Business

Welsh and UK Governments launch bidding process for Wales’ first freeport

Published

2 years ago

September 5, 2022

THE WELSH and UK Governments are today inviting applications for Wales’ first freeport, which should be up and running by summer 2023.

Milford Haven is one of the post in Wales to have expressed interest to securing freeport status. A Welsh freeport will be a special zone with the benefits of simplified customs procedures, relief on customs duties, tax benefits, and development flexibility. Holyhead and Associated South Wales Ports are also interested.

Goods entering freeports do not have to pay tariffs, import VAT or excise duty until they leave the freeport and enter the domestic UK market, with simplified customs procedures and declarations.

In May 2022, the Welsh Government reached an agreement with the UK Government to establish a Freeports Programme in Wales.

Welsh Ministers agreed to support freeport policies in Wales following the UK Government’s agreement that it would meet the Welsh Government’s demands that both governments would act as a ‘partnership of equals’ to establish freeports in Wales.

In addition, UK Ministers also agreed to provide up to £26 million of non-repayable starter funding for any freeport established in Wales, which represents a parity with the deals offered to each of the English and Scottish freeports.

A Welsh freeport will be a special zone with the benefits of simplified customs procedures, relief on customs duties, tax benefits, and development flexibility.

The Welsh and UK Governments have worked together to design a freeport model which will deliver on three main objectives which must be met by applicants:

Promote regeneration and high-quality job creation.
Establish the Freeport as a national hub for global trade and investment across the economy.
Foster an innovative environment.
The Welsh Government has a clear Economic Mission to transform the Welsh economy to be more prosperous, equal and green than ever before.

Welsh Ministers have successfully argued that a Welsh freeport will need to operate in a manner that aligns with the Welsh Government’s policies on fair work and social partnership. This includes workers being fairly rewarded, heard and represented, and can progress in a secure, healthy, and inclusive working environment, where their rights are respected.

As a result, the Freeports Programme in Wales includes made-in-Wales policies, such as:

the inclusion of the Welsh Government’s Economic Contract.
Trade union involvement in freeport governance structures.
An emphasis on the real living wage and lifting the wage floor.
Setting expectations around employers’ treatment of employer national insurance contributions.

A Welsh freeport will need to operate within the Welsh legislative framework on sustainability and well-being – The Well-being of Future Generations (Wales) Act 2015 – and the Welsh Government’s net zero commitments.

As part of a fair and open competitive process to determine where the policy should be implemented in Wales, the Welsh Government and UK Government are today jointly publishing a prospectus which sets out the policy objectives both governments seek to achieve through the establishment of the Freeports Programme, and the parameters for how bids will be assessed.

The bidding process opens today (Thursday 1st September 2022). Applicants will have 12 weeks to complete and submit their bids. Bids must be submitted by 6pm on Thursday 24th November 2022.

The successful bid will be announced in early spring 2023, with the freeport being established by summer 2023.

Both governments will work together to co-design the process for site selection and will have an equal say in all implementation decisions, including the final decision on site selection.

Both governments remain open to the possibility of a multi-site freeport in Wales, and to the possibility of allowing more than one freeport in Wales, should they be presented with a sufficiently compelling business case.

Wales’ Economy Minister, Vaughan Gething, told this newspaper: “As an intrinsic part of our rich industrial history and the engine room of our economy, ports have huge potential to accelerate future industries which support net zero – from off-shore energy to advanced manufacturing.

“Thanks to the agreement we have reached with the UK government, we are launching a Freeports Programme in Wales which offers an opportunity to harness Wales’ abundant economic potential domestically and internationally by reimagining the role of ports, whilst promoting fair work and sustainability.

“The Welsh Government believes a better deal for workers is essential to a fairer and more equal Wales. So, I am looking for bids that break the industry ceiling on net zero standards, exemplify the high labour standards that promote fair work, and articulate a shared vision formed by long-lasting partnerships which genuinely involve all social partners.

“I look forward to considering innovative bids which deliver meaningful economic and social benefits for Wales.”

The UK Government’s Secretary of State for Levelling Up, Greg Clark, said: “A new Freeport will provide a huge boost to people in Wales, and I am delighted to open bidding as we continue our work with the Welsh Government to bring jobs and prosperity to the country.

“The UK Government’s Freeports programme is already delivering benefits to businesses and communities across England, with operations in Teesside and Liverpool already underway.

“I look forward to seeing similar benefits for Wales as we deliver a ground-breaking new Freeport and level up the whole of the United Kingdom.”

Speaking in 2020, the then Welsh Secretary Simon Hart MP said: “The development of freeports will create innovation hubs across the UK, generating new ideas in a whole host of UK sectors from customs to transport to decarbonisation.

“A freeport in Wales could create hundreds of jobs and facilitate significant regional economic growth. That is why I urge businesses to engage with our consultation and help us to unleash our potential in innovation, investment and growth. Working closely with the Welsh Government and businesses, we will ensure that the whole of the UK can feel the benefits as this government delivers its manifesto commitments.”

Chief Secretary to the Treasury as he was then, Rishi Sunak, said at the time: “Freeports will unleash the potential in our proud historic ports, boosting and regenerating communities across the UK as we level up. They will attract new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country.

“This is all part of our mission as an open, outward-looking country, championing global free trade with vibrant freeports that work for all of the UK.”

Business

Kurtz addresses Employment and Skills Convention

Published

3 hours ago

November 13, 2024

Richard Lewis

SENEDD Member Samuel Kurtz kicked off an Employment and Skills Convention at the Cardiff City Stadium recently, organised by the Learning and Skills Institute. The event sought to unite organisations, businesses, and training providers to discuss critical issues surrounding employment and skills development across Wales.

