Sport in the UK

Chi Onwurah Excerpts

Monday 4th February 2019 Commons Chamber

[Mims Davies]

I thank the hon. Gentleman for raising that issue. It is something we have heard across the House, and in my first three months in this job, it has been raised time and again. I looked into the eyes of the premiership leadership last week and spoke about many issues with them, such as how the Football Foundation is doing and how that £100 million that the league gives actually works. I am hot on their heels on this one and it is absolutely right that we continue to work together for all our grassroots sport.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I know that the Minister shares my concerns about financial transparency in the Premier League so that we can see not only how money is being used to support grassroots, but to enable the continuing economic benefits that the Minister spoke about so eloquently. Newcastle United Foundation in my constituency does fantastic work in using the power of football to inspire young people. Unfortunately, the Premier League clubs’ financial transparency does not enable us to see what is really happening to the money in the club itself.

[Mims Davies]

I hear the hon. Lady—she always wears the outfit of the day when mentioning her football club. It is absolutely vital that when sports clubs are doing well, the economic benefits are felt in the city. Southampton has had a difficult time recently and I know that the city, which is close to me, has felt those pains. I absolutely hear the hon. Lady about the transparency issue and the Premier League. There is work to do to keep those conversations going, but I hear her loudly, once again.

Equitable Life

Chi Onwurah Excerpts

Thursday 31st January 2019 Commons Chamber

[Bob Blackman]

Thus far my constituency has not been offered any additional funds for my voting for anything—that is not the basis on which I vote in this House—but I can understand the hon. Gentleman’s concern.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Many of my constituents who have been affected by the Equitable Life issue regard the APPG as their only voice in not only this place, but the country. Does the hon. Gentleman agree that the failure to compensate the Equitable Life victims not only has a hugely detrimental effect on their lives, with their not be able to retire in the comfort that they deserve, as they thought they would, but also affects faith in this House and in the pensions system at a time when people are living longer and need to be doing more to prepare for retirement?

[Bob Blackman]

It is clearly a view that people are not saving in the way in which they used to. Young people are being discouraged from saving as a result of what they see as the scandals that took place.

Newcastle United Football Club: Regulation

Chi Onwurah Excerpts

Thursday 24th January 2019 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Madam Deputy Speaker, I must start by declaring an interest: I am a Newcastle United fan. [Hon. Members: “Hear, hear!”] Thank you. When I raised this with the House authorities, I was told I did not need to declare it as I “derived no real benefit” from it. I would dispute that. Supporting Newcastle United has brought me great joy, and a sense of belonging, shared purpose and community, as well as the opportunity to watch the beautiful game at its beautiful best in that cathedral to football, St James’ Park. But it has also brought me deep despair and disappointment, particularly in the last few years. I also wanted to present myself in my Newcastle team shirt today, but I was told in no uncertain terms that that was not allowed. Instead, I have settled for a Newcastle Libraries T-shirt with our city on it.

Newcastle United is at the heart of the city. Unlike Liverpool or London, we have only one professional football team and we are united in our support. And what support it is! Hon. Members may recall that, back when we had regional development authorities and investment in our regions, the One NorthEast tourism slogan was “Passionate people, passionate places”. Well, the passion of Newcastle is football. We have consistently high attendances—some of the highest in the league until recent times—and the economy of the city is influenced by the success on the pitch. If we are winning, we are singing—and spending. If we are losing, the gloom hovers over all our heads like individual storm clouds. It is part of our culture.

Anyone who moves to Newcastle—and we certainly have an unparalleled quality of life, so I recommend that everyone does so—will find it an open, welcoming and warm city, but whereas elsewhere people might get away with talking about the weather, in Newcastle they will need to know how the Toon are doing. It is part of our mental wellbeing—90 minutes spent at the Gallowgate end would be enough to convince anyone of that—and this is true not only in Newcastle, as my hon. Friends—and fellow fans—the Members for Gateshead (Ian Mearns) and for North Tyneside (Mary Glindon) can attest. They would have liked to be here today.

