05/02/2012

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:01:28. > :01:32.Later in the programme: Det Tomorrow is deadline day for the

:01:32. > :01:42.peacocks. What other hopes for its future and that of the Welsh

:01:42. > :01:42.

:01:42. > :30:57.Apology for the loss of subtitles for 1755 seconds

:30:57. > :31:02.Hello, I AM Aled ap Dafydd and on the Sunday Politics and Wales we

:31:02. > :31:05.will discuss the future for Peacocks as the deadline runs to

:31:05. > :31:10.make a bid for the troubled retailer.

:31:10. > :31:15.Do private developers get away Wishaw changing our local a 30s? We

:31:15. > :31:19.will have a special report. Sitting comfortably, ready to react

:31:19. > :31:26.other Conservative MP Alun Cairns and the Liberal Democrat Assembly

:31:26. > :31:33.Member Eluned Parrott. You sign this letter, do you

:31:33. > :31:37.realise this is a valuable industry in Wales? My scepticism about when

:31:37. > :31:42.the industry has been on the record for a long time. I think it is

:31:42. > :31:46.inefficient, expensive and drive some peoples energy bills. That is

:31:46. > :31:51.what we should focus on. Some subsidies like those for wind

:31:51. > :31:56.turbines should be cut because we are in hard Financial Times, would

:31:56. > :32:00.you cut it? I wouldn't at the moment. We need to reach around the

:32:00. > :32:06.UK that we have a good energy mix and that means stable, secure

:32:06. > :32:13.supplies. We need different means of generating electricity to

:32:13. > :32:17.achieve that. So to pull the rug out a -- of one particular energy

:32:17. > :32:23.has run at the moment. There is more discussion to come. But what

:32:23. > :32:29.next for a Peacocks? And will political intervention kick-start

:32:29. > :32:33.the Welsh economy? Tomorrow is the deadline for anyone

:32:33. > :32:36.interested in making a bid for the retailer which is currently in the

:32:36. > :32:40.hands and the administrator. Our business correspondent, Nick

:32:40. > :32:45.Servini, has a looking at the story that has taken Peacocks from the

:32:45. > :32:48.high street to the headlines and a very challenging economic climate.

:32:48. > :32:52.Shop staff leave the company to like not knowing if they have a job

:32:52. > :32:56.tomorrow. It is one of our biggest companies.

:32:56. > :33:00.Now talks have broken down with its lenders. We found out in the

:33:00. > :33:08.morning who has got their jobs. is sad. We come back tomorrow and

:33:08. > :33:13.then we leave the company. final deadline for bids for

:33:13. > :33:17.Peacocks is on Monday and it will not just affect the 250 people that

:33:17. > :33:22.work at the Cardiff headquarters, but those who work in the retail

:33:22. > :33:31.outlets in just about every major high street in the UK. This was

:33:31. > :33:36.Britain's largest UK -- retail collapse. This was because some I

:33:36. > :33:40.Water Lane levels of debt. -- eye watering. If there is any comfort

:33:40. > :33:45.for the staff who work for this company, it is that the trading

:33:45. > :33:49.performance of the store or and this firm was never the problem. It

:33:49. > :33:53.was always the debt. As a result, you would have thought there is a

:33:53. > :33:58.chance this company can be bought as a growing concern and as much of

:33:58. > :34:01.it can remain intact as possible. But at the same time it is a tough

:34:01. > :34:05.trading environment out there and it is a brutal world for any

:34:05. > :34:10.company in administration. Two weeks ago the administrators told

:34:10. > :34:14.us that this company needed to be slimmed down. The next morning 250

:34:14. > :34:21.people, that is have the staff to work at their headquarters, were

:34:21. > :34:26.made redundant. Just over a week ago we were told that someone --

:34:26. > :34:32.companies were interested. We now understand that that figure has

:34:32. > :34:37.been whittled down to six serious runners and riders. Probably the

:34:37. > :34:43.best case scenario for the staff here is that if Peacocks retains

:34:43. > :34:48.itself as a single entity in Cardiff, a distribution network in

:34:48. > :34:52.South Wales. If this business is snapped up by another major

:34:52. > :34:57.retailer, it already has an existing headquarters elsewhere in

:34:57. > :35:04.the UK, if that happens, the jobs here are likely to be more fun

:35:04. > :35:09.rubble. -- vulnerable. There is never a good time to have

:35:09. > :35:14.a corporate failure like here. You have to say at the moment it is

:35:14. > :35:21.particularly tough, with the UK economy hovering close to recession.

