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CBI President delivers “truths” to business and Ministers

President of the CBI, Sir Roger Carr, has challenged the comments of Foreign Secretary William Hague, which suggested that businesses need to work harder.

At the CBI Annual Dinner in London, Sir Roger made it clear that ministers did not need to “crack the whip” to get growth going.

With Mr Hague in the audience, he said: “In the race for growth, the going may be heavy at times, but the horses are willing, the course is understood and there is a shared will to win.

“There are no whinging businessmen here, but engaged and positive people advocating a more constructive approach to solving the nation’s greatest challenge – growth.”

He also asked the Government to “step up the pace” in reducing the regulatory burden; initiating infrastructure projects; clarifying energy policies; financing growth ambitions, and tackling the European solvency challenges for larger financial institutions.

Sir Roger continued: “The first truth is to accept that we deserve nothing. The sense of entitlement at all levels is a legacy from a different age.

“We have to earn our way in the world, be smart enough to know what we are good at, brave enough to reach out to new markets, bright enough to develop new products, and driven enough to beat the competition.

“There is no other way – and as I travel the country, it is heartening to see how many have taken up this challenge.

“The second truth is when it comes to growth – there are simply still not enough of us fishing in the right pools. So our relative export performance is poor.

“Yes - the markets we feel comfortable in must be nurtured - but new markets must be explored and opportunities seized.

“In the last decade, Britain’s share of global exports fell from 5.3 to 4.1 per cent. Chinese exports have grown exponentially, the Germans have increased market share and even Sweden has managed to hold its own.

“Despite our inherent advantages of time zone and language and many world beating businesses, we are still not punching at our weight, let alone above it – this has to change.

“Large companies must help small and medium-sized companies to find their way to distant places. Small and medium-sized companies must find the courage to make the journey – the CBI must act as a catalyst – and government must support all companies in this critical task.”

As the ‘third truth’, he suggested our education system is failing young people, and failing the country as a whole, particularly as many people are unable to read, write and handle arithmetic.

On the fourth truth, he said: “The fourth, and last, hard truth is potentially the most disturbing of all – recognising that at a time when business could not matter more – it could not be trusted less.

“In the way we pay ourselves, present ourselves and conduct ourselves, now is the time to be more transparent, more responsible and more accountable.

“High pay must be for exceptional performance, not mere attendance. Corporate and social responsibility must be an attitude running through a business, not a box to be ticked.

“We must fight to regain respect and earn a reputation as the first-choice career destination for the talented and ambitious men and women.

“And improving our gender mix on our boards and delivering diversity in all its forms must be done willingly, not driven by rules but simply, knowing that it makes good business sense.

“And by doing the right thing as businessmen and women and working with shareholders – and nobody who has lived through the last three weeks could say that they don’t have a voice - we will discourage government from doing the wrong thing – by legislating, regulating and micro-managing areas outside their appropriate areas of jurisdiction.”

This was posted in Bdaily's Members' News section by Tom Keighley .

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