The Tax Haven Twins

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0:00:03 > 0:00:07This is a Panorama that should never have been made,

0:00:07 > 0:00:11reported by "A liar, a bully, a drunkard,

0:00:11 > 0:00:15"out of control and out for revenge."

0:00:15 > 0:00:17That's me they're talking about.

0:00:17 > 0:00:22At least, that's what I'm accused of by these billionaire twins.

0:00:22 > 0:00:26They own the paper that investigated MPs' expenses.

0:00:26 > 0:00:30So why do they hate it when the spotlight is turned on them?

0:00:30 > 0:00:33If you can hand it out, then you ought to be able to take it.

0:00:33 > 0:00:35I think that's the rule of thumb.

0:00:35 > 0:00:38The Barclay twins do not pay personal tax in this country,

0:00:38 > 0:00:42so why is one of their companies claiming a billion pounds

0:00:42 > 0:00:43from the British taxpayer?

0:00:45 > 0:00:46I think it's absolutely outrageous.

0:00:46 > 0:00:51These are incredibly wealthy men who don't pay British tax.

0:00:51 > 0:00:53And they've got a private island,

0:00:53 > 0:00:57so why is there so much trouble with the neighbours?

0:00:57 > 0:00:59I felt the best thing to do would be

0:00:59 > 0:01:01to get as far away from them as possible.

0:01:01 > 0:01:04Every day I just feel, you know, just not happy.

0:01:04 > 0:01:09You know, not like I used to. It is very upsetting.

0:01:23 > 0:01:27We're just approaching Brecqhou from the south.

0:01:27 > 0:01:29This is the story of two billionaires

0:01:29 > 0:01:31who bought their own private island.

0:01:31 > 0:01:35Identical twins who've built a castle.

0:01:37 > 0:01:38It's strictly private

0:01:38 > 0:01:40so I am not allowed to land anybody on the island.

0:01:40 > 0:01:42They've entertained David Cameron

0:01:42 > 0:01:46and George Osborne in their extraordinary home.

0:01:46 > 0:01:50- Six cannons on the top wall.- Right. - If you see a puff of smoke, duck.

0:01:50 > 0:01:52THEY LAUGH

0:01:54 > 0:01:56They've built a business empire from scratch

0:01:56 > 0:01:58and given millions to charity.

0:02:00 > 0:02:02But you may never have heard of them,

0:02:02 > 0:02:06because Sir David and Sir Frederick Barclay are notoriously secretive.

0:02:09 > 0:02:11Thanks, mate.

0:02:11 > 0:02:12And that's odd,

0:02:12 > 0:02:14because they own the Daily Telegraph,

0:02:14 > 0:02:17Britain's biggest-selling broadsheet.

0:02:18 > 0:02:23A lot of press barons don't like publicity, they shy away.

0:02:23 > 0:02:29But if you were to sort of create a scale of reclusiveness,

0:02:29 > 0:02:33right at the zenith would be the Barclay brothers.

0:02:33 > 0:02:39They are the most reclusive, the most litigious and therefore,

0:02:39 > 0:02:41I think, the most difficult to understand.

0:02:43 > 0:02:46The Telegraph exposed the MPs' expenses scandal.

0:02:46 > 0:02:48Great journalism,

0:02:48 > 0:02:50though the paper published lots of personal stuff

0:02:50 > 0:02:52about our politicians too.

0:02:53 > 0:02:55Tonight at ten -

0:02:55 > 0:02:58now Conservatives brace themselves for embarrassing revelations.

0:02:58 > 0:03:02Six senior Tories are under fire for their expenses.

0:03:02 > 0:03:05Their leader says it's time to apologise.

0:03:05 > 0:03:08The expenses scandal did the Telegraph a world of good.

0:03:08 > 0:03:10The twins did not go to the High Court

0:03:10 > 0:03:13for the Leveson Inquiry into the press.

0:03:13 > 0:03:14But Sir David's son did a turn.

0:03:16 > 0:03:19Our last witness this afternoon is Mr Aidan Barclay.

0:03:19 > 0:03:21Thank you very much indeed.

