Browse content similar to 14/10/2012. Check below for episodes and series from the same categories and more!
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$:/STARTFEED. Up in the air as the BAe merger deal with EADS bomb site, | :01:30. | :01:40. | |
:01:40. | :01:40. | ||
Apology for the loss of subtitles for 2174 seconds | :01:40. | :37:54. | |
what next for beat that 16,000 , and up in the North West... | :37:54. | :38:02. | |
Up in the air, is the BA Dee -- BAE merger deal collapses, what next? | :38:02. | :38:07. | |
The risk is that Typhoon continues to do less well manager and if that | :38:07. | :38:10. | |
is the case, there will be more job cuts. | :38:10. | :38:15. | |
cuts. cuts. | :38:15. | :38:20. | |
The at report coming up. That report coming up and two Lancashire | :38:20. | :38:23. | |
MPs keen to discuss it. This week we have Mark Hendrick, the Labour | :38:23. | :38:26. | |
MP for Preston, and Jake Berry, the Conservative MP for Rossendale and | :38:26. | :38:28. | |
Darwen. A very unsettling time? It is. These discussions have been | :38:28. | :38:33. | |
going on for some months. They were later and then because of stock | :38:33. | :38:37. | |
exchange rules, BAE and EADS had to make announcements to the world. | :38:37. | :38:42. | |
During that time, the work force have been very concerned about it. | :38:42. | :38:49. | |
The fact that this deal has now failed and is dead means that the | :38:49. | :38:54. | |
work will continue Aziz added his begins -- business as usual. There | :38:54. | :38:57. | |
is concern about the long-term and whether or not a deal will be done | :38:57. | :39:00. | |
in the future. We beat Ed Day to make sure that Britain and Europe | :39:00. | :39:08. | |
have a strong defence industry. -- we need a deal. Also, this is a | :39:08. | :39:12. | |
company that has such impact across Lancashire? Absolutely. Earlier | :39:12. | :39:20. | |
this week I was meeting apprentices who work in the supply team at BAE | :39:20. | :39:26. | |
Systems. Let's not talk them down. It is a fantastic company, it has a | :39:26. | :39:31. | |
full order book and his deal was described as an opportunity rather | :39:32. | :39:37. | |
than a necessity. Let's get a little bit more detail on this. | :39:37. | :39:39. | |
The two companies already work together on building this - the | :39:40. | :39:42. | |
Eurofighter Typhoon. The merger would have created the world's | :39:42. | :39:45. | |
largest defence, security and aerospace group. And for BAE, it | :39:45. | :39:48. | |
would have been a return to the civil aviation markets, which it | :39:48. | :39:54. | |
left six years ago when it sold its 20% holding in Airbus to EADS. But | :39:54. | :39:56. | |
the French and particularly the German government wanted large | :39:56. | :40:02. | |
national stakes in the new company, which Britain would not accept. | :40:02. | :40:05. | |
What next for the company and its 16,000 employees at plants across | :40:05. | :40:11. | |
the North West? They are known for the Typhoon, but | :40:11. | :40:14. | |
their doomed romance has been more of a whirlwind. It is a large | :40:14. | :40:18. | |
regional employer, but works in the most sensitive of industries. And a | :40:18. | :40:28. | |
:40:28. | :40:28. | ||
merger with EADS would have created a huge global company. This is a | :40:28. | :40:32. | |
fantastic opportunity, something which should have perhaps happened | :40:32. | :40:37. | |
15 years ago. This may be our last chance to make one large European | :40:37. | :40:42. | |
companies that can take on the rest of the world. So what went wrong? | :40:42. | :40:45. | |
France and Germany wanted to keep sizable stakes in the new company. | :40:45. | :40:48. | |
Britain didn't want them to take more than 9% and there was a fear | :40:48. | :40:51. | |
that if they did, lucrative contracts with America would be at | :40:51. | :40:58. | |
risk. One Lancashire MP went to Washington to check. Investors, | :40:58. | :41:03. | |
because of the surprise, and they think it was the wrong choice, well, | :41:03. | :41:06. | |
but it -- question the confidence in members of the Board of the | :41:06. | :41:12. | |
company. But in the long term, but order books speak volumes. BAe's | :41:12. | :41:16. | |
