:00:00. > :00:00.The government wants to be remembered
:00:00. > :00:11.The problem is that for many, it's only being remembered
:00:12. > :00:17.for botching up the introduction of Universal Credit.
:00:18. > :00:19.If Universal Credit is not changed, we'll have some real tragedies
:00:20. > :00:23.It just simply isn't possible for people to
:00:24. > :00:29.fend off absolute chaos if they've got no money at all.
:00:30. > :00:35.It'll roll out to seven million families in the next five years.
:00:36. > :00:37.Labour's shadow welfare secretary wants a pause,
:00:38. > :00:52.Jac Holmes went from Bournemouth to Syria to fight IS.
:00:53. > :00:56.Now he's been killed after the City fell.
:00:57. > :00:58.We'll hear from a friend who also left the UK,
:00:59. > :01:11.He says he bankrolled Brexit, he certainly put some pounds into UKIP.
:01:12. > :01:26.Hello. There's no point in having a great idea
:01:27. > :01:28.with a plan and a blueprint, lots of fancy marketing,
:01:29. > :01:30.if you then completely screw up the implementation.
:01:31. > :01:34.Well, MPs debated the government's flagship welfare policy -
:01:35. > :01:39.Universal Credit - again today, and the overriding
:01:40. > :01:42.question is whether it falls into that category of
:01:43. > :01:48.It's a big reform, a simplifying one, six benefits merged into one.
:01:49. > :01:50.But the simple fact is, that for too many people
:01:51. > :01:52.for whom it is designed, it isn't working.
:01:53. > :02:00.Basically, the transition period, I think people will find it quite
:02:01. > :02:07.difficult, because you obviously have to go online and sign
:02:08. > :02:10.up to Universal Credit, and then they give you the appointment
:02:11. > :02:12.at the Job Centre, which takes about two weeks.
:02:13. > :02:15.So, you can't apply for the advance payment until you have that
:02:16. > :02:16.interview with the guy at the Job Centre.
:02:17. > :02:21.But, within that time, I obviously had no money,
:02:22. > :02:25.so I had to rely on family and friends to help me out, and then
:02:26. > :02:26.when I did actually get the advance payment,
:02:27. > :02:29.I had to pay back some of the family and friends,
:02:30. > :02:31.with that payment, so yeah, I mean, it is hard.
:02:32. > :02:35.They do make it quite difficult for you, you have to do everything
:02:36. > :02:38.online, you have to phone a number, that's not free, so I had to go
:02:39. > :02:41.to the Citizens Advice Bureau to make the phone call and stuff.
:02:42. > :02:53.Ironically, the government set out ideas to help people in debt today,
:02:54. > :02:56.and yet, Citizens Advice say that the government's
:02:57. > :02:58.own Universal Credit is itself forcing people into debt.
:02:59. > :03:03.It's not just the seven day waiting period when you apply,
:03:04. > :03:06.or the fact, after seven days, you then have a month of assessment
:03:07. > :03:08.before getting payments; it's also the lack of help
:03:09. > :03:12.It is as though the benefit is administered for the convenience
:03:13. > :03:16.of the provider, rather than the recipient.
:03:17. > :03:18.Well, Universal Credit has been a huge controversy in Westminster,
:03:19. > :03:20.many MPs have faced the wrath of constituents
:03:21. > :03:23.Which is why it came up yet again today.
:03:24. > :03:26.Our political editor Nick Watt has been looking at the pressure
:03:27. > :03:42.I'm going to have to ask you to leave... In motive, painful and
:03:43. > :03:47.politically toxic. Welfare reform is perilous for politicians of all
:03:48. > :03:54.hues. Run the mouse up the screen. Not like that... The Ken Loach film
:03:55. > :04:01.I, Daniel Blake, struck a chord. With its betrayal of an uncaring
:04:02. > :04:08.system. Universal Credit, this government's
:04:09. > :04:13.flagship welfare reform joins a long list of troubled projects, delayed
:04:14. > :04:19.by years, are set by technical hitches, and challenged on the Tory
:04:20. > :04:23.benches, but it limps on. I think if Universal Credit is not
:04:24. > :04:27.changed, we will have some real tragedies happening in our society.
:04:28. > :04:31.It just simply isn't possible for people to be able to stay in their
:04:32. > :04:37.accommodation if they are in the private sector, to fend off absolute
:04:38. > :04:42.chaos if they've got no money at all. Today, the government found
:04:43. > :04:48.itself defending Universal Credit in the second parliamentary debate in a
:04:49. > :04:50.week. In every phase and in every respect, the development of
:04:51. > :04:56.Universal Credit has been all about enhancing the way it helps you get
:04:57. > :04:59.into work, and get on in work. Already, Universal Credit is
:05:00. > :05:05.transforming lives, and we want more families to benefit from the
:05:06. > :05:09.satisfaction, from the self-esteem, and from the financial security that
:05:10. > :05:16.comes from progressing to a job, a better job and a career.
