B2B - The Voice of Gibraltar Business » Autumn 2008

b2b — Thu, 30 Oct 2008 15:59:28 +0000

Cordoba two years on

b2b — Thu, 30 Oct 2008 15:55:36 +0000

When the new approach to cross-border engagement in the shape of the Trilateral Forum was first mooted, the Chamber’s support was cautious as we were unsure of the outcome and it took some time before anything tangible was announced.
Such is the delicacy of international negotiations where the parties involved were familiar to one another even though the personal relationships were pretty non-existent. It is worth reiterating that the Chamber remains a supporter of the process.
The Chamber fully endorsed both the essence and the spirit of the outcomes of the process when the Cordoba Agreement was signed in September 2006. We knew that there would be hiccups along the way but commented at the time that for the process to have any durability, communication had to continue despite any stumbling blocks, provided the age-old issue of sovereignty was not dragged into the process.
In our review of the Trilateral Forum one year ago we commented that of the four issues dealt with in the Cordoba Agreement: pensions for Spanish workers, Gibraltar’s telephone dialling code, expanded use of the airport and a more freely flowing frontier, it was the last of these where progress had ground to a halt. Indeed after an initial lifting of any restrictions on traffic into and out of Gibraltar in the autumn of 2006, the usual tedium of queues of up to 2 hours resumed. The usual excuses were proffered but the queues remain an almost daily occurrence.
Last year the Chamber commented on Spain’s performance using the metaphor of a school report card that stated clearly that Spain “MUST TRY HARDER”. This was greeted at the time with dismay by some and with outrage by others. Twelve months on, after another summer where the public has had to endure 2-hour queues to get into Spain on a frequent basis, we urge Spanish authorities to redouble their efforts to address this issue. Many people in Gibraltar continue to view cross-frontier fluidity as a barometer of Spanish intentions. Whether this is the case is less important than the perception. It is what people experience on a daily basis that tends to shape their views, not necessarily what they are told.
The last tangible outcomes of the Trilateral Forum were two years ago. The momentum of the Forum was effectively suspended during the Gibraltar and Spanish elections in November last year and March this year respectively. Many issues of concern to all three parties of the Forum need discussion, understanding and resolution: financial services, environmental and maritime safety among others. The initiative needs to be regained.
The penultimate of the four Cordoba issues outlined above – expanded use of the airport – is now coming to the fore. Construction of the new air terminal is about to begin but it is against a very different economic outlook that existed in the aftermath of Cordoba. In the last twelve months we have seen first hand the effects of increasingly harsh trading conditions in which the global airline industry has had to operate. Last year Gibraltar lost its own home-grown airline and Iberia has now terminated the failing route to and from Madrid. Nevertheless, there are now three airlines operating scheduled services to and from the Rock, more than there were when Cordoba was signed, so there is clearly demand. And Monarch has recently re-instigated the Manchester route that it abandoned in 2006.
The new terminal and the related link road to the frontier both need to be built, even though there is no guarantee that new airlines will flock to the terminal on the day it opens. This is an investment in Gibraltar’s future, not just for next year, but for decades to come. The terminal is also a statement about confidence in Gibraltar’s future, both economically as well as politically. Without a new terminal, any expanded use of the airport is unfeasible as the capacity of the existing facility is severely constrained.
An application for EU funds to build the terminal which was made soon after Cordoba was signed has not secured any funds to date. And there is no certainty that funds will ever be forthcoming. If they are not then the government will have to fund the new terminal out of tax receipts or through its recently extended borrowing powers or a combination of the two.
In the June budget, the Government promised to make full public disclosures about each infrastructure project in the pipeline, including the proposed funding of each project. At a time of heightened economic uncertainty the Government should reassure the taxpayer that its vast programme of infrastructural projects remains affordable. If they are not, then the government is fully justified in postponing or prioritising the projects. The beautification of Europa Point which was due this year has, we hear on the grapevine, been delayed. The reopening of the Dudley Ward tunnel, which is badly needed now to alleviate traffic congestion, is apparently not due to open until 2011.
The business community as well as the taxpayer needs the certainty that the Government can live within its means. At a time when local businesses and individuals in the community are tightening their belts ahead of an expected downturn, it would be reassuring to know that prudence is being exercised in the public sector as well.

