Tag: Chi Onwurah

  • Chi Onwurah – 2021 Comments on Digital Surveillance at Work

    Chi Onwurah – 2021 Comments on Digital Surveillance at Work

    The comments made by Chi Onwurah, the Shadow Digital Minister, on 19 January 2021.

    Guidance and regulation to protect workers are woefully outdated in light of the accelerated move to remote working and rapid advancements in technology.

    The bottom line is that workers should not be digitally monitored without their informed consent, and there should be clear rules, rights and expectations for both businesses and workers.

    Ministers must urgently provide better regulatory oversight of online surveillance software to ensure people have the right to privacy whether in their workplace or home – which are increasingly one and the same.

  • Chi Onwurah – 2020 Comments on Business Loan Scheme Statistics

    Chi Onwurah – 2020 Comments on Business Loan Scheme Statistics

    The comments made by Chi Onwurah, the Shadow Science, Research and Digital Minister, on 11 August 2020.

    It cannot be right that hundreds of thousands of businesses have been shut out of the support promised to them in this time of crisis. Ministers need to sort their system out and urgently accelerate access to support. Failure to do so risks the future of all these businesses, the bread and butter of Britain’s economy, as well as scores of livelihoods across the country.

  • Chi Onwurah – 2020 Speech on Huawei

    Chi Onwurah – 2020 Speech on Huawei

    The text of the speech made by Chi Onwurah, the Labour MP for Newcastle upon Tyne Central, in the House of Commons on 14 July 2020.

    I thank the Secretary of State for giving me advance sight of his statement. All sides of the House agree that the first duty of any Government is to protect their citizens, and we have confidence in our national security services, which go to such lengths to keep us safe. It has been clear for some time that there are serious questions over whether Huawei should be allowed to control large sections of our country’s telecoms networks, yet the Government refused to face reality. Their approach to our 5G capability, Huawei and our national security has been incomprehensibly negligent. The current Education Secretary was sacked as Defence Secretary for leaking parts of the security services’ advice on Huawei, yet the Government went on to ignore large parts of it. In January, the Foreign Secretary said in a statement to the House that the Government would legislate at “the earliest opportunity” on high-risk vendors. They then refused to work with us and their own Back Benchers to enable that to happen. Will the Secretary of State tell us when he will bring forward the legislation on high-risk vendors, including the robust regulatory and enforcement powers required to limit or eliminate their part in our network? “As soon as possible” and “shortly” will not wash any more.

    Will the Government publish the security advice on which today’s decision has been taken? What new information have they been given that was not available to them when the initial decisions were made? I would also like to ask the Secretary of State what discussions he has had with the Foreign Secretary and the Trade Secretary on likely retaliation. Where else are we dependent on Chinese suppliers—for example, in our nuclear sector—and how are we working with our democratic allies, including but not limited to the United States, to develop alternatives in these areas? The Secretary of State says that this change is being made in response to US sanctions, but in the past he has emphasised how closely he was working with the United States, so were the sanctions a surprise? Is our security policy being led by the US? Did the very visible human rights violations by the Chinese in Hong Kong and against the Uyghurs play no part in the decision?

    The reality is that the original decision on Huawei was made because, over the past decade, this Government have failed to deliver a sustainable plan for our digital economy. Almost exactly a year ago, the “UK Telecoms Supply Chain Review Report” was published. It stated:

    “We will develop and pursue a diversification strategy—including by working with our international partners—to ensure a competitive, sustainable and diverse supply chain.”

    Now the Secretary of State claims to have set out a “clear and ambitious diversification strategy”. This will come as a surprise to anyone who has looked at the Government’s statements. I would like to ask the Secretary of State: what are the actions to implement the strategy—which has effectively been set out somewhere and which I have not seen—and can he tell me where it is set out?

    This is a car crash for our digital economy, but one that could have been visible from outer space. BT and other vendors have put the cost of this decision in the billions. The Secretary of State says £2 billion. What is the basis for that estimate, and how will he ensure that the cost is not passed on to consumers? Today’s announcement refers to 5G, but what are the implications for our emergency services network—a saga even longer than this one, in which BT was planning to use Huawei?

