0:00:03 > 0:00:08Tonight, commuters could soon be hammered by train fare rises
0:00:08 > 0:00:11averageing more than 6% in England, 4% in Scotland and 11% on some
0:00:11 > 0:00:16routes, but will they actually happen? The Government found money
0:00:16 > 0:00:20to keep fares down, could another change of mind be coming down the
0:00:20 > 0:00:25line? You may love your morning rail commute you don't mind paying
0:00:25 > 0:00:29more. But possibly, you feel slightly different. Also tonight:
0:00:29 > 0:00:34Connect with the bank that's been connecting Asia, Africa and the
0:00:34 > 0:00:38Middle East... One of Britain's biggest banks pays a record fine
0:00:38 > 0:00:48for breaking an American banking embargo to Iran. Why did they
0:00:48 > 0:00:52settle? You got a job but they won't guarantee you any work or pay,
0:00:52 > 0:00:56welcome to Zero Hours culture. understand that, there's not a lot
0:00:56 > 0:01:01of work out there, but it is not fair because we need to know where
0:01:01 > 0:01:05we stand. Because, how are we supposed to pay our bills. Mitt
0:01:06 > 0:01:13Romney's running mate for the US presidency is a man with a plan.
0:01:13 > 0:01:20What opponents suggest is a little extreme. Paul Mason explores the
0:01:20 > 0:01:26austere world of Ryanomics. We speak to a man about his chances.
0:01:26 > 0:01:36Cosmopolitan, page 114. Sex and the Single Girl, Cosmo founding editor,
0:01:36 > 0:01:38
0:01:38 > 0:01:42Good evening, two weeks ago the governor of the Bank of England,
0:01:42 > 0:01:50Mervyn King predicted inflation would fall for the rest of the year.
0:01:50 > 0:01:53Today it went up, the CPI to.6%, the retail price index to 4.2%. If
0:01:53 > 0:01:57you are a rail commuter the news is particularly bad because this
0:01:57 > 0:02:02month's figures are the basis for fare increaseness January. They
0:02:02 > 0:02:07will now be over 6% on average in England and over 11% on some routes.
0:02:07 > 0:02:11So, should the Government step in as they did last year? Is something
0:02:11 > 0:02:21more radical required? Perhaps a return to a publicly owned British
0:02:21 > 0:02:25Rail, as a strategic resource? David grossman sets the scene for
0:02:25 > 0:02:35us. Even when the sun is shining the slog to work is not much fun
0:02:35 > 0:02:36
0:02:36 > 0:02:45and it costs. We already pay some of the highest rail fares in Europe.
0:02:45 > 0:02:48Up a fifth in real terms since 1995. And the pain is going to get worse.
0:02:48 > 0:02:52When the coalition came to power they decided we need today reorder
0:02:52 > 0:02:56the balance of who pays for our railways from a situation where
0:02:57 > 0:03:01roughly 50% of the cost were met by pass injuries and the other half by
0:03:01 > 0:03:04the taxpayer, to one where the passengers pays 75% of the costs.
0:03:04 > 0:03:08Those rail passengers, tempt today rail against the rail companies,
0:03:08 > 0:03:16will be better directing their anger towards two factors. One is
0:03:16 > 0:03:23high inflation and the other, is a conscience Government policy.
0:03:23 > 0:03:25fares are playing an important role in funding a massive fund of
0:03:25 > 0:03:31improvements right across the country. The Government is
0:03:31 > 0:03:36committed to spending 18 billion to improve the railways for passengers,
0:03:37 > 0:03:42but we need to ask passengers for a contribution for that. The last
0:03:42 > 0:03:47Government's policy was that rail fares rise by the retail price
0:03:47 > 0:03:51index plus 1%. When the coalition came in, they said the figure
0:03:51 > 0:03:57should be RPI plus 3% from 201. Last year the Government backed
0:03:57 > 0:04:01down for one year at least, limiting the rise of RPI to 1%
0:04:01 > 0:04:08instead. If the fares rise in the way the Government's talking about,
0:04:08 > 0:04:113% above in inflation, inflation is 3.2%, that's 6.2%, plus flexibility
0:04:11 > 0:04:15that allows operators to increase it by more. We think that's going
0:04:15 > 0:04:20to be too much when the economy is flatlining, and households are
0:04:20 > 0:04:28already facing higher housing and other costs. We think that the
0:04:28 > 0:04:31Government needs to rethink these fares' rises. And actually, reduce
0:04:31 > 0:04:35them significantly. Some commuters already report being near breaking
0:04:36 > 0:04:41point. I think it is the if the rail fares increase, it will be a
0:04:41 > 0:04:45decision to come down to work here or not. As stark a choice as that?
0:04:45 > 0:04:50Yes, when you're looking how much increase that they put on year on
0:04:50 > 0:04:55year, it doesn't match the salary increases we get. You may have to
0:04:55 > 0:04:59rethink what you do for a living? Exactly that. That's of course if
0:04:59 > 0:05:03the Government doesn't back down first. Like they did last year over
0:05:03 > 0:05:06rail fares and the pasty tax charities tax and fuel duty rises.
0:05:06 > 0:05:10There's pressure within the coalition for them to do so. The
0:05:10 > 0:05:19Liberal Democrats went into the last general election promising to
0:05:19 > 0:05:22raise rail fares by no more than RPI, minus 1%. The Liberal
0:05:22 > 0:05:28Democrats set the Government, which they are part should be pressing
0:05:28 > 0:05:34the rail industry to make the efficiency savings, recommended by
0:05:34 > 0:05:37the Mcnulty review, savings that could add up to �1 billion. George
0:05:37 > 0:05:42Osborne could step in and use the money from Mcnulty and reduce the
0:05:42 > 0:05:46rate of increase of rail fares. Ideally they would go up by less
0:05:47 > 0:05:53than inflation. I hope he can do that. We persuaded him last year, I
0:05:53 > 0:05:57hope we will do this this year, we have to take a stance, otherwise
0:05:57 > 0:06:01rail fares will be continue to above inflation, and lots of people
0:06:01 > 0:06:05will be unable to afford to travel by rail. The Liberal Democrats have
0:06:05 > 0:06:09half an eye on the marginal seats. Commuter towns are important to all
0:06:09 > 0:06:13the parties. And the commuters don't like fare rises but if they
0:06:13 > 0:06:17don't have to stump up the extra cash, well it has to come from
0:06:17 > 0:06:22taxpayers, who don't like paying more taxes either.
