TWO Teesside MPs have called for an inquiry into the transfer of shares at a major regeneration project on a former steelworks site.

It follows the public share by the Tees Valley Combined Authority (TVCA) in Teesworks, in Redcar, being transferred to JC Musgrave Capital and Northern Land Management.

The private firms, which have links to previous Tory donors, now hold 90 per cent of shares.

Andy McDonald, Labour’s MP for Middlesbrough, raised the issue in Parliament yesterday during an Opposition Day debate on tackling fraud and government waste.

He told the House of Commons how tens of millions pounds of taxpayers’ money had been invested in the site.

However, Tees Valley Mayor Ben Houchen hit back at the claims, which he described as a “conspiracy theory” and a "smear".

The mayor prompted further criticism from Mr McDonald after he blocked the MP on Twitter in response to the row.

Read more: Middlesbrough MP blocked on Twitter by Tees Valley Mayor Ben Houchen

Speaking in Parliament, Mr McDonald said: “The Minister is talking about good stewardship of public money, but was he as concerned as I was to read in the press that, under the Tory Tees Valley Mayor, the public share of the joint venture to develop and secure major industrial opportunities, which has had tens of millions of pounds of taxpayers’ money invested in it, has been transferred to JC Musgrave Capital and Northern Land Management?

“Does that not raise major questions about how public moneys have been spent?

“Does he agree that, given wider concerns about governance and the vested interests of political donors, what is needed is an independent inquiry into the governance of the Tees Valley Combined Authority and the South Tees Development Corporation?”

The Paymaster General, Michael Ellis, who is the Conservative MP for Northampton North, responded: “What I do know is that Ben Houchen is an excellent mayor and Labour wishes that it had mayors like him.”

Stockton North MP, Alex Cunningham, also said there was a need for an inquiry and has questioned whether placing 90 per cent of shares in the hands of private firms is good value for the taxpayer.

He said: “We all want to see the successful development of the site – but if it is successful 90 per cent of the profits will go to the private companies who now control Teesworks.

“This site is fundamental to the economic future of Teesside. It has the potential to be a major site for new green industries such as carbon capture and storage and hydrogen. It can help us rebuild a sustainable modern industrial future for Teesside.

"But who will be making the decisions on who invests here and what industries and businesses are allowed to set up shop?

“Surely such decisions are too important to our local economy to be left in the hands of property developers who will always put profits before anything else.

“As my Hon. Friend from Middlesbrough said, there needs to be a full investigation into all of this.”

Read more: Teesworks: Ben Houchen accused of 'selling people down the river'

In response, Mr Houchen said: “Andy McDonald has request an independent enquiry, which by definition requires evidence of some form of malpractice or impropriety.

"No such malpractice or impropriety exists and it’s telling that he hasn’t produced any evidence to substantiate his bizarre outburst. Instead he has chosen to make random, baseless and reckless accusations without foundation.

"Mr McDonald has never raised any questions or concerns with me, TVCA or STDC about this matter. Instead he has chosen to make up a conspiracy theory that is damaging to my efforts to attract private investment and create jobs.”

Mr Houchen also accused Mr McDonald of attempting to “smear” other politicians including Andy Preston and Steve Turner and said it was not the first time “baseless allegations” had been made.

He added: "For decades Labour politicians like Andy have done nothing for our region other than talk it down for their own cynical purposes.

“We’re making fantastic progress across our region and we’re delivering on creating good-quality jobs for local people, thousands have already been announced for the site and I look forward to hopefully being able to announce even more in the months ahead.

“With so much progress been delivered for local people naturally I am the target of the most recent Labour Party smears. This is further evidence of their ‘cheap politics’ and the fact that they’d rather see the area fail than see me succeed in bringing more jobs and investment to our region as quickly as possible."

It was agreed 90 per cent of its shares would be awarded to joint venture partners JC Musgrave Capital and Northern Land Management at a behind-closed-doors meeting of the Tees Valley Combined Authority.


 

Read more: Teesworks agreement sees majority of shares held by private firms

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