0:03:21 > 0:03:23Aidan Barclay manages the Telegraph

0:03:23 > 0:03:26and he sups with those who hold power -

0:03:26 > 0:03:29Tony and Cherie, two private dinners.

0:03:31 > 0:03:33Gordon and Sarah, six.

0:03:35 > 0:03:37Dave and Samantha, three.

0:03:39 > 0:03:42The driving principle for me

0:03:42 > 0:03:45is that the editor should follow his readers,

0:03:45 > 0:03:47because that's what's more likely

0:03:47 > 0:03:50to make the Telegraph or any newspaper a success.

0:03:50 > 0:03:54Aidan told Leveson that it was the media's job

0:03:54 > 0:03:57to scrutinise those in positions of influence and power

0:03:57 > 0:04:00and to report in the public interest.

0:04:01 > 0:04:02We think he's got a point.

0:04:03 > 0:04:06I am going to scrutinise two men who,

0:04:06 > 0:04:09we think, hold positions of power and influence.

0:04:09 > 0:04:12They are Aidan Barclay's father, Sir David Barclay,

0:04:12 > 0:04:15and his uncle, Sir Frederick Barclay,

0:04:15 > 0:04:17the owners of the Daily Telegraph.

0:04:19 > 0:04:21We think it's in the public interest.

0:04:21 > 0:04:23But it won't be easy,

0:04:23 > 0:04:26because the Barclays defend their reputation fiercely.

0:04:29 > 0:04:32There aren't many Tory politicians who will talk about the twins.

0:04:32 > 0:04:33This one will.

0:04:34 > 0:04:39- Oh!- Nadine Dorries is no stranger to bad publicity.

0:04:39 > 0:04:42- You've got to say the words.- I'm a celebrity, get me out of here. - OK, let's get you out.

0:04:42 > 0:04:44Ah! Ah! Get me out!

0:04:44 > 0:04:49The MP's had her fair share of negative headlines in the Telegraph.

0:04:49 > 0:04:53She thinks the Barclays should put up with scrutiny too.

0:04:53 > 0:04:59Being owners of a major newspaper puts them in the public eye

0:04:59 > 0:05:01and makes them public figures.

0:05:01 > 0:05:03You can't demand

0:05:03 > 0:05:07that as somebody as high-profile as owners of a newspaper

0:05:07 > 0:05:09that you are entitled to privacy,

0:05:09 > 0:05:11because I don't believe you are.

0:05:11 > 0:05:14What's deeply ironic about powerful press barons who, after all,

0:05:14 > 0:05:16make a lot of money invading other people's privacy,

0:05:16 > 0:05:19is how protective they are of their own privacy.

0:05:19 > 0:05:22It leaves people like the Barclay twins less scrutinised

0:05:22 > 0:05:26than people of equal power and wealth in other walks of life.

0:05:27 > 0:05:31The twins say they are still entitled to privacy

0:05:31 > 0:05:34and they've never objected to media scrutiny.

0:05:46 > 0:05:48So let's scrutinise this.

0:05:48 > 0:05:51A £35 million mansion,

0:05:51 > 0:05:53a stone's throw from Buckingham Palace.

0:05:54 > 0:05:58When you or I buy a house, we do so in our own name.

0:05:58 > 0:06:01But this mansion is registered in the name

0:06:01 > 0:06:05of a company based in the British Virgin Islands, a tax haven.

0:06:05 > 0:06:07Why on earth would anyone want to do that?

0:06:09 > 0:06:12Well, if you are a family of great wealth, like the Barclays,

0:06:12 > 0:06:16there's one possible advantage for future generations.

0:06:17 > 0:06:21They won't pay inheritance tax if it's owned offshore.

0:06:21 > 0:06:25Because you only pay inheritance tax on your UK-based assets.

0:06:25 > 0:06:28The house is now not in the UK for legal purposes.

0:06:28 > 0:06:29It's outside inheritance tax.

0:06:29 > 0:06:34If you pay £35 million for the house,

0:06:34 > 0:06:36and inheritance tax is at 40%,

0:06:36 > 0:06:39that saves you £14 million in tax straightaway.

