Information

The sale of the Dalzell steelworks: FOI release

Information request and response under the Freedom of Information (Scotland) Act 2002.


Information requested

1. What review has the Scottish Government conducted of other contracts in relation to (a) state aid rules and (b) assuming liabilities such as environmental remediation, following the results of its review of the facilitation of the sale of the Dalzell steelworks. Please provide a copy of any reviews or instructions to conduct reviews.

2. What evidence does the Scottish Government hold to show, as stated by the Minister for Business, Trade, Tourism and Enterprise's 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”. Please provide a copy of all the documentation the Scottish Government holds to evidence this.

Response

Part 1
Scottish Government officials 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 the Consolidated Accounts for 2020/21. The transactions have also been reviewed by business areas who have provided assurances in respect of the appropriate recognition and disclosure of contingent liabilities.

Attached are the instructions that were issued for the respective assurance processes as well as a summary document evidencing the responses.

While our aim is to provide information whenever possible, in this instance certain information has been redacted under the following section of FOISA: Section 38(1)(b) – personal data. Further information regarding the applied exemption can be found in the annex below.

Part 2
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.

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.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses.

FOI 202200272838 - Information released - Annex

FOI 202200272838 - Information released

Contact

Please quote the FOI reference
Central Enquiry Unit
Email: ceu@gov.scot
Phone: 0300 244 4000

The Scottish Government
St Andrews House
Regent Road
Edinburgh
EH1 3DG

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