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Sports Direct Boss Pulls Out Of Hearing With MPs

Sports Direct boss and Newcastle United owner Mike Ashley has told MPs investigating workplace practices that he will not attend a hearing on 7 June as his lawyer is unavailable.

The Commons Business, Innovation and Skills committee wants to quiz Mr Ashley over the treatment of workers at the sportswear business and have previously said he could be in contempt of Parliament if he fails to attend.

In a letter dated 2 June, however, Mr Ashley told the committee he was unable to attend because his lawyer Richard Gordon QC is "unavailable" and "cannot change that obligation".

He added: "Obviously he should be present if I was to attend. That means I will not be able to attend to give evidence on 7 June, even if my remaining questions are answered by then."

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Sports Direct has been the subject of sustained criticism over the use of controversial "zero hours" contracts.

But the firm says all staff and agency workers were being paid the national minimum wage "at a cost of around £10m", and that it would pay over 25s at least £7.40 an hour - the national living wage plus 20p - as pledged by Mr Ashley in December.

It (Other OTC: ITGL - news) says there are currently no workers on "zero hours" contracts at its Derbyshire warehouse - but said such agreements were in place at its stores.

Mr Ashley's June letter comes just a few weeks after he told Sky News that he intended to challenge the formal order to appear before MPs, which he slammed as an "abuse of the Parliamentary process".

Referring to the summons by MPs, he said they should be visiting the firm's factory in Shirebrook: "They would make a lot more informed decision if they were able to see it for themselves and then I don't think they would actually need to want to see me and carry on the media circus.

"They clearly don't care about the people at Sports Direct. In my opinion they are just showboating. In my opinion they are actually a joke."

The chair of the committee, Iain Wright MP, said a decision would be made on the next step when the group meets next week.

Mr Wright said: "Mr Ashley says he has nothing to hide but - following a Parliamentary summons issued back in March for Mr Ashley to attend on 7 June - and when he stated that he was available on that date, he has only now indicated he will not be able to attend next week.

"We are very disappointed by this eleventh-hour notification, having given him a notice period of three months to make the necessary arrangements.

"As democratically elected MPs, we are responding to serious allegations of exploitative employment practices and mistreatment of workers at Sports Direct. Mr Ashley announced in December he would personally oversee a review of working practices at the Shirebrook warehouse.

"It is entirely reasonable for the Select Committee to ask Mr Ashley to respond to those allegations and comment on how his review – announced over six months ago – is progressing.

"Business leaders regularly come before the Committee and answer our questions. Sir Philip Green, for example, has agreed to attend as part of our joint inquiry into BHS.

"Does Mr Ashley, owning and operating a business in a parliamentary democracy, see himself as being beyond such public scrutiny? What has he got to be frightened of?"