\-

TIDAI I.AGOON POT,ITER

Rachel Reeves MP Chair Business, Energy & lndustrial Strategy Select Committee House of Commons London SWlA OAA

DavidTCDaviesMP Chair Welsh Aflairs Committee House of Commons London SWlA OAA

21't May 201 8

Dear Chairs,

Please find below clarification on the two points raised in your letter of 15th May.

1 . When asked about my last meeting with the Secretary of State for , I answered that with specific reference to the formal meetings with the Secretary of State. A meeting was held with the Under Secretary of State at a later date. To ensure transparency, below is the full list of formal meetings that representatives from Tidal Lagoon Power held with all Wales Office Ministers since the Autumn Statement of December 2014 when it announced that: 'The government will start closer discussion with Tidal Lagoon Power Ltd to establish whether a potential tidal lagoon project at Swansea Bay is aflordable and value for money for consumers".

o Tuesday 24'n February 2015: Mark Shorrock and loan Jenkins met with Rt. Hon MP, Secretary of State for Wales, and Baroness Randerson,

Pa rlia me nta ry U nd e r-Secreta ry (Wa I es Offi ce);

o Monday 14'n November 2016: Mark Shorrock and Andy Field met with Rt Hon MP, Secretary of State for Wales;

o Thursd ay 26t^ October 2017: \ltark Shorrock met with Guto Bebb MP, Parliamentary Under-Secretary (Wales Offlice). ., '

T¡dat Lagoon Power Ltd Registered ¡n England and Wales No. 081 63554 Registered Office: The Lypiatts, 1 5 Lansdown Rd, Cheltônham GLSO 2JA Tel 0'1242 224104

www.tida I la goonpower. com 2. On 9th May, the questions put to me stated expressly an "allegation" of "inducement". The questions twice implied wrongdoing and an alleged improper payment by either myself or the company in question, Shire Oak Quarries Ltd.

It was and remains my belief that these questions were put to me, and put to me in this way, as a result of the activity of a group of people who have for a long period of time attempted to smear my reputation and attack the Swansea Bay Tidal Lagoon project.

I categorically denied the allegation in the session on 9th May and continue to do so today.

For the avoidance of any doubt, no improper payments have been, nor ever would be, offered by myself or shire oak Quarries Ltd to st Keverne parish council.

Whereas I found no ambiguity in the questions put to me on 9th May, I understand that other obseryers have taken a diflerent perspective. I therefore recognise that the questions may have left scopefor misinterpretation, wilful or otherwise, of the answers given, for which I apologise.

I recognise also that your letter of 15th May carries no implication of wrongdoing by either myself or Shire Oak Quarries Ltd.

Having noted the small but significant diflerences in interpretation of the questions you have put to me in writing and those put to me orally on 9th May, I am grateful of this opportun¡ty to provide further detail.

It is standard and indeed best practice for developers in Cornwall, and elsewhere, to create a community benefit package within a legally binding document, known as an Undertaking (either given unilaterally or in a contract like a s106 Agreement), to be tabled with a planning application.

Cornwall pioneered this approach and ¡t ¡s the approach Shire Oak Quarries Ltd sought to pursue by establishing the agreed basis for a community fund, which was to be financed based on quantities of rock extracted and sold by the quarry.

The intention was that a formal contract would be pre-agreed with the Parish Council then submitted with a planning application, as part of the standard planning process, for an enhancement to existing sea transport infrastructure to facilitate the extraction of rock (and delivery of fuel) by sea (rather than by road) which would help minimise disruption to local residents.

www.tida I lag oon power. com \,-

TIDALTAGOON POI,ITER

The final mutually agreed Undertaking would always be issued as a public document registered against the land and therefore had to stand up to public scrutiny.

Shire Oak Quarries tabled a number of iterative draft Undertakings between March 2015 and September 2015 as discussions with the Parish Council progressed and I understand that at least one such iteration has been placed in the public domain. The drafts were amended in response to feedback from the Parish Council. One draft did contain a proposed clause which built in an expectation of reasonable support from the Parish Council for the planning application which was later removed following discussions with the Parish Council. Ultimately, no agreement was concluded and the proposal not pursued.

For Committee purposes, I have appended a legalassessment of the appropriateness of the Undertaking that was being negotiated (but not agreed nor executed) between Shire Oak Quarries Ltd and St Keverne Parish Council.

Finally, the Board of Tidal Lagoon (Swansea Bay) Plc, including myself as Chief Executive, has written to your Committees to make clear its position on where and how rock for its project will be sourced and how any potential conflict of interest has been managed.

Yours sincerely, ilhle*,]-

Mark Shorrock Chief Executive

T¡dal Lagoon Powsr Ltd Registered in Ëngland and Wales No. 081 63554 Registered Office: The Lypiâtts, 1 5 Lansdown Rd, Chêltênham GLSO 2JA lel 0'l.242 224104

www.tida I la g oon power. com