:00:14. > :00:18.other lad beer, -- labia, and the Tonight: Calls for the financial
:00:18. > :00:22.regulated to investigate what went wrong at Rangers. Could the
:00:22. > :00:27.Financial Services Authority help shed light on where the cash has
:00:27. > :00:30.gone at Ibrox? Youth unemployment in Scotland pass
:00:30. > :00:34.is the 100,000 barrier. What more can be done to get young people
:00:34. > :00:36.back into work? Good evening. The message from the administrators
:00:36. > :00:39.this afternoon was one of reassurance that Rangers would
:00:40. > :00:43.continue as a football club. Duff & Phelps, the administrators, have
:00:43. > :00:46.spent the day trying to unravel the club's financial difficulties. But
:00:46. > :00:48.the former Chair of the Treasury Select Committee believes the
:00:48. > :00:52.Financial Services Authority should investigate the club's financing
:00:52. > :01:02.under Craig Whyte. We'll be speaking to Lord McFall in a moment,
:01:02. > :01:04.
:01:04. > :01:10.24 hours into administration, it is becoming clear just how far and
:01:10. > :01:14.wide the implications of Rangers'' troubles go. The taxman is at least
:01:14. > :01:23.�9 million down and could be many millions more and many are asking,
:01:23. > :01:28.where is all the money gone? Since Craig Whyte took over last May,
:01:28. > :01:35.Rangers should have received an income of around �26 million. On
:01:35. > :01:39.top, there was at �24 million loan for the sale of season tickets.
:01:39. > :01:46.Then there was the transfer of Jelavic, worth 5 million. The
:01:47. > :01:52.total: 55 million. Craig Whyte suggested the club costs 3.7 �5
:01:52. > :01:57.million a month to run. That is 34 million for his nine months in
:01:57. > :02:01.charge. That still leaves 21 million outstanding. But those
:02:01. > :02:06.operating costs assumed Rangers were paying those taxes during that
:02:06. > :02:10.time but the Revenue says they were not, so that gives us around �30
:02:10. > :02:17.million spare. The administrators should be getting a clear idea of
:02:17. > :02:22.the club's recent finances. Duff & Phelps also helped advise on Craig
:02:22. > :02:30.Whyte's takeover of Ibrox. They say there is no conflict of interest
:02:30. > :02:34.and it is standard for companies to appoint their own administrators.
:02:34. > :02:39.It is 5:15pm, it is the rush-hour, people are heading home and we had
:02:39. > :02:43.just had a statement from the administrators of Rangers. They say
:02:43. > :02:48.Saturday's game against Kilmarnock will definitely go ahead. But the
:02:48. > :02:52.Hall of fame dinner set for Glasgow's Hilton Hotel on Sunday
:02:52. > :03:00.has been cancelled. As the detail on the really big questions of the
:03:01. > :03:04.club, the statement gave special few. What they are saying and what
:03:04. > :03:08.they are this -- what responses they are getting from the taxman,
:03:08. > :03:12.we aren't told. But we do know that Rangers are in serious trouble,
:03:12. > :03:17.with many people wondering how on earth they will get out of this
:03:17. > :03:27.mess. Craig Whyte is the only secured creditor. That puts him in
:03:27. > :03:28.
:03:28. > :03:33.favourable positions for negotiations. The problem with this
:03:33. > :03:38.strategy is that there would be no other money left in the hot food
:03:38. > :03:41.distribution to HMRC and other creditors. Commercial partners are
:03:41. > :03:46.refusing to comment on Rangers' troubles, citing commercial
:03:46. > :03:50.confidentiality. One person talking is the first minister. The priority
:03:50. > :03:55.is to identify how much is reasonably boat, to have that
:03:55. > :03:59.determined, and then to have a sensible agreement about how that
:03:59. > :04:03.can be paid over a period of time. That would be to everybody's
:04:03. > :04:09.benefit, it would be the right thing for the taxpayer, from
:04:09. > :04:13.Rangers and the Scottish football. Labour have also written to the
:04:13. > :04:17.HMRC asking them to be reasonable when it comes to Rangers.
:04:17. > :04:22.Administrators are hoping for a voluntary agreement but what could
:04:22. > :04:26.tempt the taxman to accept such a deal? It would not surprise me,
:04:26. > :04:31.perhaps I am jumping the gun, if we assume that Craig Whyte is the most
:04:31. > :04:36.likely buyer, for him to put a deal on the table that says, HMRC, if
:04:36. > :04:39.you vote for the voluntary agreement, we will undertake to put
:04:39. > :04:44.a certain percentage of the European football income, for
:04:44. > :04:49.example, into a pot for you and the other creditors over the next three
:04:49. > :04:53.years. The alternative been, if you vote against the voluntary
:04:53. > :04:59.agreement, that will not be there and less money will be available
:04:59. > :05:06.for HMRC and the other creditors. Rangers fans want answers. They are
:05:06. > :05:10.not alone. Will this club emerge from administration or slump into
:05:10. > :05:13.liquidation and to stands to benefit most from the turmoil? Is
:05:13. > :05:16.only the football in the park was so unpredictable.