Gibraltar Ship Registry wins coveted award

b2b — Thu, 30 Oct 2008 15:52:23 +0000

The Gibraltar Ship Registry has received yet another major endorsement of its standing as a quality flag for merchant ships.
Two years ago the register achieved the much-coveted White List status within the Paris MoU, the international governmental organisation that monitors the safety standards of ships calling in Europe and Canada.
This summer, as well as improving its ranking in the White List, the register was invited to join the US Coastguard’s QualShip 21 program, a scheme run in the US.
This is an important recognition because only 11 registers are listed in QualShip 21 and US maritime safety standards are among the strictest in the world.
Gibraltar, along with the UK, is just one of two members of the Red Ensign Group of British registers to qualify for membership of the US scheme.
The achievements will translate into new business for the Gibraltar flag because reputable shipowners whose vessels trade to the US and Europe prefer to register their vessels with countries that are well viewed by inspectors in the ports where they call.
The focus on attracting quality tonnage has been the top priority for successive maritime administrators in Gibraltar over the past decade, but has intensified even further under the stewardship of the latest incumbent in the post.
Alan Cubbin, who took over from Tony Nation last January, was formerly a senior official at the UK Maritime Coastguard Agency and has held a number of critical safety-related posts at international organisations including the Paris MoU and the European Maritime Safety Agency.
Mr Cubbin said maintaining high standards was a key factor in attracting good owners, who would then benefit from both their own and the administration’s efforts.
Membership of QualShip 21, for example, means any Gibraltar-flag vessels trading to US ports would have a reduced target factor when assessed by port state control inspectors who carry out random checks on ships in US ports.
A similar benefit is conferred by the Paris MoU. “It doesn’t mean you won’t get inspected, but it reduces the chances,” Mr Cubbin said.
The Gibraltar flag has grown dramatically over the past decade.
In 1997 there were just 27 ships on the register. By the middle of this year, that figure had risen to 273 vessels, representing nearly 1.7m gross tonnes in tonnage terms.
This is a young fleet, with the average age of Gibraltar-registered vessels currently at eight years, pushed down by a large number of newly-built vessels coming onto the books.
The number of seafarers certified by the Gibraltar Maritime Administration to sail on Gibraltar-flag ships has also risen sharply in recent years, mirroring the growth of the flag as a whole.
The administration, working alongside the vessel operator, is responsible for ensuring seafarers on Gibraltar-registered ships hold valid certificates appropriate to their rank and qualifications.
Last year alone, the administration endorsed 2,192 seafarers and issued provisional papers to a further 1,995, bringing the total for the preceding five years to 6,286 and 5,242 respectively.
To illustrate the growth, in 2002 the number of seafarers endorsed by the administration – including provisional certification – was less than 1000.

