Procurement Advice related to the acquisition of Teesside International Airport.
Dear Tees Valley Combined Authority,
Without prejudice to the generality of the foregoing, in particular the following questions under the Freedom of Information Act 2000.
My question is on the governance of the equity investment in procuring Teesside International Airport from its owner Peel Group and subsequent investment in the land
1. At the point in time, what rules governing State Aid were considered for the equity investment into Teesside International Airport from Peel Group by the Combined Authority?
2. Referring to State Aid advice only, what specific advice was sought in State Aid compliance and the aspect of the financing that satisfies Market Economic Investor Principle (MEIP)? Which consultant (s) provided that advice and what was the cost of that advice?
3. I would like to request the specific advice given and the recommendation given which ultimately concluded that the investment is not state aid. The example would categorically demonstrate that the investment does not constitute State Aid and would be acceptable to a private sector investor operating under normal market economy conditions, and the reason that it would be acceptable to proceed ie not breach state aid rules.
Yours faithfully,
Wai M Yau
Dear Wai M Yau
Freedom of Information Act 2000 - Ref: FOI 48-2024
Thank you for your correspondence received on 19/03/2024.
Your request is being considered under the Freedom of Information Act 2000. If this request is for information that the Combined Authority holds, you will receive the information requested by 17/04/2024, which is within the statutory timescale of 20 working days.
However, please note the Act defines a number of exemptions that may prevent release of the requested information. There will therefore be an assessment of your request to determine if any exemptions apply to the information requested. If the information cannot be released, or only released in part, you will be informed of the reasons why, together with any rights of appeal.
If the information requested refers to a third party, they may be consulted before deciding whether it can be released.
Yours sincerely,
Governance Team
[email address]
Tees Valley Combined Authority
Teesside Airport Business Suite | Teesside International Airport
Darlington DL2 1NJ. www.teesvalley-ca.gov.uk
Dear Wai M Yau,
We regret to inform you that the response to your FOI request is delayed due to the need to consider the public interest test concerning the information requested. We apologise for the delay and will respond to the request in full on or before 17/05/2024, which is a 20 working day extension from the original deadline.
Yours sincerely,
Governance Team
Tees Valley Combined Authority
Dear FOI,
Thank you for your reply.
I think as long as the reply meets what should be allowable in permitting the authority to meet those rules then the that will suffice, encase tgat is the most important, the legal advice given and how it was applied.
Yours sincerely,
Wai M Yau
Dear Wai M Yau,
Freedom of Information Act 2000 - Ref: 48-2024
Thank you for your correspondence received on 19/03/2024. In response to your request, we can now provide the following information.
You asked:
1. My question is on the governance of the equity investment in procuring Teesside International Airport from its owner Peel Group and subsequent investment in the land 1. At the point in time, what rules governing State Aid were considered for the equity investment into Teesside International Airport from Peel Group by the Combined Authority?
Our response:
Consideration was given as to whether the investment would confer a selective commercial advantage upon the entities. To do this the Market Economic Investor Principle (MEIP) test was applied to the principals of the transaction. This is a hypothetical assessment of the investment provided by TVCA and whether a hypothetical private investor in comparable circumstances to TVCA agree to the Investment on the same terms if it were operating under normal market economy conditions.
You asked:
2. Referring to State Aid advice only, what specific advice was sought in State Aid compliance and the aspect of the financing that satisfies Market Economic Investor Principle (MEIP)? Which consultant (s) provided that advice and what was the cost of that advice?
Our response:
State Aid advice was sought from Pinsent Masons LLP. The total cost of the advice was £51,620.40 including VAT.
You asked:
3. I would like to request the specific advice given and the recommendation given which ultimately concluded that the investment is not state aid. The example would categorically demonstrate that the investment does not constitute State Aid and would be acceptable to a private sector investor operating under normal market economy conditions, and the reason that it would be acceptable to proceed ie not breach state aid rules.
Our response:
Please find the advice sought from Pinsent Masons LLP attached. Please note that redactions have been made pursuant to Section 40(2) of the Freedom of Information Act 2000, which exempts personal details from disclosure.
If you have any queries or concerns, please contact [email address] in the first instance.
However, if you are unhappy with the way your request for information has been handled, you may request an internal review within 40 working days by writing to:
Group Chief Executive, Tees Valley Combined Authority, Teesside Airport Business Suite, Teesside International Airport, Darlington. DL2 1NJ.
If, after your complaint has been determined, you remain dissatisfied with the handling of your request or complaint, you have a right to appeal to the Information Commissioner at:
The Information Commissioner's Office (ICO)
Wycliffe House, Water Lane
Wilmslow
Cheshire
SK9 5AF
Telephone: 0303 123 1113
Website: https://ico.org.uk/make-a-complaint/
The ICO does not make a charge for an appeal.
Yours sincerely,
Governance Team
Tees Valley Combined Authority
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Ginny Bennett left an annotation ()
Delayed until after the Mayor election