SNP ministers want to offer tax and custom relief to businesses who contribute to Scotland’s just energy transition to net zero – after being left “frustrated at the lack of cooperation from the UK Government” over free port plans.
The Scottish Government’s plans to set up green ports would offer an incentive to operators who adopt fair work practices and play a part in ensuring workers are not left behind in transforming the economy to net zero.
No specific details have been issued over net zero criteria other than being "fully committed to achieving net zero emissions".
Scotland has committed to becoming a net zero nation by 2045, while MSPs have pledged to cut 1990 levels of carbon emissions by 75% in just nine years’ time.
The SNP has previously raised concerns with the UK Government’s free ports plans which will see goods arriving into designated ports being exempt from tax charges or tariffs.
READ MORE: SNP urged to rethink 'ideological' opposition to free ports
In order to qualify for the green ports plans, businesses must not use inappropriate zero-hours contracts, they must pay the real living wage, demonstrate action to tackle the gender pay gap and invest in workforce development.
Following the consultation process through an informal expression of interest, any formal application or selection process will need the agreement of the UK Government.
Scottish Trade Minister Ivan McKee has written to UK Chief Secretary to the Treasury, Steve Barclay, setting out the Scottish Government’s concerns – claiming that a delay from Westminster is putting Scottish ports at a disadvantage.
In his letter, Mr McKee has also confirmed that while remaining committed to working with UK Government counterparts to set up green ports, the Scottish Government is now seeking notes of interest from the business community.
A meeting will be held by the Scottish Government on June 30 with industry stakeholders about the plans, with an invitation extended to the UK Government Scotland Office.
Mr McKee said: “This is a crucial time for business, trade and investment in Scotland and a key part of our recovery from the pandemic is pushing forward with an ambitious agenda of economic transformation.
“Green ports will help us create a sustainable economy that promotes good jobs and supports our important net zero commitments.
READ MORE: 'Scandal' over Gove's use of pandemic research contract to test attitudes to the Union
“The Scottish Government remains committed to working in partnership with the UK Government to ensure the benefits of green ports are equally felt by businesses across the UK. However, we have been frustrated at the lack of cooperation from the UK Government who appear to be unwilling to agree to our green port ambitions on fair work and net zero.”
He added: “We want to ensure businesses in Scotland receive the same level of incentives and assistance from the UK Government as those offered to freeports in England.
“I have therefore written to UK ministers outlining our position and invited them to join us in meeting with industry leaders on June 30 where we can hopefully find a path forward that delivers for business and ensures a level playing field.
“By working together and galvanising the expertise of businesses, trade unions and workforces, we will seize Scotland’s economic potential and deliver greater, greener and fairer prosperity.”
Scottish Conservative net zero and transport spokesperson, Liam Kerr, said:“It’s welcome the SNP are finally on board with creating freeports in Scotland.
"Ivan McKee previously claimed freeports were a ‘shiny squirrel’ and the SNP’s own conference backed a motion that slammed them."
He added: “Businesses across Scotland are desperate to reap the benefits from freeports. SNP ministers should be working constructively with the UK Government to ensure that happens rather than using any opportunity to have ramp up their grievance machine.
“As we look to accelerate our economic recovery and deliver on net zero promises, Ministers should stop playing politics. Engagement with key stakeholders will mean freeports can deliver a significant job boost in the communities that want them in Scotland.”
A UK Government spokesperson said: "We very much welcome the Scottish Government’s decision to drop their initial opposition to freeports and back an internationally-recognised initiative which will boost the Scottish economy.
"We have had extensive engagement with the Scottish Government and are committed to working closely with them. We hope to issue a joint prospectus for bids in the near future."
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