Freeports: Wales

Virginia Crosbie Excerpts

Tuesday 21st February 2023 Westminster Hall

[Virginia Crosbie (Ynys Môn) (Con)]

I beg to move,

That this House has considered freeport proposals for Wales.

It is a great pleasure to serve under your chairmanship, Mr Vickers. The debate comes at a crucial moment not just for my constituency of Ynys Môn but for north Wales and the whole country. In the coming weeks, we expect a decision on the site of the first freeport in Wales. That will be a monumental moment for Wales, whichever bid is successful, and the potential for boosting the economy of north Wales via a freeport on the Isle of Anglesey is enormous.

It is the privilege of my life to represent the people of Ynys Môn. It is a proud island with a wonderful history, and our ports have long been critical to our success, providing communication and trade links throughout history, from the Roman fort in Holyhead, which was positioned to overlook the port, to Amlwch, whose port and copper trade once made it the second largest town in Wales.

Ynys Môn’s relationship with the sea is well documented. Since the 1800s, the port of Holyhead has been a key link in the chain between the UK, Ireland and Europe. It developed as part of the fastest route between London and Dublin, and is still the second busiest roll-on roll-off port in the UK, but time moves on, and Ynys Môn needs to progress to the next step in its journey. The obvious way forward is the freeport programme.

For several years, I have been leading the campaign to secure freeport status for the island, and over the past six months I have been working alongside a consortium of partners led by Stena Line and Isle of Anglesey County Council to deliver a bid that we can be proud of. Colleagues will also be aware of the work I have done with my north Wales Conservative colleagues—particularly my hon. Friend and neighbour the Member for Aberconwy (Robin Millar)—to raise the prospect of the freeport. Indeed, I have spoken of little else in this place for the past few years, and that is because of the bid’s potential to transform Anglesey. That transformation would truly be life changing for so many people and communities across north Wales. Behind the scenes, I have also been corralling others to join the cause, and I am pleased that more than 40 businesses, local councils and education institutions now support the bid, as well as more than 1,500 residents from across north Wales.

Since the UK Government announced in 2020 that they would use our post-Brexit freedoms to establish 10 freeports, I have been unequivocal about the importance of giving freeport status to Ynys Môn. That is because my constituency faces a range of challenges that are holding people back, the root cause of which boils down to a lack of long-term, sustainable investment. In the 21 years since the Senedd was established, and with a Labour Welsh Government in Cardiff, the island has systematically lost major employers, including Anglesey Aluminium, the Wylfa nuclear power station, Octel and Rehau, which led to huge job losses on the island. That continues to this day with the deeply disappointing anticipated loss of the 2 Sisters poultry plant, and with it around 730 jobs, which was announced in January.

We have seen next to nothing from the Welsh Government to address those issues, and at times it can feel as though there is a reluctance in Cardiff to recognise the urgency of the situation. The damage to the island caused by employers closing their operations does not stop at the tragedy of people losing their jobs; those people have to move away from the island, which in turn means taking their children out of school. The limited availability of jobs means that, for those young people who go through school on the island, there is limited choice, and that choice is often to move away to Cardiff or England. Meanwhile, the island becomes even more dependent on seasonal tourism. No wonder Ynys Môn has one of the lowest gross value added rates in the UK.

Most recently, the announcement that the Welsh Government will not pursue their plans for a third bridge to the island has made our maritime infrastructure even more important. There are two bridges to the island: the Menai suspension bridge is 200 years old and access to it is restricted for safety reasons, and the Britannia bridge is a single carriageway that regularly congests and closes in high winds. Those road infrastructure challenges are a real concern for businesses looking at the island for future operations. They significantly restrict the opportunities for Ynys Môn to achieve its economic potential.

In the light of the decision by the Welsh Government, we have no alternative but to maximise the opportunities offered by our sea routes and maritime infrastructure. I cannot bear to see such wasted potential, and we must do everything we can to ensure there are good-quality, well-paid jobs on Anglesey. That is how we stop our young people leaving, maintain the proud heritage of the Welsh language and preserve our local heritage. The catalyst for bringing those jobs is a freeport. It would give businesses the green light they need: the confirmation that the UK and Welsh Governments are serious about attracting investment to the island.

There is an incredibly strong case for the Governments to make Anglesey the first Welsh freeport, not least because the solution to making serious progress towards meeting the UK’s net zero objectives or addressing reduced post-Brexit trade flows is right there on Ynys Môn. Anglesey stands on the brink of becoming a centre of excellence for energy production, and freeport status would only boost its progress towards making that a reality. The waters around Ynys Môn have been identified as some of the best for tidal power projects. Like the Cromarty Firth freeport in Scotland, the island would be a prime location for building, assembling and deploying offshore wind turbines. BP has been given preferred bidder status for its Mona and Morgan offshore wind farms in the Irish sea. It is actively looking for the right location from which to build its base and support operations, and a freeport on Anglesey would be the obvious place.

