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Sir Alan Sugar facing backlash over rant at small firm 'moaners'
Nicholas Cecil, Chief Political Correspondent04.11.09
Gordon Brown's business tsar Lord Sugar today faced calls to be fired after reportedly branding some small firms as "moaners" who live in "Disney World".
The Apprentice star - whose television catchphrase is "You're Fired!" -allegedly claimed that only around one in seven businesses complaining they had been refused bank loans had justified complaints.
"I can honestly say a lot of problems you hear from people who are moaning are from companies I wouldn't lend a penny to," he is said to have told delegates at a conference for small to medium businesses in Manchester yesterday.
"The moaners are bust. I would look at you right in the eyes and tell you out of 100 complaints, on investigation I would say 15 of them had something to moan about."
The multi-millionaire added that young entrepreneurs who had not experienced a recession until now had unreasonable expectations about obtaining credit from banks. "You have lived in the unrealistic Disney World in the way banks dished out money," he reportedly added.
But Liberal Democrat business spokesman Lord Thurso said: "The Prime Minister must not allow Lord Sugar's celebrity to distract him from the desperate message this sends. If he cannot get this, the Prime Minister must tell him: 'You're Fired!'"
Lord Sugar, who was appointed as the government's "enterprise champion" earlier this year, is said to have given his tough response when replying to a question from Blackpool businessman Alber Goldberg. He is said to have complained that four banks had refused to lend him funds, and said later the answer was out of order.
Stephen Alambritis, of the Federation of Small Businesses, said small firms were at the heart of the economy and were working hard in difficult times.
Reader views (10)
The man made his initial fortune selling second rate goods during a boom period is now the business tsar of a second rate government. Why is anyone paying him any attention?
- Rogan, Irving
Its true about business plans BUT the problem there is that by the time they are completed they get out dated with new legislation, unforeseen rising costs and another economic crash... grrrrr
- Tony, Herts
Maybe he should extend that sentiment to people bemoaning the lack of mortgage lending. Not exacly on message is he....I always thought he was ill-suited to a Labour government. Problem is he only took the job because of ego-stroking following his newly acquired celebrity status.
- Mark, London
He is right. A lot of these small businesses are being run by inexperienced chancers who automatically think they have a right to whatever help is out there. They have not heard of the phrase "Business Plan" in my experience.
- John, London
I believe Sugar's got a point but fear his phrasing - but more particularly it's interpretation and reaction - will just ramp the "anti-banks" sentiment.
Where is the independent body to review and comment on a cross section of these cases? The body that can say:
"We feel that should've been considered";
"You'd have got a loan 2 years ago but times have changed (and rightly so)";
*You'd not even have got a loan 2 years ago!".
Where are the "facts" (or as close as we can get to them) that might actually stop every man and his dog - some of whom can't even spell "bank" - from just regurgitating headlines and form an informed opinion.
- Chris H, Perth, UK
I was not "moaning" or asking the Bank to give me free money. He is meant to champion SME's to the government and be the ears on the ground. All I did was ask a question, "in the current market with banks not lending money could he ask the gov. to set up a Business Bank to help fund SME's with loans" He asked why the question, and I just mentioned that I had been refused by 4 banks, with that he started. I am not living in Disney Land ( that would be easy) I work 24/7 and make a small living for me and my family, I pay my RATES and TAXES and do not want to live on Gov handouts. Most SME's start as DREAMS and we all want to succeed, we invest our own money and work as hard as we can. Lord Sugar came to a conference where 90% were Start Up business's looking for advice and support, not a free ride on the mad hatters tea party. I am sure a lot of the new business start ups there would be a bit concerned about his comments.
- Alber Goldberg, Blackpool
To a certain extent he is right, it is only Labour who believe chucking money at everything is the solution. I am sure there are cases where the banks have been negligent, but equally any business must show it can operate in a recession as well as the artificial credit based boom that we have been living in. Do we want the tax payer funded banks losing money on businesses and mortgages that people can`t repay? If you are Gordon Brown the answer is yes, with an election looming!
- Nickspurs, London, London
So the 5% increase in business rates this year followed by the near 40% increase in business rates next year has nothing to do with it? I have 2 successful small businesses, both of which were entirely self funded and built up with endless hours of hard work. The banks are not interested in providing me with an overdraft facility to make short term cashflow during seasonal stock purchasing easier. Instead they wish to tie me into long term loans at high interest rates which would cripple me. This is despite good cash flow and profits in each business. I have raised my own finance through family members and worked hard to succeed and my reward is super high taxation! Come on Alan, get into the REAL WORLD! This government is taxing small businesses out of existence.
- Dannyp, Egham
Sugar is right - a large part of the problem, even before the politicians found the scapegoat of blaming 'City bankers' was that the hight street banks were lending 125% of the asset value and paying no attention to risk of bad debt. This has now changed (maybe swung too far in the short term) but its back to more sensible banking practices which will continue - until the next time!
That said, Lord Thurso's opinion should be respected. he has more business experience than the whole of the Labour Cabinet put together - which speaks volumes about how useless Labour is in running the economy
- Paddy, London
Ironic, given that Labour think we should all be "nice" to each other and money drops from the sky without any effort.
- Dave Davies, Basingstoke, Hants
