Steve Gibson in scathing attack on Ben Houchen over Teesworks deal

Mr Gibson, who was vice-chairman of the South Tees Development Corporation for five years until 2021, told The Northern Echo that the deal which increased the ownership of the former Redcar steelworks site by two private businessmen from 50pc to 90pc of the former Redcar steelworks site, is “unforgivable”.

Mr Gibson said: “That extra 40 per cent equals about £500m over a 25-year period, and that £500m could go to some great social uses, so Ben Houchen has gifted away the enhancement of our children’s and our grandchildren’s future.”

In a conciliatory response, Mr Houchen praised Mr Gibson as a “good guy”, thanked him for his time on the board but said that he was “wrong about the facts”.

He added that the deal would return £1.3bn to the local economy over the next 40 years, he finished defiantly: “It’s a deal I would do every day of the week.”

In January, the deal was criticised by an independent Government inquiry which recommended that it should be renegotiated in the hope a “better settlement” could be reached for the taxpayer.

Mr Gibson, who was vice-chair of the board when it agreed the 50:50 deal, said: “That inquiry came up with 28 different recommendations – not one or two or a dozen but 28 – which were absolutely damning for the mayor and his board,” said Mr Gibson.

The inquiry cleared the project of any corruption, but the recommendations concerned improving transparency and governance.

“What hit the hardest for me was the judgement of the current mayor in moving an agreement from 50:50 ownership to 90:10. That means that hundreds of millions of pounds over the next decade, which would have enhanced the lives of the people of the Tees Valley, is no longer there. How could he come to that decision?

“£560m of taxpayers’ money has been used on that site. The public deserve a return on it.”

Following the closure of the steelworks in 2015, Lord Heseltine recommended that a new-style South Tees Development Corporation (STDC) should be set up to clear-up the contaminated site and prepare what is Europe’s largest brownfield site for re-use. In May 2016, Mr Gibson, whose Bulkhaul business is a market leader in global transportation of liquids, gases and powders, was one of 17 asked to join the STDC’s shadow board which, following Mr Houchen’s election in May 2017, was headed by the new Tees Valley mayor.

By 2019, progress on the site had slowed because much of it was owned by three Thai banks following the collapse of the steelworks. However, as two local developers, Chris Musgrave and Martin Corney, owned a small portion of the site, they were brought on board. In return for helping unlock the banks’ ownership, they were then given a 50:50 ownership deal.

“The decision to go with the private company was the right one,” said Mr Gibson. “We got lucky to land on those two. They are the architects of what has gone on there, the job creation, they have delivered, not the mayor, who simply turns up for a photo-shoot on the back of their hard work. His career is clinging on to their coattails.”

However, Mr Gibson says tensions over Mr Houchen’s style and negotiating techniques grew, particularly after Mr Houchen was re-elected in May 2021 with 73 per cent of the vote, and in June 2021, Mr Gibson and his allies, including Paul Booth, a leading figure in the UK chemicals industry, were sacked from the STDC board.

In August 2021, the new-look STDC board agreed the 90:10 deal. In his response, Mr Houchen says that was because the private businessmen took on £330m of liabilities which “reduces the amount of taxpayer cash being used to £240m not £560m”. However, this deal caused Middlesbrough MP Andy McDonald to allege under Parliamentary privilege that it was “industrial scale corruption”. This triggered the Government inquiry, which cleared the deal but came up with the 28 recommendations.

Mr Gibson said: “There is no corruption, there is no criminality, but I cannot make any sense of the 90:10 decision, it is unforgivable. The mayor has often been out-thought and out-manoeuvred, and not for the benefit of the Tees Valley.”

With Teesworks still proving controversial, Mr Gibson believes the region now needs “healing”, and he is backing the Labour candidate, Chris McEwan, who was his guest in the directors’ box at Middlesbrough’s Monday night game against Leeds. Next Thursday is polling day, and a third candidate, the Liberal Democrats’ Simon Thorley, is also standing.

At the age of 21, Mr Gibson became Middlesbrough’s youngest Labour councillor, but in 2017 he publicly declared his support for the then Stockton South Conservative MP James Wharton. He describes himself as a floating voter.

Mr Gibson added: “The Tees Valley is on the cusp of something revolutionary, and the architects of that have been Musgrave and Corney, and I must include how hard other members of the board worked, particularly Paul Booth (former chairman of Sabic UK), Sir Alan Cockshaw (formerly of the Amec engineering group) and Sue Jeffrey (the former leader of Redcar and Cleveland Council),” he said.

“Tens of thousands of highly paid and valuable jobs will have an effect on the economy, on the high street, in leisure, in transport, in education. It could be the biggest golden period since the formation of ICI, so I can’t emphasise how important it is we get it absolutely right.

“This election is probably the most important local election in my lifetime and we have to have the right guy in the right job, knowing his limitations, who’s prepared to seek help and prepared to make cross party decisions, not to score political points, not to exaggerate, not to use STDC or the development as his own political tool to enhance his own political career.

“I believe Chris McEwan is what we need at this time. He will heal the current problems.

“This is not sour grapes because we got kicked off the board. In doing this I have no gain, nor do I seek any gain. I’m doing it because I believe it to be right.”

In Response, Ben Houchen, Conservative mayor said: "If there’s one thing I’ve learned in politics it’s that it can be a nasty place, particularly so close to elections when there’s lots at stake and people are manoeuvring for what they think might happen in Westminster.

"At times it can be lonely, but I do what I do every day to make a difference and deliver for the area I love, an area that will be my home for the rest of my life with my young family.

“I’m pleased that Steve Gibson echoes my view that the deal with our Teesworks partners “was the right one” and that our region is “on the cusp of something revolutionary”.

"It’s also pleasing to see Steve recognise the “tens of thousands of highly paid and valuable jobs” will have an extremely positive impact on the local economy, on the high street, in leisure, in transport, in education.

“It’s good to see Steve repeat what I’ve been saying for some time now, that Teesworks is the biggest and most positive thing to happen since ICI.

“Already around 1,000 people are working on site with a job being able to support and provide for their family, improving their lives.

"You won’t read the truth of what’s happening to Teesside from Steve Gibson’s quotes – you’ll see it with your own eyes on the ground at Teesworks or in the air at the airport.

 “That’s what politics is about for me, to be able to help the people of Teesside, Darlington and Hartlepool.

 “What is clear, is that Steve is wrong about the facts.

“The only place I’ve seen the numbers Steve is using is in Labour Party press attacks – it’s unfortunate he has been reduced to repeating them.”

Explaining why the shared ownership of the site between the private partners, Chris Musgrave and Martin Corney, and the South Tees Development Corporation was changed from 50:50 to 90:10, Mr Houchen said: “The 40 per cent came with our private partners taking on £330m worth of liabilities that were previously sat with the taxpayer. It reduces the amount of taxpayer cash being used to £240m not £560m.

“We have already secured 9,000 jobs and the deal done will return £1.3bn over next 40 years, as the independent report says, to our local communities which will support fantastic local projects.

“That’s a deal I would do every day of the week.

“Steve is a good guy, and I would like to thank him for all of his support during his time on the South Tees Development Corporation board before I asked him to stand down, and I’d like to thank him for his support and voting for the agreement with our private partners.

“If it wasn’t for Steve we wouldn’t now have a joint venture with our Teesworks partners.

“We didn’t always agree on everything, but there is no questioning his love and passion for Teesside and that’s very much our common ground.

“Sometimes in business you have to agree to disagree.”