:00:03. > :00:13.accolade for best actress. Now it is time to Show Me The Money
:00:13. > :00:28.
:00:28. > :00:31.This is Show Me The Money, your weekly guide to who is making the
:00:31. > :00:37.catch, how they are doing it and what it means for the way we work.
:00:37. > :00:41.Screening tonight, our main feature, Tim Richards. He runs Vue Cinemas.
:00:41. > :00:45.One of his picture houses has the biggest box-office in Britain. Also
:00:45. > :00:49.starring Rosie Wolfenden, the sparkler behind the British
:00:49. > :00:52.jewellery company Tata divine, with plans for a big production in
:00:52. > :00:56.America. I am always scripting the best lines and keeping a sharp eye
:00:56. > :01:01.on the price of popcorn, money journalist Lucy Tobin from the
:01:01. > :01:04.London Evening Standard. Another day, another attack on the
:01:04. > :01:07.chancellor's plans to tax refunds for people who give to charity.
:01:07. > :01:11.Over 40 of the most generous donors have written to the Sunday
:01:11. > :01:15.Telegraph, saying that the plans will mean less money for good
:01:15. > :01:19.causes. Charities, universities, even senior Tory party money men
:01:19. > :01:25.agree. But the government says some of the super-rich donate to dodgy
:01:25. > :01:32.charities to save tax, not to do good. Tim, are you one of the
:01:32. > :01:39.super-rich that gives to charity and enjoys the tax break? Not yet.
:01:39. > :01:46.But this does feel like another coalition compromise. I am chair of
:01:46. > :01:50.a 20-year-old children's charity, and with our charity 80% of our
:01:50. > :01:58.funding comes from 5% of the donors. Something like this would have a
:01:58. > :02:02.profound impact on our charity. And it is not unique. Is that the
:02:02. > :02:10.funding model for most charities, that the most money comes from a
:02:10. > :02:16.small number of people? Bow charity is not unique. You may be seeing a
:02:16. > :02:20.few bad eggs who take advantage of the system. But the impact this
:02:20. > :02:24.would have feels like a knee-jerk reaction. You can't turn off the
:02:24. > :02:28.tap that quickly. But is part of the problem. This would have a
:02:28. > :02:33.major impact on charities today if it went through. I am the argument
:02:33. > :02:38.that charities will end up with less money if this tax break is
:02:38. > :02:43.capped, you believe that to be true? You suspect that your charity
:02:43. > :02:50.will have less money as a result? A unquestionably. Lucy Tobin, on one
:02:50. > :02:53.side of the argument, there is the case that if you give to money, you
:02:53. > :02:59.should not pay tax on it. The other side of the argument is that the
:02:59. > :03:03.state is entitled to take tax on money earned and what you do with
:03:03. > :03:07.the money afterwards is your business, not the government's.
:03:07. > :03:10.s, but it is baffling that the Government has come out with this
:03:10. > :03:15.policy hot on the heels of emphasising over the last few years
:03:15. > :03:19.that the public purse is emptier and that the charities and private
:03:19. > :03:22.sector need to fill the gap. We are seeing more vulnerable people
:03:22. > :03:27.facing greater cuts and homeless people needing food and ill people
:03:27. > :03:31.needing medicines. And the government is saying to the
:03:31. > :03:37.charities, come and help us fill that gap, and then coming up with a
:03:37. > :03:42.policy that disincentivise is giving. Why is the Government doing
:03:42. > :03:45.this? Politically, it feels like a strange position where you have a
:03:45. > :03:49.Conservative Chancellor effectively saying, we think the state should
:03:49. > :03:52.have the money first, because it can use the money better. In it
:03:52. > :03:58.feels like something they are floating, and that they will end up
:03:58. > :04:03.doing a U-turn on. The condemnation is too wide for them to go ahead.
:04:03. > :04:10.What do you think? It should be an incentive, not a reward. It would
:04:10. > :04:17.be a shame if it had a bad impact on the arts. They are such an
:04:17. > :04:22.inspiration to designers like us. Some of our biggest customers are
:04:22. > :04:26.institutions, and those kinds of places would suffer under this Act.
:04:26. > :04:30.And from your knowledge of working closely with these artistic
:04:30. > :04:36.organisations and charities, they would be in a similar position in
:04:36. > :04:40.that they rely on individual wealthy donors? Absolutely.
