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Insider UK
National
Peter A Walker

SNP admits to 'rushed advice and decision' in steelworks sale

Scottish Liberal Democrat economy spokesperson Willie Rennie has condemned the Scottish Government for rushing the deal it made in 2016 with Dalzell steelworks.

A Freedom of Information request made by the party showed the government admitting to the “rushed” transaction with Tata in a series of emails.

It had asked the government to provide information on whether the Scottish Government have any claim to the land upon which Dalzell steelworks are situated.

In response, the government provided an email in which an official described “picking through what transpired back in 2016…challenging to say the least.”

In a further email, another official emphasised the need to clarify the situation as soon as possible, because otherwise they will “compound the difficulties caused by rushed advice and decision in 2016”.

In 2016, the Scottish Government facilitated the sale of Dalzell Steelworks in Motherwell, buying it from Tata Steel, before almost immediately selling it on to current owners, Liberty Steel.

The Scottish Lib Dems argued that as part of the deal, Scottish National Party ministers promised to protect Tata from future costs, including the liability for environmental clean-up costs. A subsequent review concluded that this indemnity may have been a breach of state aid rules.

Rennie said: “We knew that the government were working at what a source at the time called 'breakneck speed', determined to get something done by the May 2016 parliament election - we also knew that Tata was determined to get something done, by passing on its exposure for clean-ups.

“We need answers urgently, if Tata are not responsible for clean-up operations does that mean the costs could fall to the Scottish taxpayers?

“When millions of pounds and the credibility of the Scottish Government’s industrial policy are at stake, we deserve politicians who can give clear answers about what all of this means for the Scottish public.”

The Scottish Government has been contacted for comment.

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