0:06:41 > 0:06:44Around the block, there's more Barclay family property.

0:06:44 > 0:06:48It cost £21 million, and once again, it's owned

0:06:48 > 0:06:50by a company in the British Virgin Islands.

0:06:52 > 0:06:55The twins say they've never been involved

0:06:55 > 0:06:57in any tax avoidance scheme.

0:06:57 > 0:06:58Their lawyers say...

0:07:05 > 0:07:10Avoiding tax via the offshore route would be perfectly legal,

0:07:10 > 0:07:12but would it be morally acceptable?

0:07:14 > 0:07:16The Chancellor might not think so.

0:07:16 > 0:07:21He's already described aggressive tax avoidance as morally repugnant.

0:07:21 > 0:07:26And Number 10 has given one tax avoider a good kicking.

0:07:26 > 0:07:29I'll make a statement later on, if that's OK.

0:07:29 > 0:07:30The comedian Jimmy Carr.

0:07:30 > 0:07:33He's taking that money and stuffing it into something

0:07:33 > 0:07:37where he doesn't have to pay taxes. That is not fair. That is not right.

0:07:37 > 0:07:40So how do Dave and George feel about the Barclay family

0:07:40 > 0:07:44placing these London properties offshore?

0:07:44 > 0:07:47The Prime Minister and the Chancellor declined to comment.

0:07:54 > 0:07:57The twins left London for Monaco 23 years ago.

0:07:59 > 0:08:00They deny it's a tax haven

0:08:00 > 0:08:04and they say their charitable donations far outweigh

0:08:04 > 0:08:08what they would have paid in tax if they'd stayed in the UK.

0:08:08 > 0:08:09Their lawyers point out

0:08:09 > 0:08:12that they've made a very significant contribution

0:08:12 > 0:08:13to the British economy.

0:08:13 > 0:08:17The Barclays bought this little B&B in '95.

0:08:17 > 0:08:20It's also ultimately owned offshore.

0:08:22 > 0:08:25Welcome to the Ritz, one of the most expensive hotels in London,

0:08:25 > 0:08:27and you would have thought,

0:08:27 > 0:08:29a nice little earner for the British taxman.

0:08:29 > 0:08:32But somehow it doesn't quite work out like that.

0:08:34 > 0:08:37I've looked at the accounts of the Ritz for 17 years.

0:08:37 > 0:08:42This is fundamentally a profitable business before interest is paid.

0:08:42 > 0:08:44But they've not paid any tax at all

0:08:44 > 0:08:47to the UK government during that period.

0:08:47 > 0:08:48Not a penny.

0:08:50 > 0:08:56Avoiding corporation tax in this way is perfectly legal, but is it fair?

0:08:56 > 0:08:59Aidan Barclay told us that the company hadn't paid any dividends,

0:08:59 > 0:09:02and profits from the Ritz had been reinvested.

0:09:19 > 0:09:23According to Sir David, it's nothing to do with the twins.

0:09:23 > 0:09:27He says they retired more than 20 years ago because of his ill-health.

0:09:42 > 0:09:45But our evidence shows the UK companies are controlled

0:09:45 > 0:09:48by offshore trusts set up by the twins

0:09:48 > 0:09:52and that one of the brothers attends trust meetings.

0:09:53 > 0:09:55These meetings are taking place in Monaco.

0:09:55 > 0:10:00But there is no doubt that sitting right in the middle of the meeting

0:10:00 > 0:10:02are the Barclay brothers,

0:10:02 > 0:10:05who are, therefore, able to exercise control of these companies.

0:10:10 > 0:10:13The Barclay offshore trusts also control the Daily Telegraph

0:10:13 > 0:10:16and the catalogue outfit Littlewoods.

0:10:18 > 0:10:21# My lovely, lovely mother... #

0:10:21 > 0:10:24It's another company that has history with the taxman.

0:10:24 > 0:10:28Littlewoods went to court and won a VAT refund plus interest

0:10:28 > 0:10:31worth almost half a billion pounds.

