Episode 45

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:00:02. > :00:12.same to to identify the baby. Those are the headlines. Now it's

:00:12. > :00:29.

:00:29. > :00:33.time for Show Me the Money. This is your weekly guide to who is

:00:33. > :00:41.making the cash, how they're doing it. He boar red a few quid off his

:00:41. > :00:47.dad to buy the building firm he works for Steve Morgan is chairman

:00:47. > :00:53.of red row. Kevin Green says he's one of the UK's biggest residential

:00:54. > :00:57.landlords and Louise Cooper works for BCG partners. No U-turn, but

:00:57. > :01:03.the Government is tweaking plans for the economy. Laws on unfair

:01:03. > :01:07.dismissal could be overhauled. More small businesses may be let off

:01:07. > :01:11.expensive pensions to provide retirement savings. And it might

:01:11. > :01:17.try to build a recovery with acres of Government-owned land handed

:01:17. > :01:21.over to developers. Kevin, we start with you for the discussion on this.

:01:21. > :01:25.Those things that we outline, do they make a plan for growth? Yes,

:01:25. > :01:32.they certainly do. The housing market's gone stagnant. We need to

:01:32. > :01:35.free up the planning permissions and the land to encourage a supply

:01:35. > :01:40./demand equality. Extreme shortage will only prop housing prices in

:01:40. > :01:43.the medium term. 3,000 acres can make all that difference? It will

:01:43. > :01:53.make a big difference. This slacking of planning law, the

:01:53. > :01:56.document of a thousand page sz now down to 25, long overdue. Steve,

:01:57. > :02:00.from Redrow, the release of land, you're from another perspective in

:02:00. > :02:04.the property business, what do you think? I'm very much in favour,

:02:04. > :02:08.anything the Government can do to get the housing industry moving has

:02:08. > :02:15.got to be welcome. But 100,000 homes sounds a lot, but it's a drop

:02:15. > :02:19.in the ocean compared to what we need. Government's owns statistics

:02:19. > :02:24.talk of 250,000 new homes per annum. We are building at levels the

:02:24. > :02:29.lowest since 1923. The population of Great Britain in 1923 was 40

:02:29. > :02:34.million people. Today it's 65 million people. So in real terms,

:02:34. > :02:38.we're building the lowest we've built for centuries. I keep reading

:02:38. > :02:45.about developers such as yours having huge banks of land, horde

:02:45. > :02:54.add way in the background. It's just rubbish. Part of the issue of

:02:54. > :02:57.land banks is that some builders, flankfully not us, some are stuck

:02:57. > :03:00.with planning permission for city centre apartments, but the market

:03:00. > :03:04.isn't there any more. The real issue is when planning was given in

:03:05. > :03:08.the past it was given in too large a lump, thousands of houses here.

:03:08. > :03:14.It's not economical to develop them. No big superdevelopment. Something

:03:14. > :03:19.a lot smaller, more intimate? you know what, we wonder why our

:03:19. > :03:23.village schools and shops and pubs are closing, and the reality is the

:03:23. > :03:28.planning system has stagnated growth in villages and small towns

:03:28. > :03:32.for decades. That's why there's been no growth and people then

:03:32. > :03:36.wonder why the shops close or the schools close or the pubs close.

:03:36. > :03:39.The reality is you can't stand still. You have to grow. That's

:03:39. > :03:45.what the new national planning policy framework is all about. It's

:03:45. > :03:49.saying to local people, local government, you have got to provide

:03:49. > :03:52.housing in your locality and you decide where it goes. We'll pick up

:03:52. > :03:56.and develop that thought later in the programme. Louise, sticking

:03:56. > :04:00.with growth and how you get recovery in the economy, instead of

:04:00. > :04:03.tackling red tape and releasing land, which these two have got

:04:03. > :04:06.quite excited about, is it more important that the Bank of

:04:06. > :04:11.England's meeting this week and could decide to release another 50

:04:11. > :04:15.billion into the economy? This is quantitative easing to MPC meeting

:04:15. > :04:21.this Thursday is expecting, either this month or next month to come up

:04:21. > :04:26.with more money printing. The jury's really out on QE as to

:04:26. > :04:30.whether it works or not. It might flood the system with liquidity,

:04:30. > :04:36.but small businesses still can't get their hands on it. So, to be

:04:36. > :04:39.fair, the economy needs much more than QE2. That's a critical point.

