Press Release

Embargoeduntil 00.01hrs

Thursday1 January 2004

Greater Enterprise the onlyanswer to a competitive world, says business leader

The UK's economicfuture can only be secured through a vigorous enterprise culture supporting thecreation of high-value added products and services, the Director General of theInstitute of Directors (IoD) said today.

In a New Year messageto the IoD's 55, 000 members, George Cox set out the challenges andopportunities ahead.

" It has longbeen recognised as inevitable that certain lesser skilled jobs would move tocountries with far lower labour costs.But thats not todays danger.Its the high-skilled areas, which are now at risk. We need to competeon innovation, technology, design, flair, speed to market and quality. Theresnowhere else to go unless we want to become a cheap labour economy or a themepark," he said.

Mr Cox went on tocaution against complacency, warning that the UK had no automatic right to succeedin any area, including financial services. Success depends on a number ofconditions, he said:

"To guarantee aprosperous future the UK needs the right economic environment with bothstability and competitive tax levels. We need the right regulatory environmentand a highly skilled, flexible and continuously retrained labour force. We needan education system which matches employers needs and employmentopportunities. It is essential we have the right infrastructure, in terms ofboth telecommunication and transportation. And finally, we need inspiredbusiness leadership."

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Mr Cox concluded thatalthough the UK is better placed in some of these areas than it is in others,success in the modern world requires strength in them all.

Ends 24.12.03 No.221

Contact Points:

Richard Taylor, PressOfficer, tel. 020 7451 3264

Mobile and out of hours. 07721 734886

David Marshall,Director of Public Affairs, tel: 020 7451 3263

mobile and outof hours: 07764 883420

Email. press@iod.com

Web. www.iod.com

Noteto editors

TheInstitute of Directors is a non-party political independent organisation witharound 55,000 members. In addition to its wide range of business services, theIoD provides an effective voice to represent the interests of its members togovernment and key opinion-formers. It also brings the experience of businessleaders to bear on the conduct of public affairs