:04:40. > :04:44.feels like the government is having an academic argument with itself
:04:44. > :04:48.over where it should come from and whether the wealthy are giving
:04:48. > :04:51.because they want to give or giving because of tax break. But if you
:04:51. > :04:55.are a homeless person relying on a charity which relies on those
:04:55. > :04:59.revenues to fill their coffers, it is irrelevant. You just want
:04:59. > :05:08.something to come from somewhere. The government says it can't afford
:05:08. > :05:13.it and that charities need to step in. Tim, as someone who is chair of
:05:13. > :05:20.a charity as well as someone who knows people who give donations to
:05:20. > :05:25.charity, can the donations from one or two wealthy people, can that be
:05:25. > :05:30.replaced by a lot of small donations from elsewhere? Yes, but
:05:30. > :05:34.those things take time. I know how hard we work on every donor and how
:05:34. > :05:40.much time is spent on them. It takes a long time to build up a
:05:40. > :05:46.donor base. It does not happen overnight, so this would have a
:05:46. > :05:50.massive impact. This is the Big Society government. You wonder,
:05:50. > :05:54.what happened? It is a complete left term.
:05:54. > :05:57.In these tough trading times, here is a reminder that he should never
:05:57. > :06:03.say never in business. The old British steel mill at Redcar relit
:06:03. > :06:07.it blast furnace this evening, some two years after it was mothballed.
:06:07. > :06:10.Many of the 1600 workers who lost their jobs will now be re-employed.
:06:10. > :06:16.The first steel slabs are likely to be produced over the next three
:06:16. > :06:23.days. The plant is now owned by the Thai company SSI.
:06:23. > :06:26.And now some news that will smelt your heart - it is boom or bust.
:06:26. > :06:29.Starting with this towering achievement, the world's first and
:06:29. > :06:33.probably only sand museum. You might think it goes against the
:06:33. > :06:37.grain, but people from around the world have landed on its shores,
:06:37. > :06:40.and there are plenty of British icons, from the house of parliament
:06:40. > :06:44.to old Queen Bess. Shakespeare is there as well, but they don't seem
:06:44. > :06:49.to give a dickens about Dickens. You might need to sit down for this
:06:49. > :06:54.- it is a shampooing robot, on trial in a city in Japan.
:06:54. > :06:57.Sensors in the robot's hands scam the shape of the rope -- the
:06:57. > :07:02.customer's head. The robot then washes the air with 24 "robo-
:07:02. > :07:06.fingers". They have not yet taught the robot to ask about your
:07:06. > :07:09.holidays or how to Cy "Oh, I know" when describing life's weekly
:07:09. > :07:13.dramas. And say hi to hurry. He might
:07:13. > :07:16.eventually turn into a 300 kilo beast, but now he is a cute
:07:17. > :07:21.abandoned hippo Club. Adorable enough to get these keepers to
:07:21. > :07:26.bottle feed him every three hours and put him in the bath after every
:07:26. > :07:29.feed. Keepers say they have to keep him moist, as hippos spend 80% of
:07:30. > :07:37.their time in the water when in the wild. The plan is to reunite him
:07:37. > :07:45.with his parents, who are still living next door.
:07:45. > :07:48.So, Lucy, the Sound Museum. What a curiosity that must be. -- the sand
:07:48. > :07:52.museum. Remarkable that it was crammed full of British icons.
:07:52. > :07:56.this country, we forget how big we are and how much the world
:07:56. > :08:01.recognises some of our landmarks. As a Londoner, you can run around
:08:01. > :08:04.town and complain about the Duke and forget to the Cup and see what
:08:04. > :08:08.landmarks we are surrounded by all the time and how much those brands
:08:08. > :08:12.are worth abroad. His only we could get them to take that love of all
:08:12. > :08:15.things British and buy more British goods. That is what companies are
:08:15. > :08:23.trying to do, branding themselves as British, because made in Britain
:08:23. > :08:30.is a valuable commodity. Absolutely. Everything in our business is made
:08:30. > :08:35.in Britain. And yourself to Japan? All around the world, but mostly
:08:35. > :08:40.Japan, America, Europe and Britain. And there is a value attached to
:08:40. > :08:45.that, if you are able to say it is made in Britain? There is a real
:08:45. > :08:51.kudos to it. In these times, it stands for a lot. Tim, you are a
:08:51. > :08:54.Canadian based in Britain. Is Britishness attractive? Always.
:08:54. > :09:00.Certainly in the film industry, British films travel very well. One
:09:00. > :09:07.of the areas the British policy review looked at last year was
:09:07. > :09:11.whether we should have a British brand for films. With a logo. Some
:09:11. > :09:16.of these films travel very well. Aren't they all seem as Posh, like
:09:16. > :09:23.Gosford Park? There are the Gosford Parks, and they are balanced by The
:09:23. > :09:27.Inbetweeners. The cheers as far away as you could get! But also a
:09:27. > :09:31.great movie and the second highest grossing film of the year last year.