:04:39. > :04:41.It's all very well the Bank of England giving lots of cash to the

:04:41. > :04:46.banks and taking their distressed assets off their hands. Doesn't

:04:46. > :04:50.mean it trickles down to the level you're operating. Louise is spot on

:04:50. > :04:55.with that comments. First-hand I've found the problem of trying to

:04:55. > :04:59.borrow money from the banks recently. Until the banks start

:04:59. > :05:04.lending us money to grow businesses and start businesses, the economy

:05:04. > :05:08.won't the solved. Thank youment time now for that period of the

:05:08. > :05:12.programme where we look at some of the stoirz from the week that you

:05:12. > :05:16.maybe would rather not know about - it's boom or bust. You might think

:05:16. > :05:19.Europe's bankers have a fair bit of work at the moment, but none of it.

:05:19. > :05:24.This is the annual international table tennis tournament of European

:05:24. > :05:29.bankers, taking place in year in Austria. Greece managed to send a

:05:29. > :05:34.contingent, can you believe it? They lost to Germany. How much is

:05:34. > :05:39.that doggy on the surfboard? This is the third annual dog surfing

:05:39. > :05:43.event, held in California. They're attempting to break two world

:05:43. > :05:47.records, the longest wave ridden by a dog in open water and most dogs

:05:47. > :05:50.on a single board. Some of these mutts look like they're just having

:05:50. > :05:54.trouble going in the right direction. What's fat and screams

:05:54. > :05:58.and wobbles when it's at high speed? Supersized passengers at

:05:58. > :06:03.Thorpe Park in Surrey. It's installed bigger seats on one of

:06:03. > :06:06.its most popular rides to accommodate plumper pleasure

:06:06. > :06:11.seekers. Universal Studios in Orlando has had to do something

:06:11. > :06:16.similar, modifying seats on the Harry Potter roller coaster.

:06:16. > :06:20.We start with Steve and the table tennis and I assume the bankers had

:06:20. > :06:25.a good reason for being there, maybe they were letting off a bit

:06:25. > :06:29.of stress, a bit of steam? Ping- pong bankers, that makes the mind

:06:29. > :06:35.boggle. The only thing I could say, I wish they'd bat some mortgages

:06:35. > :06:41.around, particularly for first-time buyers. That has been the biggest

:06:41. > :06:45.problem with why the housing turnover has dropped to the levels

:06:45. > :06:49.it has dropped to historic levels, lack of mortgages. It's all down to

:06:49. > :06:53.we can't get mortgages out of the bank. If they were hitting pound

:06:53. > :06:58.coins you would have been happier. Bat a few mortgages to first time

:06:58. > :07:04.buyers and get the housing industry moving. It creates five jobs for

:07:04. > :07:08.every new house built. Half a million people, 1.5% on GDP,

:07:08. > :07:12.problem solved. Some of your best friends are bankers. I had friends

:07:12. > :07:15.all over the world in all kinds of professions. I work an a trading

:07:15. > :07:19.floor. I like the idea of playing ping-pong to relieve stress. It

:07:19. > :07:24.gets stressful on occasions. wonder whether bankers get such a

:07:24. > :07:26.hard time from everyone, they can't even indulge in everyday

:07:26. > :07:30.recreational activity without people wagging their fingers at

:07:30. > :07:36.them in disapproval. Exactly. I don't even work for a bank and you

:07:36. > :07:41.asked me the question! You get the baen for them by proxy. I'm going

:07:41. > :07:45.to ask about the surfer dogs. Some of those dogs didn't really look

:07:45. > :07:48.terribly happy. They didn't look they wanted to be there on those

:07:48. > :07:53.boards. How do you motivate people in business to do things that they

:07:53. > :07:56.really don't want to do? I think the first school of thought for

:07:56. > :08:05.myself is you can't teach an old dog new tricks. That was the case

:08:05. > :08:08.with that particular instance. You'll be putting a fine cliche box

:08:09. > :08:12.for that. Motivation can only come from the person themselves. We have

:08:13. > :08:15.to empower people to realise that's a passion that they want to achieve.

:08:16. > :08:20.Telling somebody to do something is no good. Once they realise they

:08:20. > :08:23.want to do it from their own guts and heart and soul, that's the key.

