Rennie writes to minister as steel staff furloughed 

Scottish Liberal Democrat economy spokesperson Willie Rennie has today written to Economy Secretary Kate Forbes to urge her to investigate events at the Dalzell steelworks in Motherwell after he was contacted by plant insiders who told him that employees are at home on 80% wages with no work due to issues with cash flow and input prices.

His letter comes after it was announced that the owner of the works, Sanjeev Gupta, is being prosecuted over his alleged failure to file accounts for more than 70 companies.

Mr Rennie’s letter is as follows:

Dear Kate,

I am writing to you to raise concerns over the future of the Dalzell steel plant in Motherwell and its workers.

As you will be aware, the CEO of Liberty House Group, Sanjeev Gupta is currently facing prosecution over his alleged failure to file accounts for more than 70 companies. He is also facing a Serious Fraud Office probe.

This follows years of media reporting that accounts for both the Dalzell steelworks and for the Lochaber aluminium plant - also owned by Mr Gupta and owing £7m in loans to Scottish taxpayers - have gone unfiled.

Furthermore, despite my repeatedly asking in oral questions, written questions and letters to ministers, the Scottish Government has never been able to provide a satisfying explanation for the back-to-back sale model used to transfer the Dalzell plant from former owners Tata Steel, via Scottish Government ownership, to Sanjeev Gupta’s Liberty House Group.

Suspicions remain that as a result of their role in the sale, the Scottish Government will be liable for environmental clean-up costs at the Dalzell site if the wider Liberty House Group were to find itself in trouble. Tata Steel have suggested that at the very least this matter would be settled in court.

There is clearly some degree of upheaval at the Dalzell works. Insiders have been in touch with me to warn that employees are at home on 80% wages with no work due to issues with cash flow and input prices.

If we are to preserve Scotland’s last remaining steel mill, the jobs that it supports and the interests of the taxpayer, I believe that it is imperative that you and your officials, reach out to both workers and bosses at the Dalzell plant to ascertain what is going on and protect the public interest.

Yours sincerely,

Willie Rennie MSP

Scottish Liberal Democrat economy spokesperson