Freeport director set to exit his role
BACK IN MARCH
TEESSIDE Freeport chief Nolan Gray is to leave his role after being “snapped up” by another firm.
Mr Gray will depart at some point this month, having handed in his resignation in March. The Tees Valley Combined Authority (TVCA) has confirmed that the role will not be replaced, as the task of establishing the freeport has been “successfully completed.”
This news comes fresh off the back of ministers launching an ‘independent’ investigation into the Teesworks project in a bid to show there “is no corruption, wrongdoing or illegality.” This was sparked after claims of “industrial scale corruption” at the site.
The Freeport director role was created in April 2021 and was responsible for establishing the site, which welcomed its first consignment in September 2022.
As the Freeport is now up and running, the “seniority of the position and its related functions are no longer required,” a TVCA spokesperson said.
The post will be replaced with a more junior position.
Tees Valley Mayor Ben Houchen has since thanked Mr Gray for his “tireless work and the immense experience”.
A statement from Mr Houchen said: “Those who are at the front line of driving forward transformational change are in high demand, and, with our reputation for getting things done on Teesside, it’s no surprise he’s been snapped up by another organisation which has seen the success of our area.
“We look forward to continuing to work with Nolan in striving for more investment opportunities for our region and wish him all the best for the future.”
Communities
Secretary
Michael Gove announced that he had taken the
“exceptional” decision to support the commissioning of a review following the allegations made against the TVCA’s oversight of the South Tees Development Corporation (STDC).
The National Audit Office (NAO) said that a probe was out of its remit for Teesworks, as it could not examine the decisions or actions of the TVCA or STDC.
However, it was later revealed that this could take place if requested by a government minister.
Mr Gove will instead appoint a panel to undertake an “independent external assurance review” – with the NAO stating the government had “decided to make alternate arrangements.”
There was initial confusion over the launch of an investigation after Prime Minister Rishi Sunak seemingly announced that Mr Gove had announced an investigation into the matter during PMQs. This was later confirmed in a letter by Mr Gove.
Mr Houchen said that he “welcomed” the review and said it is necessary to “show investors, businesses, and local people that there is no corruption, wrongdoing, or illegality in what has become and continues to be an incredible project for jobs and investment in our region.”
Middlesbrough South and East Cleveland Conservative MP Simon Clarke said: “I warmly welcome the independent inquiry launched by the Government
into Teesworks. The truth will come out and all those who have attempted to discredit a project that will deliver tens of thousands of good jobs for Teesside will have to answer for their cynical campaign.”
However, the news of the investigation was met with fury by some Labour MPs.
Shadow communities secretary Lisa Nandy branded the review as “bizarre” and said that the NAO has the “experience, capacity and independence to carry out an investigation,” questioning why Gove has the power to order the investigation.
She said: “The Government must not hide from proper scrutiny, and there is no clear justification for not ordering a comprehensive, independent investigation from the NAO.”
Middlesbrough Labour MP Andy McDonald added that the announcement “falls way short of what is needed and what was demanded.”
He said that “only an independent inquiry by the NAO will suffice” – adding that the government has “bottled it”.
Stockton North Labour MP Alex Cunningham said: “Any panel set up by a Conservative Minister to look into the way a Conservative Mayor conducts his business can by its very nature never be viewed as independent and it is naive of the Levelling Up Secretary Michael Gove – one of whose ministerial colleagues accepted a donation from one of the businessmen involved in Teesworks – to think otherwise.”
Teesworks has been at the centre of controversy for weeks after concerns were raised about a share transfer from companies owned by developers Martin Corney and Chris Musgrave.
JC Musgrave Capital and Northern Land Management and the South Tees Development Corporation initially had a 50-50 share agreement – but the joint venture partners increased their shares in Teesworks Ltd from 50% to 90%, leaving the STDC with 10%.
Responding to accusations of “dodgy deals” in the area by Stockton North MP Alex Cunningham, Mr Houchen said the deal removed liabilities for the site from the taxpayer and allowed the freeport to secure hundreds of millions of pounds of private cash.
A valuation, which has been seen by the Local Democracy Reporting Service, puts the cost of remediating the site, excluding the 90-acre SeAH plot, at £482.6m and a nominal value of £1 was placed on the entire site.
Teesworks was set to develop 20,000 jobs over 25 years at the site, with public money being used to remediate some parts and cash from investors being re-invested to remediate the next plot. Mr Houchen said the remediation work needed to be speeded up – allowing investors to make use of time-limited freeport tax breaks. These tax breaks will be reviewed in 2026.
The argument is that the 90/10 share split allows private investment to be brought in quicker.
CHIEF HANDED IN RESIGNATION