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You can find the current article at its original source at https://www.theguardian.com/politics/live/2016/jun/15/sir-philip-green-questioned-by-mps-over-bhs-collapse-live-updates
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| Sir Philip Green: 'stupid and idiotic' decisions made over BHS - live updates | Sir Philip Green: 'stupid and idiotic' decisions made over BHS - live updates |
| (35 minutes later) | |
| 3.07pm BST | |
| 15:07 | |
| Green blasts "envy and jealousy" over tax set-up | |
| Q: With hindsight, do you think the offshore setup of your businesses is incompatible with the modern world? | |
| Green checks his pad for a prepared statement, and then pronounces | |
| Envy and jealousy are two incurable diseases. I have done nothing wrong. | |
| Green insists that his empire could have been structured much more aggressively to avoid tax. | |
| We have paid many, many hundreds of millions of pounds of tax. As far I am concerned I have a very clear conscience. We have paid everything due. | |
| Green suggests that he could, for example, have taken his fashion brands offshore and charged a royalty. | |
| Where we made money here, we paid tax here. | |
| Envy + jealously are 2 incurable diseases, Green says. "I've done nothing wrong" on tax. "These structures could have been more aggressive" | |
| 3.01pm BST | |
| 15:01 | |
| Green: Criticism has been unbalanced and unfair | |
| Q: What lessons can we learn from the BHS failure, to help rebuild the public’s trust in the capitalist system? | |
| Green say’s he’s immune to criticism after the last few weeks, which have meant he’s been unable to visit his stores. | |
| Q: Do you feel hounded? | |
| The criticism has been wholly unbalanced and unfair, Green says, a little mounefully. | |
| I made a bad call selling this business to RAL [Chappell’s Retail Acquisitions], Green says. But other people made mistakes too, including lawyers, and now everyone says it’s just my fault. | |
| I’m a big boy, I can take a punch on the chin.... but I didn’t do this deliberately, he concludes. | |
| "I made a bad call in selling this business to [Chappell]" he says. "I picked the wrong guy. I didn't do it intentionally." | |
| 2.57pm BST | |
| 14:57 | |
| Q: Do you think your reputation has been improved by today’s session? | |
| Green declines to mark his own homework, but hopes that people understand what happened at BHS. | |
| I’ve had quite a few supportive emails and texts from BHS staff, he adds. | |
| Q: What would you like your legacy to be, in a year’s time? | |
| Green looks baffled, saying even he’s not clever enough to undo the past. | |
| Then he talks about the work that Arcadia does in the fashion industry, encouraging young talent. | |
| “All people in BHS know I’m honest and no way I would have wanted this kind of ending.” | |
| In other words, he’s not a bad guy, honest... | |
| 2.54pm BST | |
| 14:54 | |
| Q: Would you consider buying BHS back if you could get the pension issue sorted? | |
| No, Green insists. Life has moved on. | |
| Not for the 11,000 staff at BHS, the committee point out. | |
| Q: So who are the winners from the BHS story? | |
| No-one, Green says, adding. | |
| I think it was a very sad episode. Everything that could have gone wrong, did go wrong. | |
| Q: So who are the losers? | |
| That’s easy, Green says. The staff and the pensioners. | |
| 2.51pm BST | |
| 14:51 | |
| Green demands apology over "ego" jibe | |
| Green then confirms that he attended a meeting with Mike Ashley and the administrators on April 27th, at Arcadia’s offices. | |
| He produces a letter from the administrator saying Arcadia offered to add £5m to Sports Direct’s bid for BHS and did not frustrate the deal. | |
| Q: So why did it fail? | |
| Because of one of these, says Green, producing his chequebook. | |
| And he denies that he did anything to block Mike Ashley from taking control | |
| On what possible basis would I want to stop someone buying BHS? | |
| “Ego”, says Iain Wright. | |
| Green looks *furious*. “That’s really rude,” he says, and out of order. He says Wright should apologise. | |
| Green starts to assembles his papers, muttering that he’s glad the meeting is over. | |
| But it’s not over quite yet | |
| Updated | |
| at 2.51pm BST | |
| 2.47pm BST | |
| 14:47 | |
| The session turns rowdy, now, as Iain Wright probes Sports Direct’s attempts to rescue BHS. | |
| He gets Philip Green to confirm that he didn’t know Mike Ashley (Sports Direct’s founder) was trying to sort out a deal. | |
| And Wright then produces a letter from Ashley, which states that the two men did have contact. | |
| Green tries to interrupt, telling Wright to stop bullying him (!) and claiming that he’s in charge of what he says. | |
| Wright and Green tussle for control of the meeting. "You are not in charge" says Wright "Don't bully me let me answer you says Green" | |
| Green then explains that he didn’t know that Chappell held all-night talks on Thursday 21 April, until the Friday lunchtime Chappell asked Green for Ashley’s phone number. | |
| He reveals that he then had a jokey conversation with Ashley, but insists that he has zero knowledge about the negotiations. | |
