Ben Houchen says controversial Teesworks share transfer was "best thing for Teesside"

The share transfer which saw Teesworks Ltd, the company set up to market and lease land at the former Redcar steelworks, led to accusations of corruption and a subsequent review commissioned by the government into the governance of the project.

It made 28 recommendations including to “renegotiate a better settlement for taxpayers” in regards to the joint venture deal.

Labour candidate Chris McEwan said “a bad deal was done by Ben Houchen,” adding if he was elected his “prime mission would be to renegotiate that deal.”

While admitting it would be difficult, Mr McEwan said “it’s a job that must be done,” before adding he would “look to bring in the National Audit Office,” in order “to understand exactly what has gone on here.”

Last week shadow chancellor Rachel Reeves told The Yorkshire Post a Labour government would give the National Audit Office - an independent parliamentary body which assesses value for money on public spending - the powers it needed to investigate arrangements at Teesworks, which has seen over £500m of public expenditure so far. Private developers Chris Musgrave and Martin Corney have so far made over £120m from the project without investing any cash themselves.

Asked if he would renegotiate the deal, Lord Houchen said: “This is typical politicking… You’re ignoring the fact it’s creating thousands of jobs. The report said everything that’s happened wouldn’t have happened without the joint venture partners. We would not have control of the site without the joint venture partners.

Liberal Democrat candidate Simon Thorley asked if Lord Houchen had read the same report as him.

“One of the most striking things about this,” added Mr Thorley, “is that Lord Houchen says he accepts the 28 recommendations from the report in full. One of those recommendations is to renegotiate that deal… You’ve said it’s a deal you would sign every day of the week, so which is it?”

“I stand by the decision that I took because it’s the best thing for Teesside, Darlington and Hartlepool,” replied Lord Houchen.

Mr McEwan expressed concern that the government review “couldn’t understand or assess if there was value for money” in relation to Teesworks, something denied by Lord Houchen.

“That’s not what the report says,” he said. “It actually says that it was value for money and they’ve found value for money when they looked for it.”

The Teesworks review states both Tees Valley Combined Authority and its subsidiary South Tees Development Corporation, which are both chaired by Lord Houchen, “do not include the expected sufficiency of transparency and oversight across the system to evidence value for money.”