:35:21. > :35:26.Unemployment in Wales stands at 180,000, nine - my nearly 9% of the

:35:26. > :35:30.working population. And how to boost the economy is occupying the

:35:30. > :35:34.minds of not just people in the private sector, but in Government

:35:34. > :35:38.as well. Behind me is where we're going to have one of the new

:35:38. > :35:42.enterprise zones and Wales. This one for our financial services and

:35:42. > :35:47.the centre of Cardiff. It is one of a number being set up across the

:35:47. > :35:51.country. All in an attempt to maintain growth in the economy.

:35:52. > :35:56.Meanwhile for the staff at Peacocks, more pressing matters of the next

:35:56. > :36:01.few days. They will find out if they will have a job or not.

:36:01. > :36:06.That was Nick Servini. We will look at the wider economy at the moment.

:36:06. > :36:10.We know that there are roughly half a dozen interested parties going to

:36:10. > :36:14.make a bid for our Peacocks. Are you encouraged by the amount of

:36:14. > :36:18.people showing an interest? Absolutely. I think the staff will

:36:18. > :36:28.take some comfort for that. If they are six viable bids coming through.

:36:28. > :36:34.What we need to hope is that those bids are ones to take their company

:36:34. > :36:37.Hall as -- forward as a whole and retain as many jobs as possible. As

:36:37. > :36:43.administrators are appointed to get the best possible deal for the

:36:43. > :36:48.creditors, not for their economy as a whole or the staff who work for

:36:48. > :36:55.the organisation in question. thing is to have a quantity of beds

:36:55. > :37:00.and then the quality of beds. We have seen in terms of another party

:37:00. > :37:04.of their Peacocks Group, the new owners have decided not to take on

:37:04. > :37:10.around and 60 stores and there is talk about a third of their work

:37:10. > :37:16.load -- workforce losing their jobs. Peacocks is a different structure

:37:16. > :37:21.and the stores are making money. I think we need to expect that the

:37:21. > :37:26.stores will be OK. There might be some changes in other areas. By

:37:26. > :37:31.enlarge the stores are OK. The prize has to be the headquarters

:37:31. > :37:34.based in Cardiff. I think things like private equity investment

:37:34. > :37:38.might be better than in competitor buying out the stores, because all

:37:38. > :37:44.the competitor will do is shift the head office functions to wherever

:37:44. > :37:51.they currently operate from. Rather than maintaining the Peacocks as a

:37:51. > :37:56.separate brand, Peacocks's headquarters. In their report, we

:37:56. > :38:00.heard there was never a good time for such a collapse to happen. With

:38:00. > :38:05.unemployment out nearly 9%, do you anticipate things will get worse

:38:05. > :38:09.before they get better? I think it is very difficult to say. We are

:38:09. > :38:13.starting to see the first green shoots. The World Trade

:38:13. > :38:17.Organisation have given the UK economy as a whole a picture of

:38:17. > :38:22.growth for the next year. And stronger growth will be seen in

:38:22. > :38:26.other places in Europe. I AM hopeful that we'll start to see a

:38:26. > :38:34.corner being turned. I AM concerned that the Welsh Government has a

:38:34. > :38:40.strong role to play. The structure of the and employment market is

:38:40. > :38:46.such that I worry their young people are not able to get onto the

:38:46. > :38:51.career ladder and the first places. You talk about youth unemployment,

:38:51. > :38:56.there around one million young people currently unemployment. The

:38:56. > :39:01.collision Government chose to axe the future growth fund. Was that

:39:01. > :39:06.regrettable? Not at all. The current programmes have shown that

:39:06. > :39:13.even people now have been long-term unemployed, 20 presenter finding

:39:13. > :39:19.work. You talk about a new programme. That was introduced in

:39:19. > :39:24.2011. They are now 133,000 young people unemployed. That seems to

:39:24. > :39:28.suggest the new programme has failed. Not at all. The news that

:39:28. > :39:35.was presented this week showed how successful the new programme is.

:39:35. > :39:40.The economic criteria in context has changed. In general, Wales went

:39:40. > :39:45.into greater decline when the economy in the UK was not growing.

:39:45. > :39:49.The economy in the UK is in difficulty, but there are some

:39:49. > :39:53.signs of green shoots that we are seeing. But what I AM more worried

:39:53. > :39:57.about her is the economy in Wales, partly because of the education

:39:57. > :40:04.standards and Wales are poorer than the rest of the UK and because of

:40:04. > :40:08.the inward investment performance. I AM worried about their planning

:40:08. > :40:13.rules that a very different. Welsh Government is creating

:40:13. > :40:17.enterprise zones. They are creating these nine months after they have

:40:17. > :40:21.been running in England. They will be up and running in April. Many

:40:21. > :40:27.people are suggesting that these will be the cure to the ills of the

:40:27. > :40:30.economy. Is that the reality? single pill is going to be the cure

:40:30. > :40:38.for the disease which is the structural problems in the Welsh

:40:38. > :40:42.economy. These include education and training. They also include

:40:42. > :40:47.infrastructure, for example the lack of access to broadband that

:40:47. > :40:50.many of our towns across Wales have. But in central Cardiff there are

:40:50. > :40:54.areas where you cannot access broadband. That is shocking. There

:40:54. > :40:59.are real structural problems. Enterprise zones are a really

:40:59. > :41:02.fantastic opportunity if they you - - if they are used well. There has

:41:02. > :41:07.to be a good level of parish are working between the local

:41:07. > :41:11.authorities to have been successful forbidding -- bidding for

:41:11. > :41:16.enterprise zones. We have to in that discussion there.

