Teesworks: Accountability and Scrutiny

Debate between Simon Clarke and Alex Norris

Wednesday 7th June 2023 Commons Chamber

[Alex Norris (Nottingham North) (Lab/Co-op)]

It is a pleasure to close for the Opposition in this debate.

Let me start by bringing us back to first principles. The Mayor of Teesside himself has requested a National Audit Office investigation into the Teesworks joint venture. That is backed by the Chairs of three parliamentary Select Committees. The Opposition, as hon. Members have heard, support it. The media support it. The only people who disagree with this are Ministers on the Treasury Bench and their Back Benchers. The purpose of the motion and the debate is to establish why the Government have taken the eccentric course of rejecting an NAO-led review. Is there a sound public policy reason or is it a partisan decision?

My colleagues have made very strong cases. My hon. Friend the Member for Sunderland Central (Julie Elliott) set out in significant detail the pain the north-east has felt over 30 years of austerity; I would have thought that Conservative Members would have reflected on that, but they did not. My hon. Friend the Member for Stockton North (Alex Cunningham) reflected on the region’s potential, which makes that pain doubly saddening. My hon. Friends the Members for Washington and Sunderland West (Mrs Hodgson), for West Lancashire (Ashley Dalton) and for Warwick and Leamington (Matt Western) raised a range of very serious questions that simply must be addressed by a review that everybody can have confidence in.

I associate myself with what my hon. Friend the Member for Wansbeck (Ian Lavery) said about journalism and the courage of those various journalists who have taken this issue on. Despite all the criticism they have had from the players involved, they have stood up, done their job and shone a light on the issue, and we are having this debate today in part because of that.

My hon. Friend the Member for Middlesbrough (Andy McDonald) set out an extraordinary, deep and detailed case, worth listening to by those colleagues who have sought to shout him down, both today and previously. He has shown incredible courage, knowing what is right for his constituents and doing what is right for his community when it would have been easier for him not to. There will have been days when he got out of bed, knowing the barrage that he was going to face, and it would have been easier not to, but he has too much courage to do that, and I salute that.

I turn to colleagues on the Government Benches. The hon. Member for Sedgefield (Paul Howell) said it was inconvenient that we were bringing this motion today. I understand that, but I gently say that it is for the Opposition to ask the questions and for the Government to answer them—they cannot ask the questions as well. The hon. Member for Hartlepool (Jill Mortimer) hit the nail on the head when she said that the Mayor has asked for this audit. It is not so unreasonable that we should ask for such an intervention when the Mayor himself has done so.

The hon. Member for Stockton South (Matt Vickers) asked, as did the Minister in his opening speech: why are we departing from established practice? This is the first time such a thing has happened. We have never had such an incident involving an elected Mayor or a mayoral development corporation. Of course whatever we do will be a new and novel approach, because we have never done it before. Falling back on false equivalence simply does not work.

I turn now to the right hon. Member for Middlesbrough South and East Cleveland (Mr Clarke), who made a bombshell contribution to this debate when he made it clear that he was basing his decision today on the discussions he has had with civil servants and the advice they were able to give him as a Back Bencher—advice that he knows we have not had any access to. At the root of the motion is the point that we need to know the information that is clearly available to some but not to others.

[Mr Simon Clarke]

I am afraid the hon. Gentleman has misunderstood what I was saying. I was saying that Ministers have not been advised by the civil service that the threshold has been met. That is a matter of public record. It is in the letter the Secretary of State sent to Ben Houchen at the end of last month and it was repeated by my hon. Friend the Minister at the Dispatch Box during his opening remarks. Ministers have been advised by the civil service that no such threshold for a best-value investigation has been met. That is not our view; it is the civil service’s view.

[Alex Norris]

I chirped during the right hon. Gentleman’s earlier contribution to ask him how he knew. I took from that—if I am wrong, the record will show otherwise—that he had had those conversations. Frankly, I think that that muddle is at the root of the issue.

Of course, this issue cannot be decoupled from the Government’s supposed commitment to levelling up the country—a commitment on which, as has become increasingly clear over the past 18 months, the Government cannot and will not deliver. We have seen a levelling-up White Paper which talks more about a Medici-style renaissance that a real commitment to our communities; a bodged levelling-up fund that locked deprived areas out from getting the money that they need; and much-heralded levelling-up directors quietly canned even though they were supposed to champion the revitalisation of our nations and regions. What a waste. What a waste of the pent-up potential of our regions, towns and cities which is waiting to be unleashed if only the Government were serious about delivering on their promise. Once again from this Department, it is all press releases, no delivery.

