- 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 for what reason the previous owners, Tata Steel, have liabilities in relation to the environmental remediation costs for the site of the Dalzell steelworks, and whether this is typical for the owners of similar former sites.
Answer
The Scottish Government does not assert that Tata Steel has liabilities relating to the environmental remediation costs for the site of the Dalzell steelworks. In the majority of cases potential contaminated land is dealt with routinely through the development planning system or voluntary remediation with the responsibility and costs for carrying out site investigation and any required remediation resting with the site owner / developer.
- 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 on what date and at what time it contacted Tata Steel after identifying that it may have broken state aid rules while facilitating the sale of the Dalzell steelworks, and whether it will publish any (a) notification and (b) response.
Answer
Scottish Government officials contacted TATA Steel UK on 9 December 2021 to inform the company of its findings concerning the potential presence of State Aid with respect to 2016 transaction. Channels of communication between the Scottish Government and Tata Steel UK to facilitate dialogue remain open but it would not be appropriate to publish the detailed content of these commercially sensitive exchanges.
- 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 (a) correspondence and (b) meetings it has had with (i) Tata Steel and (ii) Liberty House since identifying that it may have broken state aid rules while facilitating the sale of the Dalzell steelworks, and whether it will publish any (A) minutes and (B) documents regarding this since 1 January 2021.
Answer
Since Ministers were informed of the potential presence of State Aid with respect to its 2016 contract with Tata Steel UK Scottish Government officials have engaged with (a) Tata Steel UK on the following occasions, 9-12-21; 10-12-21; 13-12-21; 14-12-21; 15-12-21; 24-12-21 and 12-1-22 and (b) Liberty Steel-GFG Alliance on the following occasions 9-9-21; 8-11-21; 15-12-21; and 24-1-22.
Channels of communication between the Scottish Government and relevant businesses remain open but it would not be appropriate to publish the detailed content of these commercially sensitive exchanges.
- 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 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 on what date (a) its officials first identified and (b) the Minister for Business, Trade, Tourism and Enterprise, or his predecessor, was first informed of (i) the existence of the liability in relation to the facilitation of the sale of the Dalzell steelworks and (ii) issues with this potentially breaking state aid rules.
Answer
There is no liability in relation to the facilitation of the sale of the Dalzell steelwork.
Initial advice was provided to Ministers of concern on the grounds of potentially non-compliant State aid on 17 August 2021 and Officials were asked to undertake further investigation including obtaining additional specialist advice.
I was provided with a further update on a potential issue concerning non-compliant State aid on 25 October 2021 following further investigation.
Final advice was provided to Ministers on 8 December 2021.
- 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 for how long precisely it owned the Dalzell steelworks in 2016.
Answer
The Scottish Government owned the Dalzell and Clydebridge steelworks momentarily in 2016 before the same were immediately sold to Liberty House.
- 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 Tata Steel provided it with an estimate of the cost of the total potential environmental remediation cost of the Dalzell steelworks upon purchasing the site in 2016.
Answer
The negotiation and agreements are commercially sensitive information.
- 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.