:41:16. > :41:20.On to more matters, more than have Welsh local authorities are road

:41:20. > :41:26.money by private developers who haven't had the side on planning

:41:26. > :41:30.deals. -- haven't kept their side of the bargain on planning deals.

:41:30. > :41:34.Merely to play �3 million have gone to councils or the past seven years

:41:34. > :41:38.education, affordable housing and maintaining public spaces. But some

:41:38. > :41:42.authorities have told Sunday Politics they don't even have

:41:43. > :41:46.systems in place to keep track of the payments due to them.

:41:46. > :41:50.There will be a new development year. There will be new libraries

:41:50. > :41:58.and new schools partly funded by the developer in what is known as

:41:58. > :42:08.the sex and one of sex planning agreement. -- planning section one

:42:08. > :42:13.

:42:13. > :42:17.or sex. - one of six. More than half of Welsh councils are waiting

:42:17. > :42:21.for the money owed to them. When we first spoke to these people and

:42:22. > :42:25.Bridgend, the developers of the new houses they're all at the local

:42:25. > :42:31.authority more than �80,000 for education and play facilities.

:42:31. > :42:36.think you should be made available as soon as -- possible. If they say

:42:36. > :42:42.the money is available, it should be handed over Auric competition

:42:42. > :42:46.should be set up to decide what the priorities are. And not put it off

:42:46. > :42:56.from one month to the next and it could be disappearing and no one

:42:56. > :42:56.

:42:56. > :43:03.knows what has gone too. We are chasing up the money. I know that

:43:03. > :43:08.there are other a 30s not doing that. There are a lot of money of

:43:08. > :43:13.the up -- on to a 30s. At a time when there are kickbacks taking

:43:13. > :43:17.place, thousands of pounds going to the coffers and it would make him

:43:17. > :43:23.what a difference to them. Since Sunday Politics investigated, the

:43:23. > :43:27.money due from the developer has been played into Bridgend council's

:43:27. > :43:31.bank account. But there are plenty of Welsh councils still waiting for

:43:31. > :43:34.the cash they are owed under similar arrangements. At least

:43:34. > :43:38.three of authorities do not appear to be keeping track of what they

:43:38. > :43:42.are owed. Anglesea said they could not answer our questions which we

:43:42. > :43:46.answered under the fee minimum information act. The Vale of

:43:46. > :43:51.Glamorgan said it is undertaking a full review to see a fun thing is

:43:52. > :43:56.under -- anything is outstanding. It was recruiting someone to

:43:56. > :44:00.improve things. The Welsh Local Government Association says the

:44:00. > :44:05.councils are trying to be flexible and realistic with developers

:44:05. > :44:09.during in incredibly difficult period. The associate and says a

:44:09. > :44:17.number of agreements are subject to resume causation, but councils

:44:17. > :44:20.remain robust in collecting money they are owed. It can have an

:44:20. > :44:26.effect on council services, increased traffic on roads. If they

:44:26. > :44:33.are not collecting the money then those extra up things have to be

:44:33. > :44:37.catered from from the central budget. The golden pot is long gone.

:44:37. > :44:44.In two years time these at hoc deals between councils and

:44:44. > :44:49.developers will be replaced by any levy system. It aims to provide

:44:49. > :44:55.facilities for committees and a clear and consistent way. A very

:44:55. > :45:01.low levy will be regarded as very desirable by developers and that

:45:01. > :45:09.kind of response might appeal to a particular group of politicians. At

:45:09. > :45:14.the other extreme are very, very high levy designed to raise

:45:15. > :45:20.considerable sums of money for major infrastructure would perhaps

:45:20. > :45:23.be more favourably regarded by other groups and politicians.

:45:24. > :45:27.council budgets being squeezed, it is more important than other that

:45:27. > :45:33.deals with developers worth millions of pounds are honoured.

:45:33. > :45:38.That was poll Heaney reporting. It comes to something but it takes a

:45:38. > :45:41.BBC investigation to have a council paid back the money it is odd.