Our complaints’ mechanism

b2b — Thu, 30 Oct 2008 15:48:35 +0000

Mario Hook, Gibraltar’s Public Services Ombudsman, is a man who clearly enjoys his job.
Together with a dedicated and close-knit staff, his role is to investigate complaints stemming from the administration of public bodies and entities providing public services.
These range from serious grievances about housing, to minor objections about the size of water bills. In this office, however, all matters are treated equally.
“Even if a problem is small in nature, it can be a major source of concern for the person involved,” Mr Hook said. “We look at all complaints in detail.”
In recent years, the bulk of the work has involved issues relating to housing.
There were extreme cases on occasion, including instances of homelessness. Other times, it was simply a case of a complainant wanting the housing allocation system to work faster.
Mr Hook praised the Housing Department for its work and said the service it provides had improved greatly over the years.
New housing legislation means that although the Ombudsman retains a role in this sphere, members of the public now have other means of recourse to have their grievances addressed. These include two tribunals set to hear housing appeals and cases involving anti-social behaviour.
Mr Hook feels proud that he and his staff have contributed to a process of continued improvement in the administration of public services, not just on housing issues but across many areas of public administration.
“The Ombudsman has definitely had a positive impact on the way public administration operates in Gibraltar,” he said.
His obvious passion for the job was clearly illustrated last January. After five years in the post Mr Hook requested, and was granted, a further three-year extension to his contract.
Helping others in the community provides a high level of job satisfaction for Mr Hook and his team, though sometimes the work can be frustrating and emotionally draining, and take its toll.
“There is no doubt that Gibraltar is a prosperous community with many services that are not available in other communities,” he said.
“But the Ombudsman’s office, by its nature, provides a complaints’ mechanism and that means that we see these extreme cases that the normal citizen does not see.”
“It isn’t that these cases are rife, because Gibraltar is a very caring community. It’s just that they come to us.”
Under Gibraltar law, the Ombudsman and his team have very wide powers of investigation. Mr Hook said experience had shown him that public bodies tend to cooperate fully with any investigation and welcome constructive criticism.
His decisions and recommendations are not legally enforceable, but Mr Hook said officials have always responded well to feedback from his office.
Ultimately, it’s about highlighting issues in a proactive, positive way based on the findings of an impartial and thorough investigation in which all sides of argument are heard.
“The secret is simply to conduct a thorough, objective investigation,” he said.
Mr Hook and his team keep in close contact with Ombudsmen in other countries, providing input and tracking developments that might be relevant to Gibraltar.
But he said the current framework here compares very favourably to that in place in other jurisdictions.
He highlights two issues that he feels may nevertheless warrant a closer look in the future.
One relates to that fact that, under the present legislation, the Ombudsman cannot initiate his own investigations and can only react to a complaint filed by a member of the public.
The ability to initiate an ‘Own Motion Investigation’ would on occasion bolster the work carried out by his office and is something that regulators may want to consider, he said.
Another area that he feels may merit closer attention is the possibility of creating the post of Financial Services Ombudsman, similar to the office that already exists in other jurisdictions including the UK.
Mr Hook finds that on occasion, complainants come to him seeking help with grievances involving insurance claims, banking anomalies and the like. His remit, however, means that he is unable to provide assistance in those cases.
Mr Hook believes that the importance of the finance centre to Gibraltar’s economy suggests there may be scope for a Financial Services Ombudsman who deals specifically with that sector.
“It’s a possibility, though it would need very careful thought and planning,” he said.
“Ultimately, it’s like a seal of guarantee that shows the industry is open to being scrutinised, and I think it would be welcomed.

