Green Ports Delivering Freeports for Scotland: Applicant Prospectus (DRAFT)

Introduction and context

1. The global challenges posed by the COVID-19 pandemic, the climate emergency and an ageing population are driving significant changes to many aspects of our lives and our economy. Scotland is well positioned to tackle many of these challenges. The long-term strength and sustainability of our economy will come through building on the talents of our people, the excellence and deep knowledge base of our academic institutions and the entrepreneurial spirit of our businesses to build world-leading capability in the key technologies of the future. Values are important to Scotland, and they have never been more important to global businesses. Our values centre around a net zero economy with the principles of fair work and sustainable, inclusive growth at its heart. Scotland is well placed to support global businesses to achieve their future ambitions where there is strong alignment with the technologically enabled, net zero, inclusive wellbeing economy we are seeking to create. The Scottish Government will partner with businesses that share these principles and work to improve their trading environment, delivering fair work, while making a just transition to net zero.

2. This document is guided by the UK Government's holistic Freeport vision to increase trade and investment to regenerate left behind communities across the UK; and the Scottish Government's Economic Strategy and the trade principles set out in Scotland's Vision for Trade; namely inclusive growth, wellbeing, sustainability, net zero, and good governance. It is also underpinned by the Fair Work Convention's Fair Work Framework, aiming to boost productivity by developing Scotland as a world-leading Fair Work Nation.

3. In August 2019, the UK Government announced its intention to establish Freeports to help regenerate communities across the UK by unlocking the economic potential of UK ports. Subsequently, a consultation was launched in February 2020. Since then both the Scottish and UK Governments have been in dialogue with stakeholders. The UK Government has been working with ports,[2] businesses, local authorities and wider stakeholders to design a brand-new, bespoke model, with a comprehensive package of measures designed to boost trade, employment and innovation. Simultaneously, the Scottish Government has been in dialogue with the private sector, local authorities, and wider stakeholders with the aim of designing a model which best suits the Scottish context. When the UK Government launched the Freeports Bidding Prospectus for England, a commitment was made to work with the Devolved Administrations to ensure all four nations of the UK could benefit from Freeports. When that process was launched, the UK Government was clear that separate processes would run in each nation to ensure that local conditions and priorities are considered as part of the allocation process and to account for differences between nations where policy levers are devolved. This allowed the Scottish and UK Governments to work together to develop proposals that reflect our joint values and to ensure that businesses, ports and communities from across Scotland can benefit from the green port opportunity.

4. The Scottish Government tailored the model used by the UK Government for Freeports in England in order to explicitly reflect specific Scottish Government policies on fair work and delivering a net zero economy; however, the main policy levers have specifically been designed to ensure there is a consistency of offer across the whole of the UK. The Scottish Government views the green port model as representing an inspirational exemplar in the drive to create high value jobs providing fair and rewarding work. In addition, Scotland's green ports will have the opportunity to lead the way on decarbonising Scotland's economy while realising inclusive growth. Many features of the way green ports in Scotland and Freeports in England operate will be exactly the same. However, green ports will be expected to exemplify specific Scottish Government commitments to fair work, a net zero economy, and being an innovative, vibrant trading nation.

5. Scottish green port applicants must aim to add value to Scotland's economic activity and the country's brand, facilitating implementation of the Scottish Government's three cornerstone international economic plans on exports, investment and capital. We invite businesses to participate in the application process, demonstrating how they can partner with us to accelerate achievement of these aims in a manner which has fair work and a commitment to net zero at its core.

6. This prospectus is a guide for applicants. It sets out our ambition for green ports, our core objectives, what is expected of applicants, and what an exemplar green port proposal should include. The prospectus provides detail on the limits to green port locations, including clear guidelines on site design and size, and how levers relating to reserved and devolved taxes, planning, regeneration, labour market standards and innovation will work. At each stage, it outlines what applicants are expected to set out in their proposals and how they can maximise the impact of each support measure. Finally, it provides information on how green ports should be governed and delivered, and details of the fair, open and transparent selection process that will determine successful designations.

7. We want green port stakeholders to form localised coalitions, including ports, local and international businesses, academic institutions, local authorities, and Regional Economic Partnerships, to develop ambitious, deliverable green port proposals; setting out why a green port is right for their area, how they will utilise the measures, and how they will deliver and run a successful green port. Both governments recognise that different regions will have different existing strengths, institutions, and local economic strategies. We want to select successful green port locations that account for and take full advantage of the diverse potential and comparative advantage of different regions of Scotland.

8. The process is not yet open for applications. Details of how and when to apply will be set out in the final applicant prospectus, once agreed with the UK Government.

9. We will be seeking proposals from applicants, or multi-applicant, partnerships; and are committed to running a fair, open, and transparent selection process to ensure green port locations are selected based on their ability to fulfil our policy objectives.

10. Green port applicants and/or applicant partnerships will be invited to submit their proposals to a dedicated government web portal by [TBC] 2021, following publication of the final Applicant Prospectus. Successful applicants will be granted seed funding, subject to business case approval, to support governance set-up costs and will work with the Scottish and UK Governments to develop detailed business cases for their spending plans associated with the award of any additional funding offered to green ports.

11. Potential applicants will be able to contact greenports@gov.scot to request clarification on the content of the Applicant Prospectus until [TBC] 2021. A summary of answers provided will then be published online no later than [TBC] 2021.