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

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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.”

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Steelworkers’ Union presses Tata to adopt expert plan ahead of talks

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THE Steelworkers’ union, Community, is pressing Tata Steel UK to scrap its bad deal for steel and commit to the alternative Multi-Union Plan ahead of crucial talks with the company this week.

The call follows a meeting between steel unions and Tata officials last week, and the publication of a new report from industry experts Syndex which slams Tata’s approach for pursuing ‘what’s cheap’ over ‘what’s best’. The report highlights that the company’s current proposal – which would cut around 2,800 jobs in South Wales by moving production at Port Talbot to a single 3mt Electric Arc Furnace – comes with significant risks, and would make Tata Steel UK an outlier in Europe.

In contrast, Syndex describes the Multi-Union Plan as “the only solution offering to maintain all the volume currently produced by Tata Steel UK” providing “a future for all the company’s assets and a roadmap for a just transition under the constraint of the financial hurdles and the reality of market dynamics for the UK steel industry.”

Community General Secretary Roy Rickhuss said: “During our meeting with Tata last week, members of the National Trade Union Steel Coordinating Committee provided our final conclusions on the company’s restructuring proposals: namely that the company’s plan is reckless; that it weakens national security by removing Britain’s primary steelmaking capacity; and that it would have devastating consequences for steel communities in South Wales and beyond.

“Our Multi-Union Plan is a credible alternative to Tata’s destructive scheme. It would safeguard the future of Port Talbot steelmaking, protect all the downstream plants, save thousands of jobs and can be delivered with no compulsory redundancies.

“It is not too late for Tata to do the right thing and adopt the Multi-Union Plan – and we hope that they will take this step. However, should the company choose to reject it, we will fight them every step of the way. To enable us to do this, we will need the strongest possible mandate from our ongoing industrial action ballot. For that reason, I am urging all our members to vote ‘YES’ and ‘YES’ and return their ballot papers at the earliest opportunity.”

Community’s Assistant General Secretary Alasdair McDiarmid said: “Syndex’s new report demonstrates clearly that our Multi-Union Plan is viable and sustainable, whilst Tata’s proposals are reckless and harmful. The company must change course, and the UK Government need to step up too. Our alternative plan would require additional investment from the government – taking total public support for the decarbonisation of Port Talbot to £950m overall – but this is still significantly less than the support packages other governments are providing to green their steel industries. It’s also in line with the £3bn Green Steel Fund the Labour Party has guaranteed to deliver in the next parliament.

“We are at a critical moment, and the choices that Tata and the government make now will reverberate for generations to come. The fundamental question here is whether we want to be a country that makes its own steel, or a country that imports it – as would be inevitable under Tata’s damaging proposal. With the spectre of a CBAM exemption for India hanging over free trade talks, we risk under current plans becoming little more than a simple processor for imported Indian Steel. We can’t allow our industry to be sacrificed on the altar of Rishi Sunak’s search for a legacy.

“With so much at stake, we are urging our members to vote ‘YES and ‘YES’ in our industrial action ballot to enable us to fight to maintain blast furnace steelmaking into the 2030s and to prevent compulsory redundancies.”

Leading South Wales steel MPs have also thrown their support behind Community and the GMB’s Multi-Union Plan.

Stephen Kinnock, MP for Aberavon, said: “As industry experts at Syndex have laid out this week, the Multi-Union Plan is a detailed, serious, robust and compelling proposal for the future of the Port Talbot steelworks and it has my full and unequivocal support. It’s the only realistic route to retaining our customer base, and it’s also the only credible pathway to a strong, competitive and profitable future for steel-making in Port Talbot and throughout the downstream plants across Wales and the UK. By contrast Tata’s shortsighted and counter-productive plan will mean exporting jobs from Port Talbot to India, a country where steel plants have a far higher carbon footprint.

“It’s vital that steel is at the heart of a forward-looking industrial strategy, which is why Labour has pledged £3billion to support the industry over the next decade.”

Jessica Morden, MP for Newport East which includes Llanwern Steelworks, said: “Tata and Rishi Sunak’s bad deal for steel would represent a huge blow to our steel industry and steel communities like our own in Newport. The deal would also leave the UK country dependent on imported steel from heavy-polluting countries at a time of global uncertainty.

