Teesworks: Accountability and Scrutiny

Debate between Lisa Nandy and Meg Hillier

Wednesday 7th June 2023 Commons Chamber

[Lisa Nandy]

Can I just correct the right hon. Member? As he well knows, this is not an independent or full investigation. Perhaps he also has not had the courtesy of having been given the time by the Secretary of State to look at the full terms of reference, but it genuinely beggars belief to try to claim that this is somehow politically motivated. If Conservative Members believe that the call for a NAO inquiry is politically motivated, they might want to ask the Mayor what on earth he is doing calling for one himself.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

In all of this heat, it might be wise to be clear about the independent role of the NAO. The Comptroller and Auditor General has letters patent from the King and reports to this House, not to Government. He is independent and makes his own decisions, and it was his independent decision that it would be appropriate, because of the size of the site, to offer the opportunity to do an audit. It is then a matter for the Secretary of State to decide whether or not he asks for that to happen. It is a three-legged stool, because then the local organisations have to agree to open their books, too. It is important to be clear on the record that the NAO is not making political decisions here; it is a very independent decision by the chief auditor of this country.

[Lisa Nandy]

I thank my hon. Friend for making that point, which absolutely concurs with my experience of the NAO. Members on both sides of the House will have had experience of having written to the NAO to raise concerns, and all of us are treated with decency and impartiality by the NAO when it seeks to respond.

Unbelievably, the situation gets even more complicated. Questions were raised at that point about whether the NAO even had the ability to investigate. It turns out that it did, subject to the preparation of a suitably worded agreement between the Minister and the relevant body into which the examination is to be conducted. We called on the Secretary of State to provide such an agreement, which was met with radio silence. Into that void stepped the Prime Minister, who confirmed at Prime Minister’s questions on 24 May to my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) that the Levelling Up Secretary had already announced an investigation into this matter, much to the surprise of our Front Benchers and Government Front Benchers, too. However, the Secretary of State has decided not to do so, instead preferring to hand-pick a panel of his own to investigate. Given that the Tees Valley Mayor has asked for an investigation and the NAO has the capacity and remit provided by statutory powers, we deserve to know why Ministers have decided to block that investigation, beyond what we have been told so far—that they consulted and decided against it.

Now that we have the terms of reference, let me say this to the Minister: it is utterly unacceptable to establish an inquiry that fails to ensure that all decisions that have led to the current situation are on the table, with no exclusion of factors that would impact a complete and fair assessment of whether the public interest has been protected. It must have expert support, administrative capacity and resources to ensure the same level of access that the NAO would have had. Any officials who worked at South Tees Development Corporation or public bodies on Teesside must be free to comply with an investigation, regardless of any non-disclosure agreements that exist.

The investigation must report back on what assessment the Department and wider Government made of the South Tees Development Corporation’s decision to transfer a 50% stake in the joint venture without any public tender process. [Interruption.] I am grateful to the Minister for clarifying that from a sedentary position. Presumably, he has had a chance to read those terms of reference. It would have been nice if Members had been afforded the same courtesy. [Interruption.] The Minister is chuntering again from a sedentary position. That is precisely what we are attempting to do—establish the facts. That is what the Tees Valley Mayor is attempting to do—establish the facts. That is what the Chairs of the Select Committees in this House are attempting to do—establish the facts. And that is what the people on Teesside are attempting to—establish the facts. It says something about the extraordinary arrogance of this Government that they think that is an unacceptable request.

The investigation must confirm when Ministers were first made aware of the decision to increase the share to 90% and if an assessment of value for money for taxpayers was made in advance. Could the Minister confirm whether there was any discussion of the terms of reference with the relevant Select Committee Chairs—including the Chairs of the Public Accounts Committee, the Business and Trade Committee and the Levelling Up, Housing and Communities Committee—or are the Government determined to show the same contempt for Members that they are showing for people on Teesside?