Teesworks: Accountability and Scrutiny

Nigel Evans Excerpts

Wednesday 7th June 2023 Commons Chamber

[Clive Efford]

On a point of order, Mr Deputy Speaker. Could you confirm the rules regarding declarations of interest? If a Member has a declaration of interest on the register, should they not refer to it when they stand up and take part in debates in this House?

[Mr Deputy Speaker (Mr Nigel Evans)]

It is up to each individual Member to determine whether their declaration of interest should be made during a debate. Clearly, processes are available should a Member not do so and other Members believe that they should have.

[Mr Clarke]

Thank you, Mr Deputy Speaker. I can confirm that no such interest exists, despite desperate attempts to insinuate to the contrary.

Who speaks for the Labour party in this debate? We have the shadow Secretary of State, the hon. Member for Wigan (Lisa Nandy), clear that she is making no allegations, but we had the hon. Member for Middlesbrough making very pointed, very serious allegations of criminal wrongdoing. There is a yawning gulf between the two.

The next key point I wish to raise is about the process that the Government have adopted to set up the independent investigation that has been announced this afternoon. As the Minister set out very clearly at the Dispatch Box, that is the legal structure for investigating when a best-value investigation is triggered. The irony here, of course, is that the civil service does not believe that that threshold has been met and has advised Ministers to that effect. [Interruption.] I have spoken to Ministers about this point and, as Ministers have made clear, that is the case. It is not Ministers asserting that this threshold has not been met: the civil service does not believe that that standard has been met.

As both the former Secretary of State and the former Minister of State for Local Government, I can say with total assurance that this process is normal and straightforward. In his letter to Ben Houchen a fortnight ago, the Secretary of State set out why one would not want to seek to extend the remit of the NAO in the way that is being proposed. We have the long-standing, Labour-instigated system of commissioning these independent inquiries under the Local Government Act 1999. The key point here, of course, is that it is not just public confidence but investor confidence that is being undermined by the Labour party. It is doubly ironic, therefore, that we have never seen Labour calling for a similar process anywhere else— as we heard from the Minister, not even in Labour-run Liverpool when actual criminal wrongdoing had taken place. To add insult to injury, was the Labour party’s own investigation into its people’s conduct in Liverpool independently led? No: it was investigated by one of Labour’s own former MPs and a former council leader.

So we return to the purpose of this campaign—this vendetta. It is an attempt to systematically smear Ben Houchen, destroy Teesworks and make Teesside poorer. We have seen this movie before: earlier this year, not one but two independent reviews led by some of the most eminent scientists in the country thoroughly rebutted the idea that marine deaths were anything to do with the dredging at Teesworks, but just moments ago, we heard the hon. Member for Sunderland Central (Julie Elliott) again dredging up those allegations—you will pardon the pun, Mr Deputy Speaker—knowing full well that they are baseless. Labour will seize on any excuse and take any chance to try to talk down my region. I am sick to death of it, and so are the people of Teesside, because it is not in the public interest: it is in the Labour party’s interest. That is why Labour pursues these wrecking campaigns.

Teesside has been rescued from a cycle of secular decline with some bold leadership and private sector investment, and the public back it. That is why, in 2021, Ben Houchen received 73% of the vote to carry on with his mission. I ask shadow Front Benchers to confirm whether they will respect the impartiality of the senior officials from the local government family who have now been tasked with conducting this investigation, and I ask the hon. Member for Middlesbrough to confirm that in his speech, too. If they do not respect the integrity and impartiality of those officials, why do they not do so? What is wrong with the investigation that has been instigated this afternoon?

I directly challenge the hon. Member for Middlesbrough on this point, too—if it is established by that inquiry that his allegations of “industrial-scale corruption” are baseless, as I firmly believe them to be, will he come to this House and withdraw the allegations that he has made here? If he does not, it will amount to one of the most flagrant abuses of parliamentary privilege that I can conceive of, and I believe that he should be ordered to this House by Mr Speaker in the event that he declines to do so.

