MPs have attempted to raise the pressure on billionaire Mike Ashley to explain what “immovable commitments” are preventing him appearing before a parliamentary committee examining the use of zero-hours contracts and 200 job losses at his Sports Direct group.
The Newcastle United owners’ advisers have spent weeks blocking repeated attempts by MPs on the Scottish affairs committee to force him to face questions about the sudden closure of the Ayrshire warehouse of USC, a fashion retailer owned by Sports Direct. In a letter to Ashley’s advisers published on Thursday, the Scottish affairs committee wrote: “Please provide, without further delay, the information that the committee has asked for on what immovable commitments Mr Ashley has throughout the entirety of March which are preventing him from appearing before the committee.”
The MPs made public their correspondence with Sports Direct, including the lawyers’ threat of legal action, in relation to publication of earlier letters in which the publicity-shy billionaire made his excuses. “We can see no basis on which you were entitled to publish any of that confidential correspondence without [Sports Direct’s] consent,” Ashley’s lawyers wrote to the committee. “The fact that you have done so is considered likely to amount to a breach of our client’s confidence as a matter of law and we fully reserve all of [Sports Direct’s] legal rights.”
The lawyers said Ashley would not give a full explanation of why he could not attend the committee hearing unless they could be assured of full confidentiality.
The MPs say that they are entitled to publish the correspondence because it forms part of its proceedings, which are covered by parliamentary privilege and therefore have legal immunity.
Publication of the correspondence comes as MPs increase pressure on Ashley to make an appearance before parliament dissolves on 31 March. It is highly unusual for business leaders to refuse a request to appear before a select committee.
MPs do have the power to formally summon those who refuse to give evidence. But limited time ahead of the election means a decision to pursue Ashley under the legally binding procedure would be left to a revamped committee that might have different priorities.
About 200 staff lost their jobs when administrators were called in to West Coast Capital (USC), the Sports Direct-controlled entity that owned 28 USC stores. The stores were immediately bought out of administration by another part of Sports Direct, but the Scottish warehouse was closed down.
Sports Direct’s chairman, Keith Hellawell, is set to appear before the committee on 25 March, but the committee has made clear that it wants to hear from Ashley as well. Ian Davidson, chairman of the committee, has described Ashley, who founded Sports Direct and remains a 55% shareholder, as the “driving force behind Sports Direct.” He previously warned Ashley: “Eventually he will realise that he is not bigger than parliament.”