Gibraltar cleans up the World

b2b — Thu, 30 Oct 2008 15:42:57 +0000

The recycling bug has finally reached the Rock as environmental awareness continues to gain ground, both in the public and private domains.
After years lagging behind other European communities, the Gibraltar Government last spring announced the start of a recycling program that has received strong support from across all sectors of society.
And whereas the government initiative targets glass and cans, the private sector has stepped in to fill the gap with tailored recycling schemes geared to offices and businesses.
Within days of the distinctly-coloured recycling bins appearing throughout Gibraltar last May, households across the Rock began to separate their waste.
Helped by long-running campaigns in schools and by non-governmental organisations such as the Environmental Safety Group, the recycling program quickly took off.
The green bins are for glass bottles, drinking glasses, tumblers and jars, while the yellow bins for metal lids, bottle tops, drink cans, steel food tins, household aerosols and clean aluminium foil.
Regular trips to the bins have now become part of routine household chores for many families across the Rock.
As part of a wider contract with the Gibraltar Government, local company, Master Services, exports the glass and cans to a recycling plant in Spain.
The program encountered an initial glitch due to an administrative problem with the documentation of the vehicle carrying the waste, but this has now been ironed out.
Even before the start of the government-funded recycling scheme, one private company had established a similar business focused on corporate needs.
Clarke Recycling Services [CRS] works with companies in Gibraltar to recycle their waste in a hassle-free way.
Against a background of increased environmental awareness, a growing number of businesses and organisations are looking for ethical, cost-effective ways to dispose of their waste.
PartyGaming, one of Gibraltar’s main internet gaming companies, is one such business.
“PartyGaming is committed to participating in recycling programmes and also preventing the production of waste,” said Velda Parry, at the company’s health and safety team.
“We encourage staff to think about the environmental consequences before they print documents and, where possible, we recycle materials such as paper, computer equipment and printer consumables.”
Jacqueline Clarke, a former finance centre worker, saw that there was a gap in the market to help companies achieve such goals.
Having witnessed the potential demand at first hand, she took the plunge and set up CRS, establishing links with recycling plants in Spain.
The business model is relatively simple. CRS provides customers with eco-friendly white bins made from recycled cardboard. The bins are fuss-free and fit neatly into any office environment.
The contents of the bins are then regularly collected by CRS staff and taken into Spain for recycling. The frequency of collections – and the pricing of the product – depends on the needs of each individual business and on how much waste it generates.
CRS is licensed to handle many types of waste including ink cartridges, batteries, computer equipment, plastics and light bulbs.
But it mostly specialises in handling the inevitable by-product of any large office, even those that try to reduce the amount they generate: paper and cardboard.
Just over a year into the business and CRS is expanding fast, not least because many companies require recycling services to meet internal environmental sustainability targets, or as part of an established environmental credential scheme such as the ISO 14.000 environmental management standard.
At another basic level, recycling represents good PR that can even help companies gain a competitive edge over their rivals. CRS helps promote companies and organisations that have taken proactive steps toward establishing an environmentally friendly workplace.
“All our clients are concerned about the impact that irresponsible handling of their waste could have on the environment and the economy,” Miss Clarke said. “We want to help them reuse what they can and we will recycle the rest.”
Its clients range from gaming companies such as PartyGaming and 32 Red, to service providers as varied as insurance company Argus and shipping agents Maritima del Estrecho. Even the office of the governor has signed up, as has Bayside School.
Some businesses have also found that the service provided by CRS is popular not just with staff but with their own clients.
“College Clinic has wanted for some time to contribute to protecting our environment and now with the service provided by Clarke Recycling Services, we are able to do this through paper recycling,” said Doctor Joanna Shelley.
“As a clinic accessed by large numbers of people, the facility to dispose of batteries is also very popular with members of the public.
CRS says this is an affordable service, though the price will ultimately depend on the nature of the company requiring the service.
“These are tailor-made solutions so it very much depends on the business and how much waste a client produces,” Miss Clarke said.
“Some people will need collections several times a week, while others will only need a visit from us once a fortnight.”

