A veteran MP has used parliamentary privilege to launch an outspoken attack on the business dealings of influential Rangers shareholder Mike Ashley.

 

In a Westminster Hall debate, Brian Donohoe, the local Labour MP, called for an official inquiry into Mr Ashley's affairs both at USC and Rangers and made clear it was "really wrong that this individual is allowed anywhere close" to the football club.

The billionaire businessman now faces the prospect of being called before a Commons committee to answer questions about the "despicable" treatment of Scottish workers made redundant at the USC clothing distribution company in Dundonald.

The backbencher, who represents Central Ayrshire, told MPs about the "pantomime" of the collapse of USC, owned by Mr Ashley's Sports Direct, which was closed earlier this month because it was not making money. It had 79 permanent staff and 166 either agency or zero-hour contract workers.

They, Mr Donohoe said, were not initially told they were being made redundant and were asked to help in the removal of the firm's goods, involving a reported 100 journeys by HGVs.

It was not until several days later that the workers were told they were being dismissed and would receive no money. Any money they were owed they would have to seek from the UK Government through the administrator, he explained.

MPs described the treatment of the workforce as "despicable" and "appalling".

Cathy Jamieson, the MP for Kilmarnock and Loudoun, stressing how some of her constituents were affected, said it was "particularly disgraceful" that the closure happened over Christmas and New Year when it was almost impossible for employees to get the necessary advice and support.

Mr Donohoe, who is Secretary of the Westminster Rangers supporters club, noted how Mr Ashley, who owns Newcastle FC, had increased his interest in the Scottish football club as Sports Direct had just bought a 26 per cent stake in Rangers Retail Ltd in return for £10m of credit.

"The worrying thing is this is very much the pattern he adopted in buying USC. He built up a majority stake in the stages before finally assuming control of the company."

The backbencher described the USC collapse as a "murky affair", noting how part of the company had been bought by Republic, also owned by Sports Direct.

"Given the way he has behaved on this issue is Sports Direct supremo Ashley a fit and proper person to be buying shares and giving loans to Glasgow Rangers Football Club and to appoint his men to the board? Shouldn't the SFA be looking more closely at this person's credentials for involvement in a team, which is not just a business venture but a Scottish indeed a UK-wide institution?" asked Mr Donohoe.

He claimed Mr Ashley had scant regard for anything but balancing the books and maximising the profits even if loyal staff were to be thrown on the scrapheap as a result.

The backbencher described Rangers as an institution, which was followed by 25 per cent of the population of Scotland.

"It's really wrong that this individual is allowed anywhere close to them... I hope the SFA get to the bottom of it and don't allow him any further into the club's business."

Calling for an inquiry, he added: "We need to bring some transparency into the affairs of Mike Ashley and into the affairs of Glasgow Rangers."

Democratic Unionist MP Gregory Campbell, also a Rangers fan, called for the concerns about Mr Ashley's involvement in the club to be referred to the Sports Minister.

Jo Swinson, the Business Minister, stressed it was important to establish the facts as to whether USC was a victim of circumstance or whether the conduct of its directors had fallen below expected standards.

But she made clear she shared the concerns MPs had about Mr Ashley.

"In many respects, he seems determined to show that rules are for other people. We know that he bought up nearly 10 per cent of Rangers Football Club, rather skirting the edges of the SFA's rules on owning two clubs. And despite being blocked by the SFA from increasing his shareholding further, it appears he is looking to expand his influence."

Ms Swinson, noting how 90 per cent of Sports Direct employees were reportedly on zero hours contracts, added that there were "issues and questions certainly to answer" in relation to USC's administration and the insolvency service would be looking with interest at the information received.

Elsewhere, Ian Davidson, Chairman of the Commons Scottish Affairs Committee, which is conducting an inquiry into the collapse of City Link, told The Herald it would now be launching a similar investigation into USC and would be looking at "who we would want to invite about what happened at Dundonald".