    Open standards such as open RAN limit dependence on any one supplier; what is the Secretary of State doing to mandate such standards and open our networks to UK companies such as Cambridge company ip.access and the north-east company Filtronic? Crucially, what proportion of the additional money that is spent will go to UK companies and how many jobs will be created here? The Government recently announced a £500 million investment in bankrupt American satellite broadband provider OneWeb; are similar investments planned for 5G or 6G companies?

    Labour has repeatedly offered constructive ideas to get the UK out of the Huawei hole; we have consistently argued to end our national dependence on all high-risk vendors and improve corporate responsibility for global supply chains. This entire saga has shown that the Government cannot sort this mess out on their own. We need a taskforce of industry representatives, academics, start-ups, regional governments and regulators to develop a plan that delivers a UK network capability and secure mobile network in the shortest possible timeframe. Will the Secretary of State commit to that and return to the House regularly to update on progress?

    Will the Secretary of State get a grip, get a plan and secure our critical communications infrastructure, our digital economy and our national security?

  • Chi Onwurah – 2020 Comments on Investment in Life Sciences

    Chi Onwurah – 2020 Comments on Investment in Life Sciences

    Below is the text of the comments made by Chi Onwurah, the Shadow Minister for Science, Research and Digital, on 10 July 2020.

    Investment in the life sciences is a critical part of our response to this pandemic and the health challenges we face as a nation. But our investment doesn’t reflect regional science capacity or health needs as the IPPR analysis makes clear.

    The North receives less than half of the life science investment per head that the South of England does even though it has great teaching hospitals and significant health inequalities.

    We need to see that change as we invest in science to beat the pandemic and create new jobs across the country.

  • Chi Onwurah – 2019 Speech on Visa Processing

    Below is the text of the speech made by Chi Onwurah, the Labour MP for Newcastle upon Tyne Central, in the House of Commons on 19 June 2019.

    This is an important debate about technology, automation, the Home Office, immigration and people’s lives. I came to the House in 2010 and have since often raised issues to do with technology, and I also feel that a better debate on immigration has often been needed, so the opportunity to spend two hours and 20 minutes debating this subject is an unexpected but welcome surprise. However, I do not intend to detain the House for much longer than the half hour originally estimated, although I will be happy if other Members wish to.

    I want to start by saying that I am happy to call myself a “tech evangelist”, having worked as an engineer in the tech sector for 20 years before coming into Parliament. Since then, I have worked to champion technology and how it can make all our lives better; I was the first MP to mention the internet of things in this place, for example. Over the years, I have also raised concerns about the impact of technology, especially with a Government who refuse to put in place a regulatory framework that reflects its potential for harm as well as good, and who, critically, refuse to accept that the impact of technology on society is a political choice.

    Along with others, I have been highlighting the potential harms of algorithmic decision making, artificial intelligence and data exploitation for years, yet the Government have done nothing. In fact, we now learn that they have done worse than nothing: they have taken advantage of the current regulatory chaos to implement algorithmic management in secret.

    On 9 June, the Financial Times revealed that the Home Office was secretly using algorithms to process visa applications, which is making a bad situation worse. I say that because of my experience as a constituency MP in Newcastle with a significant level of immigration casework—I will talk more about that. I am also chair of the all-party parliamentary group on Africa. We are currently conducting an inquiry into UK visa refusals for African visitors to the UK. We have met the Minister—we are grateful for that—and our report will be published next month. Furthermore, I am chair of the all-party parliamentary group on diversity and inclusion in science, technology, engineering and maths; algorithmic bias is one important example of how the lack of diversity in STEM is bad for tech and society.

    According to the Financial Times journalist Helen Warrell, the Home Office uses an algorithm to “stream” visa applicants according to their supposed level of risk—grading them red, amber or green. The Home Office says that that decision is then checked by a real-life human and does not impact the decision-making process, which is the most ridiculous justification for algorithmic decision making ever—that it does not make any decisions! Presumably it is just there to look good. We must not forget the inevitability of confirmation bias in human decision making, which was raised by the chief inspector of borders and immigration.