This is a cynical, shameless, seedy attempt to talk down Teesside, to imply wrongdoing and to damage the interests of the very deprived communities that I am proud to represent. I look forward to the report of the independent inquiry. I will be voting against Labour’s motion today. It is time to draw a line in the sand against this game playing by the Labour party. Labour Members have done it before—they have done it on the crabs, they have done it with the Teesside police and crime commissioner, and they have done it to the former Mayor of Middlesbrough. They know full well what they are doing. They abuse this place to make allegations, rely on others to amplify them outside and then feed off the clouds of suspicion and miasma of doubt that they create. All they have to offer is slander, negativity and decline—all the hallmarks of their toxic legacy on Teesside. Enough.

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

There are seven Members wanting to take part in the debate, and we are going to do wind-ups of 10 minutes each. As the House can see, we have just under an hour for those seven Members. If people can focus their contributions so that everybody can get equal time, that would be really good.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

I work out that if people keep to roughly eight minutes or so, everybody will get a fair go.

[Paul Howell (Sedgefield) (Con)]

As a Tees Valley MP, I am pleased to speak in this debate that is so relevant to many of my constituents. I have to admit that I am baffled by the Opposition’s choice of motion for the debate. If I were them, the last thing that I would want to do is spend hours discussing the lack of investment in the north-east by a previous Labour Government. It is only under a Conservative Government that we have started levelling up. The Opposition’s demand for the National Audit Office to investigate is also surprising, given their resounding silence when my right hon. Friend the Member for Newark (Robert Jenrick) ordered an inquiry into Liverpool, where actual corruption was taking place.

Labour has 17 Opposition days, which are meant to be used to discuss important issues, yet it has chosen to use today to throw mud at a successful levelling-up story. Labour could have used today to address the country’s priorities, which the Prime Minister set out in his five pledges. It could have talked about halving inflation, which has started to fall. It could have talked about economic growth, as recession is likely to be avoided: the OECD predicts growth of 0.3% this year and 1% next year. It could have talked about falling national debt, with borrowing forecast to fall every year according to the Office for Budget Responsibility. It could have talked about reducing waiting lists. The figure for patients waiting over 18 months peaked in September 2021 at 125,000; in March this year, it was 10,737. Labour could have talked about stopping small boats. Compared with last year, crossings are down by 20%.

Has Labour chosen any of those subjects or talked about any of its own plans? No. Could that be because the news from the shadow Chancellor is that she wants to avoid unfunded spending commitments? Well, that would mean that Labour Members would have nothing to say. Could it be that even their supportive unions call their policies naive and say that they lack intellectual rigour and thinking? Where does that leave Labour? Back to the mudslinging and talking down places like the north-east.

I am sorry, but I am proud of the Conservative-led transition of the Tees Valley. Teesworks is an excellent example of an industrial area that was neglected until a Conservative politician, Ben Houchen, came along and decided to do something about it. I remind the Chamber that doing nothing with the steelworks would not have been a neutral act, either. Even standing idle, it cost the taxpayer hundreds of thousands of pounds every week, while in 2015 unions warned that clearing the site to repurpose it for housing or industrial developments would cost as much as £1 billion.

The site required so much work to become usable again that its value was in the negative hundreds of millions. Until recently, the joint venture appeared to have a level of cross-party support among local politicians. For example, the Labour leader of Stockton Council voted for it, and the independent leaders of Hartlepool, Middlesbrough and Redcar and Cleveland all approved it. A wide range of people and organisations in both the private and public sectors have been involved in the development of Teesworks, which is another reason why I find it difficult to believe that there could be some alleged secret tie-up to swindle taxpayers, as seems to be suggested.

It remains a clear and obvious fact that although the hon. Member for Middlesbrough (Andy McDonald) alleges industrial-scale corruption when he is in this place and enjoying the protection of parliamentary privilege, despite many requests he has declined to repeat those allegations where he would have to defend them. Can I also remind him that another great success story in the Tees Valley is the resurgence of Teesside airport, driven again by the Tees Valley Mayor, after its almost total demise under the control of Labour-led councils prior to his election? The airport is now enjoying further growth in both passenger numbers and as part of the Tees Valley freeport, delivering economic growth and employment.

We have already seen remarkable progress as a result of the joint venture partnership, including the demolition plan that is two years ahead of schedule. Less than £250 million of public money has been invested in the site, yet it has already secured over £2 billion-worth of private sector investment. I must also mention in passing the 2,750 long-term jobs that are being created through this project. Job creation is always appreciated, but it is all the more important in this case, where 1,700 jobs were lost with the closure of the steelworks. Now that the site is doing well, Labour has decided to use it as another opportunity to talk down the north. Considering this was the first mayoral development corporation outside London, I think the record is pretty good.

