Minister moves fast to placate industry; James Purnell appoints Sharkey and Nicoli to steering group after industry voices concern over being snubbed.(Government)

Creative Minister James Purnell has reacted quickly to concerns that the music business has been snubbed as a vital component of his creative economy programme (CEP), by unveiling a top-level body comprising two industry representatives.

EMI Group chairman Eric Nicoli and Live Music Forum chairman Feargal Sharkey are to be appointed to a steering group which will report directly to Culture Secretary Tessa Jowell.

The move is universally welcomed by the music industry, including those who initially reacted with disappointment when Purnell launched his programme in early February. IFPI CEO John Kenneddy who had suggested the Government was "frightened" of engaging with the music business by excluding any names in the process, now says, "For me, if there is a main board and Erie and Feargal are on it, then that helps."

British Music Rights director general Emma Pike says she is "reassured" by the presence of Nicoli and Sharkey.

PPL director of government relations Dominie McGonigal adds, "It does sound good. Eric and Feargal have done very good work. They, are good choices."

Nicoli has been chosen for his work on the IP Forum and because he heads a "very important British company", while Sharkey gets the nod after working with Purnell on the Licensing Act.

Nicoli says, "I'm pleased to participate on this steering committee together with Feargal. Music is central to the UK economy. We'll be working with James and Tessa to ensure that they fully understand all of the opportunities and challenges we face--from how we can offer consumers more in the digital arena to how we protect our artists' work to the need for increased investment in A&R and technology."