    The Home Office refuses to give any details of the streaming process, how risk is determined or the algorithm itself. That lack of accountability would be deeply ​worrying in any Department, but in the Home Office it is entirely unacceptable, particularly when it comes to visa processing. The Home Office is broken. We know that it is unable to fulfil its basic visa-processing duties in a timely or consistent manner. If we add to that a powerful and unregulated new technology, Brexit and bias, we have a recipe for disaster.

    I know that there are many able and hard-working civil servants in the Home Office, though fewer than there were. When I say that the Home Office is broken, it is not a criticism of them, but of the resources they are given to do their job. The all-party parliamentary group for Africa received detailed and, at times, excoriating evidence from a whole range of people and organisation—academics, artists, business owners, scientists and family members—who had been wrongly denied entry to the UK. I will give just a few examples.

    LIFT, the world-famous London International Festival of Theatre, applied for visas for well-known artists from the Democratic Republic of Congo for a performance exploring their experience of civil war. They were denied visas on the basis that UK dancers could perform those roles. We also heard from the Scotland Malawi Partnership, which highlighted a case where a high-profile musician invited to the UK from Malawi was given a visa rejection letter from UK Visas and Immigration that essentially stated, “We reject your visa because [insert reason here].”

    Patrick Grady (Glasgow North) (SNP)

    I thank the hon. Lady for giving way and wholeheartedly endorse everything she is saying. We have worked closely together. I chair the all-party parliamentary group on Malawi and assist her on the APPG for Africa. As she says, these examples are just the tip of the iceberg. She is right that we should not blame the individual decision makers in the Home Office. It is the policy, the lack of resourcing and, as I think she is getting to, the increasingly broad-brush approach to the use of automation. This is damaging the whole of the UK and everything the Government say about wanting to make Britain a great country to come to; that simply will not be the case if people cannot get through the door.

    Chi Onwurah

    I thank the hon. Gentleman for his intervention. Unsurprisingly, as we have worked together in the all-party parliamentary groups, I agree with everything he said. In fact, he anticipates some of the points that I will come on to make.

    Our APPG also heard of ordained ministers and priests being denied visas either because they did not earn enough—as if they had taken a vow of poverty—or because the Church of England is not considered a reputable sponsor. We heard of a son unable to reach his father’s deathbed and grandparents unable to see their grandchildren.

    Mr Jim Cunningham (Coventry South) (Lab)

    I have seen similar cases, particularly when somebody wants to bring a member of their family over here. I will not go into great detail, but I had a case where an individual was dying of cancer, which meant that her husband would have to give up his job to look after their four kids. The problem was trying to get somebody from her home country to come here to look after her until she died. It took a long time for us to sort that out, but eventually they were allowed a visa to come here. Nine ​times out of 10 with visas or even leave to stay, there are major problems with the Home Office. My hon. Friend is right; something has to happen. The Home Office is under-resourced and has a lack of personnel. It might tell us that it can put an application through in a given time, but it does not happen that way. People often turn up at our surgeries, and they are sometimes very distressed about the way these things are handled.

    Chi Onwurah

    I really thank my hon. Friend for that intervention, because he is of course absolutely right. He raises a heartbreaking case, but he also hints at the fact that, as a consequence, we as MPs are seeing more casework and having a higher case load. That in itself is putting more pressure on the Home Office because we raise cases and ask for them to be reviewed. It takes longer to effect a decision—a final, just decision—and the people concerned have their lives disrupted, in some cases heartbreakingly so, for a longer period of time.

    I want to mention the case of a United Kingdom mayor who was denied the presence of their sister at their inauguration, presumably because they were not considered to be a credible sponsor. Finally of these national cases, Oxfam has highlighted that, because of visa rejections, only one of the 25 individuals from Africa expected to attend a blog-writing training course at the recent London School of Economics Africa summit was able to do so. Non-governmental organisations and so on are trying to support in-country skills development, but it is often the case that it is very difficult to bring people, particularly young people, working for Oxfam or other NGOs to this country for training.

    The Minister should know that her Department is notorious for a culture of disbelief, with an assumption that visitors are not genuine. I will give one example from my own constituency. Last year, the University of Nigeria Alumni Association UK branch chose to hold its annual meeting in Newcastle—by the way, it is a fantastic location to hold all such events—but a significant number were initially denied visas on the grounds that they might not return to Nigeria. These were all businessmen and women, academics or Government workers with family in Nigeria. After my intervention, their visas were approved, but that should not have been necessary.

