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Name your need, we have the solution, says Lord Mayor

MR ALDERMAN DAVIDE BREWER

Chennai , March 26

The City of London - the hub of financial services in the UK - believes it can offer a complete package of services for Indian companies looking to increase their global exposure or for State governments planning to follow the public-private partnership route for improving services.

During a visit to Chennai last week, Mr David Brewer, The Lord Mayor of the City of London, referred to the London Stock Exchange's Alternative Investment Market where companies in their early stages of development could raise funds. The Alternative Investment Market (AIM) was ideal for companies that were successful, profitable and diversifying and looking to raise public funds. The AIM was swift, not too expensive and not too onerous for such companies, he said.

Mr Brewer pointed out that the AIM was not overly regulated and the whole process of raising capital was quick. At the same time, the AIM offered companies access to international capital.

He referred to the need for going in for more public-private partnership (PPP) projects, especially in the infrastructure sector and said the City of London had the experience and expertise to offer advice. With the UK's experience in PPP, the City of London had advised 40 countries on this. "You need to take the government with you and communication, especially with the public who are going to be affected by a project, is important," he said.

Mr Brewer said the PPP process had taken great care with the unions also. At the beginning, the unions thought that their jobs would be affected, but later realised that it was not true. This was an understandable fear and one that had to be tackled with great care, he said and added that the City - where expertise in finance, funds management, raising capital, accounting and legal issues was available - could provide a complete package of solutions.

Businesses need good legal and good accounting advice and "our understanding is that when companies go overseas, they need the same kind of legal advice that they get. This will give them confidence," he said.

Mr Brewer, who with his delegation of representatives from the City, addressed seminars in different cities in India, felt that India should liberalise more in the services sector, especially the legal profession.

The Law Society of the UK was opening a branch in Mumbai and a lawyer in India could be authorised to practise in the UK after appearing for the qualified lawyer training test.

The other areas where the City could offer its expertise was in pension reforms and insurance. More pension products were required for the Indian population, of which only 10 per cent now had access to such products, Mr Brewer said. Likewise, insurance brokers only enlarged the number of insurance products and premium, thereby benefiting all, he said.

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