British Airways new daily service between Gibraltar and London Gatwick

b2b — Thu, 30 Oct 2008 15:39:34 +0000

A senior British Airways’ executive said the airline’s new daily service between Gibraltar and London Gatwick was performing well despite the impact of rising fuel costs and global economic turmoil.
The airline launched the service earlier this year following the takeover of former franchise partner GB Airways by low cost carrier easyJet.
The buyout means there are now three airlines – Monarch is the third – serving the Rock on routes to the UK. That translates into increased competition, but the signs are that there is sufficient demand to keep all three carriers interested.
BA has a policy of not disclosing specific occupancy levels for individual routes, but Jordi Porcel, the company’s Madrid-based director for Gibraltar, Spain and Portugal, emphasised that the Gibraltar-Gatwick service was “performing very, very well.”
“The only thing I can say is that occupancy levels on the route are extremely high, both in terms of the accumulated figure from the start of the operation and during the summer, when the planes have been practically full for every flight during July and August,” he told B2B.
“It’s also worth noting that there is a balance in passenger numbers in both directions on the service, which is important.”
The local market and business travellers provide BA with a year-round client base that peaks during the summer months with the influx of holiday makers heading from the UK to destinations on the Costa del Sol. Although BA serves Malaga with three daily flights to the UK, the airline has found that for passengers heading to destinations at the southern end of the Costa, Gibraltar continues to be the preferred point of entry and departure.
“The evolution of the Gibraltar service since its launch earlier this year would, on the face of it, suggest that there may be the need to expand capacity on the route in the near future,” he said.
“But we have to put this into the context of the current economic climate and the high price of fuel, and these are decisions that we are constantly reviewing.”
Mr Porcel said the current economic climate – in particular the high cost of fuel – would condition the airline’s strategy of developing its existing services or establishing routes across its entire global network, including, of course, the Rock.
Willie Walsh, BA’s Chief Executive, has warned the group is “in the worst trading environment the industry has ever faced.”
Faced with this economic uncertainty, BA recently took the decision to reduce capacity on a number of its existing routes, seeking fuel efficiency and putting on hold plans for several new services including links between London and Valencia, in Spain, and Porto, in Portugal.
“Right now, we are not considering any changes to the Gibraltar service,” Mr Porcel said.
“We are seeking a balance between the number and frequency of fights and the fact that each service is more expensive to operate now than it was before, so we are opting to be very cautious at a time when we are reducing our global capacity by around 6% for the forthcoming winter schedule.”
“We are not looking at Gibraltar in isolation, but at the entirety of our global network.” When it comes to pricing, there are two key factors that impact on how much the passenger ultimately has to pay for a flight.
On the one hand is the price of the basic service. On the other is the fuel surcharge added on to that price, the latter being subject to seasonal fluctuations depending on the price of oil.
The underlying reality of air travel in the present climate – and one reflected by Mr Walsh earlier this summer – is that flying is no longer going to be cheap. The rising cost of fuel is a factor that affects all airlines and which, ultimately, will be reflected in the price of any air ticket.
Mr Porcel said that BA’s strategy was to remain competitive when compared to rival carriers, both in terms of pricing and in terms of the value-added services it offers to customers.
“But logically, the higher operating costs will have to be reflected in the final price paid by the passenger,” he said.
The nature of a short-haul flight means that at a basic level, the service offered by all the carriers is essentially the same. Cabin layouts are similar, as is customer experience. How then does BA differentiate its product, particularly in a market that, following the buyout of GB Airways by easyJet, has become more competitive? Where once there were just two airlines serving the Gibraltar-London route, now there are three companies fighting for the lion’s share of the market.
At a basic level, there is one key difference. BA is the only company serving Gibraltar that offers passengers a full in-flight service, providing complimentary food and drink. It is also the only carrier offering a two-cabin service, with Club Europe passengers – mainly business people and wealthy travellers – enjoying a more sophisticated product that comes at a premium.
“But we’re not only talking about the hard, on-board product, though this remains important and we believe that our service goes further than what is offered by our competitors in Gibraltar,” Mr Porcel said. “We are talking about a much broader range of services that we offer.”
BA flights, Mr Porcel said, could be purchased both online and via traditional travel agents. The company’s web page offers customers numerous add-ons in a way that is completely transparent in terms of pricing and accessibility. Also crucial was the seamless access that BA offered to a global network operated both directly and in conjunction with its partners within the OneWorld alliance. Through a single point of contact, passengers could tap into a vast range of services to myriad destinations worldwide.
“In simple terms, your alliance partners can carry your passengers to those destinations which you aren’t flying to,” he said. “It’s a very important distinction.”
“All those services that we offer are included in the price paid by the passenger, whereas many of our competing companies charge separately for this, from things like boarding a plane to additional baggage.”
“We accept that on many occasions, we may not be the cheapest, but we are n nonetheless tremendously competitive when you consider what is included in the final price paid by the client.”
“The transparency of our pricing is also important, because the passenger knows at every moment what is included in the fare, and what his rights are.”
Mr Porcel said the company’s long-term plans for Gibraltar would largely depend on the evolution of oil prices in the coming years.
But he was excited about the change underway at Gibraltar Airport and the scope to develop new business on the back of this.
The planned expansion at Gibraltar airport following the Cordoba Agreement is “more than welcome,” Mr Porcel said. “It’s going to be a huge change at every level, and the only thing that will come about as a result of this, is an improvement in customer experience and the chance of attracting new operators, that is evident,” he said.
“As for Gibraltar itself, it will boost its influence in southern Iberia, not as a rival to other airports, but as a complement.”
Rather than assessing this from the point of view of two or more airports competing for the same passengers, airlines like BA consider the global picture and how a wider range of services to several regional destinations can help them offer a broader choice and greater flexibility to customers.
“That’s how we see it,” Mr Porcel added. “We are always looking at how airports complement each other, both in terms of pricing and services.”
He said that relations with the authorities in Gibraltar were very good and that there was an understanding on the Rock of the need to balance practical issues such as landing fees – recently reduced by the Gibraltar Government – against the wider economic context that the airlines were operating in, and the need to invest in infrastructure to improve what was on offer.
“That is a balance that authorities in Gibraltar now understand,” he added.