    Entry clearance officers are set independent targets of up to 60 case decisions each day, and our all-party group investigation found that this impacted on the quality and fairness of decision making. Home Office statistics from September 2018 show that African applicants are refused UK visas at twice the rate of those from any other part of the world. When visitors are denied entry arbitrarily, the UK’s relationship and standing with those countries is damaged, as has been mentioned, and we lose culturally and economically. International conferences and events, new businesses, trading opportunities and cultural collaborations are being lost to the UK because of the failings of the Home Office.

    The last report on visa services from the independent chief inspector in 2014 found that over 40% of refusal notices were

    “not balanced, and failed to show that consideration had been given to both positive and negative evidence.”

    Last month, it was announced that the six-month target for deciding straightforward asylum cases is being abandoned. This was a target that, as the Home Office’s ​own statistics show, was repeatedly missed. In 2017, one in four asylum cases was not decided within six months, while immigration delays have doubled over the past year, despite a drop in cases. As a constituency MP, I know from personal experience about the significantly longer delays to visa applications.

    This is a failing system, but it is run for profit. Applicants are routinely charged up to 10 times the actual administrative costs of processing applications. For example, applying for indefinite leave to remain in the UK costs £2,389, while the true cost is just £243.

    Fees for refused visas are not refunded and there is no right of appeal for the refusal of a visit visa application. Within the process, even communication with the Home Office is monetised: people are charged £5.48 to email the Home Office from abroad and non-UK-based phone calls cost £1.37 per minute.

    The fact that the Department has reputedly lost 25% of its headcount under the austerity agenda must be part of the reason for these failures, but there is also the culture of disbelief, which I mentioned earlier, the hostile environment, of which we have heard much, and the impact of Brexit, because what staff do remain are being moved on to Brexit preparation. It is in this environment that the Home Office decided that the answer was an algorithm.

    According to the Home Office, the use of algorithms in visa processing is part of an efficiency drive. They are being used not to improve the quality of decision making, but to make up for a lack of resources and/or to drive further resources out. As an engineer, I often say that whatever the problem is, the answer is never technology—at least, not on its own. I will say categorically that algorithms should not be used for short-term cost savings at this stage in their evolution as a technology.

    Let me define what we are talking about. An algorithm is a set of instructions, acting on data entered in a particular format, to make a decision. If the algorithm learns from performing those instructions how to make better decisions, that might be called machine learning. If it both learns from performing its instructions and can act upon data in different and unpredictable formats, it might be considered to be artificial intelligence—might, but not necessarily is, because not everything that is artificial is intelligent.

    Critically, algorithms are only as good as their design and the data they are trained on. They are designed by software engineers, who tend to come from a very narrow demographic—few are women, from ethnic minorities or working class. The design will necessarily reflect the limits of their backgrounds, unless a significant effort is made for it not to.

    There are many examples of problems with the training data for algorithms, from the facial recognition algorithm that identified black people as gorillas because only white people had been used to train it, to the match-making or romantic algorithm that optimised for short-term relationships because the training data showed that they generated more income, due to the repeat business. Unless algorithms are diverse by design, they will be unequal by outcome.

    Algorithms are now an integral part of our lives, but without any appropriate regulation. They drive Facebook’s newsfeeds and Google’s search results; they tell us what to buy and when to go to sleep; they tell us who to vote ​for and whom to hire. However, there is no regulatory framework to protect us from their bias. Companies argue that the results of their algorithms are a mirror to society and are not their responsibility; they say that the outcomes of algorithms are already regulated because the companies that use them have to meet employment and competition law. But a mirror is not the right metaphor; by automating decision making, algorithms industrialise bias. Companies and especially Governments should not rely on algorithms alone to deliver results.

    I hope that the Government are not accepting algorithms in their decision making processes without introducing further regulation. The Home Office has denied that the algorithm for visa streaming takes account of race, but it refuses to tell us anything about the algorithm itself. Home Office guidance on the “genuine visitor” test allows consideration of the political, economic and security situation of the country of application, or nationality, as well as statistics on immigration compliance from those in the same geographical region, which can often be proxies for race.

