AS far as governments are concerned, freeports and special economic zones are the answer to all our economic woes, but are they and what is the rationale behind them?
Freeports have been described as “states within states”. They operate outwith normal government controls – in layman’s terms that means they are almost a law unto themselves. They call it governance from a distance.
The first thing to understand is that freeports are not free, and they are not just seaports. The Forth Freeport, for instance, is 45 kilometres wide and takes in Edinburgh Airport.
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In these freeports goods can arrive with simplified documentation and without paying import taxes. Businesses anywhere within their boundaries can use these goods to manufacture new goods, then add on the value before exporting them, paying very little tax, or if they can get away with it, none.
There are no checks and balances, they are self-regulated. The rationale is that self-regulation would bring about some kind of balance between competing parties. Have we not tried a similar thing before?
Freeports are designed to give companies a range of lower taxes, or in some cases zero taxes, as an incentive. This could include relief from stamp duty land tax and employer National Insurance contributions for extra employees for up to 10 years. But it doesn’t stop there. Governments invest vast amounts of taxpayers’ money in these companies.
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We know that Rishi Sunak set aside millions to invest in the two freeports and 18 special economic zones in Scotland. This is public money. Your money going into private business.
Reality is where theory falls flat on its face. Our government here in Scotland states that it intends to rejoin the EU. This plan may be hampered because the EU won’t accept any country that has deregulated freeports. We may not even make it into Efta.
How are these companies going to attract employees? How will local authorities survive if they end up with less revenue due to some taxes being reduced to as low as zero?
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Who will plug the gap to secure our services? How long before farmers strike back because their land has been taken under compulsory purchase orders for housing? Or someone loses their house because a factory requires the land or needs to widen a road?
There have been examples where self-regulated or deregulated freeports have seen criminality, from smuggling drugs to smuggling people.
Privatisation has not ended up well south of the Border. Teeside has been a disaster and private firms do not have a good track record when it comes to maintaining their investments. Cities are going bankrupt, their assets are being sold and private businessmen are replacing elected officials.
Before we know it, private companies will take over our councils. Democracy no more, but then maybe that’s the plan. If they can’t rule it they will own it.
Anne Glen
Salvo Freeport Campaign
LABOUR could have scrapped the two-child rape clause and doing so would have lifted “a lot of children out of poverty.” This is the verdict of none other than Rutherglen’s Labour MP Michael Shanks.
Whilst it’s nice he’s noticed, I imagine that will be cold comfort to the one in four families in his constituency who South Lanarkshire Council say live in poverty.
Still, not as cold as the senior citizens in his area who will be able to unite with the 10 million nationwide who will now lose their Winter Fuel Payments.
READ MORE: Michael Shanks: Ending two-child cap 'would lift kids out of poverty'
Even Andrew Bowie, whose Conservative Party brought in the two-child cap, criticised Shanks. “People want politicians to do what they say. Unfortunately already we’re seeing, within four or five weeks, Labour not delivering on things that they promised that they would do over the past five years.”
If you can make Andrew Bowie sound reasonable, you might want to give your head a wobble.
“Read my lips, no austerity under Labour,” said Anas Sarwar. Well, calling it fiscal responsibility won’t heat the pensioner’s houses, Anas, and painting the rosettes red won’t disguise the adherence to the failed neoliberal policies of the Westminster governments Scotland hasn’t voted for in the last 60 years.
READ MORE: BBC Scotland refuses to issue correction for Anas Sarwar claim
Scotland is doing OK – free tuition fees for students, free bus travel for under-23s and free prescriptions are all things you would not have in England. We have the highest inward investment in the UK, politicians make a positive case for the benefits of immigration and our A&E departments are performing better than anywhere else.
Is it good enough? No. Could it be better? Probably. But it won’t ever get the chance to be if we keep ourselves shackled to a parliament holding the purse strings and dolling out our money like an allowance to be docked at any time Daddy isn’t happy.
Maya Angelou said “when someone shows you who they are, believe them.” The equation is so simple even a Labour MP could understand it. Back independence and the SNP at Holyrood in 2026, or risk towing the same miserable millstone around with us for another generation.
Rebecca Machin
Ardvannie
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