order books as a prime and sub- contract there are some of the | :41:16. | :41:19. | |
happiest in the business. The supply chain means more than | :41:19. | :41:22. | |
60,000 people across the north-west rely on BAE Systems for their | :41:22. | :41:25. | |
livelihoods. Workers were unsure what the proposed merger meant for | :41:25. | :41:29. | |
their jobs and that uncertainty remains. I'd like to hear that from | :41:29. | :41:33. | |
our point of view, this is a strong plan for the business and that we | :41:33. | :41:38. | |
can deliver the business plan, delivered a probability back into | :41:38. | :41:45. | |
the business and sustained -- sustain employment. BAE Systems is | :41:45. | :41:48. | |
still one of the world's biggest defence players. But some believe | :41:48. | :41:50. | |
the failed merger leaves the company looking vulnerable. | :41:50. | :41:55. | |
risk is that Tie Fein continues to do less well than it should add if | :41:55. | :42:01. | |
that is big case, it is not good for the future. Workers' futures | :42:01. | :42:04. | |
are still uncertain and for now, BAE Systems is single, but some | :42:04. | :42:07. | |
analysts think it is open to a possible takeover from a US company | :42:07. | :42:14. | |
and may still end up tying the knot. We are joined by Professor Eric | :42:14. | :42:22. | |
Grove. It is a stark warning from the analyst, sighing that he | :42:22. | :42:27. | |
thought it was a pretty grim picture. What do you think? I would | :42:27. | :42:30. | |
be a bit more optimistic. Commentators are saying it has not | :42:30. | :42:35. | |
made a huge amount of difference. It is our loss of face for the | :42:35. | :42:40. | |
management but BAE Systems remains a big contractor. I am not sure | :42:40. | :42:45. | |
that any American company is actually bad keen on a combination | :42:45. | :42:51. | |
with -- that keen on a combination with BAE Systems. From the | :42:51. | :42:56. | |
Pentagon's point of view, I think they wanted the BAE and EADS thing | :42:56. | :43:00. | |
to go forward, because they wanted a competitor for their existing big | :43:00. | :43:04. | |
companies. Some American reports showed that, as long as the | :43:04. | :43:09. | |
structure was acceptable to the USA. The structure on offer was not. The | :43:09. | :43:13. | |
Americans were not willing to accept 9%. It turned into something | :43:13. | :43:17. | |
that was. That is what the management wanted. They saw it as | :43:17. | :43:21. | |
an opportunity to reform the organisation in such a way as it | :43:21. | :43:24. | |
was still competitive in the American market and would still | :43:24. | :43:28. | |
have the advantage of the broader civil market as well. Was a | :43:28. | :43:33. | |
government keen on this deal? one of the MPs who wrote to the | :43:33. | :43:37. | |
Prime Minister to express concern about the interference from the | :43:37. | :43:42. | |
French, German and Spanish governments in the combined company | :43:42. | :43:46. | |
if it had gone ahead, I think big government could see commercial | :43:46. | :43:52. | |
advantages for the Day preceding but quite correctly, it has | :43:52. | :43:56. | |
concerns of protecting British workers first and foremost. Isn't | :43:56. | :44:00. | |
there an argument but having that merger would have led to better job | :44:00. | :44:05. | |
prospects because it would have been a company doing more things? | :44:05. | :44:09. | |
In the longer term. In the short to medium term, there are plenty of | :44:09. | :44:16. | |
contracts. The typhoon project, and also the Joint Strike Fighter, | :44:16. | :44:24. | |
where we are building an aircraft with Americans. The question is | :44:24. | :44:26. | |
about the long term, about aircraft being built. He will have the | :44:26. | :44:30. | |
technology and there is it going to go? There is the production were to | :44:30. | :44:37. | |
be? There are big questions for the future, 10 or 15 years from now. | :44:37. | :44:41. | |
Are you pleased or disappointed that Biddy hasn't gone through? | :44:41. | :44:47. | |
will see what happens in the future. I am reassured that we are not what | :44:47. | :44:50. | |
you have a company employing 16,000 people in the North West | :44:50. | :44:53. | |
