Backing for freeport idea
SCHEME COULD BE SET UP IN NORTH EAST
I remain keen to receive proposals, and to see what we might be able to achieve together
Treasury Minister Robert Jenrick
THE Treasury has confirmed it could establish a “freeport” in the North East after Brexit, following claims the scheme would create 25,000 jobs.
Treasury Minister Robert Jenrick said: “We want to see substantive proposals brought forward for us to consider.”
A freeport is an area which is physically inside a country but is considered to be outside it for customs purposes. That means firms can import goods into a freeport without paying the usual tariffs.
As a result, materials can be imported into an area, turned into products in a factory and exported again, all without paying customs fees.
It means global businesses are encouraged to use the freeport as part of their supply chain, creating jobs including in manufacturing.
Think tank Policy
North has called for the creation of a freeport in the North East, and Tees Valley mayor Ben Houchen commissioned a report which concluded the proposal would create 25,000 jobs in the region – 17,500 linked to Teesport and a further 8,500 jobs if the Port of Tyne was included.
Supporters of the idea say introducing freeports has already been successful in countries such as the United Arab Emirates, where the Jebel Ali “free zone” in Dubai now hosts 7,000 global companies, employs 145,000 people and accounts for around 40% of the UAE’s total direct foreign investment.
Speaking in the House of Commons, Mr Jenrick said: “I held a roundtable at the Treasury earlier this year with the ports sector and the Minister with responsibility for ports.
“I listened to people’s ideas and enthusiasm about freeports and invited them to gather their thoughts and come back to us with substantive proposals, and I committed to giving those proposals the consideration they deserve. I remain keen to receive such proposals and to see what we might be able to achieve together.”
But he added: “We want to see further business-friendly customs arrangements put in place. Proposals for freeports would need to prove that they will genuinely attract inward investment into the United Kingdom and not simply displace growth that might have happened in other parts of the country.
“It must be an additive policy that makes the country more prosperous and does not simply move jobs and investment from other parts of the United Kingdom.” Simon Clarke, Conservative MP for Middlesbrough South and East Cleveland, and Anna Turley, Labour MP for Redcar, both spoke in favour of establishing freeports.
A study by consultancy and construction company Mace, published in June, found that freeports “deliver a major boost to regeneration, growth, productivity and job creation”.
It looked at creating several freeports – Grimsby & Immingham, Hull, Liverpool, Manchester Airport, Hull, Teesport and Port of Tyne – and concluded: “Even on conservative estimates, creating seven supercharged free ports across the North would promote a massive economic impact through increased trade, increased industrial activity and job creation.”