:05:17. > :05:22.So just what is Universal Credit? It was first piloted in 2012, was meant
:05:23. > :05:31.to be fully up and running by this year, and fully rolled out by 2022.
:05:32. > :05:36.Essentially, it rolls six in work and out of work benefits into one
:05:37. > :05:40.simpler system. Also, it aims to encourage work by ensuring that
:05:41. > :05:45.claimants receive more take home pay if they work extra hours.
:05:46. > :05:49.There is deep frustration in Downing Street that Universal Credit is
:05:50. > :05:53.under constant attack, because ministers feel it is a highly
:05:54. > :05:57.progressive reform, thanks to the way in which it in centre rises
:05:58. > :06:01.work. The Work and Pensions Secretary David Gauke believes he is
:06:02. > :06:06.involved in something of a rescue mission to salvage this landmark
:06:07. > :06:11.reform. In his eyes, many of today's problems were caused by the failure
:06:12. > :06:15.of the architect of the scheme, Iain Duncan Smith, to appreciate the vast
:06:16. > :06:21.challenge of introducing such a wide-ranging reform.
:06:22. > :06:24.David Gauke is not giving much away at the moment, but Downing Street is
:06:25. > :06:29.looking seriously at implementing the main demand by Tory backbench
:06:30. > :06:36.critics to reduce the initial payment period from six weeks to
:06:37. > :06:41.four, or to abolish the so-called seven waiting days, in which no
:06:42. > :06:43.benefits are paid in the first week. If the government is feeling
:06:44. > :06:49.particularly ambitious, it could look at two further reforms,
:06:50. > :06:55.allowing people to earn more before their benefits first start being
:06:56. > :06:58.reduced. This would be juiced George Osborne's cup to the worker
:06:59. > :07:01.allowance, costing around ?2 billion. Changing the rate at which
:07:02. > :07:09.benefits are reduced as someone earns more money, the Chancellor cut
:07:10. > :07:14.the tape rate from 65 to 63% in the budget. Some Cabinet ministers want
:07:15. > :07:21.this to go down to 60%. This would cost around 500 million per
:07:22. > :07:27.percentage point cut. One of the main Tory backbench critics says the
:07:28. > :07:31.government will have two move. With Universal Credit, it is a cobbler
:07:32. > :07:35.Kate did benefit. I pick everybody will blame everybody else. My
:07:36. > :07:38.understanding is a huge number of people leading the project lost
:07:39. > :07:45.their jobs, some resigned and some couldn't cope. The problem is, for
:07:46. > :07:49.me, the waiting time of six weeks, we want it reduced to four rates,
:07:50. > :07:51.and we want to see the table rate reduced. Step-by-step, the
:07:52. > :07:58.government is pressing ahead with Universal Credit. The challenge is
:07:59. > :07:59.to ensure that the eventual merits of the system will overcome memories
:08:00. > :08:03.of its troubled birth. We did ask the government to join us
:08:04. > :08:09.tonight but nobody was available. However, with me
:08:10. > :08:11.are Debbie Abrahams, Labour's Shadow Secretary of State
:08:12. > :08:14.for Work Pensions. And Edward Boyd, Managing Director
:08:15. > :08:16.of Centre for Social Justice, and a former advisor
:08:17. > :08:27.to Iain Duncan Smith. Thanks, both, for coming in. Can we
:08:28. > :08:35.get a bit detailed, because it is quite interesting. Let's start with
:08:36. > :08:39.this every -- seven-day period. You apply and nothing happens for seven
:08:40. > :08:42.days. It should go. We have been clear that at least a week should be
:08:43. > :08:48.removed. The government said they wanted to have a system that
:08:49. > :08:53.replicated real life in terms of work and waiting for a month before
:08:54. > :09:03.you got your first support, but this is more than that in six weeks.
:09:04. > :09:07.This... This is the sum of the six weeks and seven days. What was the
:09:08. > :09:11.thinking? When we originally designed this, there was no
:09:12. > :09:19.seven-day weight. I will agree on this. I don't think any government
:09:20. > :09:23.of any cover is thankful reforming welfare. Labour trying to bring in
:09:24. > :09:26.tax credits in 2003, or this government with Universal Credit,
:09:27. > :09:30.one thing everyone is missing is, when this is fully rolled out, the
:09:31. > :09:35.estimate is 300,000 more people will be in work. That was based on 2014 -
:09:36. > :09:45.15 data. That is disingenuous to say that,
:09:46. > :09:50.Ed. 300,000 before, and that data rolled out past any changes the
:09:51. > :09:56.government has made. It is still a massive effect. We have got from
:09:57. > :10:01.you, and admission, you would get rid of the seven-day waiting period.