predominantly controlled by the French and German government. We | :44:53. | :45:00. | |
have seen it time and again. What I am asking is if the percentages for | :45:00. | :45:03. | |
that foreign governments had been brought down to 9%, we do have been | :45:03. | :45:09. | |
in favour of it or not? As I said earlier, I think BAe has a future | :45:09. | :45:14. | |
as an independent business within the UK, a British business. We have | :45:14. | :45:20. | |
a special relationship with United States and I should think the USA, | :45:20. | :45:24. | |
if the commercial argument is that with their jobs in Lancashire will | :45:24. | :45:30. | |
be more secure if the go-ahead, but I would like to support it. -- then | :45:30. | :45:39. | |
I would look to support it. Professor growth? It was pretty | :45:39. | :45:44. | |
clear that... Sorry to interrupt, do you think bap national politics | :45:45. | :45:49. | |
played a role? I think it is interesting to hear whether | :45:49. | :45:53. | |
commentary is coming from politically in that Euro-sceptic | :45:53. | :45:57. | |
members of parliament were seen to be rather against it for a broader | :45:57. | :46:02. | |
reasons, but for good reasons as well, perhaps. Clearly, politics | :46:02. | :46:06. | |
has triumphed in the end. What about the argument that we should | :46:06. | :46:09. | |
not have been doing this, because this was a very important cuppa | :46:09. | :46:15. | |
before national security and regardless of what kind of peewee., | :46:15. | :46:22. | |
it should remain purely British? is not -- regardless of what kind | :46:23. | :46:29. | |
of deal we.. I think in the longer term we needed a more secure | :46:29. | :46:33. | |
company. There were drawbacks about it some people thought it as a | :46:33. | :46:41. | |
European takeover. Recently, there was talk about combining EADS with | :46:41. | :46:46. | |
a French firm. One of the EADS people, they said do you think we | :46:46. | :46:50. | |
would be allowed to take over Talis? Berra were clearly some | :46:50. | :46:56. | |
people in EADS who saw this as the European takeover. I am not sure | :46:56. | :46:59. | |
this was objectively be case, especially if it could be | :46:59. | :47:04. | |
restructured in such a way. I feel very sorry for the management teams | :47:05. | :47:10. | |
in BAe and EADS, who wanted to use this to diminish the political | :47:10. | :47:15. | |
control over the company. What do you want to see happen? One thing | :47:16. | :47:19. | |
we have forgotten is the reason we lost the India contract is because | :47:19. | :47:22. | |
the could not make a strong case and did not have a great deal of | :47:22. | :47:29. | |
help from the government. This was selling Typhoon aircraft to India. | :47:29. | :47:32. | |
One of the reasons discussions began was because of the failure of | :47:32. | :47:37. | |
that. If this had been a wholehearted venture, those Typhoon | :47:37. | :47:41. | |
aircraft would have been bought by India because we would not have had | :47:41. | :47:47. | |
the same level of competition. not think leading with the Germans | :47:47. | :47:52. | |
helped. If ever there was a project they should have been led by | :47:52. | :47:59. | |
Britain. In the longer term there has got to be a deal. What I want | :47:59. | :48:03. | |
to see is what was on the table from the companies. The reduction | :48:03. | :48:11. | |
in the share of the ownership by a European countries and a reduction | :48:11. | :48:16. | |
of governance on the board. It was the refusal of the German | :48:16. | :48:20. | |
government to decrease its influence in EADS business. I think | :48:20. | :48:23. | |
that is deeply concerning for people worried about jobs and | :48:23. | :48:26. | |
growth in Meite Show and the North West. We don't want jobs being | :48:26. | :48:33. | |
exported to Germany. If something can take politics out of this | :48:33. | :48:38. | |
defence contractor and protect our jobs, it will be at deal. | :48:38. | :48:41. | |
Do you remember two weeks ago, Jack Straw giving some advice? He said | :48:41. | :48:46. | |
Ed Miliband had to use simpler language explaining his ideas. | :48:46. | :48:53. | |
I knew what he meant when he talked about redistribution. But if I | :48:53. | :49:00. | |
