After a General Election where every Labour candidate in the Tees Valley had promised a National Audit Office (NAO). investigation into the Teesworks project, hopes are fading about those pledges transforming into reality, with silence from the new Labour government.
Teesworks is the new name for the massive steelworks site at the mouth of the Tees once owned by British Steel.
Public money to the tune of £560mn has been sunk into cleaning up the polluted land in readiness for new tenants.
There has been public uproar that 90% of shares in Teesworks Ltd, a joint venture which handles the project, has been handed to four businessmen led by Chris Musgrave and Martin Corney without any payment or liability. The consortium has received £108mn so far in receipts for scrap sales, land deals and consultancy services.
Question in the House of Lords
On Monday, the House of Lords discussed a question about Teesworks raised by Liberal Democrat Lord (Paul) Scriven, former Leader of Sheffield Council and currently Vice President of the Local Government Association. The question was:
“To ask His Majesty’s Government whether they plan to request the National Audit Office to carry out an inspection to the Teesworks programme, and if so when.”
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government, Lord Wajid Khan (former mayor of Burnley) refused to say if an NAO probe would go ahead.
But he said that the government was awaiting a progress report from Metro Mayor Lord Ben Houchen’s Tees Valley Combined Authority (TVCA).
The TVCA response, due in September, was requested by the Gove Review last February. Whilst not finding evidence of corruption, the panel’s report made 28 recommendations which the TVCA is expected to take action on, in areas of decision-making, governance and scrutiny.
Lord Khan said,
“The previous government asked the Tees Valley mayor to provide a progress update in September, following the recommendations of the independent review of Tees Valley Combined Authority’s oversight of the South Tees Development Corporation and Teesworks Joint Venture. Once we have received that update, we will consider whether the questions that need to be answered have been and whether any further action should be taken.”
Lord Scriven replied,
“..many Teessiders’ jaws will drop on the floor when they hear that answer from the minister, as every Labour candidate in Teesside promised that a National Audit Office review would take place. In the light of half a billion pounds of taxpayers’ money being used and two businessmen making multimillion pound profits without taking any liabilities or any risk to their money, does that constitute best value?”
Lord Khan replied,
“…we must carefully consider the mayor’s response, due in September, and we will consider any further action to take when we receive it. We are not ruling out any options, and one option could be requesting the NAO to review.”
Lord Scriven also said,
” ..The review panel said in the report that the responses ‘reduced our confidence that we have been given access to all relevant materials’. The panel also said that it had ‘not been able to pursue all lines of evidence or examine all transactions’. Is that not why a full statutory audit is required: so that the government convince themselves that Teessiders are getting value for money? ..”