:10:02. > :10:05.It saves 140 million, there was a Russian now that people out of work
:10:06. > :10:11.for a short period of time would need benefits, but it is not the
:10:12. > :10:14.right thing. Next one, it is not the first seven-day waiting period, but
:10:15. > :10:21.paying people monthly in arrears. That one is training you to have the
:10:22. > :10:26.benefit system aligned with the way work works. The figures published
:10:27. > :10:30.yesterday showed that people on the lowest incomes, a quarter are paid
:10:31. > :10:34.weekly or monthly. Weekly or fortnightly. We want to have
:10:35. > :10:37.alternative pay arrangements that are offered to everyone, not the
:10:38. > :10:42.obscure arrangement in guidance we have now that nobody seems to know
:10:43. > :10:48.what to do about, everybody has a chance to have alternative pay
:10:49. > :10:51.fortnightly, also, it doesn't go to a single householder, which happens
:10:52. > :10:55.at the moment, which is predominantly men. It is
:10:56. > :11:00.discriminatory against women. It should be split, if that is an
:11:01. > :11:04.option. The housing element can go directly to the landlord. Ed, when
:11:05. > :11:08.you designed paying people a month in arrears, was that a problem or is
:11:09. > :11:13.it a feature of the system you devised? It is a positive thing.
:11:14. > :11:17.When rolled out, 7 million or 8 million will be on Universal Credit.
:11:18. > :11:20.Several will be in work. The overwhelming majority will be paid
:11:21. > :11:28.monthly to make sure that Universal Credit works with being in work, you
:11:29. > :11:31.had to have them working. If you have benefit pay fortnightly or
:11:32. > :11:35.separate from that, your earnings will go up and down, and be very
:11:36. > :11:39.difficult to manage your income. For those people, it works well.
:11:40. > :11:45.Foremost, it does, but people that struggle managing money for a month,
:11:46. > :11:51.and there are reports of quite a view, they are used to getting money
:11:52. > :11:55.which they spend. It may sound patronising, but that is what
:11:56. > :12:01.everybody says is the fact. You say that. I am worried we will argue
:12:02. > :12:05.about data, but 3% of jobs are paid fortnightly in the UK. It is a tiny
:12:06. > :12:09.proportion of people who are paid at that level. This is where Universal
:12:10. > :12:13.Credit is revolution every. Instead of saying, you can't budget well, so
:12:14. > :12:17.we will adapt the system to you. It says that you can make sure that you
:12:18. > :12:21.can get a budget advance if you need it. It is about changing someone's
:12:22. > :12:25.life. If you can't manage money well, we will help you get
:12:26. > :12:33.somewhere. It is transformational. The principal... No, no, that is not
:12:34. > :12:38.fair. The principal, we support, but what Ed is describing isn't there.
:12:39. > :12:41.The principles about simple vacation and ensuring work pay, getting into
:12:42. > :12:48.work, progressing to work, that doesn't happen. Then we have the
:12:49. > :12:55.administrative clock ups. Good idea, badly executed? I mentioned at the
:12:56. > :12:59.outset about single householder, the fact it is only paid monthly, we
:13:00. > :13:03.also have the fact that severe disability premiums weren't
:13:04. > :13:10.transferred across. The most severely disabled people are about
:13:11. > :13:16.?3200... I could go on. Some people are worse off. But when you devised
:13:17. > :13:20.it, you weren't quite as mean as it has turned out to be. If you going
:13:21. > :13:24.to do something as ambitious as that, doesn't it make sense to spend
:13:25. > :13:31.money on it and make it work in the early days, rather than having it
:13:32. > :13:34.discredited by penny-pinching? We invented it slightly more generously
:13:35. > :13:39.than it is now. The first important point before that to say, if you
:13:40. > :13:43.look at all the data in amongst all the changes, people are more likely
:13:44. > :13:47.to be in work and earning more money under this system rather than the
:13:48. > :13:51.old system. It is not perfect, but it is better... Some groups say.