“It doesn’t have to be this way, and the Multi-Union Plan for steel which Community and GMB have put forward represents a viable alternative to protect jobs and preserve steelmaking capacity here in South Wales. I urge Tata to think again and change course from their damaging proposals.”

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Business

Workplace volunteering could boost productivity and unlock billions

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EXPANDING workplace volunteering opportunities to cover all employees in the UK could generate billions in economic gains (£1.2 billion – £3.6 billion per year in wellbeing benefits to individuals, £1.6 billion – £2.8 billion per year in improved net productivity)
Ensuring all employees have access to volunteering opportunities could save between 1.4 million and 2.5 million working days of sickness absence.

Workplace volunteering has the potential to boost productivity, improve employees’ wellbeing, and generate billions for the UK economy, according to a new report by Pro Bono Economics (PBE).1

The report – ‘Triple dividend: How workplace volunteering can make us happier, healthier and more productive’ – which has been produced for business volunteering charity Pilotlight, found that net productivity gains of between £1.6 billion – £2.8 billion could be unlocked for the UK economy by expanding workplace volunteering opportunities.2

PBE’s analysis revealed that 17 – 23 million employees currently do not have access to workplace volunteering, and so are missing out on the health benefits of volunteering and the opportunities to learn new skills. By expanding workplace volunteering opportunities to cover all employees in the UK, the current untapped potential could generate £1.2 billion – £3.6 billion in wellbeing benefits per year to the individuals themselves.

It could also reduce levels of absenteeism, with research showing that participation in a workplace volunteering scheme provides an average reduction in absence of around 0.9 days per year for each member of staff volunteering.3 The number of days that employees have taken off work due to illness has risen sharply since the pandemic, with 186 million lost alone in 2022, an increase of more than a third over the 2019 level. The total cost of sickness absence to UK employers was around £24 billion – roughly equivalent to the GDP generated by Newcastle – or £6.4 billion higher than if absence rates stayed at the 2019 level.4

Turning to the productivity benefit overall, the PBE report points to studies which have suggested the productivity impact of workplace volunteering is sizeable, with high-skilled individuals who volunteer experiencing an estimated £2,300 boost to earnings. If the estimated productivity increase was applied to all the 1.4 – 2.5 million additional volunteers who participated from workplace volunteering to all employees, it could provide a gross productivity increase of between £2.2 billion and £3.9 billion.

Even after deducting the costs of lost time and administration fees for volunteering schemes, the productivity benefits could amount to net productivity gains of between £1.5 billion and £2.8 billion to the UK economy.5

There is a clear appetite from employees from the expansion of workplace volunteering. Analysis by NCVO suggests that between one quarter and a third of employees will take advantage of workplace volunteering when it’s available. This means that between 1.5 million and 2.8 million additional people might volunteer if workplace volunteering schemes were expanded across all employers.

While boost workplace volunteering would have some costs to the employer, the benefits more than outweigh those costs. For the employer, workplace volunteering schemes such as those run by Pilotlight which bring businesses and charities together could deliver between £1.50 and £3.60 of benefits for every £1 spent.

To make the most of the opportunity, research by the charity has suggested that employers should take steps to help employees around the options for volunteering. More than a third of employees surveyed (38%) said that an obstacle to volunteering is a lack of guidance from their employer. Of those currently involved in workplace volunteering, 79% believe that businesses themselves benefit from the practice.6

The benefits also have the potential to positively impact on communities, at a time when they are in need of extra support. Three in ten (30%) charities reporting increased rates of staff burnout as they struggle with the triple challenge of rising demand, difficulties recruiting volunteers and challenges with recruitment. This is particularly true of small charities, with almost six in ten (59%) reporting that recruiting volunteers is a major concern for them following a long-term decline in volunteer participation rates.8

Dr Jansev Jemal, Director of Research and Policy at Pro Bono Economics, said: “Increasing access to workplace volunteering opportunities has a triple dividend, as it could boost productivity and unlock billions in the UK economy, while providing much needed support for charities. In addition to wellbeing for employees, there’s a compelling, hard-nosed business case for considering workplace volunteering, including boosts to health and skills.

“As businesses take up this opportunity, there is a need to be realistic about the challenges for the charities themselves. Using volunteers effectively takes resources to manage, oversee and support those that are giving up their time. Businesses and other funders will need to consider how they can benefit by supporting the underlying costs of volunteering programmes, rather than assuming that an offer of time alone will suffice.”

