Archived press release

COSTAIN FACE SHAREHOLDERS OVER NEWBURY BYPASS

5 September 1996

Hundreds of concerned shareholders [1] will today [Friday 6 September] attend the AGM of construction company Costain to place pressure on its Board of Directors over its decision to build the controversial Newbury bypass. The firm's AGM will take place today at 12.00 noon at the Queen Elizabeth Conference Centre in Westminster where campaigners will question the Board from inside the meeting and stage a peaceful demonstration outside. The shareholder protest could be the largest of its kind yet seen in the UK and will underline how companies can no longer insulate themselves from public condemnation with vague and insubstantial commitments to environmental protection [2].

The protest will send signals to other companies about the increasing role of public opinion in developing company policy and practice in the new "stakeholder democracy" of the 1990s and will strengthen calls for greater participation and influence for small shareholders.

Costain's involvement with the destructive Cardiff Bay Barrage [3] will also be raised to underline how far the company's portfolio has drifted from the business trends that now guide most other firms.

Charles Secrett, Executive Director of Friends of the Earth said:

"In a business world where environmental protection and popular opinion play an increasing role in decisions made by successful companies, this project is a financial and public relations liability. Everyone knows that this is the contract that no other construction company wanted and pressing ahead with it only demonstrates how desperate and cornered the firm has become. Costain could still turn this situation to business advantage by pulling out now".
Friends of the Earth campaigners will attend Costain's AGM to urge the Board of directors to withdraw from the project. The reluctance of other companies to take on the Newbury contract will be highlighted and Costain bosses will be warned that the firm's business prospects could be severely undermined in an environment where government policy and public expectation dictate that firms do not put profits before the planet. Costain's board will

be asked to say how much profit - if any - will result from the project so that shareholders can judge whether any expected financial rewards can compensate for the public relations damage sustained.

NOTES TO EDITORS:

[1] Friends of the Earth has bought shares in Costain on behalf of over 400 people. Friends of the Earth is committed to peaceful, lawful action and protest on behalf of the environment. We do not support any action which involves criminal damage or threatening behaviour to people. This has been communicated to everyone who has obtained shares through Friends of the Earth.

[2] the Costain Annual Report makes only a couple of vague references to environmental concerns despite claiming to take "a responsible attitude to environmental issues".

[3] The Cardiff Bay Barrage scheme will completely destroy an internationally important wildlife sanctuary for birds (designated as a site of special scientific interest).

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