It looks as if Teesside has lost an 800 job cables project, after fears that claims of corruption surrounding the Teesworks site would put off investors.
Tees Valley Mayor Ben Houchen has slammed the news as "a kick in the teeth to the people of Teesside".
In April, Advanced Cables, part of the Global Interconnection Group confirmed it was "developing a cable manufacturing and armouring facility in the North East of England at Teesside".
The project was reportedly worth more than £600million.
The company added: "Advanced Cables has identified its preferred sites for both the UK and Iceland facilities and is in advanced discussions with a major HVDC cable manufacturer to co-fund and operate the Teesside Factory."
On May 10, its information for investors still talked about "the Teesside site, proposed joint venture arrangements, detailed technical work on planning".
The company has insisted that nothing was yet signed and sealed, with a GIG spokesperson telling The Northern Echo: “There is no final decision made on site location and lots of moving parts currently.”
But investor information from them just a few days ago now reads: "Advanced Cables is developing a 1,600 km/year capacity HVDC cable manufacturing facility in the Port of Tyne in two phases."
There has been no comment so far from Port of Tyne to confirm the move, but Ben Houchen told The Northern Echo: "We've lost out on a £600m investment and replacing more jobs than were lost when the steelworks closed.
"I very much look forward to the outcome of the investigation and having the truth printed in black and white so that we can avoid this happening with other investors and that Andy McDonald can be held to account for his reckless actions and for abusing his position."
But Mr McDonald replied: “That a company chooses the Tyne over the Tees is a big disappointment.
"Responsibility lies with the South Tees Development Corporation and their Teesworks private partners to satisfy any queries potential investors may have and for any such investor to in turn, carry out their own due diligence enquiries, to satisfy themselves that the south bank of the Tees is right location for them.
"If that process has resulted in the project going elsewhere, I’d urge Teesworks and Tory politicians to understand why that is so, rather than casting around for scapegoats. That excuse would no doubt be very convenient for them but would tell them absolutely nothing”.
The project would have been a major endorsement of the green energy cluster being developed by Mayor Ben Houchen at Teesworks, with financial news website MarketScreener.com reporting that 'the Teesside Factory' was due to come into full operation in 2025 and would create over 800 jobs, support dozens of renewable energy projects globally, and make Britain a world-leader in the manufacture and export of High Voltage Direct Current cable."
The product involves power cables that connect different countries' electricity grids, as a means of improving grid efficiency and expediting the transmission of energy internationally, from where it is generated to where it is needed.
As the world transitions to a NetZero future, and with recent stark reminders of the importance of energy security, interconnectors are recognised as a central component to countries' energy strategies because interconnected grids are more efficient and able to respond to market stress.
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The Government also seemed ready to back the plan, with MarketScreener.com reporting: "The UK Department of International Trade has recently demonstrated support for Advanced Cables’ plans, by engaging with the preferred manufacturing partner to help secure their involvement with government incentives."
But now Port of Tyne seems a safer bet for GIG, with uncertainty over Teesworks financial deals involving Houchen and developers Chris Mulgrave and Martin Corney.
Earlier this month the Government commissioned a review to consider allegations of corruption made in parliament by Andy McDonald and Tees Valley Combined Authority’s oversight of the South Tees Development Corporation and Teesworks Joint Venture.
The central allegation is that Musgrave and Corney have made £45m from Teesworks in three years without investing any of their own money.
Reacting to the announcement that the Teesworks project looks to have been lost, Sir Simon Clarke, Conservative MP for Middlesbrough South and East Cleveland, said: "This is what happens when people play politics with our future.
"Thanks to the baseless claims of the member for Middlesbrough, Andy McDonald, Teesside has just lost a £600m investment to Tyneside.
"Well done Andy. It's Teesside that suffers because of your smears. I hope you're proud of yourself.
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"This investment would have single-handedly replaced more jobs than were lost when SSI closed.
"When the outcome of the investigation into Teesworks comes out, Andy McDonald needs to be held accountable for his reckless actions in Parliament and for abusing his position.
"I sincerely hope, that having seen the fruits of his actions, the people of Teesside see Andy McDonald for what he is - the wrecker of Teesside, the man who puts party before people."
Chris Musgrave, Chairman of Teesworks said: "Andy McDonald MP, has made a number of speeches under Parliamentary Privilege to tarnish my reputation and that of Martin Corney, with the sole intention of destroying the Teesworks project.
"His use of words such as ‘industrial scale corruption’ to describe commercial deals between STDC and Teesworks, are irresponsible and malicious. I’ll make it plain, he lied to Parliament and he lied to the public - he has no evidence to support his serious allegations, because there is none and he knows it.
"Mr McDonald has nothing good to say about anything, other than the Labour Party, which is why his reputation proceeds him, as a negative politician who is resentful and vindictive, but at some point, he will be required to justify his serious abuse of power and authority.
"Due to Mr McDonald’s antics, we have now lost a £600m business opportunity and 2,000 jobs. He can try to deflect the blame, but this is down to him and no one else.
"He will not succeed in his efforts to destroy Teesworks, and although business confidence in the project has been dented, we’ll work even harder to attract new businesses and jobs, as this is a once-in-a-lifetime opportunity for the Tees area.
"Andy McDonald will be remembered as the man who tried to destroy Teesworks for his own political gain, well it’s backfired and he’ll soon be picking the pieces up.
"I am certain that no evidence of ‘corruption’ or ‘criminality’ will be found as part of the Independent Enquiry, but the quicker the Enquiry is complete the better, so that the allegations from Andy McDonald can be put to bed once and for all."
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