SportsDirect (USC Dundonald)

Debate between Angus Brendan MacNeil and Jo Swinson

Tuesday 27th January 2015 Westminster Hall

[Jo Swinson]

This case raises many questions. We are making several changes to insolvency law, and particularly to the pre-pack regime, where there are particular concerns. The hon. Gentleman is right to say that I have some familiarity with Glasgow Rangers—indeed, Murray park, their training ground, is in my constituency. I confess that I am not a football fan, but my late grandfather was a very proud and longstanding season ticket holder and supporter of Rangers. He enjoyed many trips to matches on the supporters’ bus.

We all have to think about the context. USC was not just a small company on its own; it was just one part of a large retail group. The events are particularly concerning in that context.

[Mr MacNeil]

Given what the Minister is saying, does she feel that USC, and perhaps Mike Ashley, too, have been guilty of using loopholes to get round certain situations and to create part of these problems quite deliberately? Could employment law be tightened so that workers are not victims, as they have been in this case?

[Jo Swinson]

There are a couple of different issues within that question. We will need to wait to see the specific facts that come out of the investigation. Obviously, the administrators will provide information to the Insolvency Service, and they have to file a report within six months, although the general practice is to file such reports much more quickly. Indeed, we will be shortening that time to three months.

On whether there are loopholes, action has been taken on the pre-packs issue, which I will address in a moment. The hon. Gentleman is absolutely right that employment law is not negotiable. Employment law is not something that is optional or that a company can decide to take or leave; it is the law, and it needs to be followed. Enforcement is particularly important. A range of issues have been raised, including some of the issues surrounding zero-hours contracts, which I will also address.

One of the key questions is why USC, which was wholly owned by SportsDirect, was allowed to reach the point at which its key suppliers and landlords were not just threatening but taking enforcement action. SportsDirect purchased USC’s business through another company, Republic. We have been told that USC’s key suppliers have been left out of pocket, so it seems odd that they would continue to supply Republic. There are, therefore, a lot of unanswered questions.

The law is clear that employees should be consulted where 20 or more people are being made redundant at the same establishment, and it can be a criminal offence to fail to notify the Secretary of State of proposed redundancies. Tribunals can make protective awards where employees are not properly consulted.

Overseas Voluntary Sector

Debate between Angus Brendan MacNeil and Jo Swinson

Wednesday 24th November 2010 Westminster Hall

[Mr MacNeil]

The hon. Gentleman is correct in what he says about corruption. From my personal experience, and from examples of tax raising, VSO in particular has been effective in tackling corruption with very low resources. The increase in teachers’ salaries in Cambodia was about tackling corruption to ensure that students did not offer their teacher money to pass their exams. That was low-level corruption, but it is important that the idea and feeling of corruption is eradicated from a society.

VSO will put a volunteer in the field for about £661 a month; a consultant might cost up to £10,000. We have aid programmes that can use money and provide a good service with real value. During recent questions to DFID, a question was asked about the co-ordination between various NGOs and their advocacy departments. I went directly to some of the NGOs and found an umbrella group called Bond—British Overseas NGOs for Development. It ensures collaboration on various issues between the NGOs, so that each organisation works to its strengths and does not overlap. I say that to highlight that such groups are a lot more sophisticated than they are credited as being, certainly during DFID questions last week.

Why does the Department insist on cutting from budgets based on the average budgets of the past three years? If the cuts arrive, will the Minister guarantee that the shortfall will be made up by other pockets and purses within DFID? It is arguable that cuts based on average budgets of the past three years will be too deep and too fast. Although everybody has to find savings, surely we can find a way to cut that does not threaten our commitments to effectively spend 0.7% of gross national income in overseas aid. Organisations such as One World Action, VSO and Progressio are arguably among the best conduits for that aim. If the Government are committed to spending 0.7% of GNI on overseas aid while reducing the budget of UK-based agencies, where will those funds be spent? Where does the Department want to direct those funds? Is it planning for those funds to be directed to the World Bank, in the way I think has been suggested? What I said about consultant costs could be applicable to that.

[Jo Swinson (East Dunbartonshire) (LD)]

Like the hon. Gentleman, I have had the great advantage of taking part in VSO’s parliamentarian scheme this year when I worked on a climate change project in Nigeria. I take his point about the value of VSO. Does he agree that VSO is almost the ultimate in the big society, with volunteers from across the world giving up their time for the big global society? That means that every pound spent on that organisation is such good value.

[Mr MacNeil]

The hon. Lady is absolutely spot on. It is about the big society and being aware of a bigger picture. It is about spending money effectively. One thing that struck me when I spent two or three weeks in Cambodia with VSO was that I was not put in an hotel; I was not put anywhere plush or posh but I was camping in a room next door to the main VSO headquarters in Phnom Penh. No extra money was wasted. If I am honest, every penny seemed to be a prisoner with VSO, which means that it was being spent effectively in the right ways and places.

[Jo Swinson]

I hope that the hon. Gentleman does not mind me interrupting him once again, but I wondered whether I could ask if he had the experience of having electricity in his accommodation. Although there was supposed to be electricity in the flat in which I stayed in Nigeria, the vagaries of the power companies meant that it did not work while I was there. That is one interesting way of cutting back on costs.

[Mr MacNeil]

I am grateful to the hon. Lady for that. I must have lived at the posh end of VSO, because I had a mosquito net and a fan.