stood on my soapbox, my audience would dissolve rapidly. Now Jack, | :49:00. | :49:03. | |
don't switch off your TV but yes, it's time to talk aboutp | :49:03. | :49:06. | |
redistribution, which involves raising wages for the lowest paid - | :49:06. | :49:08. | |
one of the Labour leader's favourite ideas. Stuart Pollitt has | :49:08. | :49:12. | |
been looking at what it is and how it's already happening in parts of | :49:12. | :49:22. | |
:49:22. | :49:26. | ||
the north-west. Howls of anguish from the 80,000 rich people... | :49:26. | :49:29. | |
For most of the last century, politicians debated the pros and | :49:29. | :49:39. | |
:49:39. | :49:40. | ||
cons of wealth distribution. Are we will continue to cut taxes in | :49:40. | :49:48. | |
general and income tax in general. Now there is a new political word | :49:48. | :49:55. | |
on the agenda breeze -- 3 distribution. | :49:55. | :49:58. | |
Basically, it is serving up more money up front in pay packets, | :49:58. | :50:01. | |
rather than topping your salary cake with the icing of tax credits | :50:01. | :50:04. | |
and benefits. For Glenys, it means an extra �1 an hour. She's one of | :50:05. | :50:07. | |
1,200 Manchester city council staff now paid a living wage instead of | :50:08. | :50:15. | |
the minimum wage. Air -- any extra money has got to go somewhere and | :50:15. | :50:19. | |
usually it goes on bills. It does help, but little bit extra, it does | :50:19. | :50:23. | |
help. The national minimum wage is currently �6.19 an hour. The living | :50:23. | :50:25. | |
wage, set annually by an independent panel, is �7.20. That | :50:25. | :50:30. | |
equates to annual salary rising from around �12,000 to �14,000. | :50:30. | :50:33. | |
Labour-controlled Manchester was the first council to introduce a | :50:33. | :50:37. | |
living wage three years ago. This week it agreed on a figure of �7.15 | :50:37. | :50:47. | |
:50:47. | :50:50. | ||
per hour. It will cost us �200,000 a year, out of a �580 million | :50:50. | :50:54. | |
budget is not a huge amount and is worthwhile. Do you understand that | :50:54. | :50:57. | |
people said there are better things to spend money on? Were think we | :50:58. | :51:02. | |
get the benefit for the money we spend. Our turnover in our staff | :51:02. | :51:06. | |
has halved since we introduced the Manchester minimum wage. A few | :51:06. | :51:09. | |
miles away, yet in some ways worlds away, Tory-run Trafford is planning | :51:09. | :51:15. | |
to adopt a living wage from April. I don't care whose idea it is as | :51:15. | :51:20. | |
long as we are able to support ourselves. So you are happy to | :51:20. | :51:23. | |
implement it with the Labour Party? I want to make sure we reward our | :51:24. | :51:28. | |
staff. I think it is going to have poll's -- positive benefits for | :51:28. | :51:33. | |
Trafford and I am not political about discarding something because | :51:33. | :51:39. | |
it might have come from what is viewed as a Labour idea. No it's | :51:39. | :51:49. | |
:51:49. | :51:53. | ||
introduced by -- let's introduce economic theory. There was problems | :51:53. | :51:57. | |
about direct benefit to a local economy from will be spending. | :51:57. | :52:01. | |
Research shows that those on lower incomes will spend a higher | :52:01. | :52:05. | |
proportion of money locally, so the theory goes, pay more and that many | :52:05. | :52:10. | |
crinkles up to small businesses. would expect it would grow up to | :52:10. | :52:14. | |
other parts of the public sector and I think I have already heard | :52:14. | :52:16. | |
conversations in the business sector about the possibilities of | :52:16. | :52:19. | |
going further than the minimum wage. The Manchester based think-tank is | :52:19. | :52:25. | |
in favour of the living wage but admits there are downsides. | :52:25. | :52:30. | |
Businesses would say that this was more expenditure. There is an | :52:30. | :52:35. | |
argument to said that if businesses were to go down this red that it | :52:35. | :52:38. | |
would increase the amount of the legal employment because less | :52:38. | :52:46. | |
people would be paying people legally. Ed Ben Barnes is it is | :52:46. | :52:51. | |
important. David Cameron said it is an idea whose time has come. For | :52:51. | :52:56. | |