0:10:36 > 0:10:38You might have thought that billionaires

0:10:38 > 0:10:39who do not pay tax in this country

0:10:39 > 0:10:43would be happy with a payout of £472 million

0:10:43 > 0:10:46from the hard-pressed British taxpayer.

0:10:46 > 0:10:47You'd be wrong.

0:10:47 > 0:10:52The Barclays are hoping for an extra billion pounds in compound interest.

0:10:55 > 0:10:58Compound interest isn't normally paid on VAT claims.

0:10:58 > 0:11:01So Littlewoods is taking the government to court

0:11:01 > 0:11:04in a test case to get that extra billion.

0:11:06 > 0:11:08If they win that case,

0:11:08 > 0:11:11then a whole raft of other cases,

0:11:11 > 0:11:14who knows how many billions of pounds of money,

0:11:14 > 0:11:16will have to be repaid to other people as well.

0:11:16 > 0:11:18So we're talking about something

0:11:18 > 0:11:21which could massively increase UK government debt,

0:11:21 > 0:11:23all for the sake of enriching a company

0:11:23 > 0:11:26that is operated from offshore tax havens.

0:11:26 > 0:11:30For the Barclay family, it's a matter of tax justice.

0:11:30 > 0:11:32The original VAT claim was lodged

0:11:32 > 0:11:35before they took over the business in 2002.

0:11:36 > 0:11:38Sir David said...

0:11:50 > 0:11:54So the Ritz has paid no corporation tax for 17 years,

0:11:54 > 0:11:59but Littlewoods is seeking a billion quid from the taxman.

0:11:59 > 0:12:01I think it's absolutely outrageous.

0:12:01 > 0:12:05These are incredibly wealthy men who don't pay British tax,

0:12:05 > 0:12:07who live in their tax haven island.

0:12:07 > 0:12:10I think it's just utterly appalling.

0:12:12 > 0:12:16David Cameron, George Osborne and I have one thing in common.

0:12:16 > 0:12:18We've all been to Brecqhou.

0:12:18 > 0:12:19The difference is,

0:12:19 > 0:12:21I wasn't invited to the twins' little holiday home

0:12:21 > 0:12:23in the Channel Islands.

0:12:24 > 0:12:27It was way back when I had hair.

0:12:27 > 0:12:28Well, sort of.

0:12:31 > 0:12:35The castle was being built, and shortly after this was filmed,

0:12:35 > 0:12:37I trespassed onto their island.

0:12:40 > 0:12:44I then made a mistake while talking about the story on Radio Guernsey

0:12:44 > 0:12:48and the twins took me to court for libel in the UK and France.

0:12:49 > 0:12:52The BBC paid damages and I apologised.

0:12:52 > 0:12:56The Barclays say I should not be making this Panorama

0:12:56 > 0:13:00because I have a history of making misleading, fabricated

0:13:00 > 0:13:02and libellous statements about them.

0:13:02 > 0:13:06They say I am malicious and out for revenge,

0:13:06 > 0:13:09a liar acting as judge and executioner.

0:13:11 > 0:13:15I'm not going to Brecqhou today, but to the island next door,

0:13:15 > 0:13:17its big sister, Sark.

0:13:19 > 0:13:21So help me with the geography.

0:13:21 > 0:13:23This is Sark.

0:13:23 > 0:13:26This is Brecqhou over here.

0:13:26 > 0:13:28They're so close together. I mean, how big is that gap?

0:13:28 > 0:13:31It's actually, it's not that far apart. It's only 80 yards.

0:13:32 > 0:13:34A tiny statelet and a tax haven,

0:13:34 > 0:13:37Sark is home to just 600 people.

0:13:42 > 0:13:45Funnily enough, I'm not the only person around here

0:13:45 > 0:13:48who's heard from the Barclays' lawyers.

0:13:48 > 0:13:52Sark's postmistress put up a Private Eye article

0:13:52 > 0:13:54about the twins in her shop.

0:13:54 > 0:13:57She was accused of libel and forced to apologise.