:09:31. > :09:35.The use a technology even in the hairdressing trade nowadays - Rosie,
:09:35. > :09:40.in your business, even though it is jewellery, you tend to think of
:09:40. > :09:46.that as an ancient craft. But technology is key in your business,
:09:46. > :09:56.too? In it is, but we have lots of skilled makers in Britain. All of
:09:56. > :09:57.
:09:57. > :10:03.our jury is laser cut -- all have our jewellery is laser cut. We
:10:04. > :10:08.decided to create our own way of making it. It is an ancient craft,
:10:08. > :10:13.but we try and push the boundaries with technology. We use a laser cut,
:10:13. > :10:18.does that make it look different? It gives it a very straight edge.
:10:18. > :10:22.But it does have a different look. And because every peace is and made,
:10:22. > :10:27.it has a quality to it that you would not otherwise have. I and
:10:27. > :10:34.this is going to be the big technology in the cinema trade?
:10:34. > :10:38.City on the horizon. Laser technology is the big thing in our
:10:38. > :10:42.business. Laser projection throws an incredible amount of light on
:10:42. > :10:46.the screen. I'm no you do not like people who stand up during movies,
:10:46. > :10:52.but the use of lasers is an aggressive deterrent. It will
:10:52. > :10:57.prevent them from standing up again. That brings us to the thought of
:10:57. > :11:02.how you encourage and nurture the next generation, with the hippo.
:11:02. > :11:06.That is something the Government has to try hard to do. We have a
:11:06. > :11:11.generation coming out of university who can't find jobs, and
:11:11. > :11:14.entrepreneurial isn't is the key. The number of young people who are
:11:14. > :11:18.interested in setting up their own businesses and going down the
:11:18. > :11:22.imitative route and starting something you could be great for
:11:22. > :11:25.Britain. Hopefully, they can learn from tonight's stories as
:11:25. > :11:30.inspiration. Are they looking at being entrepreneurs because there
:11:30. > :11:34.is nothing else available, or are they looking at it and thinking,
:11:34. > :11:38.this is the best choice? It had gone beyond the first idea. Yes,
:11:38. > :11:41.there are fewer jobs out there, which will encourage people. But on
:11:41. > :11:46.the other hand, it is great to start something that you can call
:11:46. > :11:49.your own. You guys will know better than me, but to have a baby and
:11:49. > :11:54.watch it grow and Hiram people and have your own flexibility and not
:11:54. > :12:02.have to be a corporate drone sounds appealing. But you were a loyal
:12:02. > :12:09.once! There has been an incredible gravitational pull to the City with
:12:09. > :12:12.the best of our students over the last 30 or 40 years. Showing that
:12:12. > :12:18.there is an alternative, that there is a way of being successful and
:12:18. > :12:23.having a lot of fun as well, being an entrepreneur and getting some of
:12:23. > :12:28.those young and talented students into business will get this country
:12:28. > :12:32.back on its feet. What was the trigger for you? What made you
:12:32. > :12:39.leave the law behind and become a cinema entrepreneur? I have always
:12:39. > :12:47.loved movies, so I am fortunate to be in the business I love. But for
:12:47. > :12:54.me, during the last recession in 1990, I was a lawyer. A mergers
:12:54. > :13:00.lawyer. Yes, and business had just stopped. Then I answered a very
:13:00. > :13:06.small ad in the Financial Times to join one of the studios. You could
:13:06. > :13:16.have missed it. It is amazing how things happen. Just one of those
:13:16. > :13:19.
:13:19. > :13:22.There is a step from going into the cinema business and then deciding
:13:22. > :13:26.to set up a company that becomes one of the dominant players in the
:13:26. > :13:32.cinema trade. What made you think you should set up and run your own
:13:32. > :13:36.business? There were a number of areas. A lot of entrepreneurs have
:13:36. > :13:40.that Eureka moment. Why moment was when I was walking into the
:13:40. > :13:45.Finchley Road cinema, which was Warner Brothers at the time. They
:13:45. > :13:50.were building loud, noise, brash, cinemas and an affluent couple
:13:50. > :13:54.walked by. They looked in and walked away. I thought we were
:13:54. > :14:00.alienating a large proportion of the potential customer base. It was
:14:01. > :14:04.that together with, I think, studio life. Studio investors are the only
:14:04. > :14:12.ones that can put Investment Bank is to show in terms of their
:14:12. > :14:16.expense projects. -- Investment Bankers to shame. I thought I could
:14:16. > :14:20.do it better and cheaper and I left six months later and started the
:14:20. > :14:24.company. You have 71 sites in the UK and elsewhere at the moment and
:14:24. > :14:30.I know you are planning to open more in these difficult economic
:14:30. > :14:38.times. How do you decide whether Vue Cinemas should be? The hardest
:14:38. > :14:42.part is deciding where you are not going to be. We get letters weekly
:14:43. > :14:47.and monthly from councils pleading with us to go in and open up a
:14:47. > :14:51.cinema. We are a big part of the community. People remember their
:14:51. > :14:56.first dates. Kids go up. It is a safe haven for young people to
:14:56. > :15:00.watch the film. It is very hard to turn people down. We have a very
:15:00. > :15:05.sophisticated screening process, where we will probably end up
:15:05. > :15:11.developing one out of 20 sites that we look up. That is a very high
:15:11. > :15:15.rate of attrition, one in 20. What is a contributing factor? How much
:15:15. > :15:20.people are willing to spend? The number of people through the doors?