Football is the lifeblood of many cities, particularly in the north, and that remains the case despite changes that have seen money, not fans, become the driving force of football thanks to the creation of the Premier League and billions of pounds from Sky Sports. While I will speak mainly about Newcastle United football club, its finances and its owner, much of what I say applies to football as a whole.

Since 2008, Newcastle United has been owned by Mike Ashley, who also owns Sports Direct, House of Fraser and several other retail businesses. In July last year, I presented a petition reflecting the concerns of fans groups, such as If Rafa Goes We Go and the Magpie Group, and that caught the attention of Mr Ashley, something which I had been unable to do as the MP for St James’ Park, despite writing to him to ask for a meeting. It is testimony to the power of Parliament that, after announcing this debate, I was able to meet Mr Ashley on Saturday. I committed to Mr Ashley that I would make no personal attacks on him—I will not avail myself of parliamentary privilege to do so—and I say to all the fans that personal attacks on Mr Ashley or his employees are wrong and hurt our cause.

I shared with Mr Ashley my concerns about financial transparency and funding, and he was passionate in his defence of his investments and in saying that he has not taken any money out of the club other than, he said, short-term funding on a temporary basis. That, he said, was in contrast with the period prior to his ownership. He also emphasised that he had made it clear the club must stand on its own two feet and can spend only the money it generates. Well, to put it diplomatically, we disagreed. The meeting was open, frank and robust, with strong views on both sides, and I hope to continue the dialogue. Indeed, this debate is part of that dialogue. It has to be, because I have still to receive a reply to my letter of last year in which I raised several critical issues that I have also raised in correspondence with the Secretary of State for Digital, Culture, Media and Sport and the previous Sports Minister, the hon. Member for Chatham and Aylesford (Tracey Crouch).

Mr Ashley said that the club can spend only what it is generates—a form of austerity economics of which those on the Tory Benches could be proud—but Newcastle United needs investment to reach its potential. Earnings have been hit by uncertainty and the bad feeling between fans and the owner, but even if we accept what he says, how are we to know what income the club generates? As the Secretary of State said in his letter to me, clubs are treated as any other private business and must submit accounts to Companies House. I am not an accountant, but I have an MA in business administration, studied corporate finance and worked in business for 20 years. However, I have looked at the NUFC accounts and cannot work out what is going on.

Faith in Newcastle’s accounts has not been helped by comments made by Mr Ashley at the Housing, Communities and Local Government Committee last December, when he said:

“People cheat. That is what businesses do.”

He also said:

“Accountants are able—this is their job, by the way—to move the numbers about pretty much at will.”

That seems to be what is happening at Newcastle. Mr Ashley’s ownership of the club passes through four separate companies: Mash Holdings, St James Holdings, Newcastle United and Newcastle United Football Holdings. In addition, dozens of other companies are associated with the club and Mike Ashley, and managing director Lee Charnley has more than 30 other directorships. Newcastle United’s accounts do not include a cash flow statement, although having one is a requirement of reputable accounting. All that seems designed to make it harder to follow the money and see what income is being generated.

I hope that the Minister will agree that that is unacceptable and that she will commit to ensuring that the following income streams can be identified. First, TV payments. These should be more than £123 million, but they are not reported separately. Secondly, merchandise. Mr Ashley turned the club shop into a Sports Direct shop, but the revenues from Sports Direct do not go to the club. Thirdly, player sales. The way in which the purchase and sale of players is booked and amortised is in itself arcane. Newcastle United is consistently reported as having one of the lowest spends on players in the English premiership, and many estimates indicate the club has actually made a profit on player sales overall during Mr Ashley’s ownership. Does the Minister agree that we should be able to calculate that sum?

Fourthly, advertising. Sports Direct hoardings are all over St James’ Park and, yet again, we do not see the revenue in the accounts. Finally, land sales. Next to St James’ Park is an area called Strawberry Place, which Mr Ashley allegedly purchased from the club for less than it was worth—we do not know, because the price is not visible. What we do know is that Strawberry Place is being developed for student accommodation. Selling the land stopped any further expansion of the stadium, and fans believe that the profit from the sale of that land will not benefit the club, but how are we to know? There is also an issue about land and property apparently sold to companies called Project J Newco No.39 and Project J Newco No.40, which appear to be connected to Mr Ashley, but there is no evidence of any payment.