:08:23. > :08:30.What's the best motivational technique you've used? Money is a

:08:30. > :08:36.good motivator. Louise, best motivational technique? I'm not

:08:36. > :08:39.going there. Fine. This is a family show after all. Motivational

:08:39. > :08:43.techniques? You're in a solid, decent business here, does this all

:08:44. > :08:49.sound like rubbish to you? No, it doesn't. I agree with Kevin, money

:08:49. > :08:54.is a great motivator. Pride in the job as well. We like to build,

:08:54. > :08:59.think we build the best product in the industry and we enjoy handing

:08:59. > :09:04.our new homes over to our customers. I think all our team get a great

:09:04. > :09:08.deal of pleasure out of that. It's very motivational. Louise, the

:09:08. > :09:14.people on the theme rides who, you know, I can say this without any

:09:14. > :09:17.sense of shame, some of us need a little bit more room. Extra room. I

:09:17. > :09:22.have no idea who you're talking about. I'm talking about myself.

:09:22. > :09:24.There's no denial about this one. It show that's when you try to

:09:24. > :09:30.predict what your customers are going to be like in the future,

:09:30. > :09:34.sometimes the predictions are a bit off the mark. I've been in my

:09:34. > :09:40.working career now for two decades, and what I find fascinating is how

:09:40. > :09:43.quickly the world of business moves. And how some firms that used to be

:09:43. > :09:47.these fabulously brilliant companies, their competitive

:09:47. > :09:51.position deteriorates rapidly. You look at the FTSE 100 and how many

:09:51. > :09:54.companies that were, that started off there 30 years ago, they've

:09:54. > :10:00.lost their position completely. I find it extraordinary how big

:10:00. > :10:03.companies seem to lose their creativity and lose their

:10:03. > :10:06.understanding their customer really well and fail to adapt. Because

:10:06. > :10:10.they stop listening to the customers? Or they're not looking

:10:10. > :10:14.at the broader world around them? don't know what it is. But very few

:10:14. > :10:20.companies adapt and change quickly enough for the fast moving world in

:10:20. > :10:24.which we're in. How closely do you listen to your customers? Very

:10:24. > :10:27.closely. Everyone says that. It's true! If I supply a house which a

:10:27. > :10:32.customer doesn't want they're not going to buy it. I have to lock at

:10:32. > :10:37.the customer needs 100%. Let's spend a bit more time talking to

:10:37. > :10:42.Steve now, the big boss here, chairman of house builder red row.

:10:42. > :10:49.You were talking about planning. The accusation is and forgive the

:10:49. > :10:52.glibness of this, that you are only happy when you're concreting over

:10:52. > :11:00.the countryside. That's quite right. Concrete over the lot. It's

:11:00. > :11:04.absolute rubbish. It is complete schizophrenia The reality is house

:11:04. > :11:08.builders, land banks and their output is 75% brown field land.

:11:08. > :11:12.That's the current rate and it's been that way for years. Ever since

:11:12. > :11:17.records began have house builders ever built on more than 50% green

:11:17. > :11:23.field land, ever. And let's just say they did. Let's just say that

:11:23. > :11:28.they built 250,000 new homes for the next 25 years, which is what

:11:28. > :11:35.the Government proinjects we need to do, and let's say half of it

:11:35. > :11:41.does go on green field land, in that scenario, we would just build

:11:41. > :11:44..7 of 1% on green field land of the English land mass. Why build on any

:11:45. > :11:48.green field land at all. You go around any major town or city and

:11:48. > :11:52.you'll see lots of land that's sitting there that is either not

:11:52. > :11:57.used at all or under used. It's brown field land. Why not use that?

:11:57. > :12:01.We are doing. 75% of all output is on breen field land. Why not make

:12:01. > :12:06.it higher than that It's impractical. If you want to build

:12:06. > :12:09.in the West Country for example, there is no breen field -- brown

:12:09. > :12:14.field. The West Country has no industrial background to be able to

:12:14. > :12:19.do so. London, by contrast, 1 hundred% of development in London

:12:19. > :12:25.is on brown field land. It depends where you are in the country.

:12:25. > :12:30.That's why you cannot have higher statistics than that. The higher

:12:30. > :12:35.factor though, house builders like putting houses on green field land

:12:35. > :12:39.because that's where the nice land is. It's got the beautiful view.

:12:39. > :12:45.You can charge a higher price. at all. House builders like to

:12:45. > :12:49.build houses where people live, in chimney pot areas, ie areas of

:12:49. > :12:53.population. We don't like to build houses in the middle of the

:12:53. > :12:57.countryside because the demand isn't there. We much prefer to

:12:58. > :13:03.build houses in urban areas where people live. We have no problem

:13:03. > :13:08.building houses on brown field land. The industry is building 75% of its

:13:08. > :13:13.output on brown field land to date. Inevitably to meet growth, we will

:13:13. > :13:17.have to build on more green field land. As I say, even since records

:13:17. > :13:22.began, and you go back to the '80s when house building was more than

:13:22. > :13:27.double what it is today, even then, the industry never built on more

:13:27. > :13:30.than 50% green field land. This hysterical rubbish that's being put

:13:30. > :13:34.about, urban sprawl and concreting over the countryside, is exactly

:13:34. > :13:39.that. Please, for those people against the national planning

:13:39. > :13:49.policy framework, stick to the facts and stop this silly rhetoric.

