:00:01. > :00:04.screens go to black. Thousands of people gathered outside the
:00:04. > :00:14.Hellenic Broadcasting Corporation to protest against the decision.
:00:14. > :00:19.
:00:19. > :00:21.Now it is time to get the latest Another day of severe disruption
:00:22. > :00:28.for air travellers in Europe as traffic controllers across the
:00:28. > :00:38.region go on strike. And in today's edition of Taxing Times, we ask the
:00:38. > :00:45.question is the beautiful island of Jersey a tax haven or not? Welcome
:00:45. > :00:49.to World Business Report. Also in the programme: Yum Brands, the
:00:49. > :00:52.owner of KFC, sees another steep fall in sales in China due to fears
:00:52. > :01:02.about bird flu and the quality of its chicken supply. We'll have the
:01:02. > :01:02.
:01:03. > :01:09.details. In the run-up to the G8 summit on
:01:09. > :01:15.tax, three centres who are widely accused of being tax havens have
:01:15. > :01:20.agreed to share the deals with the rest of the International Committee.
:01:20. > :01:26.One of them as Jersey, a small island just off the course of
:01:26. > :01:31.France. It is home to more than one trillion dollars. What is it doing
:01:31. > :01:36.to avoid being a tax haven? How will it cope without its enormous
:01:36. > :01:46.banking section? It is only nine miles across at
:01:46. > :01:49.five miles down. It manages more interest will wealth -- Inter
:01:49. > :01:54.national wealth and anywhere else in the world per square metre. It
:01:54. > :01:59.makes up more than two-thirds of its annual income. That revenue is
:01:59. > :02:03.under threat like never before. The international community is
:02:03. > :02:13.preparing to clamp down hard on illegal tax evasion and tax
:02:13. > :02:15.
:02:15. > :02:22.avoidance. His Jersey a tax haven? It is certainly a financial sector.
:02:22. > :02:28.Some of the best financial services in the world exist here. This man
:02:28. > :02:33.is a deputy of the local parliament. He says that Jersey is a tax haven.
:02:33. > :02:43.It is pricing locals do not work in finance out of the tax -- housing
:02:43. > :02:48.
:02:48. > :02:54.market. The price of keeping fire as here means that tax is falling
:02:54. > :03:00.on individuals. Labour is taxed. That is an incentive to try to
:03:00. > :03:05.impose new business. Jersey has gone from and agreeing island famed
:03:05. > :03:11.for its cows to one of the best known offshore financial centres in
:03:11. > :03:17.the world. Taxation, or the lack of it, is a reason. Income tax cannot
:03:17. > :03:27.go above 20 %. The super-rich foreign committee pay a fraction of
:03:27. > :03:27.
:03:28. > :03:34.their annual income. Tax on profit is zero. How would the Ireland
:03:34. > :03:38.manager? It is a question they will have to answer themselves more
:03:38. > :03:48.intensively in coming months adheres as the international
:03:48. > :03:57.
:03:57. > :04:01.community ramps up the pressure. The owner of Fast food chain KFC
:04:01. > :04:11.has reported a 19 percent drop in sales in China... Rico Hizon is in
:04:11. > :04:12.
:04:12. > :04:17.our Asia business hub in Singapore. Rico, what's behind this?
:04:17. > :04:22.There is still a 19 % drop in sales. Bad fortunes are being blamed on
:04:22. > :04:26.the outbreak of bird flu and controversial publicity involving
:04:26. > :04:32.the chicken supplier on the mainland. The sales have dropped by
:04:32. > :04:39.double digits. This is still an improvement from the April numbers.
:04:39. > :04:45.Sales fell by 30 % then. China is a critical region for young Rance. It
:04:45. > :04:50.owns the Kentucky Fried Chicken and food chain. -- young brands. It
:04:51. > :04:56.also owns Pizza Hut. They have benefited from expansion in recent
:04:56. > :05:06.years. The expects sales to continue recovering and to turn
:05:06. > :05:12.positive in the 4th quarter. Striking can be a dangerous
:05:12. > :05:18.activity in some places. Tell us more.
:05:18. > :05:27.In Cambodia, 300 workers have been fired for taking part in a strike
:05:27. > :05:32.over pay. The factory involved makes garments for Nike. The
:05:32. > :05:37.dismissals were described as illegal. People were forced from
:05:37. > :05:43.their jobs without compensation. Thousands of workers clashed with
:05:43. > :05:49.police. Workers clashed with colleagues. The textile industry is
:05:49. > :05:53.very important. It employs 650,000 people throughout the country and
:05:53. > :05:58.produces close for top Western brands. It is the largest exporter
:05:58. > :06:03.in the country. Thank you. By massive battle is
:06:03. > :06:07.taking place in the skies over Europe. A plan to simplify the
:06:07. > :06:11.patchwork air-traffic control system and will burn up more air
:06:11. > :06:18.traffic duties to private enterprise has caused strikes and
:06:18. > :06:28.other actions by controllers. It began and Tuesday. A series of
:06:28. > :06:29.
:06:29. > :06:35.strikes forced mean -- mean airports to cancel some 800 flights.
:06:35. > :06:40.That is 25 % of all scheduled flights. Passengers can expect more
:06:40. > :06:50.widespread misery today. 10 European countries are joining the
:06:50. > :06:51.
:06:51. > :06:58.action. Let's get more. Good morning, Francois. Teller's
:06:59. > :07:08.the reasons why this action is taking place. -- tell us. What is
:07:09. > :07:10.
:07:10. > :07:20.the reason for it? Two reasons. There is a package that has taken
:07:20. > :07:22.
:07:22. > :07:29.eight years to commission. It has created confusion. The main reason
:07:29. > :07:39.is that the commission wants to legalise the open sky. For us, that
:07:39. > :07:41.
:07:41. > :07:49.is not acceptable. There needs to be communication. Their race to be
:07:49. > :07:59.communication. There must be training. This is a new situation
:07:59. > :08:07.
:08:07. > :08:12.for the workers. Sorry to interrupt but I wanted to ask you on those
:08:12. > :08:17.points, don't you agree that the system must be made more efficient?
:08:17. > :08:22.One quotation from the transport commissioner is that the current
:08:22. > :08:28.system is costing passengers and airlines 5 billion euros a year. Is
:08:28. > :08:35.there not a better way of running the system?
:08:35. > :08:42.When you speak about more efficiency, we have to take into
:08:42. > :08:48.account all of the capacity and the safety of the environment. The
:08:48. > :08:58.commission is pushing forward on an economic point of view. There has
:08:58. > :09:01.
:09:02. > :09:08.to be safety but first. There are a number of targets. These plans will
:09:08. > :09:17.race safety levels, not compromise safety. I am not saying that it
:09:17. > :09:26.will not be safe. The first priority is economic. This is an on
:09:26. > :09:30.ending process. It is about cost cutting from the commission. The
:09:30. > :09:40.commission has planned that the cost must reduced by 70 % in coming
:09:40. > :09:42.
:09:42. > :09:52.years. This approach is not justified. We are risking people
:09:52. > :09:53.
:09:53. > :10:00.losing their jobs. This is why it is not acceptable. Where is the
:10:00. > :10:09.middle ground. It is causing disruption than these guys. Where
:10:09. > :10:19.is the middle ground? At the moment, this is too much. There is a social
:10:19. > :10:29.dimension. I think we can work together with the commission. It is
:10:29. > :10:35.
:10:35. > :10:42.very important. France and Germany do not need the new package. Thank
:10:42. > :10:49.you. This is a story that we will keep