As the Secretary of State for BEIS set out in his statement to the House on 1 May, the government entered into a commercial agreement with British Steel on 23 April, which provided a short term bridge facility valued at around £120 million. This ensured the company met its obligations under the EU Emissions Trading Scheme for the 2018 scheme year.<\/p>
<\/p>
Following the recent insolvency of British Steel, the government has indemnified the Official Receive to carry out its statutory duties as liquidator. The Official Receiver is required by law to investigate the reasons for the failure of any company that enters compulsory liquidation.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4097", "label" : {"_value" : "Biography information for Elizabeth Truss"} } , "answeringMemberConstituency" : {"_value" : "South West Norfolk"} , "answeringMemberPrinted" : {"_value" : "Elizabeth Truss"} , "dateOfAnswer" : {"_value" : "2019-06-20", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-06-20T13:37:12.597Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2019-06-14", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "British Steel: Loans"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what recent assessment he has made of the effect of the £120 million Government loan to British Steel in May 2019 on that company's viability; and what assessment he has made of the role of Greybull Capital in that company's insolvency.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4511", "label" : {"_value" : "Biography information for Dr Rupa Huq"} } , "tablingMemberConstituency" : {"_value" : "Ealing Central and Acton"} , "tablingMemberPrinted" : [{"_value" : "Dr Rupa Huq"} ], "uin" : "264789"} , {"_about" : "http://data.parliament.uk/resources/1131475", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1131475/answer", "answerText" : {"_value" : "
The British Business Bank was not involved.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/2616", "label" : {"_value" : "Biography information for Lord Henley"} } , "answeringMemberPrinted" : {"_value" : "Lord Henley"} , "dateOfAnswer" : {"_value" : "2019-06-20", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-06-20T11:30:04.133Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "201"} , "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "date" : {"_value" : "2019-06-11", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "British Steel: Loans"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask Her Majesty's Government, further to the Written Answer by Lord Henley on 22 May (HL15809), whether the review and assessment process followed by the British Business Bank also applied to the process supporting their grant of a £120 million loan to British Steel; and whether that process included a review of the (1) capital structure, (2) tax planning, and (3) managerial record, of Greybull Capital and its associates.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/3869", "label" : {"_value" : "Biography information for Lord Myners"} } , "tablingMemberPrinted" : [{"_value" : "Lord Myners"} ], "uin" : "HL16269"} , {"_about" : "http://data.parliament.uk/resources/1131479", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1131479/answer", "answerText" : {"_value" : "
The Deed of Forfeiture bridge facility agreed between Government and British Steel Limited provides legal protections to give Government control of 2019 EU ETS allowances, even under the scenario of insolvency.<\/p>
<\/p>
Under the Deed of Forfeiture agreed between the company and British Steel Limited, the company\u2019s 2019 allowances will be assigned to the Government once issued, and the proceeds from selling these is expected to cover the costs of purchasing the allowances. Greybull are not party to this Deed of Forfeiture, and as a result of the liquidation, day-to-day control has passed to the liquidator of British Steel Limited.<\/p>
<\/p>
The terms of the commercial agreement between Government and British Steel are set out in letters from the Permanent Secretary of the Department for Business, Energy and Industrial Strategy to the Chair of the Public Accounts Committee and the Comptroller & Auditor General, copies of which have been placed in the Libraries of both Houses.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/2616", "label" : {"_value" : "Biography information for Lord Henley"} } , "answeringMemberPrinted" : {"_value" : "Lord Henley"} , "dateOfAnswer" : {"_value" : "2019-06-20", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-06-20T11:29:54.117Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "201"} , "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "date" : {"_value" : "2019-06-11", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "British Steel: Loans"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask Her Majesty's Government, further to the Written Answer by Lord Henley on 6 June (HL15957), whether the placement of British Steel in receivership on 25 May (1) disqualifies that company from receiving, or (2) places it at risk of not receiving, 2019 carbon credits; if so, what are the implications for the £120 million loan they made to British Steel; and whether they will now answer the original question put, namely, whether that loan was guaranteed by Greybull Capital or related parties.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/3869", "label" : {"_value" : "Biography information for Lord Myners"} } , "tablingMemberPrinted" : [{"_value" : "Lord Myners"} ], "uin" : "HL16273"} , {"_about" : "http://data.parliament.uk/resources/1129546", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1129546/answer", "answerText" : {"_value" : "
