Teesside freeport: Complaint lodged against MP after ‘crony contracts’ claim

Alex Cunningham, Labour MP for Stockton North, called for the inquiry in the House of Commons this week, claiming taxpayers are “set to lose tens of millions of pounds” because valuable assets have been transferred to two businessmen “without a full and transparent procurement process”.

It comes after a group of private developers took a 90 per cent stake in the company, which was set up to deliver the Teesworks freeport project in Redcar, after local politicians approved the transfer of publicly owned shares.

Conservative MPs Jacob Young and Simon Clarke said the "desperate" and "damaging" allegation is unfounded and they have written to Sir Lindsay Hoyle, Speaker of the House of Commons, to complain.

Mr Young, MP for Redcar, said: "I am very disappointed that Mr Cunningham would use the cover of Parliamentary privilege to make damaging remarks in the House which he must know are untrue.”

Mr Clarke, MP for Middlesbrough South and East Cleveland, said: “If anyone doubts that Labour is determined to throw mud at Teesworks in the desperate hope it sticks, this latest rant from Alex Cunningham should confirm it.”

He added: “Labour talking down Teesside is harmful to inward investment and the wider reputation of our area. They are an absolute liability and they need to stop before they do real damage.”

Around 4,500 acres of industrial land is being redeveloped as part of the Teesworks freeport zone project, which promises to create thousands of jobs and generate billions of pounds for the local economy.

It comes after the area was granted freeport status by the Government, which means that businesses operating there enjoy a wide range of tax breaks.

Teesworks Limited was set up to take charge of the site and deliver the project, by the publicly owned South Tees Development Corporation (STDC), which is chaired by Tees Valley Mayor Ben Houchen, and private developers JC Musgrave Capital, Northern Land Management Ltd and DCS Industrial Ltd.

STDC owned 50 per cent of the company until December 2021, when a share transfer took place, and the developers now have a 90 per cent stake.

Two local businessmen, Christopher Musgrave and Martin Corney, and Tees Valley Combined Authority Chief Executive Julie Gilhespie are now listed as directors of Teesworks Limited.

Mr Musgrave runs JC Musgrave Capital and Mr Corney is a director of Northern Land Management Ltd. Both men are also directors of DCS Industrial Ltd.

Mr Houchen has said the move, which was signed off by a number of local authorities, will ensure the private developers are required to provide the investment and take on the risk, instead of placing those burdens on the taxpayer.

In a joint statement, Mr Musgrave and Mr Corney said claims made by the Labour MP in the House of Commons earlier this week are “are false and have no foundation”.

“His comments are irresponsible and mischievous with the sole intention of ‘torpedoing’ the site at any cost. He should realise that his words have the potential to adversely affect investment and the creation of jobs,” they added.

“Mr Cunningham would be well advised to get his facts right before he slanders and smears our reputation, and that of others.”