When Shift Happens

b2b — Thu, 30 Oct 2008 15:34:16 +0000

Leading your company when the economy turns sour

You don’t need to be a top economic analyst to notice that the global economic climate has been changing at speed in recent times.
Predictions suggest that some of the circumstances which are contributing to the current trends will be in place well into 2009 and very possibly beyond. What the analysts find a little harder to predict in such circumstances is, during such times of change, who will thrive, who will survive and who will not.
There are some clues out there as to what might enable people and businesses to thrive during times when shift is all around. Most commentators will agree that during such times leadership is key. What exactly leadership means and who it means depends on whether you look at positional leadership or personal leadership. Either way it will undoubtedly impact significantly the way that shift is experienced.
Organisations commonly follow one of two paths when the sort of economic shift we are currently seeing takes place, although clearly any combination of the two may occur.
There are those who look to cost control, down-sizing and contracting out to create a leaner, cost controlled core business. Others take a developmental approach and seek to grow new business and markets, new products and services as well as to improve the quality of existing products and services. Tony Robbins, a leading authority on the psychology of leadership, cites an example of a quality focused approach based on the Japanese principle of ‘kaizen’, a focus on constant small, believable improvement on a daily basis at all levels of an organisation.
Change is one of the few economic certainties that exist; how well individuals and organisations prosper in times of change is very much more a question of how they approach change and the opportunities that it may provide.
Graham Munday is an associate consultant with RogenSi and will be giving a presentation on the topic of ‘When shift happens’ free to Chamber members in mid-November.
Contact the Chamber for more information.

