 Well, your Excellency, Foreign Secretary, my Lords, ladies and gentlemen, very good evening to all of you and welcome. It's been quite a challenging 12 months, as John said, since we were last here. For business, searching for growth, the constant, and I have to say listening to the news tonight, the ever-darkening shadow of the Eurozone, the relentless pressure on costs and for a period y ddymoralising assault o ddwylo'r rhettor, ychydig wedi gwneud o ddwylo'r gweithio a'r wnaeth yn cyfnod i'r cwrtos. Fy gweithio'r rhan o gyferdwyr ymlaenwyr ymdeithas o'r rhan o'r stymlu economiaith o'r bwrdd llyfr â'r rhigor llyfr. Mae'r rhan o'r ysgol ysgolfodau yn ysgolfodraig ymdweith ymdweith o'r mhrel of what is clearly a very concerned community. Then facing the wrath of an unhappy public at the polls, many still hoping for short-term, domestic fix, an easy quick fix for what is clearly a long-term international problem. And it's not been entirely a smooth passage for the Foreign Secretary either. A war in the air in Libya was the sort of start. A war of words on at least one memorable occasion in Brussels, which I'm sure we can all remember well. The aftershock of the Arab Spring still resonating and the changes in leadership and mindsets that is occurring whilst we speak in Europe. Changing the culture of the Foreign and Colonial Office from old-world charm to new-world commercial edge. All of this, of course, while still doing the day job. So, Foreign Secretary, we are particularly appreciative of your attendance here this evening. I know you've got a very busy diary. Now, the sort of typical form on these sorts of occasions is to give the senior government minister present a long list of business wants and needs and to hope that some of the pleading at least bears a little fruit. I just first want to give a reassurance, a word of reassurance on recent ministerial encouragements. I think that's the right word we've had. In the race for growth, business simply doesn't need to feel the crack of the ministerial whip to step up the pace. The going may be heavy at times, but the horses, and we are all in this room, are willing. The course is well understood and the will to win is undoubtedly with us all. So, to be clear, no whinging businessmen here complaining about poor coalition support, but I think you'll find engaged positive people advocating a more constructive approach to solving the nation's greatest challenge. And it's the challenge for all of us, and that, of course, is growth. There's no doubting the intent of the coalition in providing business-friendly policies. What we need now is more business-like execution. Delivery on the promise is made, done ruthlessly and urgently. In reducing the regulatory burden, initiating the infrastructure projects, clarifying the energy policies, sorting out borders and the embarrassing queues at Heathrow. Financing growth ambitions, particularly of our smaller and medium-sized companies, addressing the European challenges of solvency too for our larger financial institutions, and very importantly, educating our children to be fit for purpose for us all. So there's no shortage of things to do, but there's no absence of positive intent, and we must build on that. And I think in asking government to step up the pace quite reasonably, we in business need to face up to our own responsibilities. For as we sit here this evening, we all have the huge privilege of jobs. A sense of purpose, of self-worth, of making a contribution to society. Those that have suffered most in the year since we last met are the growing millions of unemployed across Europe, many under 25, all facing the depressing future of limited job prospects. In the UK, some woefully ill-equipped to work because of inadequate education. Others losing the will to work simply through lack of opportunity. And it is for these people that we all must redouble our efforts. Government, business, the CBI and our schools to provide hope and opportunity if we are to avoid a dangerous breakdown in society that will inevitably simmer and ultimately boil over. If we do not succeed collectively, then we will all have failed in our duty. Now, I'm pleased to say that in the UK there have been a series of positive developments and we shouldn't forget that. The March budget may have had, and again I will choose my words quite carefully, presentational difficulties, but for all of that it was a very good budget for business. We called for an improved corporate tax environment, we are well on the way to getting it. Now the task is to be world beating, not just competitive. We said punitive levels of personal taxation sent out precisely the wrong message about our attitude towards success and made the UK a less attractive place for talented people and indeed investors. Our government listened. The decision to tackle this was good economics but it was difficult politics and welcomed by us all, I think, as a vital step on the road to even lower tax levels. And we made clear that tackling the deficit must remain at the heart of the government's plans. We got a budget that was broadly ffiscally neutral and clearly pro-enterprise. It was financially resolute in spite of some siren voices calling for relaxation and it underpinned the competitive edge that we all need in competitive markets. And I do want to stress that in supporting these coalition policies the CBI holds utterly no political allegiance. We remain constantly party neutral but resolutely pro-business. That's the way we're going to stay. But as I've said on many other occasions like this government can only hope to set the climate. Only business can deliver the goods and by doing so we will show how business is a powerful force for good in our society. Through the products we provide, the jobs we create and the taxes we pay innovating, exporting and building our way back to robust growth led especially by our fastest growing medium-sized businesses in which we must continue to encourage. Now we also know that wishing alone is simply not going to make this happen. So tonight I do want to focus on four hard truths which I think can spur us on. I think the first one is to accept that we deserve nothing. The sense of entitlement at all levels that still lingers in this society is really a legacy of a very different age. It was born out of a wealth that frankly was originally built on power, slavery and military power. It was expanded by industrial success. But that exploited an