Opposition not sweet on Sugar
By Aled Thomas
Opposition parties have hit out at the appointment of Lord Sugar to a task force to help small businesses.
The tycoon and star of The Apprentice was appointed by business secretary Lord Mandelson to a three man panel which will set up the Small Business Credit Adjudicator in order to resolve disputes between small firms and banks.
Outgoing Federation of Small Business chairman John Wright and former Lloyd’s TSB deputy chief executive Mike Fairey will also sit on the taskforce.
But both Conservatives and Liberal Democrats have criticised the appointment of Lord Sugar following disobliging remarks he made last year about small companies in trouble.
He said: “The moaners are bust… they don’t need the bank, they need an insolvency practitioner”.
Responding to the news, shadow chief secretary to the Treasury Philip Hammond said: “Only Labour could announce on April Fool’s day that it had appointed the man who called credit-starved small businesses ‘moaners’ who lived in ‘Disney World’ to be the adjudicator on their applications for bank loans.
“No wonder no-one believes Lord Mandelson’s claims to be the champion of small business when Labour would rather tax jobs and the recovery than cut government waste.”
And Liberal Democrat treasury spokesman Vince Cable said: “With this appointment, the government is showing the same contempt for small business people as Lord Sugar shows them when they complain about the banks.
“Instead of this silly stunt, the government should be making the banks lend business what they promised to last year.
“They must take a firm hand with the banks which we own to ensure that they are lending to British businesses and supporting our economy.
“Unless businesses can get the credit they need to create jobs and growth, there will be no recovery.”
But the government clearly believes Lord Sugar and his colleagues will be able to provide good advice on the responsibilities of the adjudicating body.
Lord Mandelson said: “Lord Sugar, Mike Fairey and John Wright have decades of experience in banking, business and enterprise. They understand the critical importance of new finance and credit flow to the growth of small, innovative companies.
“This government has worked tirelessly to help small businesses access the finance they need. However there is a perception among small business owners that banks are unfairly denying them credit. This task force will help us understand the root of these concerns.”
A spokesman for the Federation of Small Businesses told politics.co.uk: “Out immediate past chairman John Wright is on the taskforce and we will be working very closely with the Small Business Credit Adjudicator. We will be very much involved.”
-01.png){kind=spacer}