A LABOUR peer has suggested  David Cameron’s ‘sleaze’ has “crossed the border” to Scotland and urged the UK Government to investigate Greensill’s links with the Scottish Parliament.

George Foulkes, Lord Foulkes of Cumnock, asked for assurances that the recently-announced UK Government inquiry into the Greensill scandal will be able to look at the firm’s involvement with the Scottish Government as well as deals made with steel billionaire Sanjeev Gupta.

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Lord Foulkes asked the junior Business, Energy and Industrial Strategy minister Lord Callanan today whether the Westminster probe would look into Scotland, saying: “The Prime Minister has said that the Greensill inquiry has carte-blanche.

“Could the minister give the House an assurance that it will be able to look into the Scottish Government's failed deal with Gupta and Greensill for the Lochaber smelter, which has cost the taxpayer half a billion pounds lost, and also look into the private meetings over dinner, which the Scottish Government Minister Fergus Ewing had with them, where no records were kept and were not reported to the civil service?" 

He added: "The Cameron sleaze seems to have crossed the border to the Scottish Government.”

It emerged on Sunday that Mr Ewing had a private meal at an upmarket Glasgow restaurant with Sanjeev Gupta, owner of the GFG Alliance, which owns Liberty Steel, as well as Lex Greensill – owner of Greensill Capital, which provided capital to GFG until its collapse last month.

No minutes of the meeting were taken, and Mr Ewing did not have any civil servants or advisers present. 

The Scottish Government said Mr Ewing attended the dinner with Mr Greensill, Mr Gupta, Tim Haywood – who was later fired from fund management firm GAM Holdings for alleged misconduct – and Jay Hambro, but does not know who paid for the meal.

According to reports the Government response to a Freedom of Information request about the meeting said the “themes of discussion” were recorded by Mr Gupta’s company, GFG Alliance, and reported a “positive relationship” focused on “derisking” both parties while maximising plans for growth at the Lochaber smelter and hydro.

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The collapse of the finance firm has potentially put thousands of jobs at GFG ‘s Liberty Steel at risk, as well as jobs at the Lochaber aluminium smelting plant, to which the Scottish Government has provided more than £500m of guarantees.

Lord Callanan responded: “I can only speak for the British government in this regard as [Lord Foulkes] I suspect knows very well.

“I can't comment or speak for the Scottish Government and for their dealings. Our review will examine matters for which the UK government is responsible and I would take up concerns with the First Minister of Scotland for what happens in Scotland.”