:13:52. > :13:56.With different family structures, that is not always the case. Single
:13:57. > :14:03.parents are definitely worse. A single-parent nurse, I had, she had
:14:04. > :14:07.a six-week delay, the red arrears notice when I went to see her. I can
:14:08. > :14:11.respond to that, briefly, with single parents, you can take a case
:14:12. > :14:16.study like that, but on the whole, if you are a single-parent with two
:14:17. > :14:25.kits, under the old system, working 16 hours, the new system has 63%. We
:14:26. > :14:29.are getting the dazzled with numbers. We will see if the
:14:30. > :14:30.government reforms on this in the next few days. Thank you both very
:14:31. > :14:33.much. Jac Holmes, a 24 year old man
:14:34. > :14:37.from Bournemouth who went to join Kurdish forces in the fight
:14:38. > :14:40.against so-called Islamic State Just a week after the liberation
:14:41. > :14:46.of the city, he was reportedly helping to clear the city of mines
:14:47. > :14:50.and explosives when he was killed. Mr Holmes had been fighting Isis
:14:51. > :14:53.off and on since 2015. He appeared in a television
:14:54. > :14:55.interview as recently as last month, speaking in Raqqa to the BBC's
:14:56. > :15:02.Quentin Sommerville. This isn't your country,
:15:03. > :15:05.it's not your war, why are you here? I think the fight against
:15:06. > :15:07.Daesh is everyone's war. There's Daesh all over Europe,
:15:08. > :15:14.especially in England, and we need to stop them here and in Iraq,
:15:15. > :15:19.or they're going to spread. Well, he was fighting with the YPG,
:15:20. > :15:25.a Kurdish force, which is a big part of the SDF,
:15:26. > :15:29.the Syrian Democratic Forces. Another British man
:15:30. > :15:34.who had gone out to fight He spent a lot of time
:15:35. > :15:38.in Syria with Mr Holmes - and I spoke to him earlier
:15:39. > :15:45.from a YPG base on the I have known Jac Holmes for three
:15:46. > :15:52.years now. I met him on the very day he arrived in Syria, in 2015. And I
:15:53. > :15:55.have known him ever since. He was a passionate humanitarian. He cared
:15:56. > :16:02.very deeply about Syria. And he was someone that had a real hatred for
:16:03. > :16:13.Isis and everything based at four. What do you know of what happened
:16:14. > :16:18.yesterday that took Jac's life. Temporary map was pulling security.
:16:19. > :16:21.While they were clearing buildings, forcing civilians to return home,
:16:22. > :16:31.and unfortunately there was a suicide vest that had been missed.
:16:32. > :16:33.That was hidden, and left behind by the Islamic State.
:16:34. > :16:36.And it was in a very volatile state, and it detonated
:16:37. > :16:48.Obviously, the battle for Raqqa was over, what were his plans?
:16:49. > :16:51.He's been fighting now, for three years.
:16:52. > :16:53.He's been a very passionate advocate for solidarity
:16:54. > :16:55.with the Kurdish people, with the Syrian people,
:16:56. > :16:58.and he's been pushing for the British government to do
:16:59. > :17:00.more to help the SDF in solidifying their games,
:17:01. > :17:02.and actually injecting some humanitarian invade, and investment
:17:03. > :17:06.The only way he could do that was by coming home
:17:07. > :17:08.and sharing his experiences, talking about what he did
:17:09. > :17:16.And really, to explain really what he was doing there.
:17:17. > :17:20.The fact that the battle for Raqqa was over, and he was getting ready
:17:21. > :17:25.to return makes this terribly, terribly tragic, doesn't it.
:17:26. > :17:27.Yeah, it's a devastating blow for the international volunteers,
:17:28. > :17:30.and for all the people volunteering here, both on the humanitarian side
:17:31. > :17:51.He cared a lot about democracy, about people.
:17:52. > :17:54.The Yazidi people were very close to his heart.
:17:55. > :17:56.And his death has been a huge blow to us all.
:17:57. > :17:58.Coming just as we have liberated Raqqa at the end
:17:59. > :18:01.of his last tour in Syria, it shows you how dangerous
:18:02. > :18:03.the Islamic State is, how terrible their legacy mines are,
:18:04. > :18:06.and how we really need to invest in the country,
:18:07. > :18:13.and Detry start rebuilding in a much more positive way than we are
:18:14. > :18:14.and actually start rebuilding in a much
:18:15. > :18:16.more positive way than we are
:18:17. > :18:20.Give us a sense, if you would come of that battle for Raqqa
:18:21. > :18:22.and the role the international fighters had in it.
:18:23. > :18:24.The battle for Raqqa was incredibly, incredibly dangerous.
:18:25. > :18:32.It was a war of attrition, there were a lot of snipers,
:18:33. > :18:34.there were a lot of minds being used very effectively.
:18:35. > :18:42.I mean, the Americans, for the first time, have invested
:18:43. > :18:51.I heard more bombs fall on Raqqa them all the bombs that I have
:18:52. > :18:58.It was extraordinary, real shock and awe.
:18:59. > :19:03.But at the same time, I personally was overwhelmed
:19:04. > :19:16.And really what the foreign volunteers have achieved as well.
:19:17. > :19:19.The British Foreign Office do not recommend that people go out
:19:20. > :19:22.They are always saying this is a very, very
:19:23. > :19:26.No regrets that you went out there, despite what we now know,
:19:27. > :19:28.the terrible, terrible losses of comrades and friends.
:19:29. > :19:30.I've never regretted the morality of what I've done,
:19:31. > :19:38.I came out here as a humanitarian, as someone who is a humanist,
:19:39. > :19:45.And when I came out in 2014, when Jac came out in 2015,
:19:46. > :19:48.there was no help coming from the international community.
