What is a freeport? Where will the green freeports in Scotland be and what is the criticism?

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Despite disagreement from the Scottish Greens on the implementation of two green freeports, the Scottish Government alongside the UK Government will go ahead with the plans.

The Scottish Government insists that the green freeports plans in Scotland will have decarbonisation and fair work at the heart of their approach.

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Yet, what are freeports and why are there disagreements between Scottish Greens and SNP around them?

A general view of the port and dockside area in Dundee, Scotland. The UK Chancellor, Rishi Sunak, announced sites of England’s Freeports yesterday with Scotland’s sites still to be decided. The Scottish government plans to adapt UK proposals for the establishment of Freeports making them Green Ports. In the running are Rosyth, Dundee, Hunterston, Orkney, Cromarty Firth and Aberdeen. (Photo by Jeff J Mitchell/Getty Images)

What is a freeport?

A free port is a free economic zone (FEZ) designated by the trade and commerce administrations of various countries.

The term is used to designate areas in which companies are taxed very lightly or not at all to encourage economic activity with taxation rules and duties determined by each country.

Following Brexit, the UK government proposed the creation of ten free ports with eight in England already confirmed.

It comes as the European Union was clamping down on 82 free zones after finding that their special status had aided the financing of terrorism, money laundering and organized crime.

What will the freeports in Scotland be like?

After months of disagreement over the set up around freeports in Scotland with the Uk Government, the Scottish Government has now accepted the plans for freeports on a basis of changes.

The Scottish government had resisted the idea of ​​freeports which are intended to revitalize deprived areas yet have been accused of encouraging tax avoidance and lower regulation.

Scottish ministers instead proposed the idea of ​​green ports, based around low-emission industries and fair work practices.

The deal with Scotland appears to follow this model, but with the name of “green freeports”.

The plan proposed two green freeports, which can be rail or air hubs as well as seaports and they can apply alongside other local businesses, as well as the council and other public bodies.

Both the Scottish and UK governments will assess the bids and will have an equal say on the choice.

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Green freeports Scotland: ‘There will be a fair process’, says Kate Forbes dismiss…

Where will the freeports be?

Locations have not yet been confirmed for Scotland but a bidding process for the two locations will run from this spring until summer.

However, in July last year, the Scottish government released a list of areas being considered for its own green port plans.

This list includes Dundee; a series of areas around the Firth of Forth; a similar collection of sites around Glasgow; Cairnryan, a port near Stranraer; Shetland; Orkny; Aberdeen and Peterhead; Rosyth and Montrose.

The Department for Leveling Up, Housing and Communities, which is leading the process, says it hopes the sites will be running by spring next year.

The Scottish Government aim is to publish a new prospective on the ports in Scotland in March with the hope that winning bids will be announced over the Summer.

Finance secretary Kate Forbes said the Scottish Government hopes the ports are operational at the end of this year.

What is the SNP position on freeports?

Following previous disagreements surrounding the potential fraudulent activity freeports can be home to, the SNP have only recently agreed to the freeports based on changes to the agreement with the UK government.

Outlining these changes, Kate Forbes, Scotland’s finance secretary told BBC’s Good Morning Scotland: “Those are firstly that we will have equal say on the decision so we are proceeding on the basis of a partnership of equals [with the UK Government].

“Secondly, we will get full, fair funding. The funding for the green freeports has essentially doubled from what it was a few months ago.

“Thirdly, there are decarbonisation plans at the very heart of the green freeport approach.

“And lastly, and most importantly for us, fair work will be embedded at the heart of that.

“There will be a fair process.”

Kate Forbes added: “If a bidder doesn’t adhere to fair work practices then they won’t win.”

The finance secretary also said that the Scottish Government we will not support an economic initiative like this unless it “shifts the dial on net zero.”

What have the Scottish Greens said about freeports?

In what is probably one of the biggest disagreements since their cooperation agreement with the SNP, the Scottish Greens have distanced themselves from the implementation of the green freeports.

The Scottish Greens disagree with the freeports deal and have stated that the freeports give tax breaks and public money to multi-national companies.

Ross Greer of the Scottish Greens told BBC’s Good Morning Scotland that the ports are a “corporate giveaway” and are a means of “greenwashing”.

Green freeports are excluded from the cooperation agreement with the Greens and the SNP.

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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