Teesworks: Accountability and Scrutiny

Matt Western Excerpts

Wednesday 7th June 2023 Commons Chamber

[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?

[Matt Western (Warwick and Leamington) (Lab)]

My hon. Friend was going through the events of the past week or so and the actions of Government, which smack of a cover-up. That is the fear and concern of the people of the Tees area and the wider public.

[Lisa Nandy]

I studiously avoided trying to prejudice any terms of the inquiry in advance of their announcement, but I was given seven minutes for a cursory glance at the terms of reference. If the Minister wants to tell people on Teesside that they deserve two minutes to understand the terms of reference, he is very welcome. That is arrogant and shows utter contempt for people in this country. Having looked at the terms of reference, I share my hon. Friend’s view. To many people in this country, it increasingly looks like an utter whitewash.

As far back as 2015, I raised concerns with this Government that democracy must not be an afterthought in the devolution model. Where the public have been let into the conversation, it is because of some of our brilliant Mayors across the country, such as the Mayor of Greater Manchester and the Mayor of West Yorkshire, who have chosen to go out proactively and involve the public in conversations about the things that matter deeply to them and to their lives. As has been so often said, it is our right to have that information and to be in charge of our own destiny; it should not be in the gift of whoever happens to be elected. When the respected Chair of the Public Accounts Committee says that the measures that we have around transparency, scrutiny and accountability are not sufficiently robust, Ministers must take that seriously.

On the Opposition Benches, we believe that the people on Teesside are just as deserving of safeguards to ensure that the public money and assets spent and used on their behalf are used for their benefit and in their interests as the people in London, Greater Manchester or the west midlands. These are our communities; they are our assets; it is our money; and it is about time this Government started to show some respect for a country that belongs to us.

--- Later in debate ---

[Matt Western (Warwick and Leamington) (Lab)]

The right hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) was incorrect when he said that all the members involved in that decision were Labour councillors; they were not. That is categorically incorrect. I just want to put that on the record.

As someone who worked in procurement, I say, if it smells of fish, it is fish. This reeks of fish. The negotiations, the poor governance and the poor value for taxpayers’ money are a disgrace. Although this is a really important issue for the people of Teesside, the unfolding scandal has brought implications for the Prime Minister, for his freeport scheme and for this Government. What we are seeing is the first test of his freeport strategy and it is failing. It is thanks to the sharp investigative journalism of the Daily Mirror, which in January 2022 broke the story about the issues surrounding the project, that, ultimately, we are having this debate today.

The financial mountain that is being amassed by a few of the Mayor’s friends is colossal—friends who are also donors to the Conservative party. Fortunately, Private Eye, the Financial Times and my hon. Friends who spoke earlier in the debate have made absolutely clear the scale, the detail and just how widespread this emerging scandal is. It is a long story full of twists and turns, but at the centre of it all we have the Conservative Mayor, Ben Houchen, with the help of two counterparts, Chris Musgrave and Martin Corney, and a few others.

It is a dark web of friends and family, property developers, PR companies and scrap metal merchants—the scrap metal story is perhaps the most egregious demonstration of how perverse this situation is. Half of the proceeds are now going to Messrs Musgrave and Corney and their companies. The day-to-day operation of this is led by Orion Kotrri, an Albanian man who, as we have heard, is married to Corney’s daughter. I could go into all the other relationships, but they have been well covered by my colleagues.

There are more questions than answers. Seven people have spoken to the Financial Times to raise concerns about accountability and governance. We all want to see investment across our regions, and Teesworks is the Prime Minister’s flagship freeport, but there seem to be parallels here with the personal protective equipment scandal, given the network of donors involved in the project. This is not a scheme—this is a scam.