:13:49. > :13:51.

:13:51. > :13:56.Reported in a paper today that among the planning changes being

:13:56. > :14:01.considered by the government is removing the obligation that

:14:01. > :14:05.currently sits with developers but when they Deary decent sized

:14:05. > :14:15.development they will build a certain number of affordable homes,

:14:15. > :14:16.

:14:16. > :14:20.or social housing -- do a decent sized. They say half of social

:14:20. > :14:23.housing built every year is built because of that one rule. If the

:14:23. > :14:33.rule is removed does it not make it harder for hard-pressed people to

:14:33. > :14:37.afford? These are only proposals at the moment but what is happening is

:14:37. > :14:42.it is putting back decision-making like this into the hands of local

:14:42. > :14:48.people and governments. It is up to local people to decide whether they

:14:48. > :14:53.want social housing and poor levels they want. There are national needs

:14:53. > :14:57.here. There are, but that is what the Government has done with the

:14:57. > :15:00.new homes bonus, they have doubled the amount of new homes bonuses for

:15:00. > :15:10.social homes as they have for private homes, so it encourages

:15:10. > :15:10.

:15:10. > :15:14.local authorities to provide social homes when they draw up plans. We

:15:14. > :15:18.are planning nothing else but building a proportion of social

:15:18. > :15:21.homes into the future. It is interesting to hear you argue in

:15:21. > :15:26.favour of local planning because often the planning process tells us

:15:26. > :15:33.local communities do not want stuff in their back yard, they need

:15:33. > :15:39.national intervention to force them to take homes. Under the old system

:15:39. > :15:45.that is right. But under the new system he is saying that each local

:15:45. > :15:49.authority has to draw up a local plan that meets the local needs.

:15:49. > :15:59.Only 30 per cent of local authorities have a current local

:15:59. > :16:02.

:16:02. > :16:06.plan. We have a situation where there is two year land supplies. We

:16:06. > :16:09.have just been refused planning permission for housing on a

:16:09. > :16:18.chemical plant in Leeds because they did not want housing. This is

:16:18. > :16:21.the kind of the posture situation builders operate in. The government

:16:21. > :16:25.is saying Local Authority is can no longer avoid the issue. The

:16:25. > :16:32.presumption in favour of sustainable development only kicks

:16:32. > :16:36.in were Local Authority is do not fulfil their statutory duties.

:16:36. > :16:46.you have a good, or bad week this week? Did your business to

:16:46. > :16:51.

:16:51. > :17:01.something good, or were you part of You have been told that all growth

:17:01. > :17:03.

:17:03. > :17:07.is the same. All ways of doing We do not really care how they will

:17:07. > :17:13.fix the economy, or the whole situation, our job is to make money

:17:13. > :17:17.for people. Personally I have been dreaming of this moment for three

:17:18. > :17:24.years. I go to bed every night dreaming of another recession,

:17:24. > :17:34.another moment like this. Are you on the side of the wealth creators,

:17:34. > :17:34.

:17:34. > :17:37.or the asset-strippers? The producers, or predators? This is

:17:37. > :17:42.not a time right now to wishful think that the government will sort

:17:42. > :17:52.things out. The Government's don't rule the world, Goldman Sachs rules

:17:52. > :17:53.

:17:53. > :17:58.the world. Does it? Our used to work there. Not that I know of. --

:17:58. > :18:01.I used to work there. The euro-zone crisis, are they getting on their

:18:01. > :18:09.knees to Goldman Sachs, or Angela Merkel? Of course it does not rule

:18:09. > :18:15.the world. When Ed Miliband talks about good and bad business and the

:18:15. > :18:20.government choosing a positively good businesses, he means the city,

:18:20. > :18:23.doesn't he? I don't know who he means. I think making a moral

:18:23. > :18:26.judgement about business is difficult. Do you think the defence

:18:26. > :18:32.industry is bad? What about the tens of thousands of people who

:18:32. > :18:35.work in that industry? Do you say it boos, cigarette and betting a

:18:35. > :18:40.bad businesses? Try selling that to the Labour Party electorate, or

:18:40. > :18:48.many of them, all of which enjoy a drink on a Friday night and a

:18:48. > :18:53.cigarette on a Saturday night. We have laws in this country and have

:18:53. > :19:00.businesses abide by those laws, that should be it. Moral judgments

:19:00. > :19:05.are not... Is it not time for the city to be brought to to check?

