- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government what review it has conducted of other contracts in relation to (a) state aid rules and (b) assuming liabilities such as environmental remediation, in light of the results of its review of the facilitation of the sale of the Dalzell steelworks.
Answer
We have considered the compliance and disclosure risks associated with significant and complex transactions. This includes the high-profile interventions that the Scottish Government has supported in recent years as outlined in 2020-21 Annual Accounts.
These transactions have been reviewed and, on the basis of information available it remains the case that there was no state aid present in any of the transactions. We have also obtained assurances in respect of the appropriate recognition and disclosure of contingent liabilities.
- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government what evidence it has to support the view stated by the Minister for Business, Trade, Tourism and Enterprise, during his ministerial statement on 15 December 2021 on Dalzell Historical Industrial Transactions, that “the circumstances upon which it [the indemnity] would be called upon are unlikely to materialise”.
Answer
Liberty Steel Dalzell continues to trade. At the time of the deal, in 2016, a parent company guarantee was signed with Liberty House, which meant that, if the part of the company at Liberty Steel Dalzell ceased to exist, the liabilities would pass to the wider group.
- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government what its position is on whether the possible breach of state aid rules, in relation to the facilitation of the sale of the Dalzell steelworks, will damage or have any other implications for its (a) existing relationships with businesses and (b) reputation among businesses that it is considering entering into a relationship with.
Answer
The Scottish Government’s actions saved both the Dalzell steelworks and the jobs of those that work there, protecting an important component of the Scottish economy.
- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government, further to the comments by the Minister for Business, Trade, Tourism and Enterprise, during his ministerial statement on 15 December 2021 on Dalzell Historical Industrial Transactions, that “there is no liability to the Scottish Government”, for what reason it has redacted this information in its responses to freedom of information requests.
Answer
As stated in the responses to the Freedom of information requests the information is in the Business contracts and is commercially sensitive.
- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government what its response is to Tata Steel’s reported statement on 15 December 2021 that the contract it holds with the Scottish Government in relation to the Dalzell steelworks is “valid and binding in all aspects”.
Answer
Channels of communication between the Scottish Government and Tata Steel UK remain open so both parties are aware the other’s position on this commercially sensitive topic.
- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government whether it will reconsider its decision to redact clause 12.4 on the total aggregate liability in the release of the business purchase agreement in relation to the Dalzell steelworks, as set out in the response to freedom of information request FOI/202100212787, a review of FOI/202100203997.
Answer
The original FOI request and the subsequent review were handled by the Scottish Government in compliance with its statutory obligations under the Freedom of Information (Scotland) Act 2002 (FOISA). Where any requester is dissatisfied with the outcome of a review, there is a clear statutory route by which they may appeal to the Scottish Information Commissioner, within six months. Any new request received by the Scottish Government would be considered afresh, in compliance with our obligations under FOISA.
- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government how disputes about state aid rules are resolved in Scotland post-Brexit, and whether the Court of Session and Supreme Court now have responsibility for interpreting and ruling on any dispute relating to a historic transaction that may have been in violation of pre-Brexit state aid rules.
Answer
In relation to measures taken before the end of transition, under Articles 93(1) and 95(1) of the Withdrawal Agreement, the European Commission remains competent until 31 December 2024 to open a State aid investigation in relation to any such measure, and the results of any such investigation are binding on the United Kingdom (and have direct effect in UK law by virtue of Article 4 of the Withdrawal Agreement and section 7A of the EU Withdrawal Act 2018 (“the 2018 Act”)).
- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government what risk assessment it has undertaken of whether Tata Steel will initiate legal proceedings against it in relation to the facilitation of the sale of the Dalzell steelworks.
Answer
We are currently engaged in ongoing discussions with TATA Steel and cannot share any further information due to the commercially sensitive nature of the discussions.
- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government what due diligence it conducted prior to facilitating the purchase of the Dalzell steelworks by Liberty House from Tata Steel, and whether it (a) employed any consultants and (b) commissioned any external advice in relation to this matter.
Answer
In facilitating the sale and purchase of the plants, officials sought external advice as the guidance of the Scottish Public Finance Manual recommends. The decision to support the transfer of ownership between the businesses considered this external advice and this intervention acted to effectively ensure that steel production and employment resumed.
- Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
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Date lodged: Thursday, 13 January 2022
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Current Status:
Answered by Ivan McKee on 27 January 2022
To ask the Scottish Government what analysis it has (a) conducted and (b) commissioned on the total potential environmental remediation cost of the Dalzell steelworks.
Answer