0:06:22 > 0:06:26But is there another way? Government keeps talking about
0:06:26 > 0:06:29there's only two source of funding, actually we think if you look at
0:06:29 > 0:06:34other countries, and even at experience in this country, there
0:06:34 > 0:06:37are other sources of funding for the railway. The railway gets 10%
0:06:37 > 0:06:41of income from developments stations, retail, shopping and that
0:06:41 > 0:06:46kind of thing. We think there are other opportunities for adding
0:06:46 > 0:06:50development around railway stations, and using that money to invest in
0:06:50 > 0:06:56new capacity in the railways to make stations better. Many
0:06:56 > 0:07:02passengers, are already fed up. The fare rises in England won't come in
0:07:02 > 0:07:08until next January. The Government has until then to decide whether to
0:07:08 > 0:07:12intervene. We'd love to have asked the Government whether they might
0:07:12 > 0:07:15interintervene as they did with petrol prices but no-one was ail
0:07:15 > 0:07:20vabl. Maria Eagle is here. Should they intervene and say we shouldn't
0:07:20 > 0:07:25do this, like the petrol prize increase, we can put it off? They
0:07:25 > 0:07:29could and should and Labour's policy is it should be no more than
0:07:29 > 0:07:35inflation plus 1%. They've taken the decision to plus 3% they're on
0:07:35 > 0:07:40the side of the wrong people, instead of siding up for commuters
0:07:40 > 0:07:46and passengers, they've given companies the power to hike fares
0:07:46 > 0:07:51by more, 5.% above the cap. Just as a matter of principle, do you think
0:07:51 > 0:07:55it is right to try to reduce the public subsidy to the railways so
0:07:55 > 0:08:00taxpayers, many who don't travel on the railways, shouldn't have to pay
0:08:00 > 0:08:04for commuters who do travel, choose to travel and railway's popular?
0:08:05 > 0:08:08You have to get the balance right. Passengers pay two-thirds of the
0:08:08 > 0:08:11money going into the railways. You have to have the balance right.
0:08:11 > 0:08:15Because there is a potentially economic benefit from enenabling
0:08:15 > 0:08:19people to get to work, to get to college and places where they need
0:08:19 > 0:08:23to go. Why shouldn't they pay for example the whole thing? They pay
0:08:23 > 0:08:26two-thirds. And you can't have it turning into a complete rich man's
0:08:26 > 0:08:30toy, so nobody can afford to go on the railways at all. You have to
0:08:30 > 0:08:33get the balance right. This Government has not got the balance
0:08:33 > 0:08:38right. They're too interested in enenabling the train companies
0:08:38 > 0:08:42making more money, to give power to raise fares by more. It is possible,
0:08:42 > 0:08:48for them to not have these fares go up as much. We would want them to
0:08:48 > 0:08:53do tkha. What do you say about the reports tonight that, Virgin could
0:08:53 > 0:08:58lose the franchise are for the west dost main line? We have to wait and
0:08:58 > 0:09:03see, what happens tomorrow, we think. But, it looks like likely
0:09:03 > 0:09:07this bid is going to be lost by Virgin. I think the Government has
0:09:07 > 0:09:13to ask itself, three questions. I'm concerned about passengers losing
0:09:13 > 0:09:16outs whoever wins this. I'm not in favour of one bid or another, I've
0:09:16 > 0:09:21not seen all the details yet. None of us have. Government should ask
0:09:21 > 0:09:26themselves a number of questions. Is the bid realistic, the winning
0:09:26 > 0:09:31bid realistic? We've had examples on the East Coast Main Line, where
0:09:31 > 0:09:36companies overbid, then hand it back the keys. We've had examples
0:09:36 > 0:09:41of companies, now involved in these bids, who have gameed the system by
0:09:41 > 0:09:45not taking on the extra years when they ended up, they would have been
0:09:45 > 0:09:49paying money back to the Government, thus avoiding paying money back so.
0:09:49 > 0:09:52The Government needs to make sure that passengers don't lose out
0:09:52 > 0:09:57whatever happens. One way, of stopping it being a rich man's toy
0:09:57 > 0:10:02would be to take it back into public ownership, either piece by
0:10:02 > 0:10:05piece, as the franchises come up. What is wrong with that, the RMT
0:10:05 > 0:10:09want that? You could do something now, which doesn't involve the
0:10:09 > 0:10:14changing of the infrastructure in the industry. That is keep the fare
0:10:14 > 0:10:18prices down and stop the private companies gaining the system.
0:10:18 > 0:10:24kofd that, but could you foresee taking the railways at least partly
0:10:24 > 0:10:28into public ownership? In our policy review, which hasn't come to
0:10:28 > 0:10:33conclusions yet, we're looking at getting better value for the
0:10:33 > 0:10:38taxpayer, fare payer, and railway that doesn't waste money. It is
0:10:38 > 0:10:43said that it would be better for the taxpayers, you wouldn't rule it
0:10:43 > 0:10:45out? We will put a policy, about this. We need to make sure
0:10:45 > 0:10:48passengers and taxpayers get the best value for money out of this.
0:10:48 > 0:10:53It is not ruled out yet. It is still something you're considering?
0:10:53 > 0:10:57Our view is on going, but what I say is, today, the Secretary of
0:10:57 > 0:11:02State could do something to help hard-pressed commuters by stopping
0:11:02 > 0:11:07the gaming of the system, and putting passengers right.