empire. And it did so by providing cheap raw materials and keeping a captive finished good market. And in recent times we've seen a world offering cheap debt and the false hope of a new financial paradigm. Today I think to all of us it has never been clearer that nobody owes us a living and that the world has changed forever. We have to earn our way in the world, be smart enough to know what we're good at, brave enough to reach out to new markets, bright enough to develop new products and driven enough to beat competition. There isn't any other way. And as I travel up and down the country it's heartening to see just how many of you have already taken up this challenge. But the second truth is that when it comes to growth there's simply still not enough of us fishing in the right pools. So our relative export performance is actually relatively poor. Yes, the markets we feel comfortable in have got to be nurtured and that's absolutely essential. But the new markets must be explored and those opportunities seized. Now in the last decade Britain's share of global exports fell from about 5.3 to 4.1%. In the same period Chinese exports have clearly grown exponentially. The Germans have increased market share and even Sweden has managed to hold its own. And despite, no Sweden in the audience I trust to actually say that. Right, I just reflected on that. But despite our really inherited advantages of time zone language and the many world-beating businesses we've all got we're still not punching our weight let alone above it and this is something we have got to change. Large companies have got to help small and medium companies to find their way to distant places. That's the first job. Small and medium companies have got to find the courage to actually take the journey. Now the CBI can act as a catalyst and do so and government must support all of the companies in this very critical task. And I'm delighted to say, Foreign Secretary, that we are already seeing some of the fruits from your focus on commercial diplomacy. And having spoken at your global diplomatic conference a few days ago, I was personally hugely encouraged by the fact that people in the Foreign and Commonwealth had accepted the brief. They'd also fully engaged in executing this brief and the involvement of UKTI and the FCO team the ambassadors all over the world and business working together it was recognized in that room that together we can do even better. So really good job and I think something we should be behind but really value the work that's already been done. Now the third hard truth is about our education system. It is failing young people and failing the country as a whole. On a human level, having so many unable to read, write or add up properly is an absolute tragic waste. It's of talent and of opportunity. And this is obviously devastating on a commercial level. Some promising reforms are underway and I think there's no doubt it's recognized as an area to tackle. But it'll take business again working with government putting its shoulder to the wheel to make this happen. And in the course of this year the CBI are going to be recommending new ways that this can be done and show it's not just a case of turning around troubled teenagers, it's much more than that. It goes all the way down to primary and preschool levels. It is a shared responsibility for all of us and we must all work together to build a young workforce that is fit for purpose and capable of realizing its potential. And business can do that by engaging with schools locally and nationally to help shape the agenda and help the school develop appropriately. Now the fourth and last hard truth is potentially the most disturbing of all. Recognizing that at a time where business could not matter more it could not be trusted less. In the way we pay ourselves present ourselves, conduct ourselves now is the time to be more transparent more responsible and a lot more accountable. We all know that high pay must only be for exceptional performance not merely for turning up. Corporate and social responsibility have got to be an attitude running through all our companies not simply a box ticking exercise. We've got to fight to regain respect and earn the reputation such that we are the first choice in the career destination for the talented and the ambitious and that's men and women. And improving our gender mix on boards and delivering diversity in all its forms must be done willingly not driven by roles and rules but simply knowing that it makes great business sense. And I think by doing the right thing as business men and women and working with shareholders and I have to say and nobody who has lived through the last three weeks could say that shareholders don't have a voice by working with shareholders we're going to discourage government from doing the wrong thing by legislating, regulating and micromanaging areas outside their appropriate areas of jurisdiction and we must be successful in that. So these are the truths that we've got to face up to government and business and I think by so doing I think business can build confidence in society and it will return the confidence to invest money which is now buried in a lot of corporate balance sheets pursue new markets that are still a little underdeveloped and build a sense of future optimism for the next generation and by doing this will new jobs be created by those of us who have all enjoyed a fortunate past for those that deserve a more promising future. Now the Diamond Jubilee in the Olympics give us clearly a great chance to showcase our strengths to win new friends, lead the export charge in the high growth new markets that UK business can and must conquer it's government, shareholders, businessmen and women it's up to us to make it happen it is a collective responsibility. Foreign Secretary we are honoured to have you with us this evening and as I've said your role is changing as the world changes and as the world of business changes with it. We're all looking forward to hearing from you a little later on about how together we can make, made in Britain an even better label buying British a more regular occurrence and invest in Britain an even more compelling idea. In the meantime I'd like to thank you Foreign Secretary for giving your time IBM for their generous support and sponsorship and most of all all of you our guests for attending this evening. I wish you all a most enjoyable evening and a very successful 2012. Thank you very much.