The Secretary of State for Business, Energy and Industrial Strategy has not issued any Ministerial Directions in respect of British Steel.<\/p>
This loan agreement was fully commercial and state aid compliant, valued at around £120m, under Section 7 of the Industrial Development Act 1982. Under the agreement the Government purchased emissions allowances on behalf of British Steel ensuring it met its 2018 ETS obligations. Failure to comply with its ETS obligations would have led to a fine of around £500m, on top of the costs of ETS compliance of around £120m.<\/p>
In return, under a deed of forfeiture, the company\u2019s 2019 allowances will be assigned to the Government once issued, and the proceeds from selling these is expected to cover the costs of purchasing allowances for British Steel. The\u202fGovernment\u2019s view is that the 2019 allowances will\u202fstill\u202fbe issued to British Steel in insolvency.<\/p>
The Government\u2019s assessment is that the Deed of Forfeiture offered value for money to the taxpayer, with benefits exceeding the costs, predicated on the level of confidence around security, even in the event of insolvency.<\/p>
This position was supported by the independent Industrial Development Advisory Board which assessed the proposal in their statutory role and agreed with the Government\u2019s value for money assessment.<\/p>
<\/p>
<\/p>
<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/2616", "label" : {"_value" : "Biography information for Lord Henley"} } , "answeringMemberPrinted" : {"_value" : "Lord Henley"} , "dateOfAnswer" : {"_value" : "2019-06-18", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-06-18T16:50:34.45Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "201"} , "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "date" : {"_value" : "2019-06-04", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "British Steel: Loans"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask Her Majesty's Government whether the recent loan of £120 million to enable British Steel to meet its emissions trading compliance costs required a Ministerial direction.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/3869", "label" : {"_value" : "Biography information for Lord Myners"} } , "tablingMemberPrinted" : [{"_value" : "Lord Myners"} ], "uin" : "HL16031"} , {"_about" : "http://data.parliament.uk/resources/1129547", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1129547/answer", "answerText" : {"_value" : "
I refer the Noble Lord to the answer I gave him on 4th<\/sup> June 2019 to Question HL15896, and to letters from the Permanent Secretary to the Department for Business, Energy and Industrial Strategy to the Chair of the Public Accounts Committee and the Comptroller & Auditor General, placed in the Libraries of both Houses, outlining the terms of the Deed of Forfeiture bridge facility agreed between Government and British Steel.<\/p> <\/p> The Deed of Forfeiture provides legal protections to give Government control of 2019 EU ETS allowances, even under the scenario of insolvency.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/2616", "label" : {"_value" : "Biography information for Lord Henley"}
}
, "answeringMemberPrinted" : {"_value" : "Lord Henley"}
, "dateOfAnswer" : {"_value" : "2019-06-12", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2019-06-12T15:12:11.763Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2019-06-04", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "British Steel: Loans"}
, "houseId" : {"_value" : "2"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"}
}
], "questionText" : "To ask Her Majesty's Government whether civil servants expressed any concerns about the loan made to British Steel to enable it to meet its emissions trading compliance costs; and whether this loan is subject to enforceable security.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3869", "label" : {"_value" : "Biography information for Lord Myners"}
}
, "tablingMemberPrinted" : [{"_value" : "Lord Myners"}
], "uin" : "HL16032"}
, {"_about" : "http://data.parliament.uk/resources/1128143", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1128143/answer", "answerText" : {"_value" : " The support was provided to British Steel Limited in the form of a bridge facility. Under the terms of the commercial arrangement, the Government purchased the necessary allowances on behalf of British Steel Limited in the week leading up to 30 April and then surrendered them, via British Steel Limited's Operator Holding Account, to the EU Surrender Account. This occurred before the 30th April compliance deadline to surrender allowances for the 2018 reporting year, thus enabling British Steel Limited to meet its environmental obligations and avoid any penalties that would otherwise have resulted from non-compliance. In return, under a deed of forfeiture, the company\u2019s 2019 allowances will be assigned to the Government once issued, and the proceeds from selling these is expected to cover the costs of purchasing the allowances.<\/p> <\/p> The terms of the commercial agreement between the Government and British Steel are set out in letters from the Permanent Secretary of the Department for Business, Energy and Industrial Strategy to the Chair of the Public Accounts Committee and the Comptroller & Auditor General, copies of which have been placed in the Libraries of both Houses.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/2616", "label" : {"_value" : "Biography information for Lord Henley"}
}
, "answeringMemberPrinted" : {"_value" : "Lord Henley"}