The motion is about accountability and scrutiny of Teesworks, so we ought to note that Teesworks is double audited by Mazars and Azets, whose audit is then further audited by Mazars. Surely, if corrupt or illegal decisions had been taken, they would have been spotted by at least one of the accountancy firms, rather than going unnoticed? The Mayor, as has been said, requested that the National Audit Office become involved as a result of the accusations, but the Secretary of State decided that a more appropriate step would be to commission an independent review to consider the specific allegations.

As an aside, facts are always facts. The hon. Member for Stockton North (Alex Cunningham) alleged that—[Interruption]—Martin Corney’s son, sorry, had benefited. That is just incorrect. If the hon. Gentleman would like to intervene and correct the record, that is a choice for him to make. Silence.

The Secretary of State’s determination was that it would be inappropriate for the NAO to examine individual local government bodies. The fact that the Mayor requested NAO engagement would strongly support his contention that there is genuinely no corruption, wrongdoing or illegality.

I am disappointed that the Labour motion wastes parliamentary time and once again attempts to talk down progress in the north-east. It reminds me of the Leader of the Opposition, when it was announced that the Treasury was coming to Darlington, stating that it was not levelling up, it was giving up. With the success of Teesworks, Teesside airport, the Darlington Economic Campus and so on and so on, I for one am proud of what the Conservatives are doing to level up the Tees Valley. I hope that when we get a north-east mayor for the LA7, they will also be a Conservative and deliver in the same way that Ben Houchen has delivered, meaning that all my Sedgefield constituents can be as well served as that portion who reside in the Tees Valley.

[Mr Deputy Speaker (Mr Nigel Evans)]

That was under eight minutes, so thank you.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

As I said earlier, the winding-up speeches will begin at 6.40 pm. Four Members are trying to catch my eye, so according to my maths, they have just over five minutes each if they want to use equal amounts of time.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

The wind-ups will start at 20 minutes to 7.

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[Andy McDonald]

I am grateful to my hon. Friend for giving way on that point. Is she aware that the position of Middlesbrough Council was to say, “Give us the money, don’t give it to yet another self-appointed board under the tutelage of Ben Houchen”? Is she as amazed as I am that Ben Houchen has deliberately excluded PD Ports, the biggest employer and investor in the territory, from the consultation process? Does she not find that ridiculous?

[Mr Deputy Speaker (Mr Nigel Evans)]

Just before the hon. Lady responds, let me remind her that there is one more speaker to get in before 6.40 pm.

[Ashley Dalton]

Thank you, Mr Deputy Speaker. I thank my hon. Friend for his intervention. What he has added enlightens us all and adds a lot to this debate.

As I have said, the current Tees Valley Mayor is apparently trusted deeply by the Secretary of State to work with mayoral development corporations, so why does the Secretary of State reject the Mayor’s request for a National Audit Office inquiry in favour of a panel, handpicked by the Secretary of State, with a remit, scope and authority hurriedly thrashed out fewer than 10 minutes before this debate began and which, by the sound of it, is not approaching adequate?

I am a member of the Public Accounts Committee and cannot speak highly enough of the National Audit Office. Perhaps the NAO has indicated that it could not, or should not undertake an inquiry into Teesworks. But not so: the NAO has said that it is able and willing to undertake such an inquiry. We can assume then that the NAO sees no problem with it being tasked to do so, from the perspective of its remit, its expertise or its capacity.

[Ashley Dalton]

I will not give way as I am nearly done.

When it comes to the spending of public money and the transfer of public assets into private ownership, it is not just the decisions made that cause concern among communities; it is also when those decisions appear to be made in the dark behind closed doors and without transparency. That is when people start to feel suspicious.

Therefore, to help me, others on the Labour Benches and the people of Teesside understand the Secretary of State’s decision to reject the request of the Tees Valley Mayor, to decline the offer of the NAO and to set up a new panel from scratch, I invite the Secretary of State, assuming he is listening, to share his thinking, take the lid off decision making in Teesside and show the taxpayers of this country the respect and courtesy of an independent transparent inquiry that they can trust.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Matt Western and ask him to resume his seat at 6.40 pm.