:19:49. > :19:50.There were no jets in the sky, there was no military
:19:51. > :19:52.support on the ground, very little humanitarian support
:19:53. > :19:58.So we've seen a massive change over the last three years.
:19:59. > :20:01.And I hope, in some small way, that the international volunteers
:20:02. > :20:03.have shown the world that internationalism is still very
:20:04. > :20:05.strong, that solidarity and compassion is still
:20:06. > :20:13.But you are now on your way home now?
:20:14. > :20:16.I am indeed on my way home to my family.
:20:17. > :20:18.But for me, only half the battle is done.
:20:19. > :20:21.I am going to go straight home, and I'm them to tell people
:20:22. > :20:26.what I have been doing out here, why I have been here,
:20:27. > :20:29.and what the options are for the future, cause Assad
:20:30. > :20:35.I would hope that the SDF is now the Democratic opposition to asset
:20:36. > :20:38.I would hope that the SDF is now the Democratic opposition to Assad
:20:39. > :20:42.and we finally have a plan for peace in Syria.
:20:43. > :20:47.One of Nigel Farage's good personal and political friends
:20:48. > :20:51.He's not a household name, but he is a big player
:20:52. > :20:53.on the populist right of UK politics.
:20:54. > :20:55.He was there with Nigel Farage when he met Donald Trump just
:20:56. > :20:58.after the US election; he has a feisty presence on Twitter
:20:59. > :21:01.and he's a vocal critic of the BBC's Brexit coverage.
:21:02. > :21:04.He made his money in insurance and he spent some of it on UKIP
:21:05. > :21:08.and then on the Leave.EU campaign, the unoffocial brexit campaign,
:21:09. > :21:10.and then on the Leave.EU campaign, the unoffocial Brexit campaign,
:21:11. > :21:14.His book chronicling the exploits of that campaign -
:21:15. > :21:18.the Bad Boys of Brexit - is now, apparently, being made
:21:19. > :21:22.The narrative is he's not really a bad boy at all -
:21:23. > :21:25.but a patriot prepared to play dirty to save his country.
:21:26. > :21:27.But has Banks been taking some artistic license with the truth?
:21:28. > :21:35.John Sweeney reports - but not from Hollywood.
:21:36. > :21:40.Arron Banks started on the long road to Hollywood back in 2014,
:21:41. > :21:44.when he reacted to a put-down by top Tory William Hague,
:21:45. > :21:52.When I woke up this morning, intending to donate ?100,000
:21:53. > :21:56.to Ukip, I understand that Mr Hague called me a nobody?
:21:57. > :22:03.So, in light of that, I decided today to donate ?1 million
:22:04. > :22:05.to the party and not the 100,000 we originally agreed.
:22:06. > :22:09.I was hoping that Mr Hague will now know who I am.
:22:10. > :22:12.I think after this lot, he might just do!
:22:13. > :22:17.This is the moment Arron Banks first entered public life.
:22:18. > :22:20.I am a self-made person, I made my money from a desk
:22:21. > :22:38.But with Mr Banks' businessman, or political high roller,
:22:39. > :22:40.what you see is not quite what you get.
:22:41. > :22:42.His manor is mortgaged and Mr Banks does not live here,
:22:43. > :22:45.it is a wedding venue, owned by one of his companies.
:22:46. > :22:50.Arron Banks is a multimillionaire with a jet set lifestyle.
:22:51. > :22:53.He is made out to be a bit like Blofeld and this
:22:54. > :22:59.It is somewhere near Bristol and it is handy for the house
:23:00. > :23:12.Bought for around ?900,000 and with ?500,000 on the mortgage.
:23:13. > :23:17.Arron Banks owns Eldon, a car insurance brokerage registered here.
:23:18. > :23:24.Go Skippy.com, cheaper car insurance.
:23:25. > :23:29.He hopes to float Eldon's parent group for 250 million quid.
:23:30. > :23:32.A valuation that got him into The Sunday Times Rich List.
:23:33. > :23:36.Banks claims Eldon will make ?24 million profit this year,
:23:37. > :23:40.up from only 300,000 last year, should we believe it?
:23:41. > :23:43.If you move from less than half a million profit in one year
:23:44. > :23:46.to 24 million the next year, I wish every other company could do
:23:47. > :23:57.that, but it is really quite big by any standard.
:23:58. > :24:02.A phenomenal turnaround, I would say.
:24:03. > :24:05.Arron Banks told Newsnight that the ?250 million valuation is
:24:06. > :24:13.He says new AI, artificial intelligence tech is
:24:14. > :24:20.But there has been trouble with Eldon's numbers in the past.
:24:21. > :24:27.They said a breakdown in the relationship has occurred
:24:28. > :24:29.because by failing to supply accurate information,
:24:30. > :24:34.management is imposing a limitation of scope on our work.