:45:41. > :45:45.is a subject close to my heart because I love and are now

:45:45. > :45:51.development where there has been some controversy about the payments

:45:51. > :45:55.between the develop -- developer and the Council who have not been

:45:55. > :46:00.able to provide you with details of how much money is outstanding. That

:46:00. > :46:04.is a real worry. Yes, some councils a said they are all some money. But

:46:04. > :46:08.to be told we cannot tell you how much is owed his to shopping.

:46:08. > :46:12.will strike a lot of people as being odd is that this is free

:46:12. > :46:16.money for councils. We are talking about a time when councils up and

:46:16. > :46:19.down the country are complaining that services will have to be cut

:46:19. > :46:23.and they are not being funded adequately. Yet again they do not

:46:23. > :46:28.have processes that in place to monitor the money which is owed to

:46:28. > :46:32.them. It is of is that some developers are running rings around

:46:32. > :46:36.some councils. Because of the size of some councils they know their

:46:36. > :46:41.capacity to challenge them and to hold the developers to the letter

:46:41. > :46:45.of the agreement. They are not strong without some court action.

:46:45. > :46:48.Some tactics let developers are views it is that they go quietly

:46:48. > :46:52.out of business as the project comes to an end, so it is difficult

:46:52. > :47:01.to go chasing them and that is what part of the problem is with

:47:01. > :47:05.collecting money. Should there be a tougher sanctions on the? That is a

:47:05. > :47:10.merit and looking at that. There needs to be clear transparency in

:47:10. > :47:15.terms of what money is being paid, or where it is being paid. It is

:47:15. > :47:18.far every project. If you love and a development and you have allowed

:47:18. > :47:21.are supported the extension of a development because it would

:47:21. > :47:24.provide a community centre or because it would provide play for

:47:24. > :47:28.assault is, then it is only right that people in that committee can

:47:28. > :47:32.see how much money has been paid into the local council and where

:47:32. > :47:35.that has been followed through and track. One thing that was mentioned

:47:35. > :47:39.and the report with the changes to the planning system which will be

:47:39. > :47:45.introduced the 2014, will that simplified things? I hope that it

:47:45. > :47:51.will. But the devil will be in the detail. On the face of it they are

:47:51. > :47:55.very clear. The amount of money is set aside any agreement and the

:47:55. > :47:59.payment schedule is set aside in the agreement. The question now is

:47:59. > :48:04.how is that followed through? I AM hopeful that the new levy will take

:48:04. > :48:08.care of it but I AM not convinced. We will keep a close eye.

:48:09. > :48:16.It is our round-up of the goings-on in the Assembly and Westminster.

:48:16. > :48:21.Here is the Regan 60 seconds. -- here is the week in 60 seconds.

:48:21. > :48:25.The chair of the Assembly's Public Accounts Committee was up saying he

:48:25. > :48:31.was astonished that the bother of a critical report had not been

:48:31. > :48:37.contacted. The Welsh Government is investigating allegations of

:48:37. > :48:41.financial irregularities. The Liberal Democrats warned councils

:48:41. > :48:46.could seek to blame school governors far falling standards.

:48:46. > :48:50.Aled Roberts was worried councils could copy others who have applied

:48:50. > :48:54.to suspend school governors. Chris Evans asked employers to be more

:48:54. > :49:01.flexible with workers to live with the chronic condition inflammatory

:49:02. > :49:07.bowel disease. He expressed concern over North Wales police decision to

:49:07. > :49:12.reorganise rapid-response groups. The Welsh Conservatives should have

:49:12. > :49:19.a leader in Wales, that is the view from the Assembly group leader

:49:19. > :49:24.Andrew Davis. He added that the person do not have to be an AGM. --

:49:24. > :49:30.Assembly Member. Word from Westminster Alun Cairns

:49:30. > :49:33.is that Alan Davies's docks were not welcome. There is a leader in

:49:33. > :49:37.Wales and that is the Prime Minister. The Secretary of State

:49:37. > :49:40.and the leader of the Assembly group work together so that

:49:40. > :49:46.provides leadership at a Welsh level. I do not see what the

:49:47. > :49:51.issuers. You don't agree with it? do not see what the agree - might

:49:51. > :49:58.need is for it at the moment. I see the leader in Wales as the Prime

:49:58. > :50:02.Minister. You have lost a Cabinet Minister in Westminster this week.

:50:02. > :50:06.That is the second to bite the dust since the coalition was formed. Is

:50:06. > :50:11.this beginning to be a problem for the Lib Dems? Not at all. Chris

:50:11. > :50:20.Huhne has done the right thing in standing aside. Obviously we cannot

:50:20. > :50:30.comment on that. A quick prediction on the rugby this afternoon? Wales

:50:30. > :50:30.