Address to the Livery

Wednesday, 29 November 2006
The Rt Hon The Lord Mayor of London, Alderman John Stuttard

Masters, Prime Wardens, Upper Bailiff, Fellow Aldermen, Sheriffs, Chief Commoner, Clerks, Ladies and Gentlemen:

It’s a great pleasure for me to welcome you all to the Mansion House today. The Livery is the bedrock of the City civic, including both the Shrievalty and the Mayoralty, and we have a lot to discuss.

I would like to begin by thanking everyone who supported me in this year’s Lord Mayor’s Show. The Pageant Master tells me that The Lord Mayor’s Show is the largest unrehearsed procession in the world and that this year was one of the longest and the most colourful. Certainly, it was a very happy day and I hope that everyone who participated in it or who watched it enjoyed it as much as we all did.

This year more than 6,200 people took part, including some 50 livery companies who were represented in one form or another - the largest participation of the Livery in the Show in modern times! Thank you very much for your support... and I do hope you will consider taking a float next year.

As you saw, this year the Show was very international - purposefully so - reflecting the international nature of the City of London. We had entries from China, Hong Kong, Holland, Germany and Switzerland. Then, from Finland we had the first ever State Visit to the UK of the real Father Christmas.

We also had 10 fierce Kazak warriors and women on horseback. There has been a growing business relationship between the City and Kazakhstan, with several Kazak companies listing on the London Stock Exchange. So the President agreed to their involvement in the Lord Mayor’s Show.

Actually, we think that they were really sent on a mission to ‘get’ Sasha Baron Cohen!

Of course, the constitutional purpose of the Show is for the newly elected Lord Mayor to travel from the City to Westminster to swear an oath of allegiance.  But over the years the Show has been an opportunity to “show” the new Lord Mayor to the public – in the streets of London, where this year we had a record turnout of over 500,000 people and via television, where many millions watched at home and abroad.

The Show is a good opportunity to “showcase” the Livery and the City – that it is international and that we care for schools, community projects and our armed forces. And, of course, we hope that everyone has a really good day out. So, thanks again for your involvement.

The role of the Lord Mayor and the Corporation of the City of London is to represent the people and the businesses in the City.  In medieval times, the predominant businesses were those associated with everyday life – for example, bakers, bowyers, butchers and carpenters.

Today, the City’s businesses comprise bankers, insurers and fund managers as well as actuaries, arbitrators, accountants, management consultants, shipbrokers, solicitors, tax advisers and property valuers.

And so, the Livery has changed to reflect this. In the last 30 years, stimulated initially by Sir Kenneth Cork who was Lord Mayor in 1978, 20 new livery companies have been formed, representing these modern trades. The occupations of Liverymen have also changed as older businesses (such as textiles) have declined and newer ones have developed.

London is now the prime international financial centre in the world and we want to keep it that way. It has become the driver of our economy. The financial sector (which includes maritime services and business advisers) now accounts for 10% of UK GDP.

It is the fast growing bit of the economy and generates a staggering 25% of the UK’s corporate tax take. Without it, there would be insufficient funds for schools, hospitals and pensions.   So it is hugely important, as well as being the main sector of activity, in the City of London.

But success cannot be taken for granted. I came from Lancashire, where my father was a chartered accountant. He watched his clients in the cotton industry go to the wall in the 50s and 60s as the industry declined. In 1912, there were 1.2 million people employed in that industry. Between the wars 350,000 lost their jobs – that’s roughly the same as commute each day into the City of London.  So we in the City of London Corporation have an important job to do – and in this, the livery companies have a key part to play.

First, the Livery has a constitutional role. The two Sheriffs are elected by liverymen in Common Hall in June each year. Then the Livery meets in Guildhall on Michaelmas Day to signify their Approbation of the Court of Aldermen’s choice of Lord Mayor. It has been the tradition for many centuries that candidates for the Office of both Sheriff and Lord Mayor should be liverymen. In my case, I am a Court Assistant of three – The Glaziers, The Chartered Accountants and the Plumbers.