:24:35. > :24:36.Not so, says Mr Banks, the auditors resigned
:24:37. > :24:43.Banks also has an insurance underwriting business,
:24:44. > :24:49.It seems to pay out more in claims and expenses
:24:50. > :24:58.When we look at the Gibraltar market as a whole the year ending 2015,
:24:59. > :25:01.on average, the market takes in a pound a premium and pays out
:25:02. > :25:07.If you look at the largest five motor insurance
:25:08. > :25:09.companies in Gibraltar, they only pay out 92p
:25:10. > :25:13.in claims and expenses, so 8p in every pound
:25:14. > :25:17.that they generate is moved towards profit.
:25:18. > :25:19.For Southern Rock, they pay out ?2.86p for every ?1
:25:20. > :25:26.So that is nearly three times as much as Southern Rock
:25:27. > :25:29.Mr Banks' lawyers told us we had drawn serious
:25:30. > :25:38.On Southern Rock, they said this comparison is not an indicator
:25:39. > :25:52.that is applied to or appropriate to be applied to Southern Rock.
:25:53. > :25:54.Because it is not a pure underwriter and has
:25:55. > :25:57.These figures do not take account of that.
:25:58. > :26:00.They suggested another yardstick but only gave us figures for one
:26:01. > :26:04.They declined to offer data for previous years for us to analyse.
:26:05. > :26:07.Mr Banks' lawyers also told us that Southern Rock's profitability
:26:08. > :26:10.was a matter of public record and that it made 42 million
:26:11. > :26:13.But that profit came from recapitalisation,
:26:14. > :26:25.in other words, a cash injection from another bank's business.
:26:26. > :26:27.Another of Mr Banks' businesses has also been
:26:28. > :26:32.Mr Banks was the sole director and one of only two shareholders
:26:33. > :26:37.in a company called African Compass Trading.
:26:38. > :26:41.It sold a herbal substitute for Viagra called Star 150.
:26:42. > :26:44.It's slogan, naturally, every man wants to be
:26:45. > :26:54.Even herbal medicines need approval by the regulator, the MHRA.
:26:55. > :26:56.They told us, as part of a criminal investigation in 2014,
:26:57. > :27:06.into the sale and supply of an authorised medicine
:27:07. > :27:08.into the sale and supply of unauthorised medicine
:27:09. > :27:10.or products, they seized around ?50,000 worth of Star 150 pills
:27:11. > :27:14.They told us their investigation is closed and to the best
:27:15. > :27:16.of Newsnight's knowledge, it has not resulted
:27:17. > :27:22.Mr Banks told Newsnight that African Compass Trading shut down
:27:23. > :27:25.three and a half years ago, owing to, in his words,
:27:26. > :27:35.A few run-ins with regulators and auditors, that is
:27:36. > :27:46.The Electoral Commission is already investigating leave.EU,
:27:47. > :27:48.a company controlled by Mr Banks about its conduct during
:27:49. > :27:54.Newsnight has uncovered disturbing evidence that raises questions
:27:55. > :28:00.about his political funding, even before the Brexit vote.
:28:01. > :28:07.In September, 2014, Tory MP Mark Reckless triggered
:28:08. > :28:09.a by-election in Rochester and Strood in Kent when
:28:10. > :28:16.Five former employees told us that staff from Mr Banks' company
:28:17. > :28:23.were asked to go to Rochester to help the Ukip campaign.
:28:24. > :28:28.We have got the number of an insurance salesman
:28:29. > :28:33.And we are told he also went to the Rochester by-election.
:28:34. > :28:41.We had, like, a photo and then we were like chaperoning
:28:42. > :28:47.You were chaperoning people, to the polling stations, yes?
:28:48. > :28:53.Were they Ukip voters or everybody voters?
:28:54. > :28:58.Well, it was for Ukip, it was all there for Ukip, so, yes,
:28:59. > :29:14.Probably between ten and 15 cars, I expect.
:29:15. > :29:21.I wasn't deducted any pay for being out of the office, so,
:29:22. > :29:27.you could say that I was paid for the two days that I was there.
:29:28. > :29:31.One estimate of the cost of 15 drivers ferrying voters
:29:32. > :29:34.to the polls would be ?9,000, a sum that would have put Ukip's
:29:35. > :29:41.The Tories, of course, are also in trouble for failing
:29:42. > :29:47.to declare election expenses on a larger scale than this.
:29:48. > :29:50.Mark Reckless told Newsnight neither I nor my agent authorised
:29:51. > :29:56.spending except that which was appropriately declared.
:29:57. > :29:59.But we found no record of this spending in the returns.
:30:00. > :30:03.So where does that leave Arron Banks?
:30:04. > :30:05.It is only lawful if you stay within the regulated proceedings
:30:06. > :30:10.for spending money for the purposes of the election of the candidates.