    When I announced this debate, many organisations and individuals sent me examples of how Home Office algorithmic decision making had effectively discriminated against them. Concerns were also raised about other automated decision making in the Home Office—for example, the residency checks in the EU settlement scheme, which uses a person’s Her Majesty’s Revenue and Customs and Department for Work and Pensions footprints to establish residency, but does not consider benefits such as working tax credit, child tax credit or child benefit. All those benefits are more likely to be received by women. Therefore, the automated residency check is likely to discriminate against women, particularly vulnerable women without physical documents.

    We do not know whether the visa processing algorithm makes similar choices, whether it was written by the same people, or indeed whether it originated in the private sector or the public sector. The Home Office says that algorithmic decisions are still checked by people—a requirement of GDPR, the general data protection regulation—but not how much time is allowed for those checks, and has admitted that the purpose of the algorithm in the first place was to reduce costs.

    Unfortunately, the Government’s track record on digital and data does not give confidence. When the Tories and Liberal Democrats entered Government in 2010, big data was a new phenomenon. Now it drives the business model of the internet, but the Government have done nothing to protect citizens beyond implementing mandatory European Union legislation—GDPR. They are happy to preside over a state of utter chaos when it comes to the ownership and control of data, and allow a free-for-all to develop in artificial intelligence, algorithms, the internet of things and blockchain. In 2016, for example, the DWP secretly trialled the payment of benefits using shared ledger or blockchain technology. Despite the privacy implications of using a private company to put sensitive, highly personal data on to a shared ledger that could not be changed or deleted, we still do not know what the process was for approving the use of this technology or the outcome of the trial. The Government should have learned from the Care.data debacle that the misuse of technology damages public trust for a long time.​

    I like to consider myself as a champion of the power of shared data. I believe the better use of data could not only reduce the costs of public services, saving money to be better used elsewhere, but improve those services, making them more individual, more personal, faster and more efficient. However, I am not the only one to raise concerns. Algorithmic use in the public sector was recently debated in the Lords, where it was estimated that some 53 local authorities and about a quarter of police authorities are now using algorithms for prediction, risk assessment—as in this case—and assistance in decision making. Now that we find it being used in the Home Office, it is essential that the Government—I am glad to see the Minister here today—answer the following questions. I have, I think, 11 questions for the Minister to answer.

    Will the Minister say whether this algorithmic visa processing is part of machine learning or artificial intelligence? Is the algorithm diverse by design? Will the Minister say whether the algorithm makes choices about what data is to be considered, as with the settled status check example? Who was responsible for the creation of the algorithm? Was it the Home Office, the Government Digital Service or a private sector company? What rights do visa applicants have with regard to this algorithm and their own data? Do they know it is being used in this way? How long is their data being stored for and what security is it subject to?

    What advice was taken in making the decision to introduce this algorithm? Did the Government consult their Centre for Data Ethics and Innovation, the Department for Digital, Culture, Media and Sport or the Cabinet Office? Does the duty of care in the online harms White Paper from DCMS apply to the Home Office in this case? What redress or liability do applicants have for decisions that are made in error or are subject to bias by the algorithm? What future algorithms are planned to be introduced into visa processing or elsewhere? Finally, why is it that journalists—in this case, from the Financial Times, as well as Carole Cadwalladr—seem to have identified and brought attention to the misuse of algorithms but the Government or any of their regulators who are supposedly interested in this area, such as Ofcom or the Information Commissioner’s Office, have not? Will the Minister say which regulator she feels is responsible for this area?

    A Labour Government would work with industry, local authorities, businesses, citizen groups and other stakeholders to introduce a digital Bill of Rights. This would give people ownership and control over their data and how it is used, helping to break the power of the monopoly tech giants, while ensuring a right to fair and equal treatment by algorithms, algorithmic justice and openness. We need to be able to hold companies and Government accountable for the consequences of the algorithms, artificial intelligence and machine learning that drive their profits or cost-cutting. A Labour Government would protect us not just from private companies, but from the cost-cutting of this Government, who I suspect either do not understand the consequences of their technology choices or do not care.