[Eddie Hughes (Walsall North) (Con)]

Has the hon. Lady seen Deloitte’s “Football Money League” report? It seems to identify some of those incomes, such as £27 million for match day, £143 million for broadcasting and £32 million for commercial, figures that we can only dream of for Walsall football club.

[Chi Onwurah]

I appreciate the hon. Gentleman’s interest in Newcastle United, and I have seen the figures in Deloitte’s report, which make Newcastle United the 19th richest club in the world. My concern is that those figures should be reported visibly for all clubs, particularly in the Premier League, where there is so much money going around.

Mr Ashley appears to be able to move assets between his privately owned companies at will, despite the club being a historic cultural icon and the other companies being of somewhat less reputable status and longevity.

We do not know what income the club is generating and whether that money is being used on the club. What is certain is that this transfer window, like the last one, is closing without money being spent on players or training facilities. Mr Ashley’s principal investment in the club has been in the form of loans, rather than equity—presumably to protect his financial exposure. Those loans are interest free, which is good, but as loans they can be called in if needed, so the sustainability of Newcastle United depends on his other businesses being successful.

That leads me to Mr Ashley’s business practices more generally. The BEIS Committee likened them to a Victorian workhouse, with employees being paid below the minimum wage. A “Dispatches” investigation found employees were publicly shamed for talking, spending too long in the toilet or falling ill, and lived in fear of being fired. Now Mr Ashley says that he is going to save the high street. Forgive me for being somewhat cynical, having seen how he has saved Newcastle United.

Newcastle United is an asset to our city, a cultural giant in our lives. I explicitly pay tribute to the fantastic Newcastle United Foundation, which uses the power and passion of football to do great work across the north-east and is, in part, funded by the club, although again that funding is not transparent. The Premier League also uses some of its vast wealth for the benefit of local communities, at least what can be spared from expenditure such as its £5 million farewell gift to departing executive chairman Richard Scudamore.

Neither Newcastle United nor the Premier League consider themselves to be accountable to fans. As many constituents have made clear to me, fans feel powerless before the slow destruction of what we believe in. Newcastle United is the beating heart of our city, and we should be able to protect it.

That goes to the heart of the matter. Why is it that a person can buy a stately home in the wilds of Wiltshire and not be able to change even a window frame, but they can buy Newcastle United, which is in the heart of Newcastle, and strip it of its assets without so much as an eyebrow being raised? Why is football left largely to regulate itself when other businesses, from pubs to social media companies, must meet social requirements?

I know that the Minister recognises the importance of football clubs and the custodian role of owners, because she said so during the recent debate on Coventry City. Will she now put that recognition into action? Will she launch an inquiry into the reporting requirements of premiership clubs, using Newcastle United as a test case? Will she ensure that that inquiry answers the financial questions that I have raised? Will she ensure that supporters have a voice on football club boards, as Labour has called for? Will she make reputable custodianship a requirement of club ownership? The fit and proper person test is clearly not fit for purpose.

It is with great sadness that I say that I have come to the conclusion that football is broken. Its governance has not kept pace with its income, and money has won over sport. We cannot turn back the clock, but we can put in place effective regulation so that financial transparency enables the beautiful game’s true splendour to shine forth once more.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Mims Davies)]

I congratulate the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) not only on her outfit, but on securing this wonderful and important debate. I was wearing black and white shoes this morning, and I thought I might have had to declare some sort of interest. I understand the reasons behind her sartorial elegance this evening.

Before I respond fully to today’s debate, I will acknowledge that the search for Cardiff City football club’s Argentine striker Emiliano Sala, and his pilot David Ibbotson, had to be called off this afternoon. We offer sincere condolences to their families and friends at this deeply concerning time. It has been a difficult few days in the game.

[Chi Onwurah]

I thank the Minister for what she has said, and I echo her comments. I was at St James’s Park to see Cardiff City last week. It must be a terrible time for the family and friends, and for Cardiff City fans.