0:13:57 > 0:14:00So was gardener Joe Birch.

0:14:00 > 0:14:02The flowers look lovely!

0:14:04 > 0:14:07And retired hotelier Richard Dewe.

0:14:07 > 0:14:08Hello!

0:14:09 > 0:14:14Sark's judge, Reg Guille, had to apologise twice.

0:14:16 > 0:14:17Lovely weather.

0:14:17 > 0:14:19Oh, not bad for this time of year at all.

0:14:21 > 0:14:23The Barclays' lawyers told us...

0:14:39 > 0:14:43One local lawyer offered to defend people for free.

0:14:44 > 0:14:47They feel that they have to be very careful about what they say.

0:14:47 > 0:14:49Otherwise they may be sued.

0:14:49 > 0:14:52I think that understandably

0:14:52 > 0:14:54puts people under a lot of stress.

0:15:00 > 0:15:03The island is a bit of a time warp.

0:15:03 > 0:15:07Cars are banned, so you have to find other ways of getting about.

0:15:09 > 0:15:12And some of the laws are old-fashioned too.

0:15:14 > 0:15:16The island is owned by the Queen

0:15:16 > 0:15:19and leased to her representative, the Seigneur.

0:15:19 > 0:15:22Until four years ago, Sark was feudal.

0:15:22 > 0:15:26The Seigneur used to collect a personal tax on property sales.

0:15:28 > 0:15:30So when they bought Brecqhou,

0:15:30 > 0:15:34the Barclays had to pay him £180,000.

0:15:35 > 0:15:39They were polite, reasonable,

0:15:39 > 0:15:41they didn't stand out in any way other than the fact

0:15:41 > 0:15:43that they were identical twins,

0:15:43 > 0:15:45dressed in identical clothes.

0:15:45 > 0:15:48But the friendliness did not last long.

0:15:48 > 0:15:50The twins wanted their money back.

0:15:50 > 0:15:54I remember I received a writ

0:15:54 > 0:15:57to appear before the court in Guernsey

0:15:57 > 0:16:00to say that Brecqhou was not part of Sark.

0:16:05 > 0:16:09After a four-year battle, the Barclays dropped their case.

0:16:09 > 0:16:11Brecqhou IS part of Sark.

0:16:13 > 0:16:17But their lawyers are still challenging the island's laws.

0:16:19 > 0:16:20This is Chief Pleas,

0:16:20 > 0:16:25the only Parliament in the world with the keys left behind the door.

0:16:25 > 0:16:27The Barclays twins aren't very happy about the laws

0:16:27 > 0:16:30that have been passed in this small room.

0:16:30 > 0:16:34They've been to the Guernsey Court twice, the Appeal Court in London

0:16:34 > 0:16:35and the Supreme Court.

0:16:35 > 0:16:38They've launched three judicial reviews,

0:16:38 > 0:16:42taken two cases to the European Court Of Human Rights.

0:16:42 > 0:16:47Oh! And they've petitioned the Queen seven times.

0:16:48 > 0:16:51The twins say all the legal proceedings...

0:17:08 > 0:17:11The old feudal system was unfair

0:17:11 > 0:17:14and the Barclays did help bring the first democratic elections

0:17:14 > 0:17:15to the islands.

0:17:15 > 0:17:18But the twins say it's not a proper democracy

0:17:18 > 0:17:21and their legal onslaught continues.

0:17:22 > 0:17:24I've got a pile of letters this thick

0:17:24 > 0:17:27from their advocate in Guernsey.

0:17:27 > 0:17:32And, of course, there's always this feeling that if you step out of line,

0:17:32 > 0:17:36you're going to get sued, taken to court,

0:17:36 > 0:17:40or if we pass laws here, in the Chief Pleas,

0:17:40 > 0:17:42suddenly, they're petitioned.

0:17:46 > 0:17:49The twins say that the Seigneur retains feudal power,

0:17:49 > 0:17:51and like many on Sark,

0:17:51 > 0:17:54has profited from multiple offshore directorships.