Seamless switch to high-tech banking puts Barclays in top 5%

b2b — Thu, 30 Oct 2008 15:23:53 +0000

The world’s leading banks – particularly those in the United States, Britain and in the EU that exposed themselves to the potentially profitable, but equally dangerous American sub-prime mortgage market – have been through a torrid time in recent months.
Their losses in this sphere, were the sparks which touched off the current global crisis.
Most, if not all, of Gibraltar’s banks – now effective subsidiaries or branches of the world’s big players – have been relatively free of the sub-prime mortgage pressures, and their hands at least are clean of any suggestion of mis-selling or grappling for profits in the murkier parts of the world’s markets. Their local critics suggest that the fact that they are backwaters on the international scene, has protected them from the storms which their parents have felt.
Certainly the fears of redundancies which last year were rumoured to be anticipated by some bank employees have not materialised, in spite of the improved technology introduced recently by both Barclays Wealth and the RBS-NatWest amalgam.
Of these, the Barclays’ developments are the most spectacular and were achieved with a seamless transition which has delighted local director Franco Cassar as well as his head office superiors. Some 60 of the local staff were involved in a switch that for Barclays, at least, has brought local retail and wealth banking to new levels and into the top 5 per cent of all international banking.
The local bank’s IT systems are now linked directly to the core operating system of Barclays in the UK and elsewhere, but the UK now looks after the resilience of the system, its maintenance and any upgrades whilst the local branch can offer its local clients an unrivalled service.
“It’s great for the bank as it makes us more competitive, and it’s great for our clients who now have access to a worldwide and world-class service,” Cassar told B2B this week. “What’s more, though back in December it seemed that we might have to make redundancies – which often seem inevitable when technology expands – there’s only one member of staff likely to become redundant.”
“And with subsequent phases of development I don’t think there will be an issue of people on the street,” he added.
“It also now means that all our clients can have access to on-line banking although some of the older generation among our customers who don’t have access to PCs, will, of course, continue to use traditional and familiar banking methods such as cheque-books and posted statements. For those with access to a PC and the internet it will mean a lot less paperwork.”
Cassar believes that the system will also create great stability by helping to get the basics right so that things come out on time. As business has grown, there has been increasing stress on staff, he believes. “Too much stress has meant staff worrying about things and getting them wrong,” he says.
The new system offers two significant benefits. It allows the staff to focus on giving good quality service, and it offers a wider range of products and services while at the same time the tellers’ counters are more efficient and these, too, can deliver more.
“There are still people out there who want something for nothing,” Cassar points out. “Our primary concern is to give the highest levels of service to those that pay the best. It’s a bit like going to a supermarket where you buy low-cost own-label products or pay more for better quality.“
This applies particularly to both personal and structured products at the wealth end of the market where one relationship manager, for instance, may help wealthy people with equity in property to release some of that equity by planning structured growth. There have been a few bumps and glitches and a realisation that in the past, although sometimes the bank may not have reached the level of services it was hoping for, Barclays has retained a large and loyal client base. Cassar continues to be astonished by the size and continued growth of the business and also by the loyalty of the clients.”

