to as Tier 2 carriers). This can mean calls drop out half way through a conversation, or get a cross-line for no apparent reason. It can also mean you struggle to get a dial-tone to make the call in the first place.
A corporate Least Cost Routing service simply re-routes your outgoing calls via a quality alternative network to BT. This is typically done at the local BT exchange, where the calls re-routes automatically, or it can be done on your premises via a prefix code being electronically entered in front of very call made.
Both are seamless and the user doesn’t have to be aware of either of the automated processes in order to benefit from cheaper calls.
BT are governed by OFCOM which means they cannot discount their calls below a certain level, in order to allow competition to offer viable alternatives. In most cases, an average bill from BT for call charges can be cut by at least 30%, which for most companies can mean massiveyearly savings.
The changeover from BT to another provider is invisible, seamless and 100% reliable. It is also totally secure.
* Telequip are a telecoms company totally independent of any manufacturer or supplier, and as such are more than happy as Chamber members to provide fellow Chamber organisations with advice.
They can be contacted on 0870 777 0777. Ask for David Shorten, business development manager. Or visit their website at www.telequip.co.uk
* Questions are welcome for this column, and future articles will also cover information from BT.

Ladies’ driving ambition
LADIES – now’s your chance to drive a variety of unusual and thrilling vehicles, just for fun and all in aid of Marie Curie Cancer Care.
On Saturday, September 4, the Lasham Aerodrome near Alton will host the Marie Curie Cancer Care Ladies Driving Challenge. Vehicles up for grabs will include a double-decker bus, articulated lorry and JCB low-loader, to name a few – but men will have to make do with watching all the fun from the sidelines.
Four ladies who work at Heatherside Infant School in Fleet are used to being driven around the bend by the children, but they will be driving themselves around the bend for a change.
Sarah Woodcock, Elaine Gilbert, Judith Rowles and Rachel Walker – three teachers and the school’s administration officer – are urging other local ladies to join them in having the drive of their life.
Hook company R M Page & Sons are providing three of the many vehicles available to drive at the challenge and experienced drivers will be there to help participants get to grips with the most challenging vehicles they will ever drive.
Kat Butterworth, Marie Curie Cancer Care Fundraiser, said: "This event is all about women joining together for a fun day out, and every person taking part will be actively helping to fund the 253 Marie Curie nurses in the south-east whose free nursing care helps cancer patients to make the choice to be cared for at home."
Marie Curie nurses care for around 17,000 patients a year across the UK; the care costs millions to provide and the charity depends on the support of the public to fund its services.
The care and support given to people with cancer at home is provided free of charge to patients and their families, but it costs £15 to provide a Marie Curie nurse in a patient’s home for one hour.
To find out more about Marie Curie Cancer Care, call 0800 716 146 or see www.mariecurie.org.uk
* For further information and an application form for the Lasham event, call Kat Butterworth on 023 8026 3123.

Welcome to new members

Canon UK Ltd – James Curtis
Unit 3, Orpen Park, Ash Ridge Rd, Bradley Stoke, Bristol BS32 4QD. Tel: 07971 081001. Document workflow and management
Canon Business Solutions supply and support a range of IT solutions primarily based around document workflow and management. This includes copying, printing, faxing and scanning. Our software solutions include document storage, archiving and retrieving, colour print management and control of network printers in SMEs & large organisations.

Eyesite – Carolyn Walker
Southgate Corner, 65 High Street, Winchester SO23 9BX. Tel: 01962 864446. Opticians
We are an independent optical company committed to the highest standards of eye care. We pride ourselves on exceptional service and innovative products and techniques. We provide contact lenses, eye examinations/eye health screening, laser surgery, spectacles and sunglasses.