0:17:55 > 0:17:57BICYCLE BELL RINGS

0:17:58 > 0:18:00They also point out that they've given money

0:18:00 > 0:18:02to three local charities,

0:18:02 > 0:18:04which is true.

0:18:04 > 0:18:06Up to a point.

0:18:06 > 0:18:09The largest donation by the Barclay twins

0:18:09 > 0:18:14was the £200,000 towards the island's spanking new hall.

0:18:14 > 0:18:15Very generous.

0:18:15 > 0:18:20But after the hall was built, the Barclays demanded their money back.

0:18:22 > 0:18:27The hall has a licensed bar and the twins wanted it closed,

0:18:27 > 0:18:30because, they said, it was too close to the island's school.

0:18:30 > 0:18:33When the trustees refused, they were taken to court.

0:18:35 > 0:18:37The trustees, who are ordinary folk,

0:18:37 > 0:18:40were sued jointly and severally,

0:18:40 > 0:18:43each one potentially liable for the whole amount,

0:18:43 > 0:18:46some £200,000.

0:18:46 > 0:18:51And I remember one of the trustees came up to me in tears.

0:18:52 > 0:18:55The Barclays eventually lost,

0:18:55 > 0:18:59but the trustees say they were put through two years of hell.

0:19:00 > 0:19:01Had we lost the case,

0:19:01 > 0:19:04it meant I would lose my home in order to settle the debt.

0:19:04 > 0:19:07The stress was unbelievable

0:19:07 > 0:19:09and the relief afterwards

0:19:09 > 0:19:11was absolutely incredible,

0:19:11 > 0:19:12when we actually got there.

0:19:15 > 0:19:21The Barclays have created jobs by investing £30 million on Sark.

0:19:21 > 0:19:25Their businesses are run by this man, Kevin Delaney.

0:19:25 > 0:19:26A trusted lieutenant,

0:19:26 > 0:19:30Mr Delaney shares many of the Barclays' views about the island.

0:19:32 > 0:19:36He also has a business of his own, publishing a parish paper.

0:19:36 > 0:19:41Mr Delaney says the Sark Newsletter campaigns for true democracy.

0:19:43 > 0:19:44This is certainly an important one,

0:19:44 > 0:19:47because it introduced the concept

0:19:47 > 0:19:48that Sark was comparable

0:19:48 > 0:19:53to Germany in the late 1930s under Hitler.

0:19:54 > 0:19:58I think it's very intimidating to people.

0:19:58 > 0:20:04They're frightened of being mentioned in it and vilified in it.

0:20:04 > 0:20:06If you believe the Newsletter,

0:20:06 > 0:20:09Sark is ruled by some pretty nasty people.

0:20:09 > 0:20:12The former headmistress has a "lust for power"

0:20:12 > 0:20:16and runs a "Stalin-like dictatorship".

0:20:16 > 0:20:18I choose not to read the Newsletter now

0:20:18 > 0:20:21because it raises my blood pressure.

0:20:21 > 0:20:25I think there are things that are very difficult to justify.

0:20:25 > 0:20:29An island farmer has "no compassion or sense of shame"

0:20:29 > 0:20:33and is an "intensely disliked and unpleasant man".

0:20:33 > 0:20:34The thing was, you know,

0:20:34 > 0:20:38I didn't feel that I was disliked to such a degree.

0:20:38 > 0:20:41And, you know, I've lived on the island all my life.

0:20:41 > 0:20:44I know everybody in Sark.

0:20:45 > 0:20:48It did hurt - it hurt for a long time.

0:20:51 > 0:20:53And a local artist has been accused

0:20:53 > 0:20:56of failing to account for public money.

0:20:56 > 0:20:59The stress, you know, is obviously having an effect on me.

0:20:59 > 0:21:03Every day, I just feel just not happy, you know.

0:21:03 > 0:21:06Not like I used to.

0:21:06 > 0:21:10So it's really, it is very upsetting for people like me

0:21:10 > 0:21:14who just want... I wish they'd just stop it -

0:21:14 > 0:21:17stop the Newsletter, stop with the bullying

0:21:17 > 0:21:19and let us live in peace.

