- 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 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 publish the information it holds on the total potential environmental remediation cost of the Dalzell steelworks.
Answer
- 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 the section on assumed liabilities 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 (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 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 proportion of the total environmental remediation cost of the Dalzell steelworks it would be liable to pay under the agreement it facilitated in 2016 in the event that (a) the site is repurposed as a result of a decision by Liberty Steel and (b) the parent company ceases to exist, and what proportion other parties would be liable for in each circumstance.
Answer
The Scottish Government is not liable for environmental remediation costs.
- 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 whether it plans, for any reason, to refer the issue of the possible breach of state aid rules, in relation to the facilitation of the sale of the Dalzell steelworks, to the Court of Justice of the European Union.
Answer
Referrals of this nature to the European Commission can only be made by the member state.
- 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.