:05:16. > :05:22.Joining me from London is the former chair of the Treasury Select
:05:22. > :05:25.Committee, Lord McFall. You a calling for the Financial Services
:05:25. > :05:31.Authority to get involved. What would you like them to investigate?
:05:31. > :05:35.It reminds me of that time when Northern Rock got into problems and
:05:35. > :05:41.there was no resolution and recovery regime there, and the FSA
:05:41. > :05:46.got called in. You have seen in your programme of fans asking what
:05:46. > :05:51.answers to questions and there are none available because there is a
:05:51. > :05:56.veil covering Ibrox at the moment. I think the fans, actually the
:05:56. > :06:03.country, is that the utmost transparency so that we can move
:06:03. > :06:09.forward and the FSA should be looking at the events in the past,
:06:09. > :06:14.particularly the past year, where your programme had illustrated that
:06:14. > :06:19.there is �30 million outstanding from what the owner of Rangers said
:06:20. > :06:24.he would do at the beginning to what the situation is now. So I
:06:24. > :06:28.think that transparency is essential. We need good corporate
:06:28. > :06:32.governance. The FSA, as a result of legislation going through
:06:32. > :06:37.Parliament, has been given a concept known of judgmental
:06:37. > :06:40.discretion. This arose from the Northern Rock situation, where we
:06:40. > :06:45.forced the FSA to look at the conduct of businesses, the business
:06:45. > :06:49.model that was being examined, and I think if you look at the business
:06:49. > :06:54.model, that can go a long way to understanding how we got the
:06:54. > :06:59.problem and how we can get ourselves out of it. Under these
:06:59. > :07:05.new powers, what can they do? They can look at the business model of
:07:05. > :07:10.Rangers and say what? This is fine, this is improper? They can come to
:07:10. > :07:15.a judgment, as they did in a case of the Royal Bank of Scotland and
:07:15. > :07:20.HBOS. They are looking at it in detail, then coming to a judgment,
:07:20. > :07:25.and looking at the directors of the company and how the company is run,
:07:25. > :07:30.that is really important. I don't accept that what has been said
:07:30. > :07:35.today... That Rangers will still be in existence in a few months' time.
:07:35. > :07:40.I don't want it to be in existence in a few months' time under the
:07:40. > :07:45.present circumstances, the secrecy. I want to ensure that Rangers is
:07:45. > :07:50.there as a big club in Scotland along with others for the benefit
:07:50. > :07:55.of football and the community. That is why it barely today I suggested
:07:55. > :07:58.that there should be an independent commission here. I think it is a
:07:59. > :08:03.role for government and Alex Salmond. I mention recovery and
:08:03. > :08:08.resolution mechanisms. I think there is a case for the Scottish
:08:08. > :08:12.government taking that on board, along the lines that has been
:08:12. > :08:17.mentioned with Northern Rock and other banks, and then releasing it,
:08:17. > :08:21.because Rangers are a global brand and there is no doubt there is
:08:21. > :08:27.money there. If you look at Barcelona and Real Madrid and the
:08:27. > :08:31.Bundesliga, you will see the not- for-profit mutual wobbles, and they
:08:31. > :08:35.prosper much more than the companies and the clubs in a United
:08:35. > :08:43.Kingdom. I am not quite sure what you are suggesting the Scottish
:08:43. > :08:46.government could do? I will tell you. During this time where we have
:08:46. > :08:51.Rangers going into administration, they could ensure that when Rangers
:08:51. > :08:57.come out of this that there is a good model that is there for the
:08:57. > :09:02.benefit of the fans. The Scottish government should sponsor some
:09:02. > :09:06.takeover of the fans? Is that what you are saying? I am saying they
:09:06. > :09:11.should look at the situation and maybe hold the hands of the club
:09:11. > :09:16.for the next few months to ensure that we get a model of mutuality
:09:16. > :09:21.that benefits ranges and benefits the Scottish community because it
:09:21. > :09:26.ain't any use going back to the old model where the club is out
:09:26. > :09:30.spending the money that it has got, in fact it is using HMRC as a
:09:30. > :09:39.private bank, and it is not doing the fans or the community any
:09:39. > :09:44.Are you suggesting the Scottish government should put money into
:09:44. > :09:51.this to help it tied over? I am hoping with Rangers, they won't be
:09:51. > :09:55.any need, but if they hold their hand up and show a good model, that
:09:55. > :09:59.could ensure a better business model for Scottish football. I
:09:59. > :10:04.think it is important that we do that, because if the government
:10:04. > :10:08.does that, it should visit Spain and Germany and other countries
:10:08. > :10:12.where the neutral model is in place, to see how we could take Scottish
:10:12. > :10:18.football forward. It is obvious that the SFA's should not be
:10:18. > :10:24.charged with this responsibility, because they have not got us into
:10:24. > :10:28.this mess today. The latest unemployment statistics in Scotland
:10:28. > :10:34.make for grim reading, with the number of people looking for work
:10:34. > :10:41.increasing by 16,000. It is youth unemployment that has been one of
:10:41. > :10:46.the big political battlegrounds. It is passed the 100,000 mark. It is
:10:46. > :10:48.not all bad news. The number of people in jobseeker's --
:10:48. > :10:53.jobseeker's Allowance has dipped for the 5th month in a row. The
:10:53. > :11:02.number of people out of work in Scotland is edging towards a
:11:02. > :11:12.quarter of a million. 16,000 more people are looking for work, and of
:11:12. > :11:13.