:15:20. > :15:24.What are the variables that you look at? We typically look at a 20
:15:24. > :15:28.minute drive time. We look at a snapshot of a community, an area,
:15:28. > :15:36.and that can be stretched in certain areas in parts of the
:15:36. > :15:39.country where people drive for a longer distance. Then there are
:15:39. > :15:43.places like Westfield London with phenomenal gravitational pulls.
:15:43. > :15:50.Both the West field sites, here and in Stratford, people try for over
:15:50. > :15:55.an hour to come in. You have to fact it in the different elements.
:15:55. > :15:57.-- people drive for an hour to come in. You have to look at the
:15:57. > :16:02.relevant affluence of the customers and how much they are willing to
:16:02. > :16:09.spend. How much they will spend on popcorn? No, it is the whole
:16:09. > :16:13.package. Hot dogs as well? Tickets, too. If you look at our price wars
:16:13. > :16:18.across the streets at Westfield, similar across the country, we have
:16:18. > :16:22.a price point that starts at �1 and goes up to �20. We tried to cater
:16:22. > :16:27.to all our customers across the country. Thank you. The business
:16:27. > :16:30.story next week is likely to be Tesco. They are expected to reveal
:16:30. > :16:34.their worst performance in decades. They are selling some of their
:16:34. > :16:38.stores and they are making much less profit at home. Some of the
:16:38. > :16:41.top bosses have walked the plank already. Phil Clarke will reveal
:16:41. > :16:46.his turnaround plan on Wednesday, with more emphasis on smaller
:16:46. > :16:52.stores, cutting back on new hypermarkets, and hiring more staff
:16:52. > :16:59.to improve customer service will all be on the bill. What has gone
:16:59. > :17:03.wrong with Tesco? Let's get some perspective. Profits will be down,
:17:03. > :17:08.but it will still be over �3 billion as their pre- tax profit
:17:08. > :17:12.and not many people can compete with that. And it is still one
:17:12. > :17:17.third of our groceries. But there is still a slow down. I think it
:17:17. > :17:21.has become arrogant, actually. Farmers have complained about them
:17:21. > :17:26.squeezing margins. Communities have got annoyed about them opening too
:17:26. > :17:29.many branches, squashing local independent shops. Now it has gone
:17:29. > :17:33.further and annoyed the customers. It has cut back on staff, so
:17:33. > :17:37.customer-service levels have dipped. If you walk into a store, they
:17:37. > :17:44.looked sterile in industrial whereas says with a Morrison's have
:17:44. > :17:49.been investing. -- is Sainsbury's and Morrisons. ASDA has been having
:17:49. > :17:55.a very big price war. People have drifted away from Tesco. It has
:17:55. > :17:59.been a big player for a long time and has concentrated too much on
:17:59. > :18:03.international markets and not the UK. The problem is that the UK was
:18:03. > :18:10.the cash cow that generated the money to spend abroad, but if that
:18:10. > :18:14.slows down and dried up, they have big problems. The story was that
:18:14. > :18:18.Tesco grew and grew, and you could argue that it has grown so much
:18:18. > :18:24.that it has become unmanageable. Your business has grown pretty
:18:24. > :18:32.quickly, 40% in one year. How do you manage that rate of growth?
:18:32. > :18:35.Managing growth is tricky. We are in control of every area of our
:18:35. > :18:42.business, manufacturing, distribution, retail sales. Having
:18:42. > :18:46.all of that means that throughout the growth you are in control. You
:18:46. > :18:51.have got very stringent forecasting and it you know where you are at.
:18:51. > :18:58.Is there a pay-off between growth and what you can control? I am sure
:18:58. > :19:04.there is. But not quite yet? yet. A good position to be in! Your
:19:04. > :19:10.business had a big expansion as well. Overnight to took over... I
:19:10. > :19:19.forget which one. Was it warned of? It was five companies. I started
:19:19. > :19:22.with a zero. He -- how did you manage that change in the business?