0:11:07 > 0:11:12strategic resource, we've shown as a nation, we can do big projects
0:11:12 > 0:11:16and run the Million Pound Drop Celebrity Games, it woon be
0:11:16 > 0:11:23unthinkable to bring British Rail back? We're not interested in our
0:11:23 > 0:11:28review, in taking steps that there cost taxpayers, and passengers
0:11:28 > 0:11:32pairs, we're looking at lessons learnt in Europe, where you can see
0:11:32 > 0:11:38fares and costs lower. But that doesn't absolve the Government
0:11:38 > 0:11:42taking action they could take today and now, to relieve that pressure
0:11:42 > 0:11:48on fare-payers, and taxpayers. Thank you. Now, Britain's Standard
0:11:48 > 0:11:52Chartered bank agreed to pay �340 million, dollars rather, to New
0:11:52 > 0:11:58York banking regulators in a row over breaking the American banking
0:11:58 > 0:12:03embargo in Iran. The bank accepted it involved transactions of at
0:12:03 > 0:12:08least $250 billion and these were hidden by American regulators. What
0:12:08 > 0:12:13is this about? You recall a week ago, we were stuned when the last
0:12:13 > 0:12:20remaining ethical bank, supposedly, Standard Chartered were charged
0:12:20 > 0:12:23with hiding $250 billion in cash from US regulators, they were
0:12:23 > 0:12:30called a rogue constitution, the bank den need that today in the
0:12:30 > 0:12:34last few hours, they have settled for 340 million. They had monitors
0:12:34 > 0:12:39installed from the bank, from the regulator, and reputation that is
0:12:39 > 0:12:48been damageed as a result. That's the result today. Who is the winner
0:12:48 > 0:12:53in this, because they've voicely didn't do it, do they want it to go
0:12:53 > 0:12:56away? Either regulator who gets 340 million dollars, they didn't have
0:12:56 > 0:13:00the blessing of the Department of Justice in the US and other
0:13:00 > 0:13:03regulators, so they look like their reputation is damageed not co-
0:13:03 > 0:13:11ordinateing this, and looking for publicity and political ambitions
0:13:11 > 0:13:16for the head of the DFS. Standard Chartered, price collapsed last
0:13:16 > 0:13:21week, recovered since then. And then the dirty laundry, the
0:13:21 > 0:13:28embarrassing e-mail, released from, by the regulator, where a director
0:13:28 > 0:13:32said that, you effing Americans, who are you to tell us we can do
0:13:32 > 0:13:36business with. That's one the reasons Standard Chartered wanted
0:13:36 > 0:13:43to settle, they didn't want that aired and the bank is distanceing
0:13:43 > 0:13:49themselves from the e-mail. idea of a bank having the words
0:13:49 > 0:13:52"rather", money laundering" and banking "sincere threatened as well.
0:13:52 > 0:13:56Standard Chartered does most of the business through dollars, which has
0:13:56 > 0:14:00to run through the American system, probably through New York, if they
0:14:00 > 0:14:05lost the license, that's the bank finished. The monthly unemployment
0:14:05 > 0:14:10figures are out tomorrow. In the past few months they surprised
0:14:10 > 0:14:14economists. In the middle of hard recession, the British economy has
0:14:14 > 0:14:18been creating jobs, but what kind. More and more of us are offered
0:14:18 > 0:14:24what is called Zero Hours contracts, meaning you have a job, but no
0:14:24 > 0:14:28guarantee of actually getting any work, and therefore no guarantee of
0:14:28 > 0:14:38wages. Allegra Stratton call a flexible labour market and others
0:14:38 > 0:14:47
0:14:47 > 0:14:52Define "job". Noun, a paid position of regular employment. Look around
0:14:52 > 0:14:56Britain today and there are two bits of that definition that should
0:14:56 > 0:15:02give the Oxford English dictionary pause for thought. What if a job is
0:15:02 > 0:15:06not regular and not always paid? Unemployment over the last few
0:15:06 > 0:15:10months has not been as bad or high as many expected. That's partly
0:15:10 > 0:15:15because of the rise of work that is not full time work. You have the
0:15:15 > 0:15:18rise of the part-time job, the rise of self-employment and persistence
0:15:18 > 0:15:24of something called a zero hour contract. They are exactly what
0:15:25 > 0:15:29they say on the tin, you're in work, it is just you're not very often at
0:15:29 > 0:15:34work. You have a minimum wage but not a minimum number of hours.
0:15:34 > 0:15:38Britain is working, but what type of work is it? In a suburb, on
0:15:38 > 0:15:45Monday morning, ana, not her real name is waiting to learn whether
0:15:45 > 0:15:51she will get work today. Every day around 11.30, she's told whether
0:15:51 > 0:15:57she's needed at 1.30 on the bagging line of a factory. We arrived at
0:15:57 > 0:16:00the time of the text message. Is this it? Anna cannot look for other
0:16:00 > 0:16:04work because she's supposed to be available for the picking and
0:16:04 > 0:16:06packing job. She let us look back through the phone at the
0:16:07 > 0:16:12correspondents with her employer. We don't detail the number of
0:16:12 > 0:16:16shifts but it is half work, half day off. Occasionally the text
0:16:16 > 0:16:22messages contain a few pleasantries, sometimes a smiley face, sometimes
0:16:22 > 0:16:27a sad face. It seems in Britain today, we have employment by emote
0:16:27 > 0:16:30come. It is shocking, what is concerning is how widespread this
0:16:30 > 0:16:33is. We've been surprised by how many people are working under these
0:16:33 > 0:16:37conditions. That's because the sectors, where this is common are
0:16:37 > 0:16:42the sectors of our economy that are growing, this isn't a problem
0:16:42 > 0:16:48that's going away. We're not talking guy norm mus numbers but in
0:16:48 > 0:16:52the official numbers, Zero Hours contract are numerous, and 2005,
0:16:52 > 0:16:56there are 54,000 of them, now they have tripleed. These contracts
0:16:56 > 0:17:02should be a good thing, allowing employers flexibility to take
0:17:02 > 0:17:09people on, even if they fear a downturn. They can hire, but on a
0:17:09 > 0:17:13zero hour contract it doesn't take long to fire. They may not get
0:17:13 > 0:17:18shifts in the remaining three months. For the employee, they have
0:17:18 > 0:17:22some work if not much. While there are some using it as a valve
0:17:22 > 0:17:27regulating the fringes, there are those using them for long-term
0:17:27 > 0:17:31members of staff. This young man has been on a zero hour contract
0:17:31 > 0:17:36from McDonald's for close to five years. Sometimes you'll get given
0:17:36 > 0:17:41your shift late Sunday night or early Monday morning, you need to
0:17:41 > 0:17:46be in mid-morning, but didn't realise that. You get a phone call,
0:17:46 > 0:17:49saying you are meant to be in work. Some weeks you'll get more hours
0:17:49 > 0:17:54that you can work, and some you will be looking for extra shifts
0:17:54 > 0:17:58because you have no money. The only people who have contracted hours
0:17:58 > 0:18:02are managers, salaried and they have to work 40 hours a week to
0:18:02 > 0:18:09earn the salary. Fast food nation, and fast food occupation. Those
0:18:09 > 0:18:13jobs look OK, but they don't fill up your family finances. There's no
0:18:13 > 0:18:17law preventing zero hour contracts. You think there should be? Yeah.