[Mims Davies]

I turn to the points that have been raised in this debate. Newcastle United are 17th in the premier league, with some uncertainty about the manager and no signings so far in the transfer window, but last week they had a good win in the FA cup. I would like to say that not all football clubs are feeling that pain, but there others at the bottom of the premier mix, including Cardiff, Fulham, Burnley, Huddersfield, Southampton and Crystal Palace. I have to declare an interest when it comes to Southampton, which is very near to my constituency and has many fans. I also understand the impact on the economy when they are not winning.

I am surprised not to see the hon. Member for Strangford (Jim Shannon) here, because we are talking about football—I am surprised not to be interrupted by him. My hon. Friend the Member for Walsall North (Eddie Hughes) spoke about the love and affection in north Walsall for the football club there. I was in that area recently to visit a local school, and there was huge affection for the club. The area has so much to look forward to with the Commonwealth games. It is not all doom and gloom.

Leaving the EU: Economic Analysis

Chi Onwurah Excerpts

Wednesday 28th November 2018 Commons Chamber

[Mel Stride]

The hon. Lady asks specifically about those with disabilities. This Government have an outstanding record in that respect. We spend £50 billion—[Interruption.] We spend £50 billion on those with disabilities and long-term health conditions. The critical point here is that the only reason we can provide that support is because of our effective, responsible stewardship of the economy. The responsible thing to do for the economy now, in order to protect just the constituents to whom she refers, is to ensure that this deal prevails, that we get economic certainty behind us and that we see the economy safeguarded, improving and growing into the future.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

The 90-page economic analysis repeatedly cites the importance of trade to the north-east, and the significant negative impact of no deal. Will the Minister confirm that, because of our manufacturing strengths, our exports and our integrated pan-European supply chain—which, regardless of claims by the European Research Group, cannot be replaced by deals with Australia, America or China—the only deal that could possibly work for jobs in the north-east is permanent membership of a European customs union?

[Mel Stride]

The hon. Lady is absolutely right to identify and characterise the businesses in her constituency in that way. They are deeply connected through supply chains to the European continent. That lies right at the heart of the political declaration and of our commitment to having the most frictionless trade possible and having no barriers, quotas or additional charges involved in that aspect of the relationship. I would say to her, respectfully, that she cannot view this deal in a vacuum. She has to consider it in the context of the alternatives. There is a danger, as she will recognise, that if we end up in no-deal territory, all the very things she fears may come to pass. It is really important for all of us across the House who have manufacturing businesses in our constituencies to stand up for them and support this deal.

EU Customs Union and Draft Withdrawal Agreement: Cost

Chi Onwurah Excerpts

Monday 22nd October 2018 Commons Chamber

[John Glen]

Such an answer is dependent on so many conditions and the determination of what is in those trade deals, so I am sorry, but I cannot give a precise answer.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Is the Minister finding withdrawal from the European Union as easy and cost-free as some of those on the Government Benches behind him suggested it would be?

[John Glen]

Government is always challenging, and there are always issues that need to be resolved. It is self-evident that this is a challenging set of negotiations.

Oral Answers to Questions

Chi Onwurah Excerpts

Tuesday 27th February 2018 Commons Chamber

[John Glen]

The Government are expanding Tech City’s reach across the UK, creating Tech Nation by investing £21 million over four years to help people grow digital businesses. That includes a large-scale CityVerve smart city demonstrator in Manchester, which demonstrates how the internet of things, technologies and services can improve local services in transport, energy, health and culture.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Newcastle has national centres of excellence in data, health and energy—key drivers of our future economy. On Saturday, I held a business summit with Sadiq Khan, the Mayor of London, at which start-ups identified attracting investment as a key barrier to their growth. What are the Government doing to attract investment to businesses in Newcastle? Does that include a regional business bank, as supported by Labour?

[John Glen]

We certainly have a national bank to encourage investment in small businesses. We also have the £400 million digital infrastructure fund. As a Minister, I am doing all I can to ensure that we find the best conditions for investing in small and medium-sized enterprises across the country.

