Redcar Steelworks

Baroness Jones of Moulsecoomb Excerpts

Wednesday 17th May 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

Let me give a little background. Three Thai banks had a hold on the former SSI steelworks land. As negotiations to secure that land broke down, a compulsory purchase order was launched. JC Musgrave Capital and Northern Land Management already had back options on parcels of land within the Teesworks site that were key to those negotiations with the three banks over land owned by SSI, which was already in receivership. The STDC was advised by a top KC that, without this private sector involvement, it would very likely lose that compulsory purchase order. The public/private partnership was agreed by the TVCA, the Cabinet and the STDC board, and it was envisaged in the original business case approved by the Department for Business, Energy and Industrial Strategy, MHCLG and the Treasury that that should be the partnership to take this site forward.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, it is not people on this side creating the concern; these are reports from local people, businesses and a lot of newspapers. Please do not be offensive to this side of the Chamber. We do our best to hold the Government to account—that is our job. In this instance, the Government seem absolutely blind to the fact that there could be problems. Moving forward, an investigation is necessary and should be part of the Government’s plan.

[Baroness Scott of Bybrook (Con)]

We are not blind to that fact. We are monitoring continually, as we do when we invest in these projects, and the National Audit Office did its audit and said that the public money was being spent as intended. We will look at anything further that needs to be done. As I have said, the mayor is very happy to take part in any review.