:30:11. > :30:13.If you go outside of it, it is unlawful on the part
:30:14. > :30:15.of the third party who organised the assistance, Mr Banks
:30:16. > :30:24.If they did it and incurred those costs, without the authority
:30:25. > :30:26.of the agent, as it appears that they may have done,
:30:27. > :30:29.that is called an illegal practice and it is an offence,
:30:30. > :30:40.Arron Banks told us all expenditure incurred during the by-election
:30:41. > :30:47.was properly expensed in full and notified to Ukip at the time.
:30:48. > :30:52.But the party's record-keeping, he said, left something to be desired.
:30:53. > :30:55.No prosecution is on the cards because a criminal allegation has
:30:56. > :31:02.to be made within one year of any potential offence.
:31:03. > :31:03.But this story bites because after Rochester,
:31:04. > :31:05.the BBC along with other broadcasters gave Ukip
:31:06. > :31:17.and its party leader Nigel Farage a much bigger platform.
:31:18. > :31:24.Hollywood loves a winner, the Arron Banks box set may well
:31:25. > :31:26.binge on his business antics, but playing fast and
:31:27. > :31:31.That may not go down so well at the box office.
:31:32. > :31:37.We did invite Mr Banks to join us tonight but we are told
:31:38. > :31:42.In a statement he told us: "Since the referendum result
:31:43. > :31:45.and my support for Donald Trump, I have been the subject
:31:46. > :31:48.of politically motivated attacks by the 'mainstream media'
:31:49. > :31:53.It comes as no surprise that "Newsnight" would join
:31:54. > :31:56.the party at this late stage with their own particular
:31:57. > :32:01.type of trashy 'News of the World' journalism!"
:32:02. > :32:04.He added: "After allegations of me being a "Russian spy, part
:32:05. > :32:06.of a worldwide conspiracy to subvert democracy,
:32:07. > :32:09.the only surprise is how long it's taken Newsnight
:32:10. > :32:14.to have a pop at me! BBC Fake news is alive and well!"
:32:15. > :32:21.Cramming one opinion into two minutes.
:32:22. > :32:23.Tonight, the trade economist Shanker Singham, from the think tank
:32:24. > :32:25.the Legatum Institute, looks at how we might get
:32:26. > :34:17.The Harvey Weinstein case has ignited a debate about the quiet
:34:18. > :34:23.It feels as though we have re-calibrated attitudes,
:34:24. > :34:26.so that it is no longer quiet, or tolerated.
:34:27. > :34:30.But one important aspect of the cover-up of sexual predation
:34:31. > :34:33.has come under examination today: it's the role of compensation
:34:34. > :34:35.settlements for victims attached to non-disclosure agreements
:34:36. > :34:39.designed to keep them quiet about what happened.
:34:40. > :34:44.The Financial Times today reported on a former London-based assistant
:34:45. > :34:53.She was harassed by Weinstein; a colleague of hers was assaulted.
:34:54. > :34:56.They wanted to report it, but they were put under pressure
:34:57. > :34:58.by phalanxes of lawyers, both Weinstein's and their own,
:34:59. > :35:04.Zelda Perkins thus kept quiet, and that's why she hasn't
:35:05. > :35:08.So should we tolerate these contracts?
:35:09. > :35:10.With me is the lawyer Harini Iyengar, who works
:35:11. > :35:14.in this field and has drawn up similar agreements.