| Q: So how much contact did you have over the weekend? | |
| We may have spoken a few times, Green concedes. | |
| And now he's saying he had several phone calls with Ashley over the weekend before BHS went bust.. https://t.co/q3nptKD0Yi | |
| 2.39pm BST | |
| 14:39 | |
| The committee turn to the events of April, when BHS went into administration. | |
| Green denies that he triggered it - even though he refused to accept that £60m loan from Gordon Brothers. | |
| Green says he doesn't accept that his decision to not let BHS off £35m charge pushed the company into administration | |
| But then Iain Wright MP reads a letter from the administrators, Duff and Phelps, showing that Green has asked him to attend a meeting. | |
| Oooh: Iain Wright blows up Philip Green's evidence by reading out Duff + Phelps letter saying Green brought them in as administrator | |
| Green explains that he was told on Friday 22 April that an unknown retailer was attempting a last-ditch rescue bid, but he didn’t know who [I think this is Sports Direct]. | |
| But if it didn’t transpire, he [Green] was concerned that staff wouldn’t be paid the next week if a deal wasn’t agreed. | |
| 2.31pm BST | 2.31pm BST |
| 14:31 | 14:31 |
| Green looks like he might mislay his rag, when asked to clarify his commitment to BHS pensioners. | Green looks like he might mislay his rag, when asked to clarify his commitment to BHS pensioners. |
| We covered that five and half hours ago, he says, before repeating that he will meet with the pension regulator and try to agree a deal. | We covered that five and half hours ago, he says, before repeating that he will meet with the pension regulator and try to agree a deal. |
| Sir Philip still being v truculent "I answered that 5 1/2 hours ago. Can we get to the end?" | Sir Philip still being v truculent "I answered that 5 1/2 hours ago. Can we get to the end?" |
| 2.29pm BST | 2.29pm BST |
| 14:29 | 14:29 |
| Green also explains that he wasn’t prepared to support a £60m loan from investment group Gordon Brothers which Chappell had lined up in the final days before BHS went under. | Green also explains that he wasn’t prepared to support a £60m loan from investment group Gordon Brothers which Chappell had lined up in the final days before BHS went under. |
| It was a “loan to own”, says Green, as BHS would have breached it quickly.... meaning Gordon Brothers would have walked away with the business. | It was a “loan to own”, says Green, as BHS would have breached it quickly.... meaning Gordon Brothers would have walked away with the business. |
| Updated | Updated |
| at 2.32pm BST | at 2.32pm BST |
| 2.27pm BST | 2.27pm BST |
| 14:27 | 14:27 |
| Q: Dominic Chappell told us that he was shocked that you sold the BHS Ealing branch to your stepson, and he flipped it for a £3.5m profit. Is that true? | Q: Dominic Chappell told us that he was shocked that you sold the BHS Ealing branch to your stepson, and he flipped it for a £3.5m profit. Is that true? |
| I wasn’t involved in that deal, Green replies. It wasn’t my transaction. | I wasn’t involved in that deal, Green replies. It wasn’t my transaction. |
| Q: But did you know about it? | Q: But did you know about it? |
| Green doesn’t give a particularly clear answer, but indicates he was aware the property was being sold. | Green doesn’t give a particularly clear answer, but indicates he was aware the property was being sold. |
| Q: Is it true that you initially told the regulator that you had not sold any assets to any interested parties, and then had to correct it once the Ealing sale came to light? | Q: Is it true that you initially told the regulator that you had not sold any assets to any interested parties, and then had to correct it once the Ealing sale came to light? |
| Is which bit true, asks Green? | Is which bit true, asks Green? |
| Q: That you initially told the regulator that you had not sold any assets to any interested parties, and then had to correct it? | Q: That you initially told the regulator that you had not sold any assets to any interested parties, and then had to correct it? |
| Green says he doesn’t know. | Green says he doesn’t know. |
| Green says doesn't know if he was asked by regulator that he said he hadn't sold anything to linked parties.. | Green says doesn't know if he was asked by regulator that he said he hadn't sold anything to linked parties.. |
| Q: Well, could you help us check? | Q: Well, could you help us check? |
| Green says this line of questioning is “ludicrous”. | Green says this line of questioning is “ludicrous”. |
| "Check whatever you like. It's ludicrous" - Green says when asked about impact of Ealing deal on pensions regulator probe. Blustering | "Check whatever you like. It's ludicrous" - Green says when asked about impact of Ealing deal on pensions regulator probe. Blustering |
| 2.17pm BST | 2.17pm BST |
| 14:17 | 14:17 |
| Green: I didn't want BHS to fail. | Green: I didn't want BHS to fail. |
| Q: Did you have regular talks to Chappell about weekly sales? | Q: Did you have regular talks to Chappell about weekly sales? |