:19:05. > :19:11.many businesses have cost us. One person's terrorist is another

:19:11. > :19:19.person's freedom fighter. Would you describe yourself as an asset

:19:19. > :19:26.stripper, or predator? I would not but Ed Miliband clearly does.

:19:26. > :19:30.it distress you? He is an idiot. He has lost reality on this. He is

:19:30. > :19:36.putting two segments in place there, one as producers, one as predators.

:19:36. > :19:39.It is not that simple. Business is integrated and whether we are in

:19:39. > :19:46.the supply side, production, or one the end of a wealth creator, as he

:19:46. > :19:50.calls it, so I do take offence. Does it matter? He is the Leader of

:19:50. > :19:53.the Opposition. He is not going to go to a white wall apart --

:19:53. > :20:00.department tomorrow and draw applause. It does matter because

:20:00. > :20:03.public perception matters and people look up to leaders. If the

:20:03. > :20:07.means a definition, make it clear. The way that comes across is people

:20:07. > :20:17.like myself would be asset- strippers and predators. I think he

:20:17. > :20:19.

:20:19. > :20:26.Everyone in business should know it is good to save money and also to

:20:26. > :20:31.make a bit of cash. With tips to get you started, here is death.

:20:31. > :20:35.the time you have paid for petrol, insurance and the MoT, having a car

:20:35. > :20:39.can put a real dent in your finances. But there are things you

:20:39. > :20:43.can do to try to get some of the cost back. The number of items you

:20:43. > :20:47.can rent out to others is going up. If you have a room, or driveway

:20:47. > :20:51.going spare there are plenty of people who will pay you money to

:20:51. > :20:55.use them. If you are not using your car all the time, you could even

:20:55. > :21:01.rent attack, too. This website allows drivers to rent out their

:21:01. > :21:05.car whenever they are not using it. Many people do not use their cars

:21:05. > :21:09.but often, on average one hour a day, so with the service they can

:21:09. > :21:14.rent out their cars and see how much they can make. When a booking

:21:14. > :21:20.is confirmed both sides are messaged on e-mail, text, they are

:21:20. > :21:25.told where to pick up the car. Let's meet somebody who has done

:21:25. > :21:35.this. Ian rents out his car regularly. Do you make much money

:21:35. > :21:35.

:21:35. > :21:41.from this? On to �300 a month. I usually do it between two and three

:21:41. > :21:45.times a week. Have you had any problems? There was one occasion

:21:45. > :21:50.where the car got damaged on the door. The company were really

:21:50. > :21:53.helpful, to go to we're and fix it on their insurance. No problem.

:21:53. > :22:00.might not fancy renting out your car to a stranger so how about

:22:00. > :22:06.getting adverts on the side, because some companies will pay you

:22:06. > :22:11.to have your logo -- their logo on the side of your car. There are

:22:11. > :22:14.lots of ways to save money as well. We all know cars are expensive,

:22:14. > :22:19.particularly petrol, but have you got any ideas for how people can

:22:19. > :22:23.save money on them? Shop around when you buy petrol but apart from

:22:23. > :22:27.that you can keep an eye on how you drive. It is amazing how much

:22:27. > :22:34.petrol you can save if you do not break or accelerate sharply. Make

:22:34. > :22:38.sure the tyres are always pumped up, that can help. Insurance is a big

:22:38. > :22:42.issue because the cost has gone up by 40 per cent. Is there anything

:22:42. > :22:46.you can do to cut that down? Those who have experienced the biggest

:22:46. > :22:49.price rises a young drivers, particularly young male drivers. We

:22:49. > :22:55.are starting to see the reintroduction of pay-as-you-go

:22:55. > :22:58.insurance. It means you have a little black box in your car the

:22:58. > :23:03.report -- that records how you drive, that could bring premiums

:23:03. > :23:07.down. If you are not young, what can you do? You can still save

:23:07. > :23:14.money. It is often said to shop around but I think you should shop

:23:14. > :23:18.around and be smart about it. So no cut a few price comparison sides.

:23:18. > :23:22.Taught we specialist Motion -- motor insurance broker and if you

:23:22. > :23:25.get a quote, go back to your insurer to see if they will Majid.

:23:25. > :23:29.With the you want to make money with your car, or just save a few

:23:29. > :23:35.pennies, there are many things you can do with your car to try to help