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Green Investment Bank: rival bidder launches legal challenge to sale Green Investment Bank: rival bidder launches legal challenge to sale
(about 3 hours later)
A last-ditch attempt has been made to derail the government’s controversial sale of the Green Investment Bank to the Australian investment bank Macquarie.A last-ditch attempt has been made to derail the government’s controversial sale of the Green Investment Bank to the Australian investment bank Macquarie.
Sustainable Development Capital (SDCL), a rival bidder for the bank, said it was launching a legal challenge to the government’s decision to select Macquarie as its preferred bidder for the £2bn deal.Sustainable Development Capital (SDCL), a rival bidder for the bank, said it was launching a legal challenge to the government’s decision to select Macquarie as its preferred bidder for the £2bn deal.
The London-based investment fund has applied to the high court for a judicial review on the grounds that it believes the bidding process has not complied with the criteria laid out by the government in March 2016 – such as achieving value for money for the taxpayer.The London-based investment fund has applied to the high court for a judicial review on the grounds that it believes the bidding process has not complied with the criteria laid out by the government in March 2016 – such as achieving value for money for the taxpayer.
Macquarie was first selected as the government’s preferred bidder in October 2016, and an announcement on the sale was expected in January. But confirmation of the deal has failed to materialise in the face of strong political opposition.Macquarie was first selected as the government’s preferred bidder in October 2016, and an announcement on the sale was expected in January. But confirmation of the deal has failed to materialise in the face of strong political opposition.
“The fact that no deal was completed within the targeted timetable attests to the fact that the preferred bid was neither deliverable within the time frame nor acceptable,” said SDCL, which is leading a consortium vying to buy the bank.“The fact that no deal was completed within the targeted timetable attests to the fact that the preferred bid was neither deliverable within the time frame nor acceptable,” said SDCL, which is leading a consortium vying to buy the bank.
The Green party’s co-leader Caroline Lucas, one of several MPs to raise concerns over a Macquarie deal, said: “The depth of government ineptitude on the Green Investment Bank sell-off is becoming clearer by the day. Therefore news of a judicial review comes as no surprise. With the deal now a knife edge, and Treasury hawks looking to make quick profit, let’s hope this legal challenge forces ministers to think again.”The Green party’s co-leader Caroline Lucas, one of several MPs to raise concerns over a Macquarie deal, said: “The depth of government ineptitude on the Green Investment Bank sell-off is becoming clearer by the day. Therefore news of a judicial review comes as no surprise. With the deal now a knife edge, and Treasury hawks looking to make quick profit, let’s hope this legal challenge forces ministers to think again.”
Ministers have yet to even officially acknowledge that Macquarie is the preferred bidder, citing commercial confidentiality, but sources close to the process told the Guardian that a sale was due to be announced within weeks.Ministers have yet to even officially acknowledge that Macquarie is the preferred bidder, citing commercial confidentiality, but sources close to the process told the Guardian that a sale was due to be announced within weeks.
Labour said the government’s lack of transparency was putting at risk the environmental purposes of the bank, which have led to investments in renewable and waste projects across the UK. Projects the bank has invested include the Galloper windfarm off the coast of Suffolk, the Wick district heating network in the north of Scotland, and an energy-from-waste plant in Belfast.Labour said the government’s lack of transparency was putting at risk the environmental purposes of the bank, which have led to investments in renewable and waste projects across the UK. Projects the bank has invested include the Galloper windfarm off the coast of Suffolk, the Wick district heating network in the north of Scotland, and an energy-from-waste plant in Belfast.
Rebecca Long-Bailey, shadow secretary of state for business, energy and industrial strategy, said: “The government has scandalously used commercial confidentiality at every turn to hide this sale from parliamentary scrutiny. Their fixation with getting the GIB off the government’s balance sheet despite expected returns to the taxpayer, has ridden roughshod over all concerns for its ongoing green mission.” Rebecca Long-Bailey, shadow secretary of state for business, energy and industrial strategy, said: “This deal has been opaque from the outset to say the least and it appears that the government has hidden behind the principle of commercial confidentiality at every turn, thus, shielding much of the deal from adequate parliamentary scrutiny.
“It appears that their fixation with getting the GIB off the government’s balance sheet despite expected returns to the taxpayer, has ridden roughshod over all concerns for its ongoing green mission.”
SDCL said it had resorted to the legal action after being given the brush-off by government and had “raised its concerns with the parties responsible for the process in the government since the final phase of the auction in September 2016”. It added: “In the absence of a constructive dialogue we have no alternative but to seek redress through the judicial review process.”SDCL said it had resorted to the legal action after being given the brush-off by government and had “raised its concerns with the parties responsible for the process in the government since the final phase of the auction in September 2016”. It added: “In the absence of a constructive dialogue we have no alternative but to seek redress through the judicial review process.”
The Guardian revealed last week that Macquarie had launched a Westminster charm offensive reassuring politicians of its green credentials after MPs raised concerns over the bank’s track record. Sky News reported at the weekend that the government was considering keeping a stake in some of the green investment bank’s assets to assuage critics of the deal.The Guardian revealed last week that Macquarie had launched a Westminster charm offensive reassuring politicians of its green credentials after MPs raised concerns over the bank’s track record. Sky News reported at the weekend that the government was considering keeping a stake in some of the green investment bank’s assets to assuage critics of the deal.
A hearing on the application for SDCL’s judicial review is due in March.A hearing on the application for SDCL’s judicial review is due in March.