Teesside was supposed to be the flagship, the proof of concept, which makes the concerns expressed today all the more crucial. If this is what levelling up is, who benefits from it? Who is it for? The questions keep mounting up, as colleagues have said. Reports in the media outline how millions of pounds of taxpayers’ money have supported a project in which two private developers now hold a 90% stake despite seemingly never having entered a competitive process, and how those developers have taken significant dividends, outsizing their investment in the project. People rightly wonder how that has happened, who sanctioned it, whether value for money has been delivered, whether these concerns are legitimate, and if so, why has it taken dogged reporting on the issue, and colleagues in this place, for them to come to light?

Those are crucial questions that require answers, but rather than call in the National Audit Office, as the Mayor himself asked for, the Secretary of State has chosen to set up his own review, set the terms of that review and appoint the panel himself. We are now in the ridiculous situation where a flagship Government project that is facing serious allegations of failures in accountability is subject to a review set up and appointed by the Government themselves, and we are told that that will give the public the reassurance that they need. How can the Secretary of State expect the public to have confidence in that process? It is no wonder he did not come today and stand up for it, and instead sent the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for North East Derbyshire (Lee Rowley), whom I hold in high regard, into an impossible situation.

Let us face it: the Government are on their way to court for a statutory review that they themselves set up, because they are doing anything they can to avoid being candid in it. Now, they ask us to trust them and put our confidence in a review that has not even those safeguards and powers, and they are surprised when we, the media and the public say that that is simply not good enough. We have waited for the answer today; it has not been forthcoming.

It is critical to public trust that the Government are transparent about the decision making that led to this process being adopted. The motion before us seeks to do just that by calling on the Government to release correspondence and communications pertaining to the decision not to order an independent NAO-led investigation and instead to commission their own review. For the sake of public confidence that all decisions have been made in good faith, and with the express intent to get the answers that the people of Teesside deserve, the Government should be open about how they reached their decision. That is all the more important because this does not relate to Teesside alone; it is the first project of its kind, with far-reaching implications for Mayors, combined authorities and development corporations. We need to know the truth now so that we can learn the lessons later.

The Government have had the chance today to establish a credible public policy reason why the Mayor’s own self-referral to the NAO, supported by everyone but the Government, was rejected. We did not hear any such reason from the Minister; we heard false equivalence about processes pertaining to different public bodies. Unless the Under-Secretary of State for Business and Trade, the hon. Member for Thirsk and Malton (Kevin Hollinrake) takes this opportunity to change course, we must use Parliament to compel the release of the information behind the decision. We must vote for the motion.

Oral Answers to Questions

Debate between Simon Clarke and Alex Norris

Monday 17th October 2022 Commons Chamber

[Mr Speaker]

I call the shadow Minister, Alex Norris.

[Alex Norris (Nottingham North) (Lab/Co-op)]

The Government’s levelling-up plans have made so little impact that they have had to resort to paying local newspapers to carry positive stories. That is right: they are paying for positive coverage. These ads breach Advertising Standards Authority rules and have subsequently been banned. This is a risible episode. Will the Secretary of State come clean that the only conclusion to be drawn is that levelling up is a sham?

[Mr Clarke]

I am afraid I will neither do that nor accept the premise. With regard to these seven adverts, we have apologised. They all bore the HMG logo very clearly and were marked as advertorials. We accept the ASA’s decision, but we fundamentally believe it was appropriate for us to try to spread the message that levelling up has applicability across this country and is doing real good. Colleagues on both sides of the House have spoken about the projects they want to see delivered, which shows the appetite for this programme to succeed.

[Alex Norris]

I am grateful for that answer, but the reality is that the Government have taken £431 per head in funding from local authorities. Now, through the programme that the Secretary of State trumpets, they will be handing back just £31 per head from the levelling-up fund. Even the winners lose.

Those who have been promised money are now concerned that Downing Street’s economic crisis and soaring inflation will mean their bids are no longer affordable. Will the Secretary of State commit that no bid either submitted or approved will have to be downgraded to accommodate the mess the Government have made of the economy?

[Mr Clarke]

The hon. Gentleman has to understand the situation we are in with regard to inflation. It is absolutely the case that, owing to the consequences of Putin’s war, prices are rising—[Interruption.] I will accept many things at the Government’s door, but I will not accept inflation as a consequence of Putin’s war. There is a clear read through to the costs of many issues, and this affects economies across the west. Neither central Government nor local government can expect to buck inflation, or to accommodate the cost of inflation in our settlements. There is therefore a mechanism within the levelling-up fund to allow bids to be resized for inflation.