Labour will today [Wednesday] bring a binding vote in Parliament
to make public all correspondence relating to the government’s
decision to set up their own inquiry into the redevelopment of
the Teesside steelworks, rather than a fully independent
investigation by the public spending watchdog.
The Conservative Mayor of Tees Valley, , the Official Opposition and
the chairs of three cross-party Select Committees all called for
an investigation by the National Audit Office into the use of
public money and assets by the South Tees Development
Corporation.
But, despite the NAO saying that they were “willing and able” to
carry out that probe, and instead opted to set up their
own review, with a panel and terms of reference chosen by
Gove.
This was hastily announced after the Prime Minister said at PMQs
on 24 May that an investigation had been “already announced”,
when nothing had yet been confirmed publicly.
There have been growing calls for transparency after reports in
the Financial Times that a 90% stake in the
company operating the vacant steel site was transferred to two
local developers without any public tender process.
While companies controlled by those developers have earned at
least £45m in dividends from the project in the past three years,
there is no evidence they have invested any of their own money
into it.
The taxpayer, by contrast, has to date invested more than £260m,
in addition to providing a public loan worth more than
£100m.
Concerns have also been raised about governance and
accountability in relation to the project.
The transfer of a 90% stake in the steel site to private
companies was undertaken without a public tender by the South
Tees Development Corporation, a body chaired by Houchen, who also
holds the power to recommend the Corporation’s board
members.
, Labour’s Shadow Levelling Up
Secretary, said:
“The steelworks are part of the civic inheritance for people on
Teesside, and those people deserve answers. There was cross-party
support, including from the Conservative Mayor, for a NAO
investigation into the serious allegations of misuse of hundreds
of millions of pounds of public money and assets.
“But for some reason, ministers – who are responsible for the
flawed system of accountability that has partly led to this
situation – have chosen to set up a review where they will
hand-pick the panel and terms.
“Today, MPs can vote with Labour to shed light on why they made
this baffling decision, or they can opt to continue to deny
answers to people on Teesside.”
Ends
Notes
- On Wednesday, Labour will bring forward the following motion
calling for the release of all correspondence in relation to the
government’s decision to set up a review into the redevelopment
of the Teesside steelworks, but not to heed cross-party calls for
the National Audit Office to conduct that investigation:
That an humble Address be presented to His Majesty, that
he will be graciously pleased to give directions that
the Secretary of State for Levelling Up, Housing provide all
papers, advice and correspondence involving
Ministers, Senior Officials and Special Advisers,
including submissions and electronic
communications, relating to the decision by the
Secretary of State for Levelling Up, Housing and Communities and
the Prime Minister to commission a review into the Tees
Valley Combined Authority’s oversight of the South Tees
Development Corporation and the Teesworks joint venture,
including papers relating to the decision that
this review should not be led by the National Audit
Office.
If passed, this motion would be binding on the government.
