Digby Jones defends new economy remarks
Digby Jones, the former KPMG partner and now head of the CBI, has come into conflict with the new media economy after he welcomed the recent fall in internet shares.
The one-time accountant had criticised the trend for internet outfits to replace ‘old economy’ industrial firms in the FTSE index of top 100 listed companies, but his remarks have been rebuffed by Sir Stanley Kalms, the chairman of Dixons.
Reports in today’s press say Sir Stanley has written to Jones accusing him and the CBI of refusing to ‘fly the flag for the pioneers and innovators that will create Britain’s new economy’.
Dixons is an 80% stakeholder in Freeserve, Britain’s largest internet service provider.
Jones responded by appearing on Radio 4’s Today programme to say his remarks had been taken out of context and that he had not intended to criticise any UK company.
He said his point was to argue that shares listed in the FTSE 100 should be valued correctly.