DTI minister in plea to US

Competition minister Melanie Johnson will this week meet the architects of America's controversial new corporate laws to lobby for exemptions for UK companies.

The Government is worried that the Sarbanes-Oxley Act, rushed out in the wake of the Enron and WorldCom scandals, could place an onerous burden on British companies that have a listing in the US.

As part of the four-day trip to Washington and New York, Ms Johnson will meet Senator Paul Sarbanes and Congressman Michael Oxley to urge them to end what she believes is the "double regulation" of British companies. Along with Sir Bryan Nicholson, chairman of Britain's Financial Reporting Council, and a senior civil servant from the Department of Trade and Industry, Ms Johnson will spell out Britain's new corporate regulations.

A DTI source said: "We can't accept the principle that UK companies can be subject to rules set not in Whitehall but in Washington. We continue to have serious concerns about key parts of the Sarbanes-Oxley Act."

Ms Johnson is concerned that US regulators have the power to monitor, investigate and discipline UK auditors. Ms Johnson will also make the case to Senator Richard Shelby, chairman of the US Banking Committee.

The British Government is thought to have the backing of the European Commission.