Companies such as Menter Môn and Minesto are homing in on tidal energy and wave production. Menter Môn owns the lease on the largest consented tidal stream site in the world, which it envisages would generate just under £100 million of inward investment by 2027. Freeport status would enable 60% of that to be retained in the local economy, which would deliver the long-term, high-paid jobs that the people of Anglesey so desperately need.

Then, of course, there is new nuclear at Wylfa, which has been my other main topic over the past few years. Wylfa offers the best new nuclear power site in the UK—possibly the world. It has the potential to power 2 million homes, and it offers to be Wales’s biggest single contribution to tackling climate change. Beyond that, the site has the support of local people and would offer 9,000 construction jobs, 900 long-term, permanent, skilled, well-paid careers, and thousands of supply chain roles across north Wales. Companies such as Rolls-Royce SMR, Bechtel, Westinghouse and Last Energy stand ready to turbocharge the nuclear offering on the site.

Home-grown energy will be essential if we are truly to tackle climate change, achieve our 2050 net zero target and protect our energy sovereignty. Anglesey has the ability to upskill the workers of north Wales. Bangor University and Grŵp Llandrillo Menai are working with the bid team to make the most of the opportunities the freeport would bring. Part of that is M-SParc, the first science park in Wales, which focuses on supporting growing local businesses and investing in green energy research and development.

Freeport status would boost our proud trading history. Holyhead port is the second busiest roll-on roll-off port in the UK, which makes it a vital hub for international trade. The freeport would help to increase the activity at the port by revitalising the GB land bridge, whereby goods can move from the island of Ireland to mainland Europe without having to sail around the south coast of Great Britain. In the last few years, the GB land bridge has seen a 20% decline in trade, and a revival of the GB land bridge, ushered in by boosted trade through the freeport, could bring up to £6 billion in trade uplift to the UK economy by 2040. We are working with the likes of Fujitsu on digital trade corridors to ensure the utmost safety and transparency of goods flowing through the port. Analysis by the Centre for Economics and Business Research has shown that the Anglesey freeport could bring up to 13,000 jobs to north Wales over a 15-year period and increase UK GDP by £1 billion by 2030. This Government could provide no clearer signal of their support for the people of north Wales than granting freeport status to Anglesey.

Finally, let me focus on environmental protection and nature restoration.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady. In the short time she has been in the House, she has been a very assiduous Member for Ynys Môn and for Wales as a whole. I support her ambition for a freeport in her constituency, and I wish to see similar opportunities for us in Northern Ireland. I know that the debate is about Wales and that the Minister is answering for the Wales Office, and I support the hon. Lady’s request for a freeport, but I also request that something similar happens for us in Northern Ireland. Does the hon. Lady agree that, in the levelling-up process, the Government should cast their net wide and ensure that Northern Ireland is part of the freeport strategy?

--- Later in debate ---

[Virginia Crosbie]

I thank the hon. Gentleman for his intervention and his support for a freeport. He makes a good point about how important freeports are for levelling up not only Anglesey and Wales but the whole UK. This freeport is significant for what it will do for the GB land bridge and what that will mean for the whole UK.

Finally, I want to focus on environmental protection and nature restoration. The Welsh freeport prospectus includes the condition that any freeports need to meet environmental sustainability objectives. Ynys Môn has a wealth of experience in balancing environmental concerns and economic development. The extensive studies of wildlife in the waters around our island being undertaken by Morlais could be used to establish a detailed baseline for our understanding of the current marine environment so that we can ensure there is no impact on it.

A freeport on Anglesey can be an example of Conservative environmentalism in action: a low-tax, business-focused approach that attracts investment, spurs innovation and promotes growth. It would take full advantage of the benefits Brexit has given us—the Brexit that more than half of my constituents voted for; indeed, more people on Ynys Môn voted for Brexit than for Welsh devolution.

I want to draw my remarks to a close by mentioning the hopeful way in which I have seen political differences put aside to get us where we are today. The Welsh Government have matched the constructive spirit with which the UK Government have brought forward this exciting freeport opportunity for Wales. Members of this House and the Senedd from both sides of the political aisle have come together to show their support for the Anglesey freeport. I am incredibly grateful for that unity, because it shows that what is most important here are the communities of Anglesey and north Wales. In the light of the failure to invest in a third bridge, the future of our communities and children can be secured only through the prosperity that a freeport will bring. Diolch yn fawr.