Ed Mayo, Chief Executive of Pilotlight, said: “When it comes to business and charity, these results change everything – volunteering is not a cost, it is an investment. It is good for charity, good for the volunteer and good for the bottom line.

At the heart of this, in the partnerships we have designed with a range of leading businesses, is how employees develop their skills as they deploy them in a radically different setting. In future, it will not be the PR or corporate affairs department that leads on employee volunteering, but HR leaders who see it as an integral part of their toolkit for developing talent and skills.”

Jack Kidder, Responsible Business Manager at Henry Boot PLC, said: “At Henry Boot, we know that volunteering empowers our people to dedicate their time, skills, and passion for the benefit of our communities. This is not only impactful for charities, but also hugely beneficial for our business. Volunteering their time allows our people to connect with issues they care about in the communities in which we work and live. It creates a genuine sense of purpose and cohesion as our people come together to make a real difference for others – whether through inspiring learners, supporting communities, restoring habitats, or sharing knowledge. Volunteering enables our people to develop their skills and experience the positive wellbeing effects associated with helping others. This use of our time is helping shape our evolving culture as we celebrate being a long-term sustainable business that genuinely cares for the communities we work with, while we create exciting new places across the UK.”

Alexandra Berry, Head of Sustainability at the Strand Palace Hotel said: “Our team love to get involved in team-building hikes, red nose days, wellbeing walks, ‘Wear it Pink’ days, charity runs, bingo nights, themed quizzes, clothing donation drives, as well as offering our team a paid volunteering day each year. Feedback from our team has expressed these community events provide socialisation and relaxation outside of the hotel alongside contribution to a charitable cause, of which they are passionate about supporting.

“In 2023, the team raised over £3,000 through 8 local fundraising activities. What’s more, we have a regular commitment with The Connection at St Martins for our team members to volunteer to spend time with The Connection’s guests in their art room. With arts, crafts and chatting, the visits from the Strand Palace team help to build the guests’ confidence and social skills, providing a creative outlet away from the stress of being homeless.”

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RWE launches consultation on Pembroke’s new Green Hydrogen plant

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RWE has announced plans to establish a state-of-the-art green hydrogen facility next to the Pembroke Power Station.

The proposed project will see the construction of a 110 MWe electrolyser plant capable of producing approximately two tonnes of hydrogen per hour, a cleaner alternative energy source that promises to significantly reduce carbon emissions in the area.

Starting Monday, RWE will open a pre-application consultation, inviting local residents and stakeholders to share their insights and opinions on the plans. This consultation period will conclude on 20 May 2024. Interested parties are encouraged to review the details and submit their feedback online, ensuring community input is integrated into the development process.

The hydrogen produced at the Pembroke Green Hydrogen plant will serve as a vital component in reducing reliance on fossil fuels for local industries, substituting them with a cleaner option that produces only oxygen as a by-product. With the capacity to cut approximately 93,000 tonnes of CO2 emissions annually—equivalent to removing 18,600 cars from the road—the facility aligns with the UK Government’s target of achieving 6 GW of green hydrogen production by 2030.

Richard Little, Director of the Pembroke Net Zero Centre, emphasized the importance of local support for the initiative: “To secure the future of industry in South Wales, and safeguard local jobs, we need to provide clean energy alternatives, locally. Our proposals for green hydrogen generation will do just that, helping to reduce CO2 emissions in local industrial activities by approximately 93,000 tonnes every year.”

RWE’s vision for the Pembroke Net Zero Centre, where the plant will be located, includes a diverse array of sustainable technologies, such as battery energy storage systems and floating offshore wind. The development is expected to bolster Pembrokeshire’s economy by preserving existing jobs and creating new opportunities through the construction and operational phases of the project.

Community members are invited to contact the project team, provide feedback via the project website, or arrange private discussions to further understand the project’s scope and impacts. This consultation offers a crucial opportunity for residents to influence a project that stands to reshape the region’s industrial landscape while advancing towards a sustainable future.

RWE, the UK’s largest power producer and a leader in renewable energy generation, continues to expand its green hydrogen capabilities across the country, targeting 2GW of electrolyser capacity in its core markets by 2030.

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