0:18:17 > 0:18:22Because they're not fair or right, they're exploitative. The free
0:18:22 > 0:18:25labour market is for the companies, it is not for us, I'm not free.
0:18:26 > 0:18:31a statement, McDonald's explained your use of zero hour contracts.
0:18:31 > 0:18:38They said the majority of the 87,000 people employed in the UK
0:18:38 > 0:18:43are employed on an hourly basis. Into this suits the majority of our
0:18:43 > 0:18:48employees, McDonald's said "since they're looking for shift patterns
0:18:48 > 0:18:53to fit flexibility for paid work around childcare and other
0:18:53 > 0:18:59commitments" so McDonald's feel they're nurturing employment but
0:18:59 > 0:19:02employees think Tess precarious work. Experts agree, it is open to
0:19:02 > 0:19:07interpretation. A good zero contract makes no difference
0:19:07 > 0:19:09between the rights and protections of the people on the zero hour
0:19:09 > 0:19:14contracts and regular workforce. The only difference is in the hours,
0:19:14 > 0:19:20that you actually work. And that gives us flexibility without
0:19:20 > 0:19:24exploitation. A bad Zero Hours contract we're seeing elsewhere, is
0:19:24 > 0:19:29people having wages forced down and fewer rights and having fewer
0:19:29 > 0:19:33protections. And that's not just about flexibility but exploitation.
0:19:33 > 0:19:37This year, Natelie thought they had secured her dream job, her first
0:19:37 > 0:19:42one in five years. She was kerpld to take it, but then told not to.
0:19:42 > 0:19:47There was no way they could Madge Yo-Yoing shifts with a young son.
0:19:47 > 0:19:52Basically, I couldn't take the job. Because if I did, I would be worse
0:19:52 > 0:19:56off, I wouldn't have got working tax credits, help with childcare, I
0:19:56 > 0:20:00would be down �74 and still expected to pay for childcare.
0:20:00 > 0:20:04Where would I get that money. It wasn't going to happen. Not only
0:20:04 > 0:20:10that, with Zero Hours, if I was doing a few hours one week, and
0:20:10 > 0:20:15more the next, I would never know where I'm supposed to be, how would
0:20:16 > 0:20:20I know where I could take my son. When you spoke to the people at the
0:20:20 > 0:20:25jo interest and said there's no way I can take this Did they understand
0:20:25 > 0:20:30or think you're problem? Yeah, basically it was my problem.
0:20:30 > 0:20:34they say that? They didn't say to me, don't take the job, because
0:20:34 > 0:20:38they're not allowed to say that, they said if you're not going to be
0:20:38 > 0:20:42better off, which I knew, then not to take the job. And to look
0:20:42 > 0:20:46elsewhere. Basically, start from the beginning. Parents have a tough
0:20:46 > 0:20:51time when they need childcare, providers need you to book in in
0:20:51 > 0:20:54advance, if you don't know how many hours you're working it is hard to
0:20:54 > 0:20:59secure your childcare place, and you have to pay for hours you don't
0:20:59 > 0:21:06use, because you don't need them for work. There's an hours' rules
0:21:06 > 0:21:12related to tax credit. For single parents it is �16 a week, and
0:21:12 > 0:21:17coupled parents, �24. If you don't know the hours, it is hard to reach
0:21:17 > 0:21:20that rule. And finally, the other issue is you have to keep herself
0:21:20 > 0:21:25herself informed of our changing hours, because the last thing you
0:21:25 > 0:21:33need is a parent on a low income, to get a bill you can't afford to
0:21:33 > 0:21:38pay back, because you've received too many tax credits from HMRC
0:21:38 > 0:21:41because you've worked fewer hours than you thought, it is a difficult
0:21:41 > 0:21:44balancing act. Two standards the Government set themselves, they
0:21:44 > 0:21:49said the labour market should be competitive, but they also said it
0:21:49 > 0:21:53should be fair. In the Autumn, we expect measures to further
0:21:53 > 0:21:56deregulate the workforce. The challenge for the Government is to
0:21:56 > 0:22:01wean people off benefits and make being in work pay. The problem with
0:22:01 > 0:22:05something like a zero hour contract, is that you're in work, it is just
0:22:05 > 0:22:08not paying. The Government is adamant they want to end the
0:22:08 > 0:22:12complex brownite system of tax credits and benefits, but does that
0:22:12 > 0:22:17place a responsibility on them to ensure a certain quality of job? Do
0:22:17 > 0:22:21they in short, have to take on corporate Britain? What do you
0:22:21 > 0:22:26think they should do about the Zero Hours? They need to get rid of them.
0:22:26 > 0:22:31It doesn't make no sense. I thaunds, there's not a lot of work out there,
0:22:31 > 0:22:38but, it is not fair, because we need to know where we stand.
0:22:39 > 0:22:45Because, how are we supposed to pay your bills? Sarah Veale is head of
0:22:45 > 0:22:49employment rights at the TUC and Nadhim Zahawi on the business and
0:22:49 > 0:22:53select committee. Do you see there's a problem here, sts
0:22:54 > 0:22:59stressful for the young woman, she wants to better herself and finds
0:22:59 > 0:23:05it difficult? We heard in your piece, a good Zero Hours contract
0:23:05 > 0:23:09can work for people who want that flexible, whether study or look for
0:23:09 > 0:23:14permanent employment. It is not imaginative way to create a
0:23:14 > 0:23:20nextability Labour market. We can be more imaginative. We can look at
0:23:20 > 0:23:24Mini and mid-y jobs, if you have a mid-y jobs, 400 your yos a month,
0:23:25 > 0:23:30you are taken out to pay any tax, it is the Grozny is the net you get
0:23:31 > 0:23:34in the bank account and the employer pays a flat rate. Anded
0:23:34 > 0:23:38mid-y is increasing Social Security payment on both the employer and
0:23:38 > 0:23:42employee. You would be happy if we didn't have the zero hour contracts
0:23:42 > 0:23:46at all, because there are other things that would be better? We can
0:23:46 > 0:23:51be more imaginative. The growth of the contracts, they haven't set the
0:23:51 > 0:23:57world alight. In your own report the numbers is 161,000. There are
0:23:57 > 0:23:59more now. But my point being, is we need a flexibility labour market.
0:23:59 > 0:24:04Germany recognise that. Vince Cable didn't say that. I interviewed him
0:24:04 > 0:24:12a month ago, he said we have a number of problems with the economy,
0:24:12 > 0:24:16but the one which is not creating jobs is adopting flexibility in the
0:24:16 > 0:24:22labour market? I would respect flee disagree, the American market is
0:24:22 > 0:24:30the other extreme, you can let people go with two weeks' notice. A
0:24:30 > 0:24:34key employee, when I was using work, a brutal employee can leave you
0:24:34 > 0:24:37with two weeks' notice. The flexibility in the market allows
0:24:37 > 0:24:41business toss make the decision toss employee extra people, with
0:24:41 > 0:24:46the knowledge they can right-size back again F the strategy goes
0:24:46 > 0:24:51wrong. Do you buy that, if you have a more flexible market, businesses
0:24:51 > 0:24:55will take risks and that's good for snerve There's no evidence, we had
0:24:55 > 0:24:58de-regulation of the labour market, we had one of the lightly regulate
0:24:59 > 0:25:03markets in the world. There's no cause or link, ever established
0:25:03 > 0:25:07between the amount of employment regulation and propencity of people
0:25:07 > 0:25:11to take people on. There are other reasons for taking businesses
0:25:11 > 0:25:14taking people on. There's no evidence, we've never seen serious
0:25:14 > 0:25:19evidence, that what stops them, at that point where they're thinking
0:25:19 > 0:25:23of taking on somebody, is the possibility they might pursue
0:25:23 > 0:25:27unfair dismissal claim or being difficult. It doesn't seem to be
0:25:27 > 0:25:30the issue. When you hear that the stories we heard from people in
0:25:30 > 0:25:36that report, do you not think this is very, very difficult for them,
0:25:36 > 0:25:42but, it may be better to have some work, than have no work and this is
0:25:42 > 0:25:47unpleasant and horrible but better not to sit at home and not work at
0:25:47 > 0:25:51all? Let's assume people do nothing, there's a point, the jobs are so
0:25:51 > 0:25:56appalling they're not worth doing. The woman interviewed at the film,
0:25:56 > 0:26:00made it clear, she advised to carry on getting serial security because
0:26:00 > 0:26:04of her childcare issues, in her situation, working simply would not
0:26:04 > 0:26:08pay. We must be doing something right when Spain has 25%
0:26:08 > 0:26:11unemployment and we don't have. It may not be perfect but it is better
0:26:11 > 0:26:15than Spain? The Spanish Labour market is different to the Spanish
0:26:15 > 0:26:18economy is different. But, unemployment is very high in this
0:26:18 > 0:26:21country, and the trouble is that when unemployment is that high, and
0:26:21 > 0:26:25we've seen this in the past, employers use that as license to
0:26:25 > 0:26:28exploit. They can get people to work on the dreadful contracts
0:26:28 > 0:26:31because people are desperate. As the economy picks up and employment
0:26:31 > 0:26:35starts to grow again, people will walk out of the jobs, that isn't
0:26:35 > 0:26:41very good for the companies that use the contracts. Because they
0:26:41 > 0:26:46won't have a predive maybe market. They want people to disappear, the
0:26:46 > 0:26:49second anything else comes up. It is hard to believe McDonald's is
0:26:49 > 0:26:53not worried the reputational damage this will be doing them. What would
0:26:53 > 0:26:56you like the Government to see when the Government talks about this, in
0:26:56 > 0:27:02the Autumn, what kind of things? heard there's no evidence. We can
0:27:02 > 0:27:07look at Germany, when they introduceed in 2003, the Mini and
0:27:07 > 0:27:12mid-y job concept, they created 1385 million 348 new jobs, helping
0:27:12 > 0:27:17especially the young people, so 20, and younger, and can I finish my
0:27:17 > 0:27:20jobs, helping those over 60, and especially female workers, the
0:27:20 > 0:27:25evidence is overwhelming from Germany. We ought to, if nothing
0:27:25 > 0:27:30else learn from the economy in Europe that has unemployment down
0:27:30 > 0:27:33to over 5%. If you want to look at Germany, they have national
0:27:33 > 0:27:37collective bargaining with trade unions, that determine the wages
0:27:37 > 0:27:43throughout industry, regardless whether the people in the workplace
0:27:43 > 0:27:47are in the unions, if you want we will be happy to discuss it.
0:27:47 > 0:27:53not disagreeing with you, all I'm saying is I have experience in York
0:27:53 > 0:27:57working in Germany, what they did with the two concepts, in 2003,
0:27:57 > 0:28:02they realised labour market was not as flexible as the UK, and they
0:28:02 > 0:28:07were going in the Euro, they decide today create the min and mid-y jobs
0:28:07 > 0:28:12and transformed the labour market. It is worth learning. Given the
0:28:12 > 0:28:16Vince Cable said, you both parties can agree on this Vince Cable is
0:28:16 > 0:28:20doing a lot of this already. You look at the settlement agreement
0:28:20 > 0:28:23they're introducing in the bill, that is going through Parliament,
0:28:24 > 0:28:31where it helps employers have a settlement to the employee, before
0:28:31 > 0:28:37going through a tribunal. They don't agree, Vince Cable said the B
0:28:37 > 0:28:40croft proposals, produced for David Cameron, by an entrepreneur was
0:28:40 > 0:28:43"bonkers" and we were not going to have a labour market had a rested
0:28:43 > 0:28:47on the ploilt yeas of the workforce like that. I can see there's a
0:28:47 > 0:28:51massive rift between the two of you on that. You can't pretend or paper
0:28:51 > 0:28:57over the cracks between you. The Liberal Democrats are committed to
0:28:57 > 0:29:00fairness at work. And the Conservatives are not. We are
0:29:00 > 0:29:05making recommendations. Thank you very much. Now, once Monday a time
0:29:05 > 0:29:10in America, during a hot, hot summer, a Republican presidential
0:29:10 > 0:29:15candidate, trailing in the pollings tried to revital lies his campaign
0:29:15 > 0:29:20by picking an unexpected vice presidential mate. They were awash
0:29:20 > 0:29:23with excitement with a heardland heart throb but he lost. That was
0:29:23 > 0:29:28the story of Senator John McCain and Sarah Palin four years ago,
0:29:28 > 0:29:32could it be the story of Mitt Romney and Paul Ryan this year.
0:29:32 > 0:29:40There's a big difference, even those who dislike Paul Ryan's ideas,
0:29:40 > 0:29:44admit he has some. And they are shaking up the campaign. Here Paul
0:29:44 > 0:29:50mayon on Ryanomics. He's unknown here and was not much known in
0:29:50 > 0:29:53America until this year. Meet, Paul Ryan the man picked to be Mitt
0:29:53 > 0:29:58Romney's Vice-President in less than a week, he polarised US
0:29:58 > 0:30:02politics, for this is a man with a plan. The fact are very, very clear.
0:30:02 > 0:30:07The United States is heading towards a debt crisis the only
0:30:07 > 0:30:11solutions will be painful for us all. That doesn't have to be our
0:30:11 > 0:30:15future. The way we respond to this challenge will ultimately define
0:30:15 > 0:30:24our generation, we can choose a path to prosperity. Let's take a
0:30:24 > 0:30:29look at how we can do did. Paul Ryan is not any old Conservative,
0:30:29 > 0:30:33he gave a jolt by producing his budget plan. The aim was to force
0:30:33 > 0:30:39the right to think big and long- term about the mountain of debt
0:30:39 > 0:30:44they've helped create. And now the plan is to get America to think the
0:30:44 > 0:30:48unthinkable: We will cut spending. Washington's unsustainable spend
0:30:48 > 0:30:53something driving the nation's permanent plunge into debt. This
0:30:53 > 0:31:01line, shows state spending in America, according to President
0:31:01 > 0:31:09Obama's projections, climbing 2% of GDP to 26% in the next ten years.
0:31:09 > 0:31:16This line is Paul Ryan plan A rapid cut in the federal state, taking 5
0:31:16 > 0:31:20trillion out of the spending. think, Obama has to be happy about
0:31:20 > 0:31:23his plannings, the extent the election is about long-term budget
0:31:23 > 0:31:27policy and fiscal issues, not about the short-term and the high
0:31:27 > 0:31:33unemployment rate. What the Government can do to get us out of
0:31:33 > 0:31:39the stagnation we're in, it will be President is comfortable.
0:31:39 > 0:31:45COMMENTATOR: Health care reform is budget reform, you're right, we
0:31:45 > 0:31:49agree, Medicare has a $28 trillion in empty promises, to my parents'
0:31:49 > 0:31:56generation, our generation, our kids' generation,:. President Obama
0:31:56 > 0:32:01is used to be secureed by Paul Ryan. Paul Ryan wants to remove between
0:32:01 > 0:32:0625-30 million state from the health care system and cut the food stamp
0:32:06 > 0:32:14programme, 47 million people rely on. Tames will be slashed and
0:32:14 > 0:32:24growth would follow. I think it is:. For the Democrat heart throb, it's
0:32:24 > 0:32:28not gone down well. You know what, it's funny, it's funny because eye
0:32:28 > 0:32:35wantance, we like to be respectful of one another and peaceful and
0:32:35 > 0:32:38listen to each other, these ladies may not be from Iowa and Wisconsin.
0:32:38 > 0:32:42I hear these are great snow cones. Suddenly American politics on all
0:32:42 > 0:32:46sides is about who you are, and where you're from, and how you like
0:32:46 > 0:32:53your ice shaved. I can tell already the consistency.
0:32:53 > 0:32:59Many of you know, I grew up in Iowa, where I know shaved ice, this is a
0:32:59 > 0:33:03finely, shaved ice, this is outstanding, right here. With
0:33:03 > 0:33:08Ryan's selections some say it allows President Obama to toe cuss
0:33:08 > 0:33:12on the big idea logical issues that divide America. By choosing Paul
0:33:12 > 0:33:16Ryan, Mitt Romney doubles down on his position, that rewants to lower
0:33:16 > 0:33:20taxes for the wealthiest Americans. This will be something that the
0:33:20 > 0:33:24Obama campaign is going to pounce on, it will become a clear choice
0:33:24 > 0:33:30for voters as it whether they believe that tax cuts for the
0:33:30 > 0:33:36wealthy should be continueed or even brought lower. The fact is
0:33:36 > 0:33:42even in the short-term, the US is facing a looming debt crisis, last
0:33:42 > 0:33:48summer unable to agree to a budget, they had a fiscal cliff, budget
0:33:48 > 0:33:52cuts, that would plunge the US into a sharp recession. This line, shows
0:33:52 > 0:33:56the overall I will pact of US federal and state level spending
0:33:57 > 0:34:02changes on the economy. Positive in 2009, slightly negative ever since,
0:34:02 > 0:34:07if the Government decides to fall off the fiscal cliff, that would
0:34:07 > 0:34:11wife 4% points off growth in a year. For the past two years, the word
0:34:11 > 0:34:15"debt cries skis "applied exclusively to Europe, but now
0:34:15 > 0:34:22America is stum bring towards one. Paul Ryan's statement is if you cut
0:34:22 > 0:34:26the state growth will follow. That's a major throw of the dice.
