The UK and Scottish governments have agreed there will be two “green freeports” north of the border.
The deal between the two governments comes as Boris Johnson is expected to visit Scotland today.
The freeports will be special economic zones offering tax breaks and lower tariffs for businesses and are being promoted by the UK Government as part of its “levelling up” agenda.
A bidding process for the freeports will open in spring this year and it is hoped the new sites will open in spring 2023.
Finance Secretary Kate Forbes told BBC Good Morning Scotland, she believes Scotland’s new green ports should be up and running this year.
“We want the prospectus to be published in March,” she said, “so we hope that that will mean that we can make announcements over the summer about winning bids, and that could mean that the green ports are operational by the end of the year.”
When asked if she could give away any hints on which businesses could be in line to win a spot in the special economic zones offering tax breaks and lower tariffs, Ms Forbes refused to comment.
“I couldn’t possibly say because some of the bids will be in my constituency, so I am not going to prejudice the outcome,” she said.
She added: “There will be a fair process and the perspectives will be clear on what we’re looking for.
“And obviously contenders will be required to set out those decarbonisation plans as well as adherence to fair work practices.”
Last year the Scottish Government said UK ministers risked undermining devolution if they set up the freeports in Scotland or Wales without the backing of devolved governments.
Ministers in Edinburgh later said they would pursue an alternative model called “green ports”, but under the new deal they will be known as “green freeports”.
The Prime Minister said: “Freeports will help to accelerate our plan to level up communities across the whole of the United Kingdom.
“They have the power to be truly transformational by creating jobs and investment opportunities to enable people to reach their potential, and I am delighted that people across Scotland will reap the benefits that will come from having two new green freeports.”
Scotland’s Finance Secretary, Kate Forbes, said: “I am pleased we have been able to reach an agreement on a joint approach that recognises the distinct needs of Scotland and enshrines the Scottish Government’s commitment to achieving net zero and embedding fair work practices through public investment."
The UK Government has committed funding of £52m to the project and bidders will have to pledge to reach net zero by 2045.
Ministers from both governments will have a say in the assessment and selection process for the bids.
The Scottish Government and the Treasury will use their tax powers, including rates relief, to support the freeports.
Under the UK Government’s model, freeports are centred around at least one air, rail or sea port, but can extend up to 45km beyond.
The Scottish Government said the term “green freeport” reflected its distinctive net-zero aspirations.
Levelling Up Secretary Michael Gove said: “This is a truly exciting moment for Scotland, and I am delighted we will be working together with the Scottish Government to set up two new green freeports.
“Green freeports help inject billions into the local economy, while levelling up by creating jobs for local people, and opportunities for people all over the UK to flourish.
“By collaborating using opportunities like green freeports we can work to level up the whole of the UK and bring benefits and opportunities to communities that need it most.”
Tory MSP Liam Kerr, the shadow cabinet secretary for net zero, energy and transport in Holyrood, described the announcement as “wonderful news” which “will help unlock the economic potential of our ports and kickstart our recovery from the pandemic”.
“Months of SNP dithering and delays had cast doubt over whether these projects would ever get the go-ahead,” he said.
“But I’m pleased that the SNP Government have finally got behind the scheme and worked with the UK Government to deliver this golden opportunity for Scotland.”
Ian Murray, Labour’s shadow Scottish secretary, said regions in England had a head start “because the two governments disagreed over the name”.
“It’s vital that the Scottish and UK governments put their differences aside, and we must ensure that workers’ rights are protected within the zones, creating high-quality jobs and not undercutting others,” he said.
The Prime Minister is expected to start the week with a visit to a manufacturing site in Scotland before heading to an oncology centre in north-west England.
The Scottish Greens have hit out at plans to create two “green freeports” north of the border and said they “will have nothing to do with this corporate giveaway”.
In the first major split between the SNP and the Scottish Green Party since they signed their powersharing deal last year, the Greens criticised plans to create the special economic zones which offer firms tax breaks and lower tariffs.
MSP Ross Greer, the Green’s finance spokesman, blasted the UK and Scottish Government proposals, said: “The Greens will have nothing to do with this corporate give away.
“They are yet another way of handing tax breaks and public money to rich corporations, despite no evidence that it will create real economic prosperity.”
Greer added: “Instead of working with the Tories, we’d urge SNP colleagues to collaborate with those of us who want to build an economy which serves, rather than exploits, people and planet.
“They certainly know where to find us and our door is always open.”
Iain Stewart hit back at the Scottish Greens, who have claimed there is no evidence that the new freeports will create real economic prosperity.
The Scotland Office minister said: “What I would suggest the Greens do is look around the world at some of the very successful free ports, such as the Daegu-Gyeongbuk in South Korea, which is a real focus of fourth-generation industrial strategy 4.0, high-end, hi-tech jobs – and that’s what we’re looking to create here in the UK.”
In response to Scottish Greens MSP Ross Greer’s comments that freeports have only produced a quarter of promised jobs in the past, Mr Stewart said: “We’ve got a new freeport module, we’re not replicating freeports that existed many years ago.”
Scotland Office Minister Iain Stewart has said the country’s new green ports, which are set to open at the end of this year, will generate billions of pounds worth of economic activity.
Speaking on BBC Scotland’s Good Morning Scotland, he said: “We’ve got green ports now across the UK, and if you look at the benefits of them all together, the forecast is it will create additional economic activity of about £25 billion and unlock about the same amount of private sector investment.
“This forms part of our long-term vision for the economy, particularly as we look to grow back after the restrictions of the pandemic.”
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