7 April '04 - Minutes of the 37th committee meeting of EMAG

1. The Treasurer's report, already circulated, was approved. While cash is down since February, there is sufficient for a mailing to members and supporters, and there is a substantial sum reserved for possible further legal costs.
   
   
2. Update on the Judicial Review. Having read the submissions made by EMAG and the PO, Judge Moses has agreed to a preliminary hearing of the arguments for an application for judicial review. This will be held in private on 29th April, and is expected to last between two and three hours.
   
   In the light of the Penrose Report, Judge Moses has requested further information on the refusal of the government and the PO to compensate. TL will provide the back-ground material to EMAG's solicitor Stephen Grosz. The latter has advised on the choice of a barrister to represent EMAG at the hearing.
   
   
3. Analysis of the Penrose report. Since the previous committee meeting Lord Penrose's report has been published. As already announced by EMAG, preliminary analysis of the 800+ page report shows quite clearly the evidence of repeated regulatory failure and strengthens the case for compensation. It also demonstrated the remarkable accuracy of the two reports produced for EMAG by Burgess Hodgson.
   
   A detailed analysis was undertaken by half a dozen EMAG members and supporters (notably Rodney Allen, Nicolas Bellord, Alex Henney, Tom Lake, Colin Slater, John Newman and Michael Josephs) to whom the committee extends its grateful thanks. Further more detailed analysis is being undertaken, and will be made available as and when required (e.g. for the judicial review of the PO's report).
   
   It was agreed that a brief summary of the report would be useful for members. CS volunteered to write this, and it will be published on the EMAG web site.
   
   
4. European Union. LS had circulated a report on his further useful progress in researching the appropriate procedure for submitting a petition to the European Community authorities in Brussels. A petition is faster and less expensive than resorting to the courts, and has proved effective in obtaining compensation for petitioners from several member countries of the EU. The petition will be based on the UK government's failure to take the appropriate remedial action under the First and Third Life Directives.
   
   The petition will be submitted on behalf of ELAS members in the UK and may draw in other EU countries.
   
   The committee approved the issue of a letter to LS authorising him to act on behalf of EMAG in regard to the petition and related matters.
   
   
5. Meeting with Ruth Kelly. Several members of the committee are due to meet Ruth Kelly, Financial Secretary to the Treasury and responsible for government regulation of life assurance companies, on 12th May. While the committee sees little prospect of obtaining an early volte face by the government on compensation, this should be an opportunity to argue the case for it and to advise the minister of EMAG's intention to pursue compensation through the European Union.
   
   
6. The ELAS AGM. This will be held on 19th May. EMAG has submitted a resolution, supported by the requisite minimum of 1,000 members, requesting that ELAS fund £2 million to a trust set up by EMAG. The fund would be used - under the supervision of a board of trustees - to seek to obtain compensation for ELAS policyholders from the government through political and legal avenues, particularly focussed on the EU .CS was thanked for organising the resolution.
   
   ELAS is considering the validity of the resolution, and is checking on the standing of the members supporting it. ELAS has yet to inform EMAG of the results of these enquiries. The committee expressed concern that ELAS would choose not to reveal its decision until the AGM voting papers are despatched.
   
   
7. Writing to EMAG members and fund raising. It was agreed that a circular should be sent to all members and supporters within a couple of weeks (to arrive about the same time as the AGM papers), urging support of EMAG's resolution.
   
   If the EMAG resolution is tabled, and voted through, EMAG will not need to call for further donations from members in the short term. However, refusal or rejection of the resolution will mean that EMAG will need urgently to raise more funds.
   
   

Next meeting - RAC Clubhouse Wednesday June 2nd at 7.00pm


Chris Carnaghan
9th April, 2004