Glenys, it means every day life is easier to swallow. | :52:57. | :53:01. | |
We now have Professor Damien grim shot from Manchester business | :53:01. | :53:09. | |
School. What is the motivation? There are multiple variations of | :53:09. | :53:13. | |
motivation. The research we have completed shows one important | :53:13. | :53:17. | |
motivation is that after a series of job cuts in local councils, | :53:17. | :53:21. | |
managers are seeing that many of these low-paid workers are working | :53:21. | :53:25. | |
much harder giving the same amount of services, but with fewer | :53:25. | :53:29. | |
colleagues to share the work. They think a living wage is a good | :53:29. | :53:34. | |
reward. Another reason is that local councils are looking to their | :53:34. | :53:40. | |
locality, seeing higher rates of poverty, especially among the | :53:40. | :53:48. | |
workforce, and we have heard about the trickle of theory. You give | :53:48. | :53:52. | |
poorer people more money and that supports local business, does that | :53:52. | :53:59. | |
work in reality? Is that a theory that works? It is complicated. It | :53:59. | :54:03. | |
depends. What happens when somebody receives a living wage is that | :54:03. | :54:13. | |
:54:13. | :54:14. | ||
there Perry is made up from the base rate to �7.20, outside London. | :54:14. | :54:19. | |
It depends also whether you receive tax credits. Tax credits reduce as | :54:19. | :54:24. | |
the which goes up. It is good news for the Treasury. There is no | :54:24. | :54:28. | |
immediate impact on household. A lot of the local government | :54:28. | :54:31. | |
workforce are women are back -- in part-time jobs suit will not | :54:31. | :54:34. | |
necessarily receive tax credits and they will have a significant | :54:34. | :54:39. | |
increase. Research shows that the lower the income, the more they | :54:39. | :54:45. | |
spend. Are you clear that this has big benefits? Of course. We have to | :54:45. | :54:49. | |
move away to a high quality wage economy and a living wage economy. | :54:49. | :54:54. | |
The way to do that is get employers to be more family friendly, so to | :54:54. | :54:59. | |
speak. Let's see more employers giving child care and more | :54:59. | :55:05. | |
employers are looking at subsidising meals. Does it suggest | :55:05. | :55:09. | |
that the minimum wage is to know? In it does, but the minimum wage is | :55:09. | :55:13. | |
quite formulaic. The government puts down the formula and there is | :55:13. | :55:18. | |
a procedure. When the Labour government introduced a minimum | :55:18. | :55:28. | |
wage, their work workers paid �1.50. It was a big step forward. To be at | :55:28. | :55:34. | |
�6.19, the minimum wage now, is a big step forwards. The working | :55:34. | :55:39. | |
living wage offered at Preston council and Trafford Council of | :55:39. | :55:43. | |
�7.20 is an even bigger step forward. There -- they are not good | :55:43. | :55:46. | |
wages but better than previously. Do you think we government should | :55:46. | :55:51. | |
move the minimum wage are birds? The introduction of the living wage, | :55:51. | :55:56. | |
taken on voluntarily across the country, and one of the main people | :55:56. | :56:02. | |
making progress is Boris Johnson, who has signed up 250 companies in | :56:02. | :56:07. | |
the city, including banks and law firms, it is an idea whose time has | :56:07. | :56:12. | |
come and is usually welcome. What I am worried about are those people | :56:12. | :56:17. | |
who are not getting a living wage, on the minimum wage. The Institute | :56:17. | :56:21. | |
for low pay is said that if the minimum wage was to increase | :56:21. | :56:26. | |
significantly, it would immediately increase unemployment. At a time | :56:26. | :56:31. | |
when we have unemployment falling, a welcome move in the unemployment | :56:31. | :56:34. | |
rate, I do not think this is a time to significantly put up the minimum | :56:34. | :56:41. | |
wage but a living wage is welcome, and as many companies have done | :56:41. | :56:46. | |
this across the North West. affordable is it? There are many | :56:46. | :56:50. | |
American stories of living wages, because they are far more prevalent | :56:50. | :56:57. | |