--- Later in debate ---

[Liz Saville Roberts]

I stand corrected and welcome that, but I think there is a really important question here for the Minister, and I press him for a response. My understanding is that for Wales to have two freeports, two exceptional cases have to be made. Now that we appear to be approaching the time when announcements are going to be made, it is important to know what constitutes an exceptional case, because we have two communities—three if we include Port Talbot—that have great expectations. Can the Minister clarify whether the bids are being assessed by both the Welsh and UK Governments? Will the Welsh Government have a meaningful say on whether the two bids meet the requirements? I would appreciate a response on that. Given the initial revelation that a lower level of funding was being allocated for a freeport in Wales, if both freeport applications are successful, will they both receive £26 million in initial funding?

[Virginia Crosbie]

The right hon. Member is making an excellent speech. Does she agree that it is going to be £25 million, plus the £1 million—not only in Wales, but in Scotland? In addition, there has been a one-year delay while the deliberations have gone on. This means that we have lost out on potential investment and skills that could have been transformational not only to Wales, but to the wider economy.

[Liz Saville Roberts]

I agree; this is a critical part of levelling up. One of my personal interests in this is support for communities in the far west. Next, I will look at some of the concerns that have been expressed in relation to displacement and freeports per se. The fact that these applications are in the far west is possibly beneficial—as long as we know the details—to other areas around those freeports, so it is important.

There are concerns for north Wales, given that the Liverpool city region has been granted a freeport. I would be interested to know whether the UK Government have made an assessment of the likely impact on the north Wales economy of the possibility of displacement to the east, and the significance of that for decisions on the two freeport bids. Bearing in mind that we have had the terrible news that the 2 Sisters meat processing factory in Llangefni is due to close, with the loss of 700 jobs—I understand that many of those jobs are located in Gwynedd, so they are within my own home county—what assessment has been made of displacement, in favour of or as a risk to other counties that could be affected by development? There are concerns here, and it is due diligence for us to know what assessment has been made of them, particularly in relation to Liverpool but also locally in relation to Anglesey. What pros and cons have been put forward?

Much has been made of the freeport bids in Wales and how they could play a critical role in accelerating the renewables revolution, but we must remember that freeports are not the only aspect. The UK Government should make it clear that energy security is a priority. Can the Minister guarantee that they will work alongside the Welsh Government with areas whose bids have not been successful, to make sure that they receive strategic investment, too? The very fact that a bid has been made shows that a need has been recognised.

My next question is about governance and monitoring. We have heard that the parameters for bids are different in England and Wales, with the emphasis in Wales being on meeting the goals of the Well-being of Future Generations (Wales) Act 2015 on social partnership and on safeguards for the environment and workers’ rights. How will the UK Government work with the Welsh Government to realise that? Those are very worthy goals, and they make it easier for me and for my party to stand here and support the bids, but I want to know how they are going to move ahead.

I have a question on the national grid. In its report on the grid in Wales, the Welsh Affairs Committee warned that we in Wales would be unable to realise our full renewables potential without expanding grid capacity. The Government refused in their response to commit to undertaking an assessment of current grid capacity in Wales. In recognition of the fact that the lack of a fully functioning grid will undermine any freeports in Wales, will the Minister look again at delivering the Welsh Affairs Committee’s recommendations on the national grid? It is critical to future developments in both projects.

To close, I will emphasise the bid in Holyhead and Ynys Môn, which is the closest one to my constituency. Great Britain’s land bridge has lost 20% of its trade, and that is down to Brexit, which has had a direct effect on the economy of Ynys Môn. It is recognised that that link is important to Holyhead, Ynys Môn, north Wales and the whole United Kingdom. The degree of partnership between the hon. Member for Ynys Môn; the local authority, Cyngor Sir Ynys Môn; the port authority, Stena; and the north Wales Senedd Members—there was cross-party representation in a letter that they wrote yesterday to Vaughan Gething, the Minister for the Economy in Wales—shows that there is co-ordination and a real desire for co-working in these projects. Fundamentally, the Welsh economy, our communities and our young people deserve and need the two projects to move ahead to see the best benefit for Wales.

--- Later in debate ---

[Virginia Crosbie]

I thank the Backbench Business Committee for allowing me to hold this debate and all those who have spoken. I think we would all agree that we have had some excellent speeches, as well as the Minister’s full response.

There are three freeport bids in Wales: two in the south and one in the north. We have heard about two of them this morning—the Celtic freeport and the Anglesey freeport. There are eight freeports in England and two in Scotland, and there is to be at least one in Wales, so it is a really exciting time. A decision is expected early in the spring.

In conclusion, I sincerely hope that we will all be back here in Westminster Hall this time next year speaking in a debate with the title, “Welsh freeports: delivering levelling up, delivering net zero and delivering the green revolution”.

Question put and agreed to.

Resolved,

That this House has considered freeport proposals for Wales.