GPC International

GPC International was a lobbying firm now known as Fleishman Hillard whch was centrally involved in the 'Drapergate' scandal on cash for access.

History: GPC International

Involved in the Drapergate / Cronygate 'Cash - for-Access scandal. Now seen as a minor blip in the growth and expansion of this lobbying outfit.

Cash-for-access: Promised access to key ministers, as well as a seat on a government task force – allows for political networking and direct influence on government policy

‘Then there is the case of British Gas. Derek Draper, the disgraced lobbyist and former aide to Peter Mandelson, claimed his firm GPC got British Gas chief executive David Varney on to the welfare-to-work task force. Draper called this one of his 'biggest' achievements. British Gas insists that Varney wanted only to contribute to the debate about getting young people off the dole and into work. However, a GPC client brochure carries an interview with Varney in which he admits the appointment gives him 'the opportunity to communicate your assessments of a particular situation clear and undiluted to senior Ministers. The insights into government . . . are valuable in a wider business context.' (Observer 1998)

CLOSE WATCHERS of the lobbying saga will recall that Draper told The Observer's man that he had passed on remarkably accurate predictions of public spending plans to Salomon Smith Barney. Salomon has consistently refused to comment on the story. But we can give a couple of further insights. Draper and other GPC colleagues held regular meetings with Salomon managing director Costas Kaplanis.

Outcome: APPC inquiry found that Draper was a "rogue elephant" and that his conduct "was to be attributed not to defects in management systems or procedures but to human failure", it said. The firm had tightened procedures and the APPC said they were being readmitted to the association. They had withdrawn while their management systems were "audited".

Roger Liddle and his associates paid £1 for Prima Euope only months before the 1997 election transformed its prospects. But by May 1998, with Labour having been in power for a year, Prima was valued at up to £1.8 million when it was sold to rivals GPC Market Access. Liddle, Draper and three associates invested £200 in Prima shares after the business was acquired in January last year from its American former owners. The deal was a management buy-out for a nominal £1; on top of this, they agreed to pay up to £250,000 dependent on future profits.

Liddle, through a 'blind trust', received £260,000 cash. Downing Street has been eager to emphasise that Liddle did not participate in the 'earn-out' arrangements: these mean that ex-Prima owners can boost the amount they receive by up to £1m, bringing to £1.8m the total they receive for the takeover. The£1m is dependent on profits over the next three years.

Liddle founded Prima with former Labour Minister Lord Dick Taverne in 1987. It was later sold to US advertising agency Young & Rubicam. Prima continued to be run by Liddle, Taverne, former Labour MP turned Lib-Dem Sir Ian Wrigglesworth and John Dickie. They bought the Prima business back in January last year. With Draper on board and Labour in power, business boomed. In 1997, the company's revenues rose to £1m and profits to £173,000. The directors paid themselves £300,000 plus dividends of £104,000.

GPC was a very Pro-EU lobbying outfit. Links across the political spectrum, many from SDP, Lib Dems. New Labour complement boosted by acquisition of Prima Europe in 1997 (though this precipitated the exit of many senior staff - including many to APCO and Mike Craven, who went on gardening leave and then on to set up Lexington Communications)

Resources

GPC International UK Staff and Clients 1.12.03 to 31.5.04