1 SEPTEMBER 1984, Page 18

Here to stay Tt is when he turns to the

management of /Lloyd's that Mr Hay Davison flexes his muscle. At the time of his appointment, some disaffected bureaucrat put it about that Lloyd's was appointing a chief execu- tive, rather than the chief executive. Now the chief executive ripostes: 'We've not yet convinced the staff that these reforms are here to stay. These changes are irreversi- ble.' He has brought in new people at the top — five out of the seven who form his working group. It may well be that Lloyd's administration — overstretched as the market's capacity doubled, not schooled to contribute to policy — was the common weakness behind the troubles of the Seven- ties and Eighties. When those troubles were just beginning, the then chairman was asked whether Lloyd's had the administra- tion it needed. Yes, he said — it was most economical. A false economy. But if it played its part in Lloyd's cause célèbre of the moment — the £42 million losses on the syndicates managed by Mr Cameron Webb, now in Miami, and Mr Dixon, now in Spain — that is not a debt which the Council will settle in cash. The Sasse syndicate got help from Lloyd's central funds, but, Lloyd's maintains, the two cases are different. 'We don't pay mem- bers' debts,' says Mr Hay Davison, 'even when they're occasioned by fraud. Mem- bers are entitled and required to make uP their own minds what to do." Lloyd's, if asked, will suggest where they may find the best advice, but that is all. A tough line, but Lloyd's is a tough place, and you d° pledge your shirt when you join — Sir Peter Green used to test candidates' nerves by asking them to sign a few blank cheques which he could keep in his safe. Eight members from the afflicted syndicates have dug their _heels in, and are among the 18 who, this year, are classed as defaulters.