Find Your Life – Lisa Fletcher
26 Birbeck Place, Sandhurst GU47 0UL. Tel: 0870 321 8111. Coaching
Are you striving to take your business or yourself to the next level? Coaching provides a mechanism to enable you and your business to grow. Working closely with my clients, I encourage them to identify, plan and achieve their personal and professional goals, ensuring they live the lives they want to lead. See www.findyourlife.co.uk

HRP Finance – Terry Stevens
Suite 301, 80 High Street, Winchester SO23 9AT. Tel: 01962 842060. Business finance brokers
HRP Finance are business finance brokers providing financial solutions to business situations. With over 40 years’ experience in business and with access to over 300 lending sources, we can deal with any size of proposition and provide a high quality service with honesty, integrity and independence, and with continuing support.

Jan Wood HR Consultant – Jan Wood
55 Olivers Battery Road, Winchester SO22 4JB. Tel: 01962 853712. HR consultancy
We provide advice to small and medium sized enterprises on all issues to do with the employment of people. In particular we have an in-depth knowledge of the practical application of employment legislation in areas such as staff handbooks, policies and procedures, contracts of employment, recruitment, disciplinary procedures, redundancy and family-friendly provisions.

Mawson & Company – Tony Mawson
14 The Square, Winchester SO23 9ES. Tel: 01962 878130. Hairdressing, beauty therapy and retail
Mawson & Company Aveda lifestyle salon combines and offers the very best in hair and beauty using Aveda’s unique plant-based hair and beauty products. Three floors at 14 The Square include an Aveda retail area, first-floor hair salon and above that beauty treatments rooms for top to toe pampering by qualified Aveda therapists. See our website at www.mawsonandcompany.com

Pitmans Solicitors – Liam Hemmings
47 Castle Street, Reading RG1 7SR. Tel: 0118 957 0270. Commercial solicitors
Pitmans is the largest single-office law firm in the Thames Valley. It is a specialist commercial firm offering a comprehensive legal service to a broad range of national and international clients.

PricewaterhouseCoopers LLP – Gavin Blackman
Savannah House, 3 Ocean Way, Ocean Village, Southampton SO14 3TJ. Tel: 023 8083 5425. Human Resource services
Advising businesses of all sizes in the area of human resources. Some of the services we provide (this is not an exhaustive list by any means): tax – international and domestic; assigning people to/from the UK; reward strategies; talent management; pensions; share schemes.

Quest Geo Solutions Ltd – Keith Capelin
Passfield Business Centre, Lynchborough Rd, Passfield, Liphook GU30 7SB. Tel: 01428 751565. Software development
A company specialising in software development primarily within the Oil and Gas exploration and production industries and particularly within the fields of geomatics, positioning, surveying, geodetics, mapping and navigation. Products are typically used for navigation and positioning on seismic surveys both on and offshore and in engineering and drilling.

Shoon Shop - Feet Inc – Caroline Smith
23/24 High Street, Winchester SO23 9JX. Tel: 01962 820178. Shoes
Shoon was originally a marketing and distribution business started by Michael and Rosalie Fiennes on April Fools Day 1982 based at Dinder, near Wells in Somerset. We now specialise in retailing international leisure brands, each chosen for their unique qualities of service, comfort, advanced technology and distinctive design. We have 20 High Street Feet Inc stores and 4 factory outlets.

Southampton Football Club Ltd – Hazel Gomm
The Friends Provident St Mary’s Stadium, Britannia Road, Southampton SO14 5FP. Tel: 023 8072 7739. Football club
Southampton Football Club are one of the best-established outfits in the Barclays Premiership. Only Arsenal, Everton, Liverpool and Manchester United have been in the top flight of English football longer than the Saints who are now entering their 27th consecutive season among the ‘big boys’. After years struggling at the outdated Dell, the club moved to the 32,500-capacity Friends Provident St Mary’s Stadium in 2001 and have steadily progressed, reaching the FA Cup final in 2003.

Book online: Places at most events can now be booked direct through the Events listings on the Chamber’s website at www.nhcci.co.uk