0:34:26 > 0:34:31Ryan's selection prompted this attack ad by supporters of the
0:34:31 > 0:34:36President, non-too subtlely suggesting what the Ryan plan does
0:34:36 > 0:34:45for the elderly. Welcome to the US election 2012, in which no
0:34:45 > 0:34:50prisoners will be taken. Anthony Scaramucci runs a hedge fund and
0:34:50 > 0:34:55supported President Obama, now he is one of the fund raiseers for the
0:34:55 > 0:34:59Romney campaign. A national finance co-chair. I asked him why he
0:34:59 > 0:35:04switched sides? Well, first of all, I supported the President because I
0:35:04 > 0:35:09thought he was going to be a centrist politician and going to be
0:35:09 > 0:35:14a transformive politician in the sense of healing the nation. So, I
0:35:14 > 0:35:18didn't expect the President to be as left-leaning as he is, and
0:35:18 > 0:35:22divisive as he's become. If you look at the negative campaigning of
0:35:22 > 0:35:28the President, he's building up a lot of evidence to support what I'm
0:35:28 > 0:35:31saying. As a release of finding another choice, in 2009, after
0:35:32 > 0:35:36spending time with Romney and having Romney speak at our
0:35:36 > 0:35:39conference in 2010 and building a close personal relationship with
0:35:39 > 0:35:45him, visiting at his home and getting a understanding of the
0:35:45 > 0:35:50personality he has, his character, his decision-making, and his love
0:35:50 > 0:35:54of country, and frankly as a can-do, fix-it person, who wants to help us
0:35:54 > 0:35:59and the world get out of the economic malaise we're in, I
0:35:59 > 0:36:04thought he was the right guy for the job, and thankfully the
0:36:04 > 0:36:09nomination process, proved that to be correct. Right but the choice of
0:36:09 > 0:36:14Paul Ryan does that help the people that you talk with, raise money for
0:36:15 > 0:36:20the campaign? Yes. I think there's no question about that. Paul Ryan
0:36:20 > 0:36:24is one of the truth-tellers in our nation. OK. Many of the politicians
0:36:24 > 0:36:29and the western democracies, want to lie to their repics, and tell
0:36:29 > 0:36:33them things that are not true, they can get entitlements and spending,
0:36:33 > 0:36:38and free things from the Government that frankly none of us can afford.
0:36:38 > 0:36:43But, if in effect does it mean the kind of austerity we have seen in
0:36:43 > 0:36:48many countries in Europe, which are cut very hard on the deficit and
0:36:48 > 0:36:52actually Europe's in recession, it is not working OK. Well, you see,
0:36:52 > 0:36:56that I can't speak to Europe, because I don't live in Europe and
0:36:57 > 0:37:01I don't understand you guys as I understand the United States. Here
0:37:01 > 0:37:07what is I understand in the United States, we are spending more than
0:37:07 > 0:37:12we areer' taking in, we're spending 40 cents of every dollar. We need
0:37:12 > 0:37:19to right-size that, and have a economic plan to guide federal
0:37:19 > 0:37:23spending down to 19% GDP level. That means no tax breaks for richer
0:37:23 > 0:37:30Americans, the Obama campaign is saying what you want to do, is you
0:37:30 > 0:37:37want to give tax breaks to the rich and pay for it by the poor?
0:37:37 > 0:37:42That is absolutely, falsehood. It is a misstatement. It is more
0:37:42 > 0:37:48liberal shrists lifts brought forward by the Obama campaign, that
0:37:48 > 0:37:51don't make sense. We're not saying that. We are saying we want tax
0:37:51 > 0:37:57fairness, and pro--growth strategies, so we can grow our way
0:37:57 > 0:38:02out of the problem, like we did in the 1980s. I wonder, a final
0:38:02 > 0:38:07thought, if things are as bad as you say, given governments across
0:38:07 > 0:38:13Europe, have been voted out because things have been bad, why is Obama
0:38:13 > 0:38:18so far ahead in the opinion polls? I don't think he's far ahead in the
0:38:18 > 0:38:24opinion pls. He's roughly even with governor Romney. I think the
0:38:24 > 0:38:26President is very worried, he wouldn't have spent $110 million on
0:38:26 > 0:38:30negative campaigning, and driven a deficit in terms of what he is
0:38:30 > 0:38:34bringing in and what he is spending if he wasn't worried. The truth of
0:38:34 > 0:38:38the matter is he can not run on his record, he has a failed economic
0:38:38 > 0:38:44policy. We've had 44 months of above 8% in terms of the
0:38:44 > 0:38:48unemployment rate in the country. He cannot run on the Mall lace he's
0:38:48 > 0:38:53create. We all know an overburdenensome Government makes
0:38:53 > 0:38:58it more difficult for poor people because they can't get hireed by
0:38:58 > 0:39:01people who are creating the jobs. We all know that, and now we need
0:39:01 > 0:39:05to tell the truth by the American people and make them make a choice.
0:39:05 > 0:39:10If you want a cradle to grave welfare state, choose President
0:39:10 > 0:39:14Obama. If they want to return to a society of self-reliance, and
0:39:14 > 0:39:19upstart society with green shoots and economic opportunity and once
0:39:20 > 0:39:23again a restart of class movement, I'm the product of class movement
0:39:23 > 0:39:29I'm a middle class kid that built two successful businessness this
0:39:29 > 0:39:34country. If they want to return to that, we've given them a stark
0:39:34 > 0:39:39choice. They can chies room room room and Paul Ryan or stay in the
0:39:39 > 0:39:42situation with Obama. That's their choice. Anthony Scaramucci thank
0:39:42 > 0:39:47you very much. Thank you I enjoyed it.
0:39:47 > 0:39:51Now, a generation brought up on sex in the city, might not know the TV
0:39:51 > 0:39:54series and the kind of women it presents would not be possible
0:39:54 > 0:40:01without Sex and the Single Girl. That was the title of a book
0:40:01 > 0:40:07published 50 years ago, by Helen Gurley Brown. The editor of
0:40:07 > 0:40:17cosmopolitan in New York. She died, a man haten iconic femist. We look
0:40:17 > 0:40:19
0:40:19 > 0:40:24back on a life that tried to have Long before 50 shades of grey, this
0:40:24 > 0:40:34woman brought a blush of pleasure to a publisher's cheek.
