Caledonia chief hits out on tax and euro

PETER Buckley, the controversial chairman and chief executive of the Cayzer family vehicle Caledonia Trust, has weighed into the debate about whether a recession is on the way or not.

Buckley thinks a downturn is at least possible and, if so, would be accompanied in Britain by an increase in taxation.

Referring to Labour's return to power at the general election, Buckley says: "It is unfortunate that we shall continue to suffer the steady increase in taxation and red tape of recent years, with the likelihood that taxation could increase substantially with any downward trend in the economy given the commitment to increased government spending."

Buckley tells shareholders in the Caledonia report and accounts: "No business can ignore the political environment in which it operates and we have taken the view over many years that a Conservative administration is likely to be better for economic progress than that of other parties."

Of "equal concern" to Buckley as the likelihood of higher taxation, is what he calls "the not-so-hidden agenda of the single European currency and the thinly-disguised determination of the Government to commit to this infrastructure of European political union".

Last year, Buckley, a member of the Cayzer clan, saw his pay rise 38% to 506,000 while opposing so far successfully - demands by other members, including Sir James Cayzer, to return cash to shareholders at close to the underlying asset value. A family company, Cayzer Trust owns 34% of Caledonia, which has stakes Close Brothers, Friends Ivory & Sime, Rathbone Brothers and Edinburgh Crystal.

Outside investors are being lobbied by dissident family members, claiming the eight-man board all think and act Cayzer to an extent that modern corporate governance frowns upon.

Caledonia retorts that the board considers its three non- executive directors "independent", even though two - Nigel Cayzer and James Loudon - are Cayzer clan.

Nigel Cayzer and the third non-exec - Joe Burnett-Stuart, 71 have also been non-execs for 10 years, which would put them past their sell-by date in other quoted companies.

All three, however, are said to bring a "wide range of experience and expertise".

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