The convention featured a panel of distinguished speakers, including local Samuel Kurtz MS, who is the Shadow Minister for the Economy and Energy; Rhys Morris, Managing Director of The Busy Group; and Megan Hooper, Director for Employment and Skills at Serco. Together, they explored strategies for increasing employment and the positive impacts this can have on individuals, young people, and the broader community.

Following the event, Samuel Kurtz said: “It was a privilege to speak at this convention and to underscore the vital role of collaboration between government and the private sector in aligning skills and training with the evolving needs of our economy.

“By enhancing skills and creating jobs, we can foster a resilient workforce that will not only meet today’s demands but also drive essential green infrastructure projects, ensuring a prosperous future for young people in Wales.

“Welsh Government Ministers must acknowledge their role in addressing high levels of economic inactivity. Introducing employment targets is essential to support people in re-entering the workforce and contributing to Wales’ economic growth.”

Business

Homebase enters administration, putting 2,000 jobs at risk

Published

5 hours ago

November 13, 2024

Tom Sinclair

HOMEBASE, the beleaguered home improvement chain with stores in Haverfordwest and Bridgend, has collapsed into administration, placing 2,000 jobs in jeopardy. The company has struggled with rising costs and shifting consumer demand, which led to the closure of other Welsh stores in Newport, Brecon, Mold, and Cardiff in recent years.

Hilco, Homebase’s owner, had been attempting to sell the struggling retailer but failed to secure a complete buyer. The owner of The Range, CDS Superstores, has agreed to acquire up to 70 Homebase locations along with the brand itself, protecting approximately 1,600 jobs. However, this deal leaves 49 stores without a buyer, with thousands of additional jobs at risk in stores and at the head office. Teneo, the appointed administrators, declined to specify which locations face potential closure.

For now, the 49 stores will continue trading as Teneo seeks a buyer, with no immediate redundancies planned. In the new arrangement, CDS Superstores has acquired Homebase’s brand name and intellectual property, ensuring the Homebase brand will persist online, while physical stores will convert to The Range.

Damian McGloughlin, CEO of Homebase, described the past three years as “incredibly challenging” for the DIY sector. He cited the downturn in consumer spending following the pandemic, persistent inflation, global supply chain disruptions, and unusual weather patterns as factors that impacted Homebase’s performance. Despite restructuring and investment efforts, the business has not been able to turn its fortunes around.

Teneo joint administrator Gavin Maher acknowledged the uncertainty this announcement brings, urging any interested buyers for the remaining stores to make contact.

The current administration marks the end of a troubled chapter for Homebase, which Hilco bought for £1 in 2018 after Wesfarmers, its previous owner, admitted to several strategic missteps, including underestimating winter demand and cutting popular product lines. Homebase reported an £84.2 million loss last year, highlighting its continued financial struggle amid competition from budget-friendly rivals such as B&M and Home Bargains, which have thrived in the value-driven market.

Homebase was founded in 1979 by Sainsbury’s and the Belgian-owned department store chain GB-inno-BM. Over the years, it expanded rapidly, absorbing the Texas Homecare chain in the 1990s before changing hands several times in the 2000s.

Business

Bluestone National Park Resort pledges support to armed forces community

Published

19 hours ago

November 13, 2024

Richard Lewis

BLUESTONE National Park Resort has signed the Armed Forces Covenant to pledge its commitment to the UK Armed Forces as the country commemorates Armistice Day.

Bluestone, which employs several former armed forces personnel, marked Armistice Day on 11, with a commitment to reaching gold status on the covenant.

The Armed Forces Covenant is a promise by the nation to ensure that those who serve or have served in the armed forces and their families are treated fairly.

The Covenant aims to eliminate disadvantage and ensure that no member of the armed forces community faces discrimination in providing public and commercial services compared to any other citizen.

Glenn Hewer, Head of Sales at Bluestone, is a former Royal Marine who volunteers with the Milford Haven Sea Cadets and Royal Marines. He said: “More and more employees recognise the importance and significance that former armed personnel have and play in their communities and workplaces. The covenant is a commitment to them and a recognition of what they and their families have sacrificed for us.

“Additionally, ex-forces personnel make great employees in all walks of life. They are highly trained in a wide range of skills and bring many benefits to businesses. Providing an opportunity that allows them to further their careers outside the military is a great way of supporting them and their families.”

This commitment has also led Bluestone to join the Defence Employer Recognition Scheme (ERS) Bronze award. The ERS encourages employers to support defence and inspire others to do the same. It encompasses bronze, silver, and gold awards for organisations that pledge, demonstrate, or advocate support for defence and the armed forces community.

Marten Lewis, Director of Sustainability at Bluestone National Park Resort who is also a veteran of the Royal Engineers, said: “At Bluestone, we deeply value the contribution of the Armed Forces community to our country.

“We are proud to sign the Armed Forces Covenant and demonstrate our commitment to supporting them. We believe it’s important to recognise the sacrifices made by service personnel and their families and ensure they are treated with the respect and fairness they deserve. We are committed to attaining the Gold ERS as we build our relationship with the armed forces community.”

Craig Middle, Regional Employer Engagement Director at the Ministry of Defence, said: “We are delighted that Bluestone National Park Resort has signed the Armed Forces Covenant and is committed to supporting the Armed Forces community. This is a fantastic example of a business recognising the value that serving personnel, veterans and their families bring to the workplace and wider society.”

Marten added: “The Armed Forces Covenant is a living document, and Bluestone is committed to updating its pledge to reflect its ongoing support for the Armed Forces community.”