The Livery must therefore generate or recruit liverymen who have the appropriate experience, background and capabilities to hold the Offices of Sheriff and Lord Mayor. And they must be people who can hold their own when representing their constituents and their businesses – which, these days, reflecting the changing City, are now predominantly in the financial sector. For this reason in the Court of Aldermen, we have introduced a rigorous appraisal system, with independent, outside members, and we have done away with “Buggins Turn”. 

The City of London Corporation needs liverymen who can become Common Councilmen and Aldermen, who have achieved a measure of success in their business careers, and who can contribute to the promotion of the City and to the work needed to keep London ahead of the game.

Livery companies have traditionally been involved in education and training and also in charitable work and you do a magnificent job. A study undertaken by the Corporation last year concluded that London’s key success factor is the availability of its skilled personnel.

Many of our young people come from other regions of the UK, as I did 40 years ago, and many come from abroad. They work hard and they are innovative. For this reason, during my Mayoralty, I will be promoting the UK as the place to come to for a business education and a professional training, under the banner “City of London – City of Learning”.

The Treasury Minister, Ed Balls, and I launched this here in Mansion House two weeks ago and I am delighted that so many of you here today are supporting this initiative in some way. Our aim is to make a British qualification ‘the international Gold Standard’ to which all should aspire if they wish to succeed.

The Livery and the City of London Corporation have grown and developed side by side. Today, the official link between the Livery and the City Corporation is the Livery Committee.  I would like to emphasise its importance as being an effective channel of communication. I would urge all companies to engage actively with the Committee, I am sure that under Geoffrey Bond’s chairmanship, it will go from strength to strength.

As I mentioned earlier, the role of the Lord Mayor is to represent the people and businesses of the City. To do this, he has three separate responsibilities:

1. He is promoter of the ‘Business City’
2. He is head of the City of London Corporation, and of course
3. He has a significant involvement with the Livery.

As London’s businesses have become more focused on the Financial Sector and as these businesses have become increasingly global, so the activities of the Lord Mayor have had to change.

Big Bang twenty years ago led to enormous changes. Foreign banks and insurance companies have flocked to the UK. Almost 50% of property in the Square Mile is owned by foreign financial institutions. There are hundreds of thousands of foreign nationals working in the Financial Sector.  Without these foreign companies, this foreign capital and these talented foreign executives, London would not be as successful. It is a wonderful example, if ever you needed it, of the benefits of an open market and the removal of restrictive practices.

So the Lord Mayor represents foreign banks such as Deutsche Bank (one of the largest employers in the Square Mile), CSFB (based in Canary Wharf), as well as UK financial services companies based in the West End, Edinburgh and Leeds.

He not only represents them, but he strives to work with them and the Government to protect them from inappropriate regulation and taxation. And finally, he promotes them around the world.

With the active assistance of the Foreign Office and UK Trade & Investment I will be visiting some 20 countries this year promoting the City, taking with me a strong business delegation. And I will also be hosting, if the past is anything to go by, some 90 visits by heads of state, ministers and business leaders.

Just last week, I hosted a conference here at Mansion House with the President of Kazakhstan, met the Greek Prime Minister and paid a two day visit to Berlin in advance of the German EU Presidency.

For this work, I rely a lot on other people. But it is also necessary to have the right team in Mansion House. The changing activities have led to changes in the support arrangements for the Lord Mayor. The Court of Aldermen arranged for the recruitment of Kay Brock, with experience of working at the Palace, Government and the City. She is the Lord Mayor’s Private Secretary and oversees the programmes and operations at the Mansion House, as Chief of Staff.

The ceremonial role of the Lord Mayor is hugely important and the traditional ceremonies and processions are a cherished part of our heritage. But these ceremonial activities account for less than 5% of the Mayoral calendar. I am more likely to be found in the day time in my lounge suit attending a business meeting, although I do like to dress properly for you when you come here for dinner or when I dine with you.

You will also have seen me in my full State robes at my Banquet at Guildhall and maintaining this tradition is, in my view, essential. The bedrock of the City’s success is its traditional values, as I mentioned at my acceptance speech in Common Hall in September.

These values are fairness and equity, honesty and reliability, integrity and trust, where one’s word is one’s bond. These values are the values of the Livery movement.

