SportsDirect (USC Dundonald)

Debate between Brian H. Donohoe and Sandra Osborne

Tuesday 27th January 2015 Westminster Hall

[Mr Donohoe]

I am coming to that, but he does not care a damn. That is clear, given what I am about to say.

The USC Dundonald situation is a murky affair. It leaves unanswered a lot of questions about the way some businesses are allowed to operate. For instance, did Diesel seek a winding-up notice on USC as a result of unpaid bills, as claimed in some reports? That is an answer that I need this afternoon. If so, what alternative courses of action were considered by SportsDirect—such as, for example, paying the bill to its loyal workers at Dundonald? Was USC/SportsDirect’s action in seeking administration a response to the claim made by Diesel or was it initiated by the company separately? Was there a delay in the timetable for granting administration and, if so, what was the impact on the work force and the potential timetables for redundancy and required consultation on both redundancy and business plans? Was that brought to the notice of the Department for Business, Innovation and Skills? What will the cost to the public purse be of supporting the 245 people who are out of work without back pay, holiday or redundancy payments and who have bonuses of as much as £12,000 outstanding?

[Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)]

I congratulate my hon. Friend on obtaining the debate. He is working hard on the issue, and he knows that many of my constituents were also employed in the business, and have lost their jobs because of this debacle. Yet again, a company in Ayrshire has behaved disgracefully —my hon. Friend knows what happened with the former coalfield sites. Is there a need to look at the way companies are allowed to do such things, treating employees so despicably, and to hold them accountable?

[Mr Donohoe]

I am grateful to my hon. Friend, whose constituency neighbours mine, as does that of my hon. Friend the Member for Kilmarnock and Loudoun (Cathy Jamieson). I thank them for their support. I do not see any difference between the cases referred to, which is why there is a need to examine the law to protect workers in such circumstances. It is blatantly obvious that that does not happen now.

How long is it likely to take for the employees to receive payments from the administrators? Will employees get 100% of the money due to them? I doubt it. What sanctions can be imposed on the company for failing to consult employees about the future of their roles at the Dundonald site, or about redundancy? Given that all the companies in the exercise are owned by SportsDirect, is not it just a scam to let SportsDirect off its financial responsibilities to a less successful part of Ashley’s estimated £3.3 billion fortune?

Scotland (Poverty)

Debate between Brian H. Donohoe and Sandra Osborne

Wednesday 30th November 2011 Westminster Hall

[Sandra Osborne]

My hon. Friend is absolutely right. We are concerned about the impact on ordinary people. The quicker they realise exactly what this Government are up to, the better.

Who are these people? Alongside children, certain groups are at particular risk of poverty. They include lone parents, women, people who are not working, people affected by disability and people from ethnic minorities.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

I congratulate my hon. Friend on securing this debate. As one of my neighbouring colleagues, she knows full well the problems of unemployment, particularly among young people. Is that not one of the main areas that should be tackled at an early stage—earlier than this Government intend?

[Sandra Osborne]

Absolutely. I will refer to that later. To say that it is too little, too late would put it very mildly.

Poverty is most prevalent in urban areas, yet there are almost 100,000 income-deprived people in rural areas in Scotland. I would be interested to hear the Minister’s views on what he thinks causes poverty. The Tories are quick to identify individual behaviour as a cause of most social ills, but individual behaviour is of limited value in explaining the extent of poverty in Scotland. The key drivers are inequality, low pay, inadequate benefits, poor-quality work opportunities and lack of support for those with caring responsibilities, ill health or those affected by disability. A lack of money leads to the threat of falling into debt, choosing between necessities, going without basics, frequently being caught up in a cycle of dead-end jobs and being unable to save. For children, it means, for example, having less access to safe play spaces and being less likely to participate in arts and drama, sport or other outdoor activities.

While financial inclusion policies have led to significant improvements since 2007 and access to basic financial products, one third of households with incomes of less than £20,000 still have no savings. Those households are also less likely to have the means to participate fully in society more generally. Over half, for example, still have no internet access or car available to them. What is more, they are far more likely to be living in fuel poverty, spending a disproportionate level of already inadequate income on basic— [Interruption.]