What the three-person panel will investigate regarding Teesworks
believes it’s a lack of transparency that is putting the venture at risk.
He said: “Secrecy is a disease which is threatening a once-in-a-lifetime opportunity for the people of Teesside.
“An opportunity of thousands of high-quality jobs and a share of the dividend for hundreds of millions of pounds of taxpayers’ money.”
He called for answers and a need for “openness and transparency”.
Mr McDonald also waded into the debate with a lengthy speech. He spoke about his concerns that the developers behind Teesworks – Chris Musgrave and
Martin Corney – have become “rich beyond anyone’s wildest dreams all with the benefit of public monies and opportunities.”
The Labour MP was widely criticised by Conservative MPs for refusing to repeat his corruption claims outside of Parliament, where he would be able to be sued for libel (politicians cannot be sued for comments made during parliamentary debates).
In response, Mr McDonald said he wouldn’t be “bullied”. He went on to add: “These concerns are widespread and if anyone and anything is undermining the confidence of investors then it’s the reckless behaviour and conduct of the Tories’ blue-eyed boy in the North, Ben Houchen.”
Conservative Stockton South MP Matt Vickers slammed Labour for its comments about Teesworks. He said: “What we have seen is politically motivated, baseless smears, insinuation, tin foil hats and mud-throwing with allegations of impropriety that people are unwilling to state outside of parliamentary privilege.”
He added that the investigation would provide an opportunity for politicians to put forward evidence “if they have any”.
Tees Valley Mayor Ben Houchen has previously said he welcomes the review. He added: “I look forward to the outcome, in due course, and will be making no further comment until the independent review has been completed, so to allow the independent body to carry out their work without influence or favour.
“My officers stand ready to provide any and all information requested.”
The investigation’s terms of reference:
■ 1. An assessment of the governance arrangements at the STDC, including how decisions are made and the transparency of those decisions.
■ 2. An assessment of the arrangements through which the Tees Valley Combined Authority (TVCA) meets it responsibilities for effective and appropriate oversight of the activity of the STDC (the Mayoral Development Corporation responsible for the Teesworks site) and the Teesworks Joint Venture (the public-private partnership between the STDC and its partners).
■ 3. An assessment of the processes, systems and delivery mechanism in place to deliver the expected value and benefits of the Teesworks Joint Venture.
■ 4. An assessment of the arrangements and capacity in place to ensure that decision making across the TVCA, including STDC and Teesworks Ltd (the Joint Venture vehicle), is evidence-based (where practical), takes full consideration of value for money, and reflects an appropriate balance of risk and reward between the public and private sector.
■ 5. An assessment of the level of confidence by which the government have that key decisions to date in relation to the Teesworks Joint Venture have been evidence-based and taken appropriate consideration of value for money.
■ 6. An assessment of the robustness of local systems and operations in place to guard against any alleged wrongdoing, in particular in relation to:
■ The sale of the site now occupied by SeAH Wind.
■ The change in the Teesworks ownership structure in August 2021* from 50% public to 90% private.
■ The extent to which correct procurement rules have been followed in relation to the site and any disposal of publiclyowned land or assets.
■ The sale of land at the site to private sector partners.
■ Potential conflicts of interest between various parties, and contractors carrying out remediation or other works at the site.
■ The evidence of investment from private sector partners in the context of significant public investment in remediation of the site.
■ The adequacy of transparency and accountability underpinning key decisions, including ongoing engagement with and reporting to His Majesty’s Government (HMG).
■ 7. An assessment of the effectiveness of arrangements for external scrutiny of the
STDC and Teesworks Joint Venture (including Teesworks Ltd), including independent audit, and of the relevant parties’ response to any findings or recommendations from that process.
(*The change in shares was updated on Companies House in December 2021)