Tyne Bridge: Celebrating 100 Years

Debate between Eddie Hughes and Chi Onwurah

Wednesday 23rd June 2021 Westminster Hall

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Eddie Hughes)]

It is a pleasure to serve under your chairmanship, Sir Roger. I thank the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) for securing this important debate and for highlighting the importance of the Tyne bridge to her constituents. The Tyne bridge is rightly a source of immense pride for communities in the north-east. Alongside the Angel of the North, Durham cathedral and Hadrian’s wall, it is recognised the world over as a potent symbol of the region, its character and heritage.

The affection for this iconic landmark and much-loved feature of the Newcastle and Gateshead skyline is clear from the comments we have heard today. The majestic arch of the Tyne bridge is a symbol of Tyneside’s international reputation for industrial excellence. As the hon. Lady noted, the bridge was officially opened on 10 October 1928 by King George V, grandfather of Queen Elizabeth. Constructed from Tyneside steel, the Tyne bridge is a magnificent feat of British engineering.

As a civil engineer, I note with genuine enthusiasm the proposals to celebrate the anniversary in seven years’ time. The bridge plays a vital role in the everyday lives of people in Tyneside, allowing easy access across the river for work and education. It is an exciting symbol of the rich cultural life of Newcastle, Gateshead and the north-east. From hosting the country’s largest Olympic rings in 2012, to celebrating 50 years since Martin Luther King visited Newcastle in 1967, the Tyne bridge has been closely connected to major sporting and cultural moments over the years.

I welcome the hon. Lady’s commitment to the restoration of such an important local and national landmark. I am aware that Newcastle has entered a bid to repair the bridge, through the Government’s £4.8 billion levelling-up fund. I understand that Newcastle is in the high-priority category 1 for the fund. I am sure the hon. Lady will understand that I am unable to comment on individual bids at this stage of the process, as applications for round 1 of the fund closed only last Friday. Levelling-up fund proposals are currently in assessment and I look forward to my Department announcing successful bids in the autumn.

My right hon. Friend the Secretary of State for Transport is aware of proposals for the Tyne bridge, including £36.7 million of major road network funding developed by Transport for the North. Department for Transport officials are continuing to work with Newcastle City Council officials on a business case, as that is the best way to make progress on securing the funding.

I am also pleased to note that there has already been significant Government investment in Newcastle and the north-east. To support the north-east’s economic recovery, the Government have allocated £47 million from the getting building fund to the North East local enterprise partnership, for local shovel-ready infrastructure projects. That includes £7 million for a landmark regeneration scheme on the banks of Newcastle and Gateshead quayside, set to open in 2023, with a new hotel, arena and conference centre; £5.1 million for public realm and digital infrastructure works in Newcastle city centre; and £780,000 towards NU Futures, a new leisure, careers and skills venue for young people.

[Chi Onwurah]

I thank the Minister for his comments on the importance of the Tyne bridge as a regional iconic symbol, and for referring to investment in projects on the banks of the river. Does he agree that that makes it all the more important that our bridge, which has not had such investment for decades, should be fit for its surroundings, as well as for its birthday in 2028?

[Eddie Hughes]

As a civil engineer who appreciates the fine beauty of bridges and has visited Sydney harbour and seen its poor comparative version, I hope that the hon. Lady is successful in securing the funding she needs. There are a number of options open. The bridge deserves to be restored to its former glory.

The Department for Transport has provided significant funding to the north-east, including £198 million to the North East combined authority and the North of Tyne combined authority for local transport improvements through the transforming cities fund. The Government have also provided £82.9 million for 2021-22 to authorities in the north-east for highway maintenance, pothole repairs and local transport measures. Some £700 million has been provided for strategic road schemes between 2020 and 2025, including the A1 and A19 junctions north of Newcastle. The north-east has also received more than £9 million in investment from the Department for Digital, Culture, Media and Sport culture recovery fund.

I thank the hon. Lady for raising this issue.

[Chi Onwurah]

Before the Minister concludes, I hope that he, a civil engineer, will join me, an electrical engineer, in celebrating International Women in Engineering Day and particularly the contribution of Dorothy Buchanan to the Tyne bridge.

[Eddie Hughes]

I thank the hon. Lady for giving me the opportunity to restate my enthusiasm for engaging more women in engineering and construction. As a proud member of the Chartered Institute of Building, I have previously done work not just on attracting women to the industry, which is sometimes successful, but on the less successful aspect of retaining them in the industry, because sometimes working practices do not fit with the way they would like to live. The construction and engineering sector has moved considerably on being welcoming to women and I hope that that continues in the future. When I was at university, only two of the 50 people on my degree course were women. I hope there is a significant improvement and that we will continue to build on it.

I recognise the pride held by the people of Newcastle and Gateshead in the Tyne bridge and I welcome the hon. Lady’s efforts to represent their strength of feeling. Although I am unable to comment on Newcastle’s bid for the £4.8 billion levelling-up fund while those bids are assessed, I look forward to the autumn when we will be in a position to announce those results.

The Government have provided significant funding for Newcastle City Council both during the pandemic and to support recovery from it. We are working hard to ensure that there is a strong settlement for all of local government at the forthcoming spending review, which will provide certainty for the coming period. I wish the hon. Lady all the best in her preparations as we approach the centenary of this iconic feat of engineering and I look forward to celebrating with her in 2028.

Question put and agreed to.

Levelling Up

Debate between Eddie Hughes and Chi Onwurah

Tuesday 16th March 2021 Commons Chamber

[Eddie Hughes]

Absolutely. One key aim of the fund is connectivity and transport in local need, so that is absolutely at the heart of what this fund is about. I encourage my hon. Friend to work with local councils to identify a priority bid for his area to ensure the maximum opportunity for success.

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

This Government have devastated the finances of local authorities, such as Newcastle City Council, cutting their funding year after year, breaking their promise to pay their covid costs and forcing them to raise council tax, which itself raises more in some areas than in others and takes money out of the pockets of those who need it most. This fund pits councils against each other to compete for meagre and recycled pots of money, with Government Departments taking all the decisions. Why does levelling up mean putting Whitehall in charge?

[Eddie Hughes]

I thank the hon. Lady for her question, but I am slightly confused. This process will allow local MPs to work with their local councils to identify priority projects for their area and will provide those councils with funding—£125,000 in the case of Newcastle upon Tyne, which is a category 1 authority—so that they have the funds available and they have the opportunity, working collaboratively, to identify a good project. I ask the hon. Lady to work with the council to get on and identify a project and bring money to her constituency.

Newcastle United Football Club: Regulation

Debate between Eddie Hughes and Chi Onwurah

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.