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Queen’s Speech

My Lords, it is a great honour to be speaking here in your Lordships’ House for the first time today. I am the new boy on the block; in your Lordships’ House, I am certainly the apprentice. I would like first to thank the very hard-working and helpful staff of the House for the assistance that they have given me over the past few months. I take the opportunity of thanking those of your Lordships who have taken the trouble to offer their kind wishes and welcome. I am, as your Lordships know, Lord Sugar of Clapton. Clapton is in the London Borough of Hackney; Clapton is where I was born, where I was educated and where I started my first business venture. I was born into a low-income working-class family; we lived on a council estate and I was the youngest of four children. In fact, there was a 12-year gap between me and my elder twin brother and sister. I often joked with my mother that perhaps I was a mistake—she preferred to call it a pleasant surprise. Some of your Lordships may not agree. On the subject of surprise arrivals, I think it fair to say that my appointment earlier this year as the enterprise adviser to the Government, as well as to this House, was not met with a chorus of wild approval. As a realistic person, I fully understand the reaction from certain quarters; it is, after all, human nature for people to form an opinion from what they read in the media or, in my case, what they see on TV. Apart from the wonderful title of "Lord Sugar of Clapton", I seem to have been awarded another—that of a "telly Peer". With that in mind, those of your Lordships who may have stumbled upon the TV show might recall that, when it started six years ago, I made a statement: "Never, ever, underestimate me". As an example, at the age of 16 I failed an aptitude test at the head office of IBM in Wigmore Street, where I had applied to be an apprentice programmer. Twenty or so years later, I signed the licence agreement with IBM, because I had captured from it 30 per cent of the European home computer market. Forgive my little boast, but today I own its European headquarters on the south bank of the river. My business career started in 1966 at the age of 19, when I withdrew £100 from my Post Office savings account. I bought a second-hand minivan and some stock and by the end of the week I was earning three times more than I would have been doing the same job for someone else. From that point on, I learnt all aspects of business—bookkeeping, credit control, advertising, hiring staff. I have done my fair share of working on the production line—I have loaded lorries and packed parcels. I did not make my fortune by sitting in front of a screen trading in shares and currencies. The only hedge fund that I ever had was to buy my gardener a new Black & Decker. I made it by fair, honest and simple trading. Your Lordships will see why I consider myself qualified to advise the Government on small to medium-sized enterprises. I have spent the past 12 years or so visiting schools and universities—including the Oxford Union three times and the Cambridge Union Society twice—and speaking at seminars to the small business community. My message is that business is hard and competitive, but if we are realistic with ourselves about our weaknesses and strengths we will succeed and create something to be proud of. In Britain, small businesses have a lot to be proud of. They employ over 50 per cent in the private sector and they generate as much turnover as big business—in fact, 99 per cent of all businesses are SMEs. The credit crisis has pushed our SMEs to the limits. Some companies have struggled, not because of failure in business, but because of the tougher credit conditions. The Government have stepped in, as they should, with temporary schemes, but it is important that the Government continually reassess their objectives. It is here, with the support from small business membership bodies, that I will be lending a hand by talking to businesses around the country. I have spent the past few months visiting Business Link centres. I have seen some great examples of businesses thriving in these difficult times. But I have also seen some poor examples of businesses that simply will not succeed, even in the best of times. The reality is that, however good the help provided by government, some businesses simply do not work. Government and banks cannot just write blank cheques to anyone who thinks that they have a good idea. I have said this to people I have met on my recent travels. As I said, I am a realist. I am straight and I am blunt and I will not always be popular, but I promise your Lordships this: I will always be honest and passionate about assisting SMEs and getting our young people to think about business as an opportunity. If we can, in Britain, do more to make our kids realise that the business world is far from dull and boring, we will have done a great service. I am proud and glad through my TV programme to have inspired millions of young people. That was my real purpose in participating in it. If we as a country can be bold enough to honestly look at ourselves and acknowledge the challenges that we face, we will emerge stronger in the upturn. It is this quality of honesty and straightforwardness that has served me well over the past 40 years. Many of my employees who have stayed with me for much of that period and those I have done business with would attest to that. It is that straightforward approach that, I hope, will allow me to advise the Government and small businesses for the benefit of all involved, including this House.