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Bidding opens for two green freeports in Scotland

Rosyth port intends to submit a bid.
Rosyth port intends to submit a bid.

A bidding process has launched for ports hoping to be granted special tax status in Scotland, following months of tense negotiations.

Two Scottish green freeports will be named this summer after a £52 million deal was finally struck between Holyrood and Westminster.

A guide has been published for bidders who want to establish a green freeport in Scotland.

Dundee and Rosyth are among the ports hoping to be selected for the special status, which offers tax reliefs and other incentives.

Prime Minister Boris Johnson has previously hinted that Rosyth could be on track to be named as one of Scotland’s two green freeports. 

Joint prospectus

The joint prospectus, published in partnership by the Scottish and UK governments, includes payment of the real living wage.

Bidders must also demonstrate how they would contribute to Scotland’s climate ambitions and help reach net zero.

The launch of the bidding process follows lengthy negotiations between the two administrations.

Talks collapsed  over the best model to use for the ports, with the Scottish Government insisting on “red line requests”, including payment of the real living wage.

Economy Secretary Kate Forbes.

Economy Secretary Kate Forbes said the joint prospectus “recognises the distinct needs of Scotland’s economy by clearly setting out how any bids to establish green freeports in Scotland must help to deliver net zero ambitions and embed fair work practices”.

She added: “Earlier this month I published a new national strategy to help transform the economy.

“This included clear commitments that will help create good quality green jobs, deliver fairer working conditions, secure our just transition to net zero and grow international markets that bring new supply chain benefits to all of Scotland.

“Green freeports will be an important vehicle to help deliver these ambitions.”

However, the Greens have split with the SNP over the scheme and said they will have “nothing to do with freeports”.

Maggie Chapman, Green MSP for north-east Scotland, said: “A little greenwashing can’t change the grim reality of ‘freeports’.

“They are yet another way of handing tax breaks and public money to rich companies, and there is little evidence that they will create any economic prosperity.”

Jobs promise

Secretary of State for Levelling Up Michael Gove said freeports will “bring jobs and prosperity to the successful areas”.

He added: “We have worked closely with the Scottish Government to ensure that green freeports support their transition to the net zero economy and help to regenerate local areas.

Levelling Up Secretary Michael Gove.

“I am excited to see the innovative proposals come forward, and these green freeports built so they can start to deliver for the people of Scotland.”

Applications will be accepted until June 20 and two green freeports will be designated.

Winning bids will be selected jointly by Scottish and UK ministers, with winners announced over the summer.