London: Sir Alan Sugar was due to take his seat in the House of Lords as a row erupted over whether peers should be elected.
The star of TV's The Apprentice was set to don ermine for the traditional ceremony of introduction to the Upper Chamber by two supporters.
Peers take the oath of allegiance to the Queen before being allowed to sit on the red benches. Sir Alan was awarded his peerage when Prime Minister Gordon Brown named him as the government's enterprise czar last month.
The business entrepreneur will advise the Prime Minister, but will not become a minister.
Sir Alan stepped down from all his company directorships at the start of this month to avoid any conflicts of interest in his new role.
The 62-year-old multi-millionaire has also been dropped from advertisements to promote apprenticeships and premium bonds because of Cabinet Office guidelines that prevent political figures taking part in government advertising.
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