5 October '04 - Minutes of the 40th Meeting of the EMAG Committee

NB During the currency of the application for Judicial Review of the first report of the PO into ELAS, the committee is inhibited from giving more than a broad outline of its discussions.

1. Treasurer's report. The monthly report was signed by all the committee members present. The committee thanked the chairman for his fund-raising administration. At the end of September, thanks to the continued support of its members, EMAG held in excess of £1000,000. However, EMAG's unresolved Judicial Review still renders all of these funds at risk.
   
   
2. Progress of the application for judicial review of the PO's report. This was reviewed in detail. PB reported on a meeting with Counsel James Eadie, of Blackstone Chambers, who has provided comprehensive new notes with regard to EMAG's revision on its Judicial Review claim on Light Touch Regulation. The committee delegated progression of the JR to CS, TL and PB.
   
   
3. Indemnity on possible legal costs. The cross-indemnity given by EMAG's committee members, to share with TL and PB liability for costs of the legal action for Judicial Review of the PO's report that are beyond the means of EMAG, was agreed unanimously and renewed.
   
   
4. Meeting with the PO's staff. EMAG committee members will have an initial meeting with Iain Ogilvie, who is heading the PO's new, second Inquiry on ELAS, on 12th October. Mr Ogilvie has requested that EMAG suggest possible representative candidates of different categories of claimants and this and other aspects of EMAG's submissions to the new enquiry were discussed.
   
   
5. ELAS's interim results. JN reported on his analysis, which will be published on EMAG's website. The expenses ratio is still worryingly high. Provisions against claims had been reduced by £60m, implying a more optimistic view by the directors. The directors' commentary on the accounts was upbeat but desultory in content, for example there being no discussion of the relevance of the action being taken against Ernst & Young by the joint accounting bodies (the "JDS") to ELAS's own action against E & Y.
   
   
6. Response to the Myners Enquiry on the governance of mutuals. EMAG has made a comprehensive submission, drafted by AH and reviewed by other committee members. The committee extended its thanks Alex Henney.
   
   
7. Complaint to the Institute of Actuaries. The committee of EMAG is considering lodging a complaint with the Institute of Actuaries against one of its members. Further information is being sought.
   
   
8. European Aspects. PB and TL reported on progress drafting the petition to seek compensation through the Petitions Committee of the European Parliament. It was agreed that TL should be authorised up to £2,000 for developing and refining the petition. While not formally necessary, legal advice will be sought.
   
   
9. AOB. It was agreed that EMAG should seek the ongoing support of members of ALL political parties. It was also agreed that EMAG committee members should seek to meet Stephen Timms MP (successor to Ruth Kelly as Financial Secretary to the Treasury) and Peter Vickery-Smith - the new head of "Which" - which now incorporates the campaigning arm (formerly the Consumers' Association).

The date of the next committee meeting was not fixed, and will depend on the progress of the Judicial Review, set for 16th and 17th November.

Chris Carnaghan and Paul Braithwaite
6th October, 2004