Episode 10 The Bottom Line

Air passenger duty in the UK has gone up by 8% from today. The

Government says airlines will benefit from reduced corporation

tax. US Secretary of State Hillary Clinton says the Syrian President

would be mistaken if he thinks he can defeat the opposition against

him. Earlier, Gulf Arab states agreed to pay the salaries and

other costs of the Free Syrian Army. Now it is time for a show me the

This is Show Me The Money, your weekly guide to who's making the

cash, how they're doing it, and what it means for the way we work.

With us tonight, Mark Cahill runs the recruitment company Manpower UK

- he'll tell us who, if anyone, is creating new jobs. Professor Ngaire

Woods does at least three jobs - at Oxford University. She's one of the

few people on earth who understands Europe's financial crisis - or so

she says. And Tom Hansworth's relatives are the reason the RAF

wears blue. He's the seventh generation to run his family

textile business in Yorkshire. Over 3,000 jobs have been saved no the

high street tonight. The computer game seller Game has been sold to a

private investment group. It has bought the 333 Game stores that are

still open. The entire business was put into the hands of

administrators last Monday. They closed 277 stores immediately with

the loss of more than 2,000 jobs. Marker, 3000 jobs saved on the High

Street for now. That will cause a certain amount of relief?

Absolutely. We have to feel for the 2000 will have lost their jobs. To

say 3000 jobs in this economy is great news. We have seen this kind

of shake-out before were part of the business is saved and part is

closed. We saw it with peacocks. Is that standard now? Should we expect

this will happen with more businesses? Nothing is the same as

it was three or four years ago. We have to be ready to change, we have

to be agile and flexible. We spend a lot of time talking about how

we're going to rebalance the economy since the banking crisis.

Since we ran up huge debts so we could borrow and then spend. If we

are borrowing less and spending less, doesn't that mean more pain

on the High Street? It probably does. We're looking to Government

to try to balance that. He tried to phased down excessive consumer

credit. But not at such a speed and in such a way that we just watch

retailers go at a business. there an argument that we need that

pain for the greater good of the economy? Not necessarily. It might

be that for the right measures there is some pain. But all pain is

not going to lead to a good ad comes. Tom, your family run

business has been around for 300 years. How do you keep the wolf

from the door? At think it is about creativity, it is being dynamic,

quick, innovative. And it is looking for opportunities in every

area. There are always opportunities. It is hard work all

the time? It is hard work all the time and being disciplined. For a

lot of people, a lot -- a job in retail is their first job, and easy

way he did the job market. You start learning skills that are

useful to will their future employers. If that first wrong is

taking off the bottom of the ladder, how do people get on the jobs

ladder? This is one of the biggest challenges. We have a big problem

with over 1 million youth unemployed. We have to find a way

to get those people back into work. We'll have an obligation. Retailers

one of those aspects. The hospitality sector, the social care

sector. We have to ask individuals to have the right attitude to get

Time for Boom or Bust, our quick flick through some of the news you

tried to miss. Easter is but a week away and these people near Budapest

are planning their festive weekend. This is the 500 year old Pouring

Water on a Woman Easter ceremony. I kid you not. The idea is the water

keeps them healthy and prevents them from wilting. This is their

dress rehearsal - or should that be wet dress rehearsal. A dog's isn't

just for Christmas - it's also helps you have a long healthy human

life. Scientists in the United States say taking your dog to work

can reduce stress and improve productivity. However they admit

there were complaints about noise and allergies. Sports news now.

This is the 2012 stacking competition in Japan. The idea is

to assemble the twelve plastic cups into a pyramid in the shortest time.

The winner took just 1.93 seconds to complete the task. They were

awarded a cup for their efforts. In a plastic cup - the right way up

this time. The wet dress rehearsal. You must have come across some very

strange business rituals in your time. I would suspect that is

probably one of the strangest? is. I work any adversity which is

900 years old and has a lot of rituals. Some are great. Great

ceremonial events in Latin to celebrate success. It is important.

It is that the ordinary. It is wonderful and memorable. A lot of

rich what I do not like. The ritual of committees. People who don't

want to delegate committees -- decisions. No decision has ever

made. That is a rich well I would get rid of right away. It is a very

difficult thing to manage, isn't it? You want to be modern and

progressive, and to get the best out of a business. But tradition is

an important part of the business, and you don't want to lose that?

You're absolutely right. Which was that build on tradition and remind

people of who they are, are great. The ones we should stop are the

ones that are denigrating and that makes some of the workforce feel

badly. There must be plenty of ritual in a traditional business

such as Urus? There are, absolutely. Some are good, some not so good. It

is the essence of innovation and speed and opportunity, and being

flexible. Keeping the good bits, keeping the rituals that have a

value. They make us a team. And moving on as well at the same time.