Oral Answers to Questions

Chi Onwurah Excerpts

Tuesday 24th October 2017 Commons Chamber

[Stephen Barclay]

The Government remain fully committed to agreeing both city deals, and to working constructively with the Scottish Government and local partners. I am, of course, very happy to meet my hon. Friend to discuss this further.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

A decent transport infrastructure is an essential platform for economic growth, but the Minister will be aware that public transport investment in the north-east is only £200 per head, whereas it is £2,000 per head in London. Will he now commit to investing in the north-east on the Tyne and Wear metro, and with public money, not some private finance initiative?

[Stephen Barclay]

The Government are committed to increasing infrastructure investment across all regions, including the north-east. Indeed, investment is 30% higher than it was under the Labour Government. It would be better for Opposition Members to recognise the record investment in infrastructure, which is driving productivity and growth.

Oral Answers to Questions

Chi Onwurah Excerpts

Tuesday 17th January 2017 Commons Chamber

[Mr Gauke]

I am delighted to join my hon. Friend in congratulating Scientifica, and I am happy to make that pledge. At the spending review, we committed to a £175 million reinvestment in UK Trade & Investment, now part of the Department for International Trade, to drive UK exports. We remain committed to ensuring that UK exporters receive world-class support. Indeed, as the Prime Minister will make clear today, maintaining the UK as one of the best places in the world for science and innovation is a priority for us.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

On Friday, I visited Wirecard, an innovative financial technology company in the emerging payments sector; it is based in Newcastle. It is concerned that leaving the European single market, and in particular the passporting rights, will diminish investment in fintech, an area in which this country leads, and which is growing in Newcastle and the north-east. What reassurance will the Minister give Wirecard?

[Mr Gauke]

As the hon. Lady will be aware, the Prime Minister will have just begun making a speech on this matter, and my right hon. Friend the Secretary of State for Exiting the European Union will make a statement to the House later. Let me just say that the UK is in a very strong position on fintech, and on ensuring that this successful sector is a priority. Indeed, the Minister for Trade and Investment, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), led a delegation of 33 companies to India, where the focus was, among other things, on this sector and promoting the best of British businesses. We will continue to ensure that the UK remains a strong place for the sector.

Oral Answers to Questions

Chi Onwurah Excerpts

Tuesday 25th October 2016 Commons Chamber

[The Chief Secretary to the Treasury (Mr David Gauke)]

No UK taxpayers’ money has been used in the EU’s lending to other member states. Only in the event of default would the UK be asked to pay its share.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

What impact has the Secretary of State made of his predecessor’s austerity economics on the nation’s prosperity and would he like to apologise for that divisive and discredited ideology?

[Mr Philip Hammond]

I assume that the hon. Lady means what assessment I have made. Since 2010, we have brought this country back from the very brink. We have borrowing down from more than 10% of GDP to around 4% with more to deliver. We have created 2.7 million new jobs, making this economy the fastest growing in the G7 for the past three years, and the fastest job creator in the developed world. That is a record of which we can be proud.

Article 50: Parliamentary Approval

Chi Onwurah Excerpts

Monday 11th July 2016 Commons Chamber

[John Penrose]

As I said earlier to the hon. Member for Perth and North Perthshire (Pete Wishart) and, I think, to the hon. Member for South Down (Ms Ritchie), discussions are already under way. We are endeavouring to involve everyone and to seek consensus whenever possible but, ultimately, foreign policy is reserved to the United Kingdom Parliament. While we want to ensure that everyone has a chance to contribute, and that, as far as possible, there is a collective view so that we understand what are the best opportunities for the constituent parts of the United Kingdom, at the end of the day the matter must come back to the United Kingdom Government and Parliament.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Brexit means Brexit, but there is no agreed definition of what “Brexit” means, apart from the fact that it involves parliamentary sovereignty. Is the Minister seriously proposing that we should undergo such a momentous seismic change as Brexit without its having been defined to the British people before the referendum, or decided on by Parliament after it?

[John Penrose]

The hon. Lady is right: the details will become a great deal clearer as the negotiation goes through. We will all discover more about the various facets of how Brexit will affect different parts of our lives as the negotiations near completion. However, I must repeat what I have said several times already: we shall not be able to say how Parliament will engage with that until the new Prime Minister has had a chance to lay out her timetable for the negotiations, whereupon it will be possible to assess when opportunities for debate and discussion will occur.