They sow the wind & reap the whirlwind

b2b — Thu, 30 Oct 2008 15:16:45 +0000

Jeremy Blatch looks at the act of ‘giving’ whist contributing to ‘need not greed’.
In the midst of the current financial market crises, I was struck when reading through the obituary of Sir John Templeman, by the contrast between his ‘ethos and motivation’ for investing, compared with that of the many so-called ‘successful‘ investors of today.
Sir John Templeton, a committed Christian, passed away a few weeks ago at the age of 92. A legend in his lifetime, he pioneered the method known today of ‘value investing‘. Money magazine said of him that he was arguably the greatest stock picker this century. When he began investing globally in the 1930’s, he was truly a pioneer. Most Americans thought it unwise to invest outside the United States. His results were legendary. Templeton sold his Templeton funds in the early 1990’s, and they were worth an incredible USD 800 million. His own personal fortune was worth some USD 900, million. His overriding goal was never just to make money, but to earn for others. He was quoted by the magazine ‘Philanthropy‘ as saying, “at Yale I was investing what talents God gave me, and where I thought I could be most beneficial to people, was to help them make fewer mistakes by selecting their investments.“
By his own admission, he was a ‘contrarian’. He once wrote, “that in order to buy stocks at bargain prices you have to do the opposite from the crowd.” He also added just before his death, that in all his 92 years he had never seen a time, when one has to search so diligently to find a bargain.
An interesting reflection given the ‘arrogance and greed’ which has been the embodiment of the financial institutions practice over the last decade. Reflecting over his lengthy life, he made the following comment: “About twelve years ago I sold out. I had been helping a few thousand wealthy families, and I did a lot of thinking, that if I could tell you, the rest of my life, I might help a few thousand wealthy families to become more wealthy. But by selling to my competitor, I can now dedicate 100% of my time, to help people grow in a spiritual way. And there are very few people who have a substantial amount of money and contribute to helping people grow spiritually.“
What a contrast to the hubristic, obsession to make money irrespective of the risks to others which has pretty much been the watchword in many of the world’s financial institutions over the past decade. Perhaps in the words of the Old Testament prophet Hosea, ‘we have sown the wind and will now reap the Whirlwind‘. Could his words have a familiar ring to our ears today? ‘They sow the wind and reap the Whirlwind, the stalk has no bud, it shall never produce meal, if it should produce, Aliens would swallow it up‘.
Interesting to me that for all his undoubted financial success serving others in a material way, in the autumn of his years he should choose to serve others in a spiritual way. All well and good for him you may say. He could afford to make the choice. The reality is however that most of his personal fortune he gave away. I believe that giving from a sincere heart, no matter how small the gift, touches and reflects something of the heart of God. Of course our giving is not restricted to finance, we give of our talents, our time, our experience, our skills and sometimes our physical strength, to help others. The Bible tells us that the ’God loves a cheerful giver’. What is our true motive for giving? There is something spiritual about the spontaneous generous act of giving. When we give without obligation, or tradition or ritual but because we desire to help someone else. ‘Out of the mouth the heart speaks‘.
In working during the last few years with the Members of the Investors International Forum, which we formed in Gibraltar to give something back to those in need, and now those involved with us in the construction of the Solidarity Fund, it has been a constant source of encouragement and inspiration to me, to witness the generosity and spontaneity of giving from those involved. A result of this is the Solidarity Fund, which was launched in Gibraltar… I think I can say without fear of contradiction that the fund is unique. All those involved have ‘walked the walk‘ not just ‘talked the talk‘ by going the extra mile, to set up a fund of excellence, of which the business and professional community of Gibraltar can be proud, as it seeks to give investors the opportunity to protect or grow their capital whist seamlessly helping those in need. All participants have contributed in some way by both keeping cost to a minimum, thereby passing on a benefit to the investor, as investors may subscribe in the fund free of charge, and by directly contributing to charity themselves, upholding in practice the ‘ethos and spirit‘ of the fund.
Tiger Woods, when asked what motivates him, said “it was his foundation that helps needy black children.” Charity begins at home, so the old saying goes, well it may be true, but ‘out of the mouth the heart speaks‘, so perhaps the journey really starts with us. Someone once said that ‘a journey of a thousand miles, starts with a single step‘.
Whether responsible for advising other people, or with corporate or individual financial resources, you’ve got to put them somewhere. Perhaps you are not actively giving to make a difference but would like to, then perhaps this is the time to ‘take the first step‘ towards showing solidarity with those who need you. The Preacher and Evangelist John Wesley, the founder of the Methodists, said “save as much as you can, make as much as you can and give away as much as you can.”
Emotion and fear drive financial markets, not economic theory nor political rhetoric. The Stock Market is the ‘thermometer‘ not the ‘barometer‘ of the economy and should be treated as such. Very few people are capable of beating the herd consistently. Sir John Templeton was one of them. Consistent success in the world stock markets is about humility not arrogance. He understood that.

For more information: www.thesolidarityfund.com

Gibtelecom charity drive

b2b — Thu, 30 Oct 2008 15:06:21 +0000

Four local community groups became the appreciative beneficiaries of Gibtelecom’s recent upgrading of its fleet of vans.
Each group was presented with a Suzuki Carry van after Gibtelecom had the vehicles completely overhauled; this included a full service and replacement of clutch, brakes and other parts where necessary. Not only that, but the bodywork was fully refurbished to a shining new-look finish. The four vans, worth around £6,000 in total, all have long MoT certificates as well, so the support groups should be able to look forward to enjoying trouble-free use of them in carrying out their work in the community.
CEO Tim Bristow and Lianne Azzopardi from Sales and Marketing presented the vans at a reception at Gibtelecom’s New Harbours stores.  The keys were handed over to John Rodriguez for Europa Retreat Centre; Jaime Felices for the Youth Centre; Christine Loddo for St Bernard’s Parish, who help the Co-workers of Blessed St Theresa of Calcutta; and Michelle Perera and Iris Segovia from Women in Need.
At the reception, Gibtelecom’s Sales and Marketing Representative Lianne Azzopardi said, ‘This donation complements other support given to the community by Gibtelecom through numerous donations to various local charities, educational groups and sports and cultural societies.’
The recipients of the sparkling vans all expressed their sincere thanks to Gibtelecom and emphasised their appreciation for the generous donation.