What are the things in your business from years ago that are

still use all today? We learn from history and everything that we do.

We supply the guards meant uniforms. We have done that since the Battle

of Waterloo. -- regards man. The rich will operate where is

fantastic. What was on the battleground in the 19th century is

now in front of Buckingham Palace. Those rituals are so important. The

Diamond Jubilee is very important for the nation. Those things are

absolutely Fabulous. As long as they keep playing a longer the

tourists, you do OK? Absolutely. In recruitment, talking to people,

having a conversation with someone is a great tradition. Some

traditions you would like to get rid of. What seems to be a modern-

day tradition for me is people going outside for a cigarette and

standing in front of office blocks. Isn't this the new social network,

were the real cost up his uncovered? Let's get back to the

water cooler. It is far more help the! -- healthy. I don't know if

any of your clients have said, the dog must come to work, to? My wife

takes her dog to work. I think of I look up my business, the things

that would help to de-stress are certainly not Docs. It is getting

rid of bureaucracy. Let's get rid of e-mail. It is killing us.

have something that will appear. It is right here on the table. It is a

squishy brain. I'm going to give this stress tally to you. Fetch!

Thank you. D U bring dogs to work? No. If the people I work with

brought dogs into the workplace, that would stress me very much.

have lost it. Give it to me. Her need is greater. You could not let

dogs into the workplace. You certainly could map lead captain

with all that will pass back could not let caps. -- he could not let

It is all about training. It is about learning things. The speed of

things. To be able to stack those cops and less than a second is

fantastic. Industry is about speed. To survive in the modern world, in

manufacturing, he need to take things very quickly to market. We

have developed a new brand last year and it will be out in April in

John Lewis. That speed to market is vital. Innovation Plus speed

combined. When you look at your work, rather particular jobs you

look at and think, that is a lifetime of craft and specialism?

think all the way through the workplace. Engineering skills. The

spinning area. The design skills to be able to create beautiful

exquisite time this blankets and throws and garments, they are

crafts that you do not get unless you actually come through the

proper apprentice process. You need to pass on the stress ball. I'm

interested in how your business makes many. What is it? Is an

upfront fee that companies pay you when you find the right person? Is

there an on going badly that he continued to collect? It works in

many different ways. When we find people for employers, and yes, we

get a fee, critic to be based around their starting salary. --

particularly. We have more than 30,000 temporary workers working

every day. Most of them are paid every week. We charge a mark up to

the client. Cash flow is pretty essential in this business. In the

five years of austerity we have gone through, have you been sitting

there twiddling her thumbs because people are afraid to move? There is

an element of that. That merry-go- round has halted for a while. In

the business today we're seeing companies taking a more strategic

approach to how they use people in their business. They are taking on

a more flexible contract. We're seeing some of the ONS figures at

the moment. I had breakfast with a company boss during the week who is

constantly driven to find skilled people for his particular industry.

He said that actually there find a lot of their people on social

networks. Why would anybody pay money to you to find people that

you can now locate at minimal cost through other channels? I think

they have a limited use. Yes, you have got highly skilled people.

What are a large bulk of people that actually need conference to

walk into a brand, to talk to somebody, to get some help in how

to find their next job. People have been at the work for you. They need

some confidence. They need somebody to talk to them to help them sell

their services to a potential employer. How would you find the

people you place into jobs? Executive had hard think there is a

lot of tracking. -- in executive headhunting. We used the social

networks. We have to look everywhere. To make the best match

and fit for the employer. I need to ask you about why the RAF uniform

is blue. It is not your fault. the story goes -- in 1917 we had an

order from the Tsar of Russia for a blue cloth for his Cossacks. The

Bolshevik revolution happened in 1917. We were left with a ball

quarter of blue cloth and not knowing what to do with it. It just

so happened on 1st April, 1918, the RAF was formed. It was an

amalgamation of the Royal Flying Corps and the Royal Navy Flying

Corps. They needed their new Clough. Blue was perfect. It was readily

available. They chose blue. Your predecessor just wandered around to

the War Office and said, we have got a lot of knock-off as from a

Russian Kostner? He take the opportunities when they arise. You

have to do that. We have a great relationship with the MoD. We have

provided the scarlet uniform for the best part of 200 years. It was

a natural progression to move into blue. Still customers to this day.

We're the exclusive suppliers of the ceremonial cloth for the UK and

muddy and woollen cloth for other royal families and villages around

How do we get more jobs for young people who aren't in training or

school? The Deputy Prime Minister Nick Clegg will finally launch the

Youth Contract Scheme tomorrow. The key part is that companies will be

paid if they hire young people for at least 26 weeks. This is such a

crucial issue in the UK and across Europe. Millions of young people

who do not have work, but want it and need it for their own cells of

being -- sense of self, but for the economic good of those nations.

Across most of Europe there is between 25 and 46% of youth

unemployment. So there is not only the risk of losing that generation

and leaving them unskilled and unemployable but there is a deeper

problem for Europe which is that all the European populations are

raging, they do not have provision state pension funds, those young

people finding it difficult to find work and when they do it is part

work, poorly paid work, are actually who we are depending on to

pay into the pension funds to pay Europe's ageing populations. It is

a big problem will stop so they are not making the contributions

towards current government expenditure, they are also not

spending money on the High Street, or elsewhere. And you tend to look

to the younger population as the growth market for consumer goods.

How do you fix this problem? I see it from the government perspective

as a Dean of a government school. I think governments have to create

incredible growth path, to say very clearly to businesses across Europe

we do have a plan, it is not a detailed micro-manage in plan but

we have a big plan for the next five years. This is how little work

and wired will lead to great because only then can businesses

start investing, hiring people, making strategic decisions, which

is what missing. We are seeing governments lurched from crisis to

crisis, come up with a quick fix and the markets lurch with them.

Can you have a plan for growth alongside a plan for austerity?

Spain unveiled its project on Friday, �22 billion of cuts there.

You can but it has to be different for each country. You cannot have

every country in Europe doing austerity or you end up with a

great depression. You have to have the countries that can grow being

encouraged to do less austerity and grow, provide opportunities for the

countries that are trying to cut their deficits. You run a

recruitment company, what is your fix? I wish there was one fix. We

work on the youth contract that is coming out tomorrow, but Tony that

is -- that is any part or all we have to do. I look to employers to

take responsibility for this because we have to add something to

what we do to try to help you get back into work. Without them, I

fear that in 10 years we will be missing middle-management. Where

will they come from, learn the skills of the trade? The hard

knocks you have to have before you can progress. This is the argument

about the lost generation. absolutely. A does not enough to

say they may not be able to get work now but they will pick up a

job by the time they are 25 -- it is not enough. But they won't have

the skills, or the hard knocks of growing up in business. Key issues

We call it the talent mismatch. We have to go through education to try

to establish what skills we need to be teaching the youth today and

tomorrow so they come out of school were then education, with the

skills a business needs. They don't have those skills which is why it

will take us a number of years to get rid of this unemployment.

are one of the business is stepping up in the way businesses -- the way

Mark says businesses need to buy running apprenticeships. Correct. I

think employers have a responsibility to recruit

apprentices. Sometimes it is difficult if you have somebody

mature coming near to retirement, it is probably easier to say we

will keep them on for a few years rather than recruit an apprentice

and bring them through the training programme. It takes more courage

and responsibility but in the long term if they have a long-term

strategy for growth, they need to do it to Secure their position as a

company. So we have young apprentices in the business,

matched up with mentors who have worked in the business for many

We look at some classic British brands that are selling overseas,

doing their best to stay ahead It is proudly made in Britain by

Derbyshire hands. But now one quarter of John Smedley's Worldwide

sales are far away in the Far East. It is here in up market Kinzett

that John Smedley has found its second home. And what a home,

nestled between some of the top brands in the world. Why do you

think John Smedley has been a success?

TRANSLATION: Japanese people understand it is traditional and

genuine standard items. Where many have moved to the Far East, John

Smedley kept its production in this factory since 1784, some things

have barely changed. But over those 200 odd years business has been up

and down. The family who still run it say it is the overseas market

that has got them through the recession. One of our success

factors in having been here for so long is that our sales are spread

over-thirties or 40 markets round the world, so sometimes you find

market up, others down, but over all, when things are bad you can

see yourself through. Now the historic companies making big

strides in the Far East and hoping the relationship with Japan will

continue to develop. TRANSLATION: There is still good

room for growth. That is why we are sending staff to England to study

This is one of the most fashionable parts of Tokyo, so I am going to

last people hear what they like about John Smedley. It looks nice.

More fashionable. Pastel. Spring. Good. I would like to get this

Sunday. It is not just John Smedley. This is a designer Sir Paul Smith's

store, one of 60 in the country. It seems the Japanese cannot get

enough of his English style because more than 40% of his Worldwide

business is right here in Japan. TRANSLATION: His accessory

collection is very popular. Stylish and cute. I like the way they dress

in a proper, nice way. We don't have that in Japan. In this shop

you can feel that sense of Britishness. And now, for the first

time, Paul Smith is designing specific clothing just for the

Japanese. Like this 3 D Women's Wear! You don't need glasses to see

it is worth adapting their brands for the market. From there

Darbyshire bass John Smedley, too, is tailoring its knitwear for Tokyo.

Sizing is a particular issue. sleeve is slightly shorter, the

chest with this the same but the sleeve and a body length change. We

probably do about six or seven different colours per style, that

seems to work well for their market. It is not just the finished product

but the story, the heritage that is making British fashion big in Japan.