, "dateOfAnswer" : {"_value" : "2019-06-04", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2019-06-04T16:03:29.613Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2019-05-23", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "British Steel: Loans"}
, "houseId" : {"_value" : "2"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"}
}
], "questionText" : "To ask Her Majesty's Government to which company in the British Steel group of companies they extended a loan of £120 million for the purchase of carbon credits; whether that loan was guaranteed by Greybull Capital and associates; whether the borrower benefited from, or was exposed to, guarantees to other British Steel and Greybull Capital parties; and when that loan was drawn down.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3869", "label" : {"_value" : "Biography information for Lord Myners"}
}
, "tablingMemberPrinted" : [{"_value" : "Lord Myners"}
], "uin" : "HL15957"}
, {"_about" : "http://data.parliament.uk/resources/1128010", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1128010/answer", "answerText" : {"_value" : " The Government sought commercial and legal advice from external independent advisers. Exact costs have not been finalised.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/2616", "label" : {"_value" : "Biography information for Lord Henley"}
}
, "answeringMemberPrinted" : {"_value" : "Lord Henley"}
, "dateOfAnswer" : {"_value" : "2019-06-04", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2019-06-04T16:05:40.227Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2019-05-21", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "British Steel: Loans"}
, "houseId" : {"_value" : "2"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"}
}
], "questionText" : "To ask Her Majesty's Government whether they used external independent advisers in connection with the evaluation of British Steel's applications for financial support over the last three months; and, if so, (1) who those advisers were, and (2) how much they were paid.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3869", "label" : {"_value" : "Biography information for Lord Myners"}
}
, "tablingMemberPrinted" : [{"_value" : "Lord Myners"}
], "uin" : "HL15895"}
, {"_about" : "http://data.parliament.uk/resources/1128011", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1128011/answer", "answerText" : {"_value" : " The agreement between the Government and British Steel regarding their EU Emissions Trading Scheme compliance was fully commercial and state aid compliant, under Section 7 of the Industrial Development Act 1982.<\/p> The terms of the commercial agreement are set out in letters from the Permanent Secretary to the Department for Business, Energy and Industrial Strategy to the Chair of the Public Accounts Committee and the Comptroller & Auditor General, copies of which have been placed in the libraries of both Houses.<\/p> The Government carried out all of the necessary checks and due diligence which a typical commercial lender would undertake in relation to the company before making a commercial offer, including working closely with legal and commercial advisors to scrutinise the terms of the transaction.<\/p> The Deed of Forfeiture contains the terms and conditions which would be required by a commercial lender.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/2616", "label" : {"_value" : "Biography information for Lord Henley"}
}
, "answeringMemberPrinted" : {"_value" : "Lord Henley"}
, "dateOfAnswer" : {"_value" : "2019-06-04", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2019-06-04T16:09:15.11Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2019-05-21", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "British Steel: Loans"}
, "houseId" : {"_value" : "2"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"}
}
], "questionText" : "To ask Her Majesty's Government what assurance they received that the terms on which they provided financial support to British Steel were at commercial rates.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3869", "label" : {"_value" : "Biography information for Lord Myners"}
}
, "tablingMemberPrinted" : [{"_value" : "Lord Myners"}
], "uin" : "HL15896"}
, {"_about" : "http://data.parliament.uk/resources/1127438", "AnsweringBody" : [{"_value" : "Department for Business, Energy and Industrial Strategy"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1127438/answer", "answerText" : {"_value" : " The purchase of Ascoval was undertaken by the shareholder, and not by British Steel.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/2616", "label" : {"_value" : "Biography information for Lord Henley"}
}
, "answeringMemberPrinted" : {"_value" : "Lord Henley"}
, "dateOfAnswer" : {"_value" : "2019-06-03", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2019-06-03T11:17:09.497Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "201"}
, "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"}
, "date" : {"_value" : "2019-05-20", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "British Steel: Loans"}
, "houseId" : {"_value" : "2"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"}
}
], "questionText" : "To ask Her Majesty's Government whether they took into consideration British Steel\u2019s acquisition of Ascoval when reaching their decision on lending to that company.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3869", "label" : {"_value" : "Biography information for Lord Myners"}
}
, "tablingMemberPrinted" : [{"_value" : "Lord Myners"}
], "uin" : "HL15849"}
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}