To ensure that the role of the Lord Mayor is properly supported, given the changing landscape, the Court of Aldermen decided earlier this year to recruit senior staff with experience of the overseas business environment. We have just hired two excellent people from the Foreign Office – one whom, Neil Chrimes, will become head of programmes, reporting to Kay and succeeding Neill O’Connor, the senior esquire, who retires in January.

Neill’s ceremonial duties will be assumed by Richard Martin, who will be promoted to the role of Swordbearer. We have also recruited an honorary esquire, Geoffrey Godbold, whom many of you know, to join the ceremonial team, as Common Cryer and Serjeant-at-Arms.

Domestically, I am planning to come to as many engagements with you as I can. The work of the Lord Mayor has increased enormously – as mentioned earlier, there are now 20 more livery companies than some years ago and the overseas travel has increased.

If I cannot be with you, I apologise in advance and I hope you will agree that one of my Sheriffs or a former Lord Mayor will represent me. Increasingly, the Sheriffs are involved as my representatives in more business and livery events – and have even been given a speaking part. This makes a lot of sense, as it shares out the workload and gives future Lord Mayors an opportunity to speak – and for the Livery to get to know them better.

Recognising their increased workload it has also been suggested by some livery companies that they don’t always expect both Sheriffs to be in attendance with the Lord Mayor, so don’t feel that you must invite the full civic team, although we always enjoy being entertained by you.

Another area where your generosity is most appreciated is your contribution to the Lord Mayor’s Appeal. My business theme for the year is about learning cross-borders, under the banner “City of London – City of Learning”. My charitable theme follows the same route, promoting the concept that if skilled people spend time abroad educating others, both will benefit.  The strapline for my Appeal is “Sharing Skills, Changing Lives”.

As many of you know, after university, I spent a year in Borneo with Voluntary Service Overseas and saw the good it can do. VSO is a marvellous organisation which arranges for people to spend anything from 3 months to 2 years abroad. Volunteers are aged between 18 and 75 and the average age is 40.

Spending money on transferring skills, for example from the City in areas such as financial management or corporate governance, can make a big difference and by spending money on people rather than giving it in the form of cash aid, you know where it’s gone.

So VSO will manage the Appeal and will shortly be sending you a calendar of events.

I also wish to support three other charities:

1. the Mansion House Scholarship Scheme, which brings carefully targeted foreigners to London for business experience
2. the new Guild of Educators who will promote cross-border learning and also administer the livery-schools link designed to strengthen and deepen the links between your company and schools in the capital
3. King Edward’s School, Witley for bursary funding for poor pupils from overseas and for pupils to work on overseas community projects.

If you already support one or more of these charities, please don’t let me stop you! And if in giving to my Appeal you would like to single out a specific charity, please let us know. If, however, you give to the Appeal in the round, as it were, VSO will receive some 75% of your generosity and the others will receive splits of the remainder as you can see on the slide. [75% to VSO, 11% to Mansion House Scholarships, 7% to Guild of Educators, 7% to King Edward School Witley, ed]

And now before I conclude, I have one other request, a major one:

There are several thousand young people in Greater London who have demonstrated their wish to better themselves and to acquire new skills as a member of a team. I am referring, to the Army, Sea and Air Cadets.

Many livery companies already have links with a cadet unit, but many do not. In the next few days you will receive a letter and a DVD which I hope you will show your Court of Assistants. Please consider a link.

Masters, Wardens, Upper Bailiff, Ladies and Gentlemen, I have spoken about your support to the civic City and the Mayoralty. It is very significant and I thank you for it.

I have described my primary business theme “City of London – City of Learning” and I have explained my Appeal “Sharing Skills, Changing Lives”.

The Princess Royal, member of seven livery companies and past master of four, in her inimitable style summed it up when she wrote that the ethos of the Livery ‘is timeless: fellowship, welfare, education, supporting trade and craft and at all times working in the best interests of the communities in which they operate.’

This is what you do so well – so very, very well.

Thank you for your support and for sparing the time to come to Mansion House today.

Either Geoffrey Bond or I would be delighted to take any questions. If you do have a question, please raise a hand and wait for the microphone to be brought to you. Please then remind us who you are and which company you represent.

Thank you.