in America than in Britain. Those studies by economists, especially | :56:57. | :57:01. | |
in California, show that when you look up the benefits to paying | :57:01. | :57:07. | |
minimum wage, it at ways the cost. The benefits I am thinking of our | :57:07. | :57:15. | |
livings -- savings in recruitment because staff turnover goes down. | :57:15. | :57:19. | |
It has been trapped in a number of councils we have visited. | :57:19. | :57:23. | |
Manchester council has done an analysis of what happened to staff | :57:23. | :57:27. | |
turnover on low-paid occupations when they brought up the wage. This | :57:27. | :57:32. | |
needs to be done so that you can track it costs against the benefits, | :57:32. | :57:36. | |
which are immediate and over a long term. You also bring and instil | :57:36. | :57:41. | |
commitment and loyalty among workers. Do you think about what | :57:41. | :57:44. | |
Jake was talking about, in terms of the private sector and putting | :57:44. | :57:51. | |
pressure on them, is that something we will see? The private sector | :57:51. | :57:57. | |
low-wage market is a funny animal. Too many employers think the | :57:57. | :58:00. | |
national minimum wage is it going rate of employment and it is not, | :58:01. | :58:09. | |
it is to stop exports to Asian. It is not our rate of play. A third of | :58:09. | :58:13. | |
employers in the cleaning pay minimum wage, but you need to | :58:13. | :58:21. | |
reward skills. Thank you.. Here's the week's political news in | :58:21. | :58:22. | |
60 seconds. The biggest ever independent | :58:22. | :58:25. | |
investigation into police wrongdoing is to be carried out | :58:25. | :58:27. | |
following the findings of the Hillsborough Independent Panel last | :58:27. | :58:30. | |
month. Serving and former officers will be investigated over the | :58:30. | :58:35. | |
deaths of 96 Liverpool fans. Don't dump it on us - anti-nuclear | :58:35. | :58:38. | |
campaigners in Cumbria say any jobs boost produced by a waste site will | :58:38. | :58:42. | |
be offset by the damage to the image of the Lake District. The | :58:42. | :58:46. | |
council is considering its options. Life's a gas, or it could be in | :58:46. | :58:49. | |
Lancashire, at least after the Chancellor George Osborne said he | :58:49. | :58:56. | |
was going to look into tax breaks for fracking on the Feyld coast. | :58:56. | :59:01. | |
that Britain is not left behind as gas prices tumble. | :59:01. | :59:03. | |
Filming has begun on the first collaboration between Pinewood | :59:03. | :59:05. | |
Shepperton Studios and the Isle of Man government. The Manx | :59:05. | :59:09. | |
authorities paid �12 million for a stake in the home of the James Bond | :59:09. | :59:13. | |
and Harry Potter films. And Alicia definitely wasn't off | :59:13. | :59:16. | |
key but Manchester City Council is to publish a full report next week | :59:16. | :59:19. | |
into the �400,000 it spent on putting a concert on by the | :59:19. | :59:29. | |
:59:29. | :59:31. | ||
American singer. Second appearance for Alicia Keys | :59:31. | :59:36. | |
in our news. Let's talk about where we are politically after the party | :59:36. | :59:39. | |
conferences. Do you think Labour is in a stronger position than when it | :59:39. | :59:43. | |
went in? Without a doubt. Ed Miliband has stamped his authority | :59:43. | :59:48. | |
on the party and become a lot more credible with the public. He did a | :59:48. | :59:52. | |
fantastic speech, as most people agree. Will anyone have heard it? | :59:52. | :59:56. | |
Her I'm sure they read about it in the newspapers on saw it on TV. | :59:56. | :00:00. | |
David Cameron says he wants to spread privilege. Privilege, by | :00:00. | :00:05. | |
nature, is for the few and not the many. I saw Jake Berry put a | :00:05. | :00:14. | |
plodding up on television, respond to that? -- I saw Jake Berry | :00:14. | :00:18. | |
applauding it. Speed king for 70 minutes with out notes is an | :00:18. | :00:22. | |
achievement especially when you have nothing to say. He only | :00:22. | :00:25. | |
mention the deficit for 30 seconds. A the biggest single issue facing | :00:25. | :00:29. | |
the country. The first way of dealing with the problem is | :00:29. | :00:34. | |
admitting you have a problem. you for being with us. Next week we | :00:34. | :00:37. |