0:21:21 > 0:21:27But the real poison is reserved for an 84-year-old man, the Seigneur.

0:21:27 > 0:21:30When the Seigneur's wife suffered a stroke,

0:21:30 > 0:21:33the Newsletter castigated the way she was treated.

0:21:33 > 0:21:37It accused the Seigneur and Sark's doctor of wilful negligence.

0:21:38 > 0:21:40The most upsetting part for me

0:21:40 > 0:21:43was the fact that, in a time of great tragedy,

0:21:43 > 0:21:47the family were being, uh...were being treated very badly.

0:21:47 > 0:21:50What we're talking about is

0:21:50 > 0:21:52the husband of a lady who's suddenly become critically ill,

0:21:52 > 0:21:54and I found it extremely upsetting

0:21:54 > 0:21:57that an opportunity, as far as I believe,

0:21:57 > 0:22:00was being taken to attack a man

0:22:00 > 0:22:04when he's already so worried about his wife.

0:22:04 > 0:22:07I'm afraid to say it was just a pickle.

0:22:07 > 0:22:09I mean, I thought it was actually disgraceful.

0:22:09 > 0:22:15It's, uh... Just treated with utter contempt, quite frankly.

0:22:20 > 0:22:22Over the past couple of years,

0:22:22 > 0:22:25Mr Delaney's relationship with the Barclays

0:22:25 > 0:22:29has been repeatedly raised here in Chief Pleas.

0:22:29 > 0:22:33Sark's politicians say he wouldn't be able to publish the Newsletter

0:22:33 > 0:22:36against his employers' wishes.

0:22:36 > 0:22:38Surely the twins could stop it,

0:22:38 > 0:22:40if they wanted to.

0:22:42 > 0:22:46When we put this to the Barclays, their lawyers said...

0:22:58 > 0:23:02The Barclays say the Newsletter is nothing to do with them,

0:23:02 > 0:23:05but islanders remain unconvinced.

0:23:05 > 0:23:09They say the Newsletter targets those who oppose the twins.

0:23:09 > 0:23:12It makes foul allegations about people

0:23:12 > 0:23:15and doesn't ask for their side of the story.

0:23:15 > 0:23:17Well, they usually ask me, "Can I sue?"

0:23:17 > 0:23:20And I say, "You can,

0:23:20 > 0:23:23"but my advice is that you don't,

0:23:23 > 0:23:27"because you can't afford to."

0:23:27 > 0:23:32Libel is a rich man's legal remedy.

0:23:35 > 0:23:39Mr Delaney denies that the Newsletter is defamatory

0:23:39 > 0:23:41or that it targets people who oppose the Barclays.

0:23:43 > 0:23:46He says HE is the victim of harassment

0:23:46 > 0:23:49and that the Newsletter campaigns to stop bullying

0:23:49 > 0:23:51by the feudal establishment.

0:23:51 > 0:23:54I dropped by his office to pick up a copy.

0:23:54 > 0:23:56Hello, hi.

0:23:56 > 0:23:58Have you got some copies of the Newsletter?

0:23:58 > 0:24:02I don't, unfortunately, cos it's not printed up here.

0:24:02 > 0:24:03- Oh, I see.- Um...

0:24:03 > 0:24:06This is how he described my behaviour in a letter

0:24:06 > 0:24:10copied to the Chairman and Director-General of the BBC.

0:24:10 > 0:24:13- Some of the hotels might have them. - Smashing.

0:24:25 > 0:24:28- Smashing.- I can probably get some up here for you.

0:24:28 > 0:24:30No, no, no. I don't want to inconvenience you.

0:24:35 > 0:24:38- Thank you.- All right, pleasure. - Cheers, bye-bye.- Bye-bye.

0:24:42 > 0:24:47So much for the accuracy of Mr Delaney's Newsletter.

0:24:48 > 0:24:51This really is a very strange place.

0:24:54 > 0:24:56HE CHUCKLES

0:24:57 > 0:25:01There does seem to be a man in the bushes up there.

0:25:02 > 0:25:05It's possible we're being spied on.

