Tees Valley Mayor joins calls for investigation into Teesworks
Tees Valley Mayor Ben Houchen has called for a full investigation into a project to regenerate Teesside's former steelworks following what he described as "false and unfounded allegations".
A number of allegations of cronyism and backroom deals have been made about Teesworks and South Tees Development Corporation, which is responsible for the Redcar site, which is being redeveloped for new industry.
On Monday 15 May the Financial Times reported further claims that private investors are profiting from the project on the back of public funding.
In response, Labour's Lisa Nandy, the shadow secretary for levelling up, wrote to the National Audit Office calling for an inquiry into the use of public money on the site.
She said: "It can't be right that hundreds of millions of pound of public money have been handed over to a company that is now 90% privately owned and ministers appear to have simply walked away.
"There has to be somebody who is tasked with looking at whether this site, these decisions are being made in the interests of the community which it's supposed to serve, and that's why we've asked the National Audit office to step in and investigate.
Ms Nandy's intervention follows allegations made last month by Middlesbrough MP Andy McDonald. Speaking in Parliament, he called for an investigation into alleged "industrial-scale corruption".
On Tuesday 16 May, Mr Houchen, who is chairman of the STDC board, also called for a full investigation.
He said: “Ever since the claims were made in parliament, we’ve been constantly reassuring our investors, as well as those bringing the claims and the local people of Teesside that we are doing everything that is appropriate and expected of a public body.
“I want this nipped in the bud once and for all.
“Without a swift, decisive conclusion to this situation, Teesside will miss out on thousands of jobs and billions of pounds of foreign direct investment."
He added: "The STDC, Teesworks and TVCA have nothing to hide.”
When asked by ITV why private investors own 90% of the site, he said: "Well I think the evidence speaks for itself doesn't it. In a site that in 2015 was costing the taxpayer more than £20m a year, empty.
"Now we've transformed it and we're creating thousands of jobs, we're bringing billions worth of investment, that is only possible because of the public-private partnership that we've created.
"Without that partnership that site would still be there, the steelworks would still be there, it would be costing the taxpayer £20m a year, it would be empty, there'd be no jobs, no investment, that's why you have public-private partnerships.
"And the smears that the Labour party are coming out with, they have no evidence of it, there is no truth, but again this is politics right, and what we need to do is to draw a line under it - have that independent review and investigation, and it will give us a clean bill of health. It will show that we've done nothing wrong, and finally the Labour party can shut up while we get on with delivering real jobs."
An NAO spokesperson said: “Over the past 24 hours the NAO has received correspondence from both the Shadow Secretary of State for Levelling Up, Housing and Communities and the Tees Valley Mayor relating to Teesworks.
“The NAO’s statutory audit remit does not extend to examining the decisions or actions of the Tees Valley Combined Authority or the South Tees Development Corporation.
“However, the NAO is discussing these matters with the Department for Levelling Up, Housing and Communities and the appointed auditor for Tees Valley Combined Authority.”
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