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Serco, a company ￡ 3 running prisons, nuclear facilities, schools and ports for the Government, said that he made the request, so that it can respond to requests from the Government savings of millions of pounds.

Francis Maude, Minister of the Cabinet Office leading player of the effectiveness of the Government, is furious and ordered Serco to account for its actions. "We clearly disagree with and are highly critical of the approach adopted by Serco, said a spokesman for the Cabinet Office." Francis Maude will call to explain themselves.?

A supplier who has received the said application letter "absolutely terrible.

Serco has not yet finalized an agreement with the Government, but agreed that global Executive Director Chris Hyman company, previously agreed that economies that he would present would not payments providers.

However, in a letter addressed by the Sunday Telegraph, head of supply, operations Rachael Legg, Serco reveals the "cash contribution" was needed to assist in responding to the request of the Government reduce expenditures of Whitehall Serco.Elle says: "Chris Hyman and I've given our personal commitment to the Cabinet Office that Serco and its supply chain will provide our total support" plan to save 800 million from ￡ central Government supply this year.

The letter continues: "I ask you to dedicate a rebate of 2 5pc (exclusion from VAT) on a full year of Serco offer with you for the calendar year 2010 in the form of a credit note." As a Government, we determine our actual partners are that we can rely on. Your response will no doubt be indicate your commitment to our partnership but will also be something that I will consider seriously in our working relationship as Serco continues to grow.?

The first of the two payments covers the work carried out for "1 January 2010 to 31 June 2010" Serco .they must be sent directly to the Serco to HSBC bank account.

"This is simply unacceptable that they ask for all their supply chain, many of whom are small businesses, provide cash donations to fill an agreement with the Government," said vendor. "For a large number of companies that 2 5pc could be the margin on the work they have done for Serco."He added:" they say they want to work with the supply chain to find efficiencies and reduce the co?ts.Ils said simply give cash us and if you do then the suggestion is that you will not be our partner to long terme.Il is also brutal and also blatant that ".

Serco has confirmed letter of fournisseur.Un spokesman said: "to a broader partnership approach enhanced with our main suppliers, we are looking for in our trade agreements globales.Cette approach is a continuous process of improving our working relationships with the supply chain that will lead to benefits for our customers and our suppliers."

In the month of August, M. Hyman said profit before taxes of Serco half of the year at the end of June had jumped 21 6pc ￡ 101.4 m.

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Sir Philip Green chat Chancellor George Osborne. Contractor retail will publish its report in the manner in which officials have wasted hundreds of millions of books photo: PA

A group of companies has said the Government should scrap plans to pay suppliers more slowly.

A review of waste by Sir Philip Green, the retail magnate Whitehall asked why the Government to pay 80pc of its contracts to small businesses in five days when retailers as its Arcadia group typically pay within 45 days.

Francis Maude, the Minister is studying possible changes."We look at how we can do so pragmatique.Les under government contracts are that they should get paid within 30 days,"he said.""

The Labour Government reduced first payment up to 10 days for Whitehall and 20 days for local authorities in 2008 as part of its efforts to help small and medium-sized enterprises [SMEs] with their cash in the récession.M flow.Darling then made his additional grant for small businesses in March.

The coalition Government now seeks its own stream of trésorerie.M.Maude said: "last Government said they would pay in five days to help the company cash flow and we definitely want to continue to be useful for small suppliers.

"We will aim to small businesses to give them the best terms that we are legally required to do so."

However, he added: "East - this law for the Government to pay much more quickly that they are obliged to make to help with the huge multinational suppliers cash flow?"

"People are going to arise is right for the Government to pay much more quickly that they are obliged to make to help with the cash flows of suppliers multinational énormes.Nous have to act on behalf of the taxpayers."

Explanation of Mr. Maude caused some confusion between the lobby of the company, as the last Government said that never politics would be beneficial to small and large company Whitehall providers.

The Federation of enterprises of small said payment practices movement would be a retrograde step.

Stephen Alambritis, head of public affairs, said: "Francis Maude should ignore this recommendation by Philip Green of outset .this are classic tactic of large firms to improve their cash on the back of the suppliers flow."

He added: "David Cameron talks about the company and the small croissance.Si enterprises are not paid at the time it really démoralisant.Il is important Francis Maude it kills in the egg."

This view was supported by John Hawksworth, Chief Economist at PricewaterhouseCoopers.Il said: "one of the reasons why they shortened payment was to help small businesses [SMEs] .This companies will still have issues of capital retrieves the economy and the Government need to be prudents.Ils must be sensitive to the PME.Vous must be careful with your small suppliers in the current environment."

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Reuters

Exporters have cancelled major contracts of drought-hit Black Sea wheat to Bangladesh, signalling the need for Asian millers to scramble for supplies from other key growers like Australia.

Russia banned grain exports on Thursday last week as the worst drought on record ravaged crops across the Black Sea region, boosting the Chicago Board of Trade front-month wheat contract up 66 per cent from a low of $US4.25 in June.

Chicago wheat futures fell nearly three per cent on Monday, extending their losses to around 10 per cent in two sessions, but traders say the the impact of the Russian ban has not been fully felt and the market faces wide swings in prices.

"We see more deals being cancelled as nothing can be done about it," said one Singapore-based trading manager. "People have no choice but to go for Australian wheat as the US is still more expensive due to higher freight costs."

Australian cash prices firm

Other Asian buyers signed deals for supplies of Black Sea wheat at around $US200-$US240 a tonne in May and June, including cost and freight (C&F). but prices have climbed to $US270-$US290 a tonne and concern is growing on commitments already made.

Traders have estimated up to one million tonnes of wheat cargoes to Asia could be affected by Russia’s decision to ban grain exports.

Mills in Bangladesh, Thailand, Vietnam, Malaysia and Indonesia use cheaper Black Sea wheat and blend it with higher quality US and Australian grains. Feed millers have also been snapping up cargoes of feed quality wheat from Ukraine this year.

Australian cash wheat prices have strengthening in last few weeks on prospects of buyers seeking more supplies.

Australian prime wheat is quoted around $US320 to $US340 a tonne, C&F to Southeast Asia, compared with $US280 to $US300 a few weeks ago.

"We’ve also got some of the north Asian buyers coming into the market this week for their routine tender programmes," said Tom Puddy, head of grain trading at Western Australian grain firm CBH Group.

"We are expecting about 100,000 tonnes going to north Asia from Australia this week."

Chicago Board of Trade wheat for September delivery dropped 2.7 per cent to $US7.06 a bushel by 1843 AEST, adding to the 7.6 per cent fall on Friday.

Influential US investor Jim Rogers, who appeared in Reuters forums, said he was bullish on agricultural commodities.

"I expect agriculture to continue to do well for several years, no matter what happens to the world," he said.

"the Russian drought itself will not lead to a food crisis, but we are going to have other similar problems because agriculture has been so depressed for three decades."

Russia’s wheat crop may fall to as low as 43 million tonnes this year from 61.7 million tonnes in 2009 after a severe drought has destroyed many grain producing regions, leading agricultural analysts SovEcon said on Monday.

Australia, which is expected to produce a bumper crop at the end of this year, is also facing a threat of dry weather in Western Australia.

Dry weather is prompting analysts to cut estimates for the 2009/10 wheat harvest in Western Australia, the top grain exporting state with a 40 per cent share, adding to global concerns about lower supplies.

Local wheat suppliers to fill Russian void

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