Mayor tries to calm freeport and gas fears
FEARS about gas fracking, loss of workers’ rights and the displacement of businesses by a new network of ‘freeport’ zones are unfounded, the Liverpool regional mayor has told West Lancashire Borough Council.
But some West Lancashire councillors say the recent P&O ferries controversy shows how quickly situations can change.
One said Merseyside councils today were tempted to make special trade deals because of historic deprivation and ‘managed decline’ of the Liverpool region by Westminster governments of the past. There was also a reference to the Margaret Thatcherera ‘minister for Merseyside’, Michael Heseltine.
In the past few days. Steve Rotheram, Metro Mayor of the Liverpool City Region, has written to West Lancashire Borough Council following a full council debate about the new Liverpool City Region Freeport.
In a letter to Labour Coun Ian Moran, West Lancashire’s leader, Mr Rotheram said he hoped the information provided will help to address the concerns of some West Lancashire Labour councillors about freeports.
As reported in detail last week, the government-endorsed Liverpool City Region Freeport includes a network of freight and industrial zones in West Lancashire, Sefton, Knowsley, St Helens, Halton and Wirral, plus a site called Port Salford in Greater Manchester, which has had support from Salford and Trafford councils.
The new Liverpool 2 shipping terminal at Seaforth, developed by Peel Ports, is a key location.
Skelmersdale’s Stanley Industrial Park has been earmarked too but West Lancashire councillors were told it has been removed because it is too small.
During the council debate, Labour Coun Cynthia Dereli raised a series of concerns about the new Liverpool freeport network of sites and called for a rethink. Her motion was reported in full previously.
In the debate, she said: “Freeports are now being welcomed by the corporate sector as vehicles for profit maximisation. But who or what will suffer as a consequence?
“Bear in mind one fundamental reality. If we are to restore our earth to health and halt climate change, we all need to consume less.
“In Europe, the EU could set up its own freeports. This was tried but later abandoned in 2012. They didn’t make them free enough to satisfy business.
“The next move in Europe was a trade deal with the United States, called the Transatlantic Trade and Investment partnership (TTIP). That was a deal under World Trade Organisation (WTO) rules which many people here will remember from 2013.
That was met with strong opposition from many groups and most councils in the UK because its proposals were seen as opening services to corporate takeover under WTO terms.
“Citizens in the European Union saw the dangers of WTO terms, protested loudly and it was scrapped.
“But the UK government and corporations clearly were impatient to get WTO terms for trade here. Basically, that means no rules that might, in any way, give rights to people. These are opportunities to make maximum profits at the expense of the people and planet.
“Around the world, freeports or equivalents have been spread by WTO deals. Now that the UK is out of the European Union, it is free to do its own freeports but on WTO terms.
Essentially this means ‘no rules’ that might inhibit profit.
“The Liverpool Freeport area extends beyond the coast to include West Lancashire. What does ‘no rules’ mean locally?
“In practice, it means no customs duties or inspections, no taxes, no planning rules applying.
“In other places, it means no workers rights.
“Trade unions are worried here. They look at how this situation has evolved elsewhere, what WTO rules have meant for workers across the globe. Here, the Unite trade union has published a report on freeports and expressed concerns.
“The emerging scenario regarding the Liverpool and West Lancashire area could see fracking at sites owned by Peel Holdings and plans for a hydrogen storage site in a port area earmarked in Liverpool. So fracking gas to create hydrogen, which comes with waste, could see lots of profit at various stages.
“This is not a green, renewable source of energy. Such plans would waste time and resources when everything should instead be focused on preventing climate change.
“Based on our promise as a council to take action on climate and on our common support, I hope, for workers’ rights, I ask you to support this resolution and to ask Liverpool councillors and mayors to think again.”
However, Labour Coun Ian Moran said: “I understand Cynthia’s concerns but some ideas are unfounded, I think.
“The Skelmersdale industrial estate was deemed to be too small so it has been taken out. I have been involved with various regional Labour conferences where motions about freeports have come forward.
“Freeports are about imports and exports. Jobs and rights are protected in law. Freeport status does not trump this protection.
“We can keep a careful eye on things but I have every faith in the Metro Mayor Steve Rotheram and Liverpool City Region Combined Authority.”
Conservative Coun David Whittington
said: “For once I agree with Merseyside Labour-run authorities. We all oppose fracking but we support the freeport.”
Labour Coun Nicola Price Roberts, a maritime law lecturer, discussed arguments for and against freeports.
She said some people might dismiss Coun Dereli’s comments as ‘leftwing’ or fiction.
However, the points about freeport zones operating outside standard rules were valid.
Significant change was possible and had been seen with P&O ferries, she said.
Where was the boost for NHS funding since Brexit, she asked.
Regarding P&O ferries, she said: “The Prime Minister, Boris Johnson, told parliament that P&O had broken the law and the government would take P&O to court.
“That has not happened. Are block redundancies fiction?”
Freeports had been championed by the Chancellor, Rishi Sunak, who had studied in the United States, she added.
But the Financial Times newspaper has suggested overall benefits of freeports were minimal.
Instead, Coun Pryce-Roberts suggested enterprise zones could be a better way to regenerate specific areas. She was unable to finish all her points because she ran out of speaking time.
Newly Independent Coun Paul O’Neill said he shared Coun Dereli’s worries.
And Labour Coun Neil Furey said: “Merseyside authorities have voted for freeport arrangements but I’m worried about what they’ve been sold.
“They have deprived and decline’.
“Even the old Conservative government minister, Michael Heseltine, said that. We can’t have that.
“But I’m worried now that Boris Johnson supports freeports and that it would benefit people like P&O, and its parent company, to make more money.”
Coun Dereli’s motion was ultimately defeated in a full council vote but she said she was keen to raise the historically been suffered ‘managed various concerns regardless.
Steve Rotheram, Mayor of the Liverpool City Region, has written to Coun Ian Moran, leader of West Lancashire Borough Council, and the letter has been circulated to councillors.
Mr Rotheram told the Local Democracy Reporting Service: “The establishment of the Liverpool City Region helps cement our status as a leader in global trade and industry, and will help us attract critical inward investment and create well-paid, highly skilled jobs.
“It is predicted that our freeport has the potential to add an additional £850m to the local economy and will help us to build on some of our existing world-class strengths.
“But, for us, it means much more than that.
“Throughout this journey, I’ve asked for guarantees to ensure that we’ll use our freeport as a force for good, to help build an economy that works for everyone in our region.
“I want to attract investors into our region who believe in and support our local ambitions - those who will help us to protect workers’ rights and uphold standards, and who want to work with us to regenerate and invest in the areas that need it most.
“Our freeport will offer lots of opportunities for the Liverpool City Region.
“It’s my vision to ensure that there is purpose behind that status that not only drives our economy, but fuels greater social mobility, innovation, and inclusion for our whole region, while helping drive-down emissions and reach our net zero carbon ambitions.”