:11:13. > :11:20.the 231,000 out of work, more than 2000 are 16th-24-year-olds. It
:11:20. > :11:24.could be iffy, because of the small sample size. But there is a warning
:11:24. > :11:28.about the Scottish youngsters who might find it difficult to find a
:11:28. > :11:35.job even when the economy recovers. The politicians are blaming each
:11:35. > :11:45.other. The government is creating - - says it is creating a jobs, but
:11:45. > :11:47.
:11:47. > :11:53.the opposition says it is failing. The government has appointed a
:11:53. > :11:59.dedicated youth unemployment Minister. It has pledged to create
:11:59. > :12:06.20,000 Modern apprenticeships in this Parliament. The Tories have
:12:06. > :12:12.questioned the Scottish government's decision to cut the
:12:12. > :12:19.budget. With the number of young people out of work ridding satyrs -
:12:19. > :12:29.- steadily upwards, and the squeeze on public spending continuing, what
:12:29. > :12:31.
:12:31. > :12:37.can the government realistically do The basic point here is that when
:12:37. > :12:47.it comes to the big issues about creating jobs, you two basically
:12:47. > :12:49.
:12:49. > :12:54.agreed with each other. You want to create jobs in the economy. On the
:12:54. > :13:02.big issue, both of you would agree that the British government ought
:13:02. > :13:08.to spend more to create jobs. You say cut VAT, you presumably would
:13:08. > :13:16.in -- agree with tax cuts as well. On the big issues, you agree with
:13:16. > :13:20.each other. I think we would have to take issue with that. It is
:13:20. > :13:24.about the opportunities created for the young people in Scotland by the
:13:24. > :13:28.Scottish government. You do agree with each other? I am pleased to
:13:28. > :13:33.say that the draftees unemployment strategy has been broadly welcomed
:13:33. > :13:39.by all. It was debated last week in Parliament, and the youth
:13:39. > :13:49.employment strategy is all about working with people who can make a
:13:49. > :13:56.difference to ensure that we can get a -- get an all Scotland, all
:13:56. > :13:59.government solution. I'm I'm getting very confused. Both are due
:13:59. > :14:05.fundamentally agreed that the macro-economic policy being pursued
:14:05. > :14:10.by Westminster is wrong. Art and not talking about the Scottish
:14:10. > :14:14.government on the margins, but it is marginal compared to the big
:14:14. > :14:18.issue of not cutting spending so much, cutting taxes and getting
:14:19. > :14:24.growth in the economy. Both of you would have to agree on that?
:14:24. > :14:31.key issue is that the UK economy is stagnant, and that is a huge
:14:31. > :14:36.problem, both sides of the border. While I will do everything that I
:14:37. > :14:43.can do which is available to me, I think that there is a lot but we
:14:43. > :14:47.have been doing, there is a lot more we can do, but... You would
:14:47. > :14:52.say you are being hampered by the policies by the British government?
:14:52. > :15:00.And you would agree with that? voted for the same package last
:15:00. > :15:03.week. A third of the jobs lost in the United Kingdom was in Scotland.
:15:03. > :15:07.I think Alex Salmond am is responsible for that. He should be
:15:07. > :15:17.talking about the economy. While it - but why is it Alex Salmon's
:15:17. > :15:25.
:15:25. > :15:31.If that was ridiculous, by the same token, what you are saying is
:15:31. > :15:37.ridiculous. It is about responsibility and honesty. We have
:15:37. > :15:42.a First Minister in this country that claims of responsibility for
:15:42. > :15:49.200 jobs created one day and then denies responsibility for 200 jobs
:15:49. > :15:55.lost the next. I think that is this ingenious. We are going to deliver
:15:55. > :15:59.under beleaguered -- under devolution a ground breaking
:15:59. > :16:09.guarantee on creating a training place for every 16-19-year-old but
:16:09. > :16:11.
:16:11. > :16:17.once it. -- that once it up. That is fine it isn't it? What, to have
:16:17. > :16:23.full control over the economy? Giving every youngster who wants an
:16:23. > :16:32.opportunity at Johnston-trained. But it is about funding to deliver
:16:32. > :16:37.that. I don't think it is the best we can do by a young people.
:16:37. > :16:42.youth employment strategy articulate the need to arrange
:16:42. > :16:47.interventions for young people. It is not all young people. For those
:16:47. > :16:51.first away of the -- from the labour market, it may well be
:16:51. > :17:00.combined with some life skills work, training for work, and four other
:17:00. > :17:06.young people, they need a different kind. I am trying to put this in
:17:06. > :17:16.context. But this is the sort of thing even if the economy was
:17:16. > :17:17.
:17:17. > :17:23.growing really nicely, that's fine. In an economy that is a flat lining,
:17:23. > :17:27.it is marginal stuff. Part of the youth employment strategy is to