Green port bid could unlock 拢25m investment
Talks with ferry operators about the scheme are said to have been positive
At a glance
Dumfries and Galloway Council is looking at creating a green port at Cairnryan, which would have special tax and customs rules
It is expected two such sites could be created in Scotland
If successful the bid could bring an investment of 拢25m
- Published
A council is being asked to support a bid to create a "green port" at Cairnryan, which could unlock a 拢25m investment.
The local authority in Dumfries and Galloway is examining the benefits of the move.
The UK government announced the locations of eight freeports in England earlier this year which would benefit from special tax, duty and customs rules.
The Scottish government wants to adapt the plans to focus on fair work practices and delivering a net zero economy.
A green port enjoys special tax rules
A report to Dumfries and Galloway Council is seeking approval to spend up to 拢30,000 on specialist help to work up the bid.
It said that initial talks with ferry operators P&O and Stena Line had seen a "favourable response" to taking the plans forward.
It is expected there could be two green port sites allocated in Scotland.
If successful, the SouthWest Euro