Redcar Steelworks

Baroness Wheatcroft Excerpts

Wednesday 17th May 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I have to ask those opposite who is creating this uncertainty. It is certainly not the Government, who have invested in this area. Once more, the mayor is very happy for any type of review.

[Baroness Wheatcroft (CB)]

My Lords, can the Minister confirm that it was always part of the plan that public sector investment on a massive scale should be used to hugely enrich two private sector developers?

[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.