What is a Freeport?
Briefly, a Freeport is a zone in which there are tax benefits, eg: Non-Domestic Rates, Employers National Insurance, Stamp Duty etc, and exemptions from Customs Duties, as well as other “relaxing” of regulations, for businesses to set up a variety of operations depending on the location. The aspiration is that these advantages and exemptions will stimulate the economy by attracting investment and businesses to set up here. It sounds good, until you start to ask questions and look under the surface.
The Freeports (Green Freeports in Scotland) in UK differ significantly from those in the EU in that they include a very large Zone around the specific tax or customs sites, in which further expansion and development will be considerably easier and cheaper for companies involved and will attract significant amounts of public money, direct from Westminster; this in itself has alarming implications for democratic processes in Scotland and Wales, where we have devolved governments for these nations.
The more I investigate this topic, specifically Forth Green Freeport (FGP), my local one (the Zone begins about 2km from me) the more concerns and questions arise; others are researching and finding similar. Little or nothing is being said in the mainstream press about this scheme and there is widespread unwillingness to respond to or engage with the public from our elected representatives; to date, most invitations to attend public meetings on the subject are either ignored or declined, with a very few honourable exceptions. This post is not aimed to tell you the whole story of Freeports, others do this better and I am still working my way through the information I’ve gathered so far (around a busy day job and other commitments), so this is a work in progress for me and I will update this post over time. I will put a list of references and links below for further reading as I update this.
Flipcharts from a recent presentation to a public meeting in Dunfermline. Mapping out the key points helps me to make sense of what is a very big Big Picture.
What Can I Do?
- I’ve listed below some starter questions that have come out of what I’ve found so far about this very big topic. A lot of information is in the public domain but not always easy to find by just looking at a website.
- I think a useful approach will be to drip-feed these to your councillors and MSPs, one or at most two at a time, to start to get it on their agenda and to show that there is public interest and concern in this AND that we expect them to start engaging with and responding to citizens’ concerns and questions.
- https://www.writetothem.com/ makes this easy!
- I recommend keeping a record of what questions you ask whom, when you get a reply, plus whether any follow up Qs needed.
- Please put these into your own words, this helps avoid your letter/email being treated as a “copy & paste” campaign/spam message.
- How much control will the Scottish Government (Scotgov)and local authorities actually have over the activities in the Freeport? Who has the final say in decisions?
- How much share of the profits arising will come into the Scottish and local Government, for the wider benefit of Scotland? What stake do Scottish / local governments have in the Freeport and operations within them? If none, what is your plan to get that share of profits generated, for the benefit of Scotland’s people and economy?
- What legal jurisdiction (laws) will apply to organisations operating in the Freeports? What relaxation of which laws is being granted to Freeport consortium partners?
- What employment, environmental, anti-slavery, etc laws are going to be applied and enforced on operations within the Freeports and by whom?
- What does “commitment to Fair Work Practices” actually mean in practice? How will Scotgov ensure these “commitments” are fulfilled and what penalties and powers are available to Scotgov/local councils to ensure they are?
- What protection is in place for employees to join and participate in Trade Unions, including protecting the right to strike? What presence is assured for Trade Union representatives on the Board of the Freeports/Operating Companies?
- What regulations and powers are in place to ensure proper transparency and public scrutiny and access to information regarding the Freeport and operations within them?
- How much special privileged access to planning and compulsory purchase decision-making processes will the Freeport Operating Companies/Boards have and how much will this be open to public scrutiny and challenge?
- What powers do you have to intervene and prevent illegal or other activities detrimental to the people and environment of Scotland?
- What guarantees can you give that fracking and other harmful activities will not be allowed to take place under the cover of the Freeports scheme?
- What routes and constraints are in place for communities and individuals to bring legal challenges to harmful or corrupt Freeport activities?
- What rights do Freeports give organisations to block or alter public rights of access (eg: Foreshore) and to interfere with lawful activity in the vicinity and within the Freeport zone?
- What powers do you have to change the tax and other regulations under which Freeports operate if a review indicates this would be desirable for the benefit of Scotland’s people and economy?
- What powers do you have to shut down Freeport schemes if they do not work as intended?
- What is happening to Common Good Funds and Assets/Property/Land in relation to the Freeport? How will these be protected from Compulsory Purchase or from being absorbed into the general council/government accounts?
- What proportion of the forecast profits are going directly into Scotland’s economy and how much to offshore investors and others outwith Scotland? For example, I note that Forth Ports is owned by a Cayman Islands registered company, owned in turn by a Canadian pension fund.
- What is the loss of tax and other revenues to the Scottish Government and local councils due to the exemptions and discounts to Non-Domestic Rates, Stamp Duty, Employers NI and other concessions? How will this shortfall be made up to avoid further negative impact on services?
- A lot of the focus of the Freeports is on offshore wind-power, what are you (Scotgov/council) doing to ensure that Scottish residents get a direct and noticeable benefit from our own resources? (eg: reduced electricity unit prices, profit-sharing etc.)
- In other Freeport areas, ongoing operations are already creating noticeable pollution and environmental damage (Teeside dredging). What powers are being retained by Scotgov and councils to intervene and force polluters to pay for the clean-up of any incidents?
- What are the contract terms and conditions for Freeport companies in relation to any agreements to compensate them for changes to our laws and regulations that may affect their operations or tax liabilities? What assurances can you give that Scotgov and UKgov are not committing us to potential legal challenge under Investor State Dispute or similar arrangements?
Given that Forth Green Freeport has only recently submitted its Outline Business Plan for approval, it’s unclear on what basis some of the bold claims for the benefits of the Freeports have been made, especially as other research organisations have not backed these up.
Where can I find out more? Some references:
Some references, which I will add to over time:
David Powell (@Europeanpowell on Twitter/X) : https://westcountryvoices.co.uk/freeports-what-does-it-mean-to-live-in-a-freeport-or-special-economic-zone-and-does-it-matter-event-tomorrow-live-streamed/
UK Government Policy 2023, briefing paper with some of the criticisms noted: https://commonslibrary.parliament.uk/research-briefings/cbp-8823/
https://www.writetothem.com makes writing to your Councillor, MSP or MP very easy.
Infrastructural 