0:25:08 > 0:25:10Get that? Over there.

0:25:10 > 0:25:13And now he's just gone.

0:25:13 > 0:25:14Are we being spied on?

0:25:16 > 0:25:20It seems that we're being followed by one of Kevin Delaney's minders.

0:25:21 > 0:25:23- Good afternoon!- Hello!

0:25:23 > 0:25:25We just stopped for a cup of tea

0:25:25 > 0:25:30and the same man who'd been following us at the cliff top

0:25:30 > 0:25:34has been spotted lurking in the shrubbery behind me.

0:25:37 > 0:25:40When we head back to the main street,

0:25:40 > 0:25:41he's waiting for us again.

0:25:46 > 0:25:49The same bloke in four separate locations.

0:25:53 > 0:25:54We go to the harbour

0:25:54 > 0:25:56and guess who turns up?

0:25:56 > 0:25:59Mr Delaney's minder.

0:25:59 > 0:26:01So I ask him, "What's he up to?"

0:26:07 > 0:26:08Yes.

0:26:09 > 0:26:10Yes, absolutely.

0:26:15 > 0:26:16Yes.

0:26:34 > 0:26:35Why?

0:26:35 > 0:26:38'So it's a coincidence that we bumped into him

0:26:38 > 0:26:40'five times in four hours.'

0:26:48 > 0:26:49Is he?

0:26:49 > 0:26:51Oh, I'm... That's what I know.

0:26:51 > 0:26:53- Very good.- OK?- Very good, well done. Thank you.

0:26:55 > 0:27:00His boss, Kevin Delaney, said I was a drunkard,

0:27:00 > 0:27:01boorish, oafish,

0:27:01 > 0:27:03a disgrace to journalism,

0:27:03 > 0:27:07pursuing a twisted and warped agenda.

0:27:08 > 0:27:11He declined our request for an interview.

0:27:12 > 0:27:14HE SIGHS

0:27:14 > 0:27:17The island's doctor has had enough of Mr Delaney

0:27:17 > 0:27:20and he's fed up with the Barclay twins.

0:27:20 > 0:27:22He's left Sark for good.

0:27:22 > 0:27:25I felt that, with their enormous wealth,

0:27:25 > 0:27:27that, really, the best thing to do

0:27:27 > 0:27:30would be to get as far away from them as possible.

0:27:31 > 0:27:34The twins also declined to be interviewed.

0:27:34 > 0:27:37They said my questions were defamatory,

0:27:37 > 0:27:40bullying, intimidating, stressful

0:27:40 > 0:27:43and amounted to interrogation by the state.

0:27:43 > 0:27:48But the Telegraph raises questions much like ours all the time.

0:27:49 > 0:27:53I think when you own a newspaper group,

0:27:53 > 0:27:56then I think it ill-behoves you to hide away.

0:27:56 > 0:28:00I think that you, you have to understand that...

0:28:00 > 0:28:02OK, you don't want to be a public figure,

0:28:02 > 0:28:07but by the very virtue of your newspaper ownership, you are.

0:28:15 > 0:28:18The twins say they won't be judged by me

0:28:18 > 0:28:21and that the outcome of this programme will be settled

0:28:21 > 0:28:24in the courts of the UK, France and Monaco.

0:28:25 > 0:28:30This is a family of great power who are used to getting their own way.

0:28:31 > 0:28:34If you're invading other people's privacy,

0:28:34 > 0:28:36and reporting in a way which means

0:28:36 > 0:28:39delving into the private lives of other people,

0:28:39 > 0:28:43then I think you have to take it on the chin, you have to suck it up and take it on the chin yourself.

0:28:43 > 0:28:47The last thing we want is a legal battle with billionaires,

0:28:47 > 0:28:50but we think this programme IS in the public interest.

0:28:50 > 0:28:52In the words of Aidan Barclay,

0:28:52 > 0:28:58"It's our job to scrutinise those in positions of influence and power."

0:28:58 > 0:29:01And surely that includes the owners of our national press.

0:29:20 > 0:29:23Subtitles by Red Bee Media Ltd