:19:22. > :19:29.It is very difficult and the challenge is to keep the
:19:29. > :19:33.entrepreneurial spirit alive in the company. All of our key executors
:19:33. > :19:39.have a stake in the company. They think like owners and that is a big
:19:39. > :19:43.part of it. We have individual executives who will cut their own
:19:44. > :19:49.budgets because they know it is for the greater good of the company,
:19:49. > :19:53.and you would not see that in a big company with huge bureaucracy with
:19:53. > :19:59.entrenched positions. For us, having our managers think like
:19:59. > :20:02.entrepreneurs is very important. There is some pressure from Tesco
:20:02. > :20:07.investors to perhaps pull out of the United States. It is taking a
:20:07. > :20:11.lot of time with very little to show for it at this stage. Should
:20:11. > :20:16.they leave the United States? think they have put in too much to
:20:16. > :20:21.walk away right now. I was at the Tesco conference last year, and
:20:21. > :20:26.there are always bonkers investors saying what have you done? When
:20:26. > :20:33.they opened Fresh & Easy to 1006 they said they would break easy in
:20:33. > :20:37.two years. Several years on, they have not. -- in 2006. They have
:20:37. > :20:40.changed the stores a lot. When they originally opened, the fresh side
:20:40. > :20:45.was not what the Americans wanted and they have changed and it does
:20:45. > :20:48.seem to be on the up. Investors will be watching. We will see what
:20:48. > :20:51.they have to say for themselves on Wednesday. They say you should
:20:52. > :20:56.never go into business with your friends and family but that message
:20:56. > :21:06.did not reach one rather large family in Cardiff. We went to find
:21:06. > :21:10.
:21:10. > :21:19.Niche journey. He is brothers with Steve and father to Helen. -- mate
:21:19. > :21:24.Jimmy. Their sisters and cousins as well. They all work together as
:21:24. > :21:31.hairdressers in Cardiff. What is it like working with your entire
:21:31. > :21:38.family? Sometimes it is held. It is also brilliant. What is it like
:21:38. > :21:42.working with your children on a day-to-day basis? Not a problem.
:21:42. > :21:46.Sometimes I make it clear that they are my children but at work I am
:21:46. > :21:52.the boss. At home they are my children and I love them to bits.
:21:52. > :21:59.In the shop, everybody has to have a responsibility. That is what the
:21:59. > :22:07.business is all about. Helen has been working in the family salon
:22:07. > :22:11.since she was a teenager. What is the success secret? Is it having
:22:11. > :22:17.defined roles? The most important thing is that you have to be good
:22:17. > :22:21.at your job. You all have to have different roles. I do chemicals. We
:22:21. > :22:25.all work differently. The most important thing is that you have to
:22:25. > :22:30.get on as a family unit as well. If you do not get on, that is when the
:22:30. > :22:34.problems start. Family businesses contributed nearly a quarter of the
:22:34. > :22:39.UK's GDP. 3 million small businesses in the UK are run by
:22:39. > :22:47.families and they give jobs to 9.2 million people. Between them, they
:22:47. > :22:51.generate a turnover of 1.1 trillion pounds per year. Over time, family
:22:51. > :22:56.businesses can turn into dynasties. Think of the Rockefellers, trance,
:22:56. > :23:01.the Rothschilds. That great wealth can cause great feuds. The story of
:23:01. > :23:05.the Gucci family reads like a soap opera. How can families make sure
:23:05. > :23:09.their businesses run smoothly? As you can see from the books behind
:23:09. > :23:13.the, research into family businesses is a growing field. At
:23:13. > :23:17.the forefront, Professor Nigel Nicholson. What are the pros and
:23:17. > :23:22.cons of keeping it in the family? When families work well, they are
:23:22. > :23:24.grit. They have fantastic family spirit, they make quick decisions
:23:24. > :23:27.and they have a telepathic ability to understand each other and they
:23:27. > :23:33.are held together by love so they can tell the truth about falling
:23:33. > :23:36.apart. However, the other side of that coin is that those things are
:23:36. > :23:43.risk factors. Sometimes they are too quick to make decisions and
:23:43. > :23:48.conflicts can overspill. Sometimes people end up unable to talk to
:23:48. > :23:52.each other for weeks or months because they have fallen out.
:23:52. > :23:56.Although the Lazarous admit that they occasionally Baker, Steve and
:23:56. > :24:05.Jimmy do their best to keep everybody in mind. -- occasionally