| No, says Green. Chappell wouldn’t know what they were. | No, says Green. Chappell wouldn’t know what they were. |
| Q: And you sold him the company... | Q: And you sold him the company... |
| Don’t remind me, Green grimaces. | Don’t remind me, Green grimaces. |
| And he jokes: | And he jokes: |
| If you look Dominic Chappell up in the dictionary it says “very optimistic” | If you look Dominic Chappell up in the dictionary it says “very optimistic” |
| Q: Do what did you talk to Chappell about? | Q: Do what did you talk to Chappell about? |
| I didn’t want to the business to fail, Green insists, so he acted as a sounding board for Chappell’s ideas. | I didn’t want to the business to fail, Green insists, so he acted as a sounding board for Chappell’s ideas. |
| Green also disses Chappell’s claims to be a property expert, saying he failed to cut a better deal with landlords. | Green also disses Chappell’s claims to be a property expert, saying he failed to cut a better deal with landlords. |
| Chappell was also too slow to arrange the CVA [Company Voluntary Arrangement] which trimmed BHS’s rent costs, Green adds. That stubbornness undermined the chances of turning BHS around. | Chappell was also too slow to arrange the CVA [Company Voluntary Arrangement] which trimmed BHS’s rent costs, Green adds. That stubbornness undermined the chances of turning BHS around. |
| Updated | Updated |
| at 2.19pm BST | at 2.19pm BST |
| 2.14pm BST | 2.14pm BST |
| 14:14 | 14:14 |
| Testament to how good the Nokia 6310 battery life is... Sir Philip Green still has one as his phone... #BHS pic.twitter.com/GC0Na5Yr6O | Testament to how good the Nokia 6310 battery life is... Sir Philip Green still has one as his phone... #BHS pic.twitter.com/GC0Na5Yr6O |
| 2.11pm BST | 2.11pm BST |
| 14:11 | 14:11 |
| Green now wants the committee clerk to stop whispering to MPs during the session. | Green now wants the committee clerk to stop whispering to MPs during the session. |
| 2.10pm BST | 2.10pm BST |
| 14:10 | 14:10 |
| It looks like Green uses an old-school Nokia handset... | It looks like Green uses an old-school Nokia handset... |
| The most shocking revelation of this Select Committee has just surfaced. I believe Philip Green still uses a Noka phone in this day and age. | The most shocking revelation of this Select Committee has just surfaced. I believe Philip Green still uses a Noka phone in this day and age. |
| 2.08pm BST | 2.08pm BST |
| 14:08 | 14:08 |
| Suddenly, a mobile phone rings, disrupting the session....and it’s Sir Phil’s! | Suddenly, a mobile phone rings, disrupting the session....and it’s Sir Phil’s! |
| Apologies, he says, I forgot to turn it off. | Apologies, he says, I forgot to turn it off. |
| It‘s the pensions regulator, jokes Iain Wright. | It‘s the pensions regulator, jokes Iain Wright. |
| 2.06pm BST | 2.06pm BST |
| 14:06 | 14:06 |
| The committee are back again for the final part of the session. | The committee are back again for the final part of the session. |
| Sir Philip Green seems quite chirpy still - maybe he can see the finishing line in sight. | Sir Philip Green seems quite chirpy still - maybe he can see the finishing line in sight. |
| Jeremy Quin MP asks about the charges that he retained on BHS after selling it, which meant Arcadia was a preferred creditor. | Jeremy Quin MP asks about the charges that he retained on BHS after selling it, which meant Arcadia was a preferred creditor. |
| Green says that out of £256m of debt, £216m was written off when BHS was sold and a £40m charge was retained. | Green says that out of £256m of debt, £216m was written off when BHS was sold and a £40m charge was retained. |
| He says that he also agreed to released a fixed charge on one property, to help the new owners raise more money | He says that he also agreed to released a fixed charge on one property, to help the new owners raise more money |
| Q: So you had an umbilical connection... | Q: So you had an umbilical connection... |
| I’m sorry, I can’t accept that, Green interrupts, showing that thin-skinned side again. | I’m sorry, I can’t accept that, Green interrupts, showing that thin-skinned side again. |
| 1.44pm BST | 1.44pm BST |
| 13:44 | 13:44 |
| OK, the committee are taking another quick break for a vote, but they will be back shortly. | OK, the committee are taking another quick break for a vote, but they will be back shortly. |
| Green would happily have finished the session right then. | Green would happily have finished the session right then. |
| 1.44pm BST | 1.44pm BST |
| 13:44 | 13:44 |
| Green is arguing that he didn’t realise that Chappell was unreliable... | Green is arguing that he didn’t realise that Chappell was unreliable... |
| Green says Chappell was supposed to put £10m of equity into BHS and "he didn't put any in" | Green says Chappell was supposed to put £10m of equity into BHS and "he didn't put any in" |
| Green: "I did not know the sort of costs this guy was running up with advisers etc. I did not know until 4 was ago his £5m equity was a loan | Green: "I did not know the sort of costs this guy was running up with advisers etc. I did not know until 4 was ago his £5m equity was a loan |