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Trade minister Ivan McKee: I am perplexed at Green opposition to freeports

Mr McKee rejected claims that freeports are a ‘greenwash that will result in tax avoidance and loss of public revenue’.

Neil Pooran
Thursday 24 February 2022 17:09 GMT
Ivan McKee updated MSPs on the plans for freeports (Fraser Bremner)
Ivan McKee updated MSPs on the plans for freeports (Fraser Bremner) (PA Wire)

An SNP minister has said he is “perplexed” at the Scottish Greens’ opposition to plans for two freeports in Scotland.

The bid to create two special economic zones has led to the first major split between the SNP and the Scottish Greens since they signed a cooperation agreement last year.

Last week, the Scottish and UK Governments announced a bidding process for two “green freeports” – areas which would offer tax incentives and lower tariffs.

Scotland’s Trade Minister, Ivan McKee, updated MSPs on the plans on Thursday.

He said freeports had a “mixed” reputation abroad with concerns about criminality and tax evasion.

However, he said the “highest standards on governance and probity” would be maintained.

Scottish Green MSP, Maggie Chapman, said her party maintained its “very strong” opposition to freeports.

She said: “I must make clear that what we’ve heard today does not do enough to challenge the fundamental functions of freeports, that they facilitate and legitimise tax avoidance, poor labour conditions and environmental degradation.”

She asked the minister: “Aren’t these proposals just a UK Government Brexit project that has been greenwashed and will result in tax avoidance and the loss of public resources and commons wealth to the private sector?”

Mr McKee denied this was the case, saying the freeports model would require businesses to set out an accelerated move to net zero and would benefit the offshore renewable sector.

He said: “The green ports model also is very, very clear about no degradation of worker rights or environmental standards.

“And frankly, I’m a bit perplexed about why the Greens don’t support the green ports model, given it ticks all those boxes in terms of their requirements for such as a model.”

Immediately afterwards, Scottish Lib Dem MSP, Willie Rennie, spoke in the chamber saying: “Doesn’t the last exchange show the complete irrelevance of the Greens in Government?

“They can’t have any influence over Government policy.”

Scottish Conservative MSP, Stephen Kerr, accused the minister of an “extraordinary re-writing of history”, saying the Scottish Government’s plans for freeports only moved ahead when the Finance Secretary took charge of the proposals.

He said: “It’s an open secret the minister has to be persuaded of the enormous economic value of freeports from within his own Government.”

Mr McKee responded, saying it was Mr Kerr who was “re-writing history”.

He said the UK Government had been “disconnected on this internally” during negotiations with Scottish ministers last year.

The Trade Minister said: “Six times I wrote to the UK Government and the silence was deafening.”

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