Leith 'prime candidate' to become 'greenport' as Scottish Government announces its own version of freeports

Leith is being touted as a strong candidate to become Scotland’s first “greenport” after the Scottish Government announced it planned to adapt the UK’s controversial model of freeports to fit priorities north of the border.

Forth Ports have said they are looking at the potential opportunities

Trade minister Ivan McKee said firms wanting to benefit from the tax advantages of the scheme would have to meet obligations over fair work and environmental standards.

Freeports allow firms to benefit from tax reliefs, simplified customs procedures and wider government support.

But Mr McKee told MSPs freeports were associated with concerns about deregulation and the risks of criminality, tax evasion and a reductions in workers’ rights.

He said: “That is not a model nor an approach this Scottish Government will sign up to or allow here in Scotland.

“We will take the UK’s freeport model and apply Scotland’s values and priorities to it, so that it meets our ambition to deliver a net zero economy and uphold the highest standards of environmental protections and fair work practices. Scotland will turn freeports into sustainable, fair, greenports.”

Mr McKee said in return for tax benefits, potentially including non-domestic rates and Land and Building Transaction Tax reliefs, and other support, firms would to meet obligations such as paying staff the real living wage, signing up to the Scottish Business Pledge, which bars firms from using zero hours contracts and commits them to working to tackle the gender pay gap, as well as meeting waste and emissions standards.

"We won’t be engaging with any economic model or mechanism that allows for a ‘race to the bottom’. Instead, the Scottish green port model will be an exemplar, adopting best practice which helps deliver our net zero and fair work principles, alongside supporting regeneration and innovation ambitions.”

Lothian Tory MSP Miles Briggs said he was pleased the SNP had reversed its “initial knee jerk reaction” of opposing freeports in Scotland.

He said: “It is obvious that they have gone away and realised the merits and I welcome a Scottish version of freeports.

“The Port of Leith would be an ideal location for a Freeport, which would bring economic benefits and job opportunities to the South East of Scotland, which will be especially important in our recovery after Covid-19.

“Forth Ports have previously indicated that they are looking at the potential opportunities and benefits of freeport status at the Port of Leith.

“From previous discussions, I know they have been engaging with the relevant government departments and industry organisations, so will have put themselves in a good position to be granted freeport status.

“I consider the Port of Leith to be one of the prime candidates for freeport status in Scotland and strongly encourage them to put themselves forward, now SNP ministers have changed their position.”

The UK government was not able to declare freeports in Scotland without the co-operation of the Scottish Government because some aspects of the nodel are devolved.

Iain Stewart, UK Government Minister for Scotland, said: “We want to ensure all parts of the UK benefit from this UK Government initiative, and we welcome the Scottish Government’s decision to work with us on it. Freeports will play an important part in the UK’s economic recovery, increasing international trade, attracting new investment and creating jobs in communities right across the UK.”

A message from the Editor:

Thank you for reading this article. We're more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers.

If you haven't already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription.