Lord Mayor's Dinner for Private Equity July 2010

The Financial Secretary, Mark Hoban MP's address is available to read or download on the Treasury's website here.  Mark Hoban MP's address.

Simon Walker, CEO of the BVCA also delivered a brief address which can be read below:

It is my privilege to say a few words of thanks as we move towards the conclusion of this evening. Our first debt is to the Lord Mayor himself for making this occasion possible. I have seen at first-hand the extraordinary vigour with which you are undertaking your duties within Britain and on numerous overseas visits promoting the economic interests of this country. Private equity and venture capital are fortunate in the links which we have with you. You are a fine ambassador for the City and we are grateful for your hospitality tonight.

My second thanks are for our guest speaker, the Financial Secretary to the Treasury. He was an exceptionally diligent Opposition spokesman in his dealings with us and I am impressed as well as flattered that you have maintained that level of attention to our sector since assuming office. If you google the words "Mark Hoban", the front page contains many references and images of the minister but also pictures of a slightly younger namesake - with bulging biceps  - who attended "bodyguard school" and specializes in unarmed combat, kickboxing and "group protection". You can be excused, sir, after less than two months defending the financial services industry in tough times at home and abroad, for concluding that this is a highly appropriate coincidence. We're particularly grateful for the "group protection".

There are still challenges facing our industry. Just weeks after the Emergency Budget, many here might expect me to admonish the Minister for the increase in Capital Gains Tax. Indeed I cannot pretend it was cheered by our industry. But I think everyone here appreciates the delicate political balance which the Treasury had to strike, a challenge which the Chancellor demonstrated some skill in meeting.

Indeed what I want to stress now is that perhaps as important as headline rates, is a sense of stability and predictability going forward in tax and regulation - a sense that has been missing here for far too long.

My view is that given possible American changes to their carried interest regime, Britain is still a competitive place to set up a private equity or venture capital business. Indeed, London could even benefit from America's moves.....just as Sarbanes Oxley diverted a fleet of IPOs which might have been destined for New York to Britain.

If investors can know for sure that the post-budget settlement framework will remain in place for the whole of this parliament, my belief is that the industry here will keep growing. I know that this was an issue that the Minister spoke passionately about from opposition and I look forward to its continuation in Government.

My second concerns the EU and the AIFM Directive. I think it is fair to say that Brussels - the EU establishment - has been stunned by the constructive way in which the new Government has approached the European Union. They expected Visigoths and vandals....horns, cloven hooves and a tail.   Instead, there has been constructive engagement and a willingness to take part - even to upgrade - Britain's role.

We must use the credit this government has earned. It is imperative that Britain champions this era of good feeling. Notwithstanding their hesitations around free markets, our neighbours will not cavalierly overide strongly held fundamental economic principles. The  AIFM Directive is squarely an assault on a vital national interest and we need to fight our corner like tigers in the crucial weeks and (I'd guess about three) months ahead. I am sure Mark Hoban will be that champion.

Finally it falls to me to thank all of those within the Lord Mayor's office, at the BVCA and at Mansion House who have worked so hard to make this event run so smoothly. It has been a memorable night and one that I am sure will mark private equity and venture capital's coming of age as a crucial part of the City's business mix.  Thank you again.