:35:15. > :35:16.In Washington is Maya Raghu, director of Workplace and Equality
:35:17. > :35:25.Thanks for joining us. Harini Iyengar, I want to start with you,
:35:26. > :35:29.are these enforceable? Is Zelda Perkins said something, it she
:35:30. > :35:36.presumably will not be chased up now? If she said something to years
:35:37. > :35:41.after they had signed it, could he have won in court if she reported
:35:42. > :35:46.it? It depends. It depends on the circumstances. So far, we only know
:35:47. > :35:52.what was in the FT. She used the word to rest. If she entered into a
:35:53. > :35:55.contract under duress, under pressure, it wouldn't be
:35:56. > :35:59.enforceable. Certainly, the kind of settlement I am involved in between
:36:00. > :36:05.two parties advised and have decided it is the best way to resolve a
:36:06. > :36:09.dispute. She was legally advised, but as she described it, there were
:36:10. > :36:15.a lot of lawyers. She is a young woman, a bunch of men sitting across
:36:16. > :36:22.her table, would a judge recognised that as an intimidating by its
:36:23. > :36:27.nature? If she didn't exercise free will, the contract shouldn't be
:36:28. > :36:30.enforceable. Do you think these contracts are desirable? I do,
:36:31. > :36:37.actually. You have two distinguished the criminal aspect of rape and
:36:38. > :36:41.sexual assault. Unfortunately, in the last few years, I have had three
:36:42. > :36:45.cases that did involve rape. They are not entirely separate. When we
:36:46. > :36:49.look at employment tribunal, litigation in particular, sexual
:36:50. > :36:53.harassment, that is getting compensation in monetary form. Why
:36:54. > :36:59.do you need to attach to that that you don't tell people what has
:37:00. > :37:07.happened? It is on the basis the allegations are not admitted. It
:37:08. > :37:11.avoids expensive litigation. Litigation can be in private if
:37:12. > :37:17.there is a sexual harassment element to it, but it is still stressful. I
:37:18. > :37:22.maintain it is better. You might advise a woman to go with it? Many
:37:23. > :37:25.women want to get it over with and take the compensation. They want to
:37:26. > :37:31.get proper compensation that reflects what they would have got if
:37:32. > :37:39.and when they had gone to court. Maya Raghu, I am interested in what
:37:40. > :37:43.you think on this. I think there are circumstances in which N'Diaye as
:37:44. > :37:46.are important and useful for individuals that are coming forward
:37:47. > :37:53.to complain about sexual harassment or assault. However, generally in
:37:54. > :37:59.the US, they have been used to silence victims to cover up the
:38:00. > :38:03.extent of sexual harassment in some workplaces, and really to shield
:38:04. > :38:08.serious harassers from any serious accountability. There are a couple
:38:09. > :38:14.of key differences from what we were just hearing. In the US, mini
:38:15. > :38:18.workers will end up negotiating settlement agreements with their
:38:19. > :38:22.employer, in case of sexual harassment without an attorney. That
:38:23. > :38:27.is because the vast majority of victims simply don't have access or
:38:28. > :38:32.resource to hire an attorney. Many of these workers are in low-wage
:38:33. > :38:36.jobs and in fast food industries or retail, and it is not a realistic
:38:37. > :38:39.option to have someone even advise them on their options, let alone on
:38:40. > :38:44.the terms of a settlement agreement. Many women suffer in silence and
:38:45. > :38:49.don't come forward because they think they are the only ones, and
:38:50. > :38:55.that acts to prevent others from coming forward and revealing the
:38:56. > :38:58.extent of a problem. Harini, how do we get out of the fact that the
:38:59. > :39:04.lawyers were part of the cover-up for Weinstein? He made multiple
:39:05. > :39:10.settlements. The process didn't work. I have not come across
:39:11. > :39:13.settlement agreements where the sum of money seems very large compared
:39:14. > :39:22.to what one thinks APA would be earning, and indeed, what you might
:39:23. > :39:24.get. She was on 20,000. Looking without the details, it seems
:39:25. > :39:30.greatly inflated, and that causes concern. As a business, why is a
:39:31. > :39:34.business, and what would the shareholders and board had to say
:39:35. > :39:39.about excessive sums of money being spent on an employee's behaviour? Do
:39:40. > :39:42.you think the whole existence of this institution with no
:39:43. > :39:47.whistle-blowing around it, does actually foster the secrecy and
:39:48. > :39:53.cover up of Weinstein type cases? I do. Especially in cases like we have
:39:54. > :39:58.in the US, where there is such a power imbalance between the worker
:39:59. > :40:01.and employer, especially if the worker is unrepresented. That is
:40:02. > :40:04.when you can get settlement agreements with nondisclosure
:40:05. > :40:08.agreements that sometimes prevent them from talking about the
:40:09. > :40:12.underlying acts, even if they would constitute a crime in the US. What
:40:13. > :40:18.would you do... Sorry to cut you off, what would you do about it? One
:40:19. > :40:27.of the things we have done is we recently launch the first national
:40:28. > :40:29.legal network for gender equity to help women and vulnerable people
:40:30. > :40:35.experiencing sex as cremation and harassment, in implement and in
:40:36. > :40:37.schools, to give them advice and connect them to a network of
:40:38. > :40:41.attorneys across the country that can help them. The second thing is
:40:42. > :40:46.we know there are legislators across the country, whether in Congress or
:40:47. > :40:52.in the States, who think about a legislative solution. And very
:40:53. > :41:00.briefly, you would never allow here, would you, a cover-up of a criminal
:41:01. > :41:05.offence? In a sentence. Neither from the women or the business side.
:41:06. > :41:08.Thank you both very much indeed. We leave you with the work
:41:09. > :41:15.of Hadar Averbuch-Elor and Daniel Cohen-Or,
:41:16. > :41:19.of the University of Tel Aviv, who have developed software that
:41:20. > :41:22.automates and simplifies the process of bringing still photos
:41:23. > :41:25.to life with 3D animation. It's known that Facebook are
:41:26. > :41:33.also involved, so expect to see the effect bringing joy
:41:34. > :41:34.to your newsfeed - or possibly creeping you out -
:41:35. > :41:38.sooner rather than later.