    I hope that the Minister can reassure me and answer my questions and that she can demonstrate that the use of algorithms in the Home Office and elsewhere across Government will be subject to proper transparency, scrutiny and regulation in future.​

  • Chi Onwurah – 2019 Speech on Newcastle United Football Club

    Below is the text of the speech made by Chi Onwurah, the Labour MP for Newcastle-upon-Tyne Central, in the House of Commons on 24 January 2019.

    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 they 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 only spend 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, 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 are consistently reported as having one of the lowest spends on players in the English premiership, and many estimates indicate the club have 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, for spending too long in the toilet or for 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.

  • Chi Onwurah – 2016 Speech on Housing in Newcastle

    Below is the text of the speech made by Chi Onwurah, the Labour MP for Newcastle upon Tyne Central, in Westminster Hall on 10 May 2016.

    I beg to move,

    That this House has considered housing in Newcastle.

    It is a great pleasure to serve under your chairmanship, Mr Hollobone. I am pleased to have secured this short debate on a subject that is so critical to my constituents.

    I am sure that everyone present is an avid reader of my website, chionwurahmp.com, and so will know that I publish pie charts that summarise the issues that constituents come to me with. At the moment, March’s pie charts are up, showing that I dealt with 36 housing issues that month—just behind the 37 benefits issues. Since I was first elected six years ago, housing has consistently been in the top three issues in Newcastle upon Tyne Central, and often No. 1, which is why I have secured several debates on housing and related issues, including on empty properties in 2012 and on local authority funding settlements and holdbacks in 2013.

    Earlier this year, I held a ward summit in Blakelaw in my constituency that was attended by local councillors, residents groups and other organisations. The minutes are on my website, and show that, again, housing was the No. 1 issue. Late last year, I held another ward summit, in Benwell and Scotswood, where housing was also the No. 1 issue. Just last week, I held an informal surgery with the Sisters Study Circle group at the Tawheed mosque in Elswick, and housing was of great concern to them.

    Why, I was asked, is it now next to impossible to get a council house in Newcastle? I tried to explain that there are 6,000 households on the waiting list, of which 4,000 are actively bidding for properties, but only 185 properties become available each month. I also explained that much of the council housing stock has been sold off and that, really, it was now available only to those with the greatest need. “Why did the Government not build more houses?”, they asked me. “Did they not realise the impact bad housing has on health, crime and education? How can young people focus on studying or getting a job if they haven’t got a decent roof over their head? How can parents give children the support they need if they are worrying where they are going to be living next week?”

    After some time, I grew tired of trying to explain the Government’s logic while at the same time thinking, “I myself don’t understand.” My job is not to justify the Government but to hold them to account. I am sure the Minister agrees that my constituents are right to be concerned about the lack of housing in Newcastle. I applied for this debate to find out from him exactly how he believes Newcastle City Council can overcome the barriers preventing it from building more houses to improve the lives of the thousands of people in my constituency who need a decent home.

    Last year, the Government presided over the building of just 9,590 homes for social rent, compared with the 33,180 delivered in Labour’s last year in office. Last year’s was the lowest level of affordable homes built for more than two decades. Having knocked on a great many doors over the last few weeks—indeed, over the last few years—I know that they bear testament to the last Labour Government’s investment in our housing stock. Labour could, and should, have built even more homes, but the decent homes programme—visible in new doors, windows, kitchens, bathrooms and the very fabric of so many homes in Newcastle—effectively renewed the existing stock so that it could last for another generation.

    That programme contrasts with this Government’s record of cutting investment and of building just one new social home for every eight sold off through right to buy—a Government whose use of the term “affordable rent” is not recognisable to most people; who thought up the unfair bedroom tax, which has affected half a million households; and who have overseen a 22% rise in private rents in Newcastle since 2011, when incomes have barely risen at all.

    Newcastle is a growing city. It is estimated that by 2021 there will be 16,200 more people living in our great city, and the Government have a duty to ensure that local authorities have the means—both the funding and the powers—to provide the homes that local people need. Newcastle needs 16,400 new homes between now and March 2030: around 1,000 new homes per year, not including student accommodation for those studying at our world-class universities. Residents quite rightly do not want to lose any of our fantastic greenfield assets in and around Newcastle, so much of the land available for building these homes for Newcastle is brownfield, with high clean-up costs.

