Views of the Celtic Freeport

The British Ports Association has welcomed the announcement that the Celtic Freeport and Anglesey Freeport bids have been successfully awarded freeport status today by the UK and Welsh Governments, but it suggested that policy makers should look to grant other locations a similar status. 

Will Bramble CBE, Chief Executive of Pembrokeshire County Council, said: “The Celtic Freeport will unleash the full green industrial potential of Wales, accelerating the decarbonisation of our most carbon intensive industries and bringing new opportunities to our communities, major international investment and thousands of high skilled jobs to the region. [It] will produce significant investment in the region, particularly the focused areas of upskilling our workforce and ultimately creating job opportunities here in south west Wales. Fundamentally this will now put us at the leading edge of the green industrial revolution.”

Cllr Steve Hunt, Leader of Neath Port Talbot Council, said:
“Today’s announcement is an absolute game changer for Neath Port Talbot and for Wales. It will transform the fortunes of people in all our communities. It puts us at the forefront of the world’s green energy revolution and our residents will soon be working in the industry of the future, learning the skills for securing green, well paid jobs.

Karen Jones, Chief Executive of Neath Port Talbot Council, said:
“This great news is the first step towards a much brighter future here in our county borough. I look forward to working with our partners to make sure local people and businesses have the best possible benefit from what’s now in front of us.”

Tom Sawyer, Chief Executive of the Port of Milford Haven, said:
“As the UK’s Energy Port, the Port of Milford Haven welcomes this fantastic news which allows us to build on the significant multi-million pound investment we’ve already made in the renewables sector at Pembroke Port. But what really excites us about this announcement today is the positive impact it’s going to have on our coastal communities. Securing the jobs of today and creating fantastic opportunities for future generations.”

Welsh Government Economy Minister, Vaughan Gething said: “It was great to be in Port Talbot today to congratulate the Celtic Freeport team on their successful bid.

“From off-shore energy to advanced manufacturing, the Celtic Freeport will help create tens of thousands of new, high quality jobs in the green industries of the future. it will support our highly ambitious plans to reach net zero by 2050, while also supporting our young people to plan their futures here in Wales. All this will help us transform the economy of south west Wales, helping us create a stronger, fairer and greener future for local people and communities.”

South Wales West MS, Dr Altaf Hussain (Conservative), said: “This is fantastic news for my region and the whole of South Wales. I have been a firm supporter of the Celtic Freeport from the outset as it has the potential to transform our economy. From Port Talbot to the Port of Haven, this news will mean new jobs and new investment and a great example of what we can achieve when governments and industry work together. The Celtic Freeport has the potential to access £5.5bn of private and public investment and will bring thousands of well-paid, highly skilled jobs to the region whilst kickstarting the green energy revolution."

First Minister of Wales, Mark Drakeford said: “The Welsh Government has a clear economic mission to transform the Welsh economy, creating a stronger, fairer and greener future. The designation of these sites as Wales’ first freeports will reinforce that mission, building on the significant investments and partnerships we have made in these regions over many years. The joint working between governments on the freeport programme should serve as a blueprint for future intergovernmental work on a whole range of issues.”

Private Eye says: [They generally displace] investment from where it might have been better used. A couple of years ago, the Commons international trade committee heard from a string of experts about this absence of benefit - particularly given the low or zero tariff agreements such as the UK's with the EU, since the traditional appeal of freeports is the exemption from customs duties and checks. [...] They do come with government giveaways, however [and] they offer juicy opportunities for the trade consultants whose business is one of the few growth areas post-Brexit. 

Maritime union RMT has warned that new Freeports must not lead to attacks on working conditions and super exploitation of seafarers [and] cheap labour, [nor] deregulation and a reduction in safety standards. The union highlights examples in Teesside where freeport status has led to public concerns which have not been allayed by a Government report.

What is a freeport?

A Welsh freeport will be a special zone with the benefits of simplified customs procedures, relief on customs duties, tax benefits, and development flexibility. Goods entering freeports do not have to pay tariffs, import VAT or excise duty until they leave the freeport and enter the domestic UK market, with simplified customs procedures and declarations. Then all that focus on union recognition, net zero.

For more analysis, see https://www.walesonline.co.uk/news/wales-news/what-freeport-wales-getting-one-26538227

We shall see in a year or so's time how many people outside the Conservative party believe that the freeport has been a Good Thing.