0:40:34 > 0:40:35
0:40:35 > 0:40:39# They call it girl talk "sex is wonderful, and to be a sex
0:40:39 > 0:40:43object is fabulous". Helen Gurley Brown, from Arkansas,
0:40:44 > 0:40:48became internationally famous at 40, where her book, Sex and the Single
0:40:48 > 0:40:53Girl. The BBC had her on to defend her
0:40:53 > 0:41:00unbuttoned attitude to sex outside marriage. We are still in inferior,
0:41:00 > 0:41:05we are dependent on men, 2 hours a day, it won't just do. The last
0:41:05 > 0:41:09thing in the world I think is women are not equal to men, it is just a
0:41:09 > 0:41:18single girl doesn't have a rewarding life, it seems to me,
0:41:18 > 0:41:26unless they has men in her life. For more than 30 years, for more
0:41:26 > 0:41:31than 30 years, girlie Brown extended an iron nail extension,
0:41:31 > 0:41:36espouseing the needle point motto, Good Girls Go To Heaven - Bad Girls
0:41:36 > 0:41:41Go Everywhere. What we're telling Cosmo women is go for it, get your
0:41:41 > 0:41:51foot in the jobs, it doesn't have to have the best job, because you
0:41:51 > 0:41:57
0:41:57 > 0:42:01Helen was unapologetic about encourageing women to use their
0:42:01 > 0:42:06feminine wiels to get what they want. She certainly did that, and
0:42:06 > 0:42:10embodied that in her own life. She didn't really mind sexual
0:42:10 > 0:42:14harassment in this matter of fact she defended those men who were
0:42:14 > 0:42:20later unkofd, because she had gone through 17 secretarial jobs when
0:42:20 > 0:42:24she was a young woman, before she got anywhere. And she allowed men
0:42:24 > 0:42:30to play pinch and tickle with her, and enjoyed some of the gifts that
0:42:30 > 0:42:34came with that. She was part vixen as well as a visionary. That was
0:42:34 > 0:42:42great. Where did you learn to cook like
0:42:42 > 0:42:46that. Cosmo toll pan. The Cosmo brand crossed the pond to the UK.
0:42:46 > 0:42:52Where did you get the idea of coming over here on the holiday.
0:42:52 > 0:42:58Cosmo, page 13. Everything was up for grabs, for Helen Gurley Brown's
0:42:58 > 0:43:02girls, including a butt naked Burt rein nolds. Children were absent
0:43:02 > 0:43:05from the form lafplt No gums, no do you remember, feminist anger, and
0:43:05 > 0:43:13no motherhood. Jiefplt Helen wanted everyone to
0:43:13 > 0:43:18have a tool. For her, having a tool was a career, happy marriage, and
0:43:18 > 0:43:23I'm sure incredible sex but she was not against women having children.
0:43:23 > 0:43:30That was a choice she made. Great in bed, it is so disappointing, it
0:43:30 > 0:43:34is like getting a bad bottle at the start of season. There may be no 35
0:43:34 > 0:43:40box sets without boun boun boun. She anticipated the girms in so
0:43:40 > 0:43:48many ways, not least at table. Skinny is sacred. Anybody plunking
0:43:48 > 0:43:52down a plate of fried do you cheapy would be trying to poison me.
0:43:52 > 0:43:56the talk this week is of legacy, and now that gets for Helen Gurley
0:43:57 > 0:44:02Brown too. Should we really be encourageing young girls to look up
0:44:02 > 0:44:06to these women or to a different kind of model altogether? Not much
0:44:06 > 0:44:11doubt where the former Cosmo editor stood. I might be guilty of having
0:44:11 > 0:44:15every single woman in the pages of Cosmo be a raveing beauty because
0:44:15 > 0:44:19we are not all raving beauties, because that's unrealistic. And yet
0:44:19 > 0:44:29you can be more beautiful. You can do so many things, you can get your
0:44:29 > 0:44:33nose fixed and hair coloured. Cosmopolitan, page 114.
0:44:33 > 0:44:41, Cosmopolitan, first issue out today.
0:44:41 > 0:44:46Into # They call it girl talk #
0:44:46 > 0:44:52Now, just before we look at tomorrow's papers, news that came
0:44:52 > 0:44:55too late. Outgoing, general mark Thompson has been just appointed as
0:44:55 > 0:45:01President and Chief Executive of the New York Times. We have the New
0:45:01 > 0:45:07York Times, but we do have the York Times, but we do have the
0:45:07 > 0:45:12British papers for tomorrow. The I has got anger over rail fare hikes
0:45:12 > 0:45:22may force U-turn. Standard Chartered story is on the front
0:45:22 > 0:45:25
0:45:25 > 0:45:30page of FT. Telegraph has story about sports fund for schools.
0:45:30 > 0:45:36Games legacy as rules change. That's all from Newsnight tonight.
0:45:36 > 0:45:46Because we know you miss the Olympics, here is our mash up from
0:45:46 > 0:46:20
0:46:20 > 0:46:25the internet. Mo Farah running away Hello there. Summer is not over but
0:46:25 > 0:46:29we will see a blip in proceedings. It will turn west from the south-
0:46:30 > 0:46:36west through the day. Strong winds and rain. It will cater for two or
0:46:36 > 0:46:42three hours of wet weather. Heavy rain, sliced through the
0:46:42 > 0:46:48Midlands. Maybe the odd rumble of thunder. Behind that, things will
0:46:48 > 0:46:54brighten up. Sunshine for Devon and Cornwall. Blustery though, despite
0:46:54 > 0:47:02demptures doing well, perhaps not feeling all that pleasant. Wet
0:47:02 > 0:47:07weathertor Wales and Northern Ireland. Met has claimed nasty
0:47:07 > 0:47:14conditions for the time of year. Further north across Scotland for
0:47:14 > 0:47:18much of the dayel be dry. Looking further ahead, it stays disturbed
0:47:18 > 0:47:22through Thursday, blustery showers in the west, but further east,
0:47:23 > 0:47:28plenty of bright and breezy weather. That's good news for the Test match