    Providing the homes required in such circumstances is already a huge challenge for the council, given the ideologically and politically driven extent of the cuts to central Government funding, yet the Government seem insistent on piling on further pressure and putting further barriers in the way. The 1% cut in social housing rent over the next four years will leave a hole of £593 million in the council’s 30-year financial model—that is £0.6 billion. That investment was earmarked for building the homes that the city needs and for investing in the city’s stock. Although a 1% cut in social rent may seem a good thing for social tenants, it is the council that pays for it, not the Government. It will take money away from the capital investment needed for repairs, improvements and, critically, new homes.

    If the Government were so concerned about saving social tenants’ money, they would abolish the grotesque bedroom tax. By the way, the Government are actually the greatest beneficiary of this rent cut, because the housing payment bill for the Department for Work and Pensions will fall considerably. It is the Government who will benefit from this cut, not social tenants.

    It is not hard to see that when housing authorities’ incomes are cut, they will have less to invest—more than half a billion less, in the case of Newcastle City Council. Trampling over locally elected and accountable councils’ planned infrastructure investment in such a way deserves its own debate. But there is more: that hole in the city’s investment plan will be widened even further by the Government’s forced sale of higher-value housing to pay for the new right to buy. Building a new home in Newcastle costs a minimum of £120,000, but the result of the much criticised Housing and Planning Bill will be the selling off of homes at an average price of £80,000—so, £80,000 in income versus £120,000 to build them. Even if all the income were reinvested, at best we would replace only two thirds of all homes sold.

    I hope the Minister is aware of the analysis published by Shelter last month, which showed that Newcastle will need to sell more than 400 homes every year to raise the £52 million annual contribution to the Government’s policy. That £52 million contribution must be paid for by selling off homes. That is 100 more homes than are built each year now, before the Government’s housing Bill bites, with its inevitable knock-on effect on investment.

    My constituents who are on the lowest incomes already find it much more difficult to buy homes, even at the lower end of the market, than they would in other parts of the country. The council has done some brilliant work in recent years: delivering much needed specialist house building; building more affordable homes; returning vacant private sector properties to the market, which is very important; and working to reduce homelessness. But it is under attack from a Government who seem determined to dismantle our social housing stock from Whitehall. I simply cannot see how the council is supposed to meet the needs of local people, given the straitjacket that the Minister is putting them into. Those I have spoken to in Newcastle believe, as I do, that Government locally and nationally have a duty to provide homes for people. I want to see a healthy mix of tenures. [Interruption.] Perhaps the Minister is looking on his mobile phone to see how that can be achieved.

    The actions of the Government and the housing Bill will throw up more barriers to building homes that, frankly, seem designed to destroy social housing altogether. Will the Minister tell us what role he sees for councils in building and providing homes, and how much discretion they should have in fulfilling that role? What modelling have his Government done on the effect of the 1% cut in social rents on investment in Newcastle and across the country, and will he publish that modelling? Does he not agree that decisions on rent should be with the local authority, and that if central Government want to cut rent—a laudable aim—they should provide the money to pay for it, rather than punish future generations? What modelling has he done on the forced sale of council homes to fund his right to buy policy? Does he agree with the analysis that Shelter has done on this and, if not, will he publish his own sums?

    On the subject of the right to buy policy for housing associations, I wrote to the Minister last year about constituents of mine who are unable to sell their properties because the freehold is owned by the St Mary Magdalene & Holy Jesus Trust, which refuses to extend the leases. In his response, he said that my constituents should write to the advisory body LEASE, which they did, to no avail. There are three different housing Acts that affect three different types of properties and the rights they enjoy. The Minister said he would consider this further as part of the Housing and Planning Bill. Has he any hope, or indeed any clarity, to offer my constituents on that issue?

    What would the Minister say to my constituents who cannot get a council home and cannot afford the rising rents in Newcastle? Does he think that his housing Bill will enable Newcastle City Council to build enough homes in the next 30 years and can he explain how? If it will not, how does he expect the private sector to fill the gap at affordable prices for different types of tenure? Finally, will he take a leaf out of the book of the new Labour Mayor of London, Sadiq Khan, and commit to ensuring affordable housing in Newcastle?