Freeport jobs promises ‘quietly revised down’
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Plaid Cymru MS Luke Fletcher
Promises of job creation at two freeports have been stealthily downgraded by thousands of jobs, with Wales falling far behind the curve, a Senedd Member warned. Plaid Cymru's Luke Fletcher criticised the pace of change at the Anglesey freeport as well as the Celtic freeport based around Port Talbot and Pembrokeshire. Mr Fletcher said people were promised transformative economic benefits, tens of thousands of jobs, billions in investment and a green revolution - "but years on, we are still waiting".
"That's a fact, that's a reality," the shadow economy secretary warned. "Now, if freeports are meant to be a cornerstone of our economic strategy, then we need to actually understand exactly what we're getting and, right now, there's a huge lack of clarity and credibility." Freeports, originally a Conservative UK Government policy which was endorsed by Labour ministers in Cardiff Bay, offer tax breaks in an effort to boost business.
'No substance'
Mr Fletcher said an initial promise of 20,000 jobs by 2030 was quietly revised down to 17,000 on the Welsh Government's website, a decrease of 15%. He added that the Celtic freeport was downgraded by 31% from a promise of 16,000 jobs to nearer 11,000 today.
He asked: "When you can downgrade a forecast by a third in just a few years, how seriously can we take those forecasts? How grounded were these forecasts in reality? And were these original numbers just designed to sell the bid more than actually reflect real outcomes?
"Now, I can answer that last question, actually. The answer was 'yes'. Literally, the next day after these were signed off, there was an article in the Financial Times exposing the figures as having no substance nor backing."
Mr Fletcher continued: "All we've seen from the Celtic freeport so far are strategies, frameworks and meetings: no clear delivery, no major employment, no visible change. "How many jobs, for example, have actually been created to date - not promised, not projected but actually delivered? How much investment has actually been secured so far...?
Again, based on this statement, the answer is absolutely nothing. None."
'Early days'
Economy, energy, and planning secretary Rebecca Evans
But Rebecca Evans, Wales' economy secretary, was confident Mr Fletcher would be proved wrong as she gave an update about freeports and investment zones on June 10. She told Senedd Members it remains early days with "an awful lot" of work going on behind the scenes and the freeports only open for business for a matter of months.
Ms Evans said: "These things do take time.... But I do want to just reassure colleagues that there's an awful lot of interest in the freeports and what they can offer, and the opportunities there. So, I'm confident they will absolutely deliver on our vision for them."
Samuel Kurtz, the Conservatives' shadow secretary, welcomed the Celtic and Anglesey freeports but raised concerns about sites in England such as Teesside being further along.
Samuel Kurtz, Conservative shadow minister for economy, energy, and the Welsh language
He also hailed "significant" progress at Wales' two investment zones - based on advanced manufacturing in Wrexham and Flintshire, and semiconductors in Newport and Cardiff.
'Beacon of hope'
Mr Kurtz asked: "What for the rest of Wales? Many communities in mid and west Wales, including Ceredigion and Powys, have long been overlooked in terms of strategic economic planning. None of them fall within investment zones or within the freeport zones."
Labour backbencher Alun Davies shared this concern, saying freeports and investment zones "always grow by dislocating businesses from elsewhere".
Labour MS Alun Davies
Pointing out that markets already provide investment in south-east and north-east Wales, the former minister warned: "What we're not doing is investing in the poorest parts of Wales." Ms Evans said investment zones and freeports "aren't the only game in town", reassuring her colleague that ministers are working hard to grow the economy in all parts of Wales. The Conservatives' Janet Finch-Saunders described the freeport in north Wales as a "beacon of hope", with promises of as many as 13,000 jobs.
'Uniquely Welsh'
But Plaid Cymru leader Rhun ap Iorwerth, who represents Ynys M?n, said: "I don't believe the figures of 13,000 jobs for Anglesey for a second.
We have to be honest. But there is an opportunity here and we have to make the most of that... that's what's important now."
Plaid Cymru leader Rhun ap Iorwerth
In her statement, Ms Evans said the Welsh Government has agreed full business cases for both freeports and the final agreement with UK ministers was close to completion. She told the Senedd this will see ?25m released for investment in vital infrastructure and skills at the freeports which would "embody" the green revolution.
Ms Evans said: "We want to realise the job opportunities that go with renewable energy. Wales has vast energy potential and we must retain as much of that value as possible." She added: "Freeports and investment zones offer us an opportunity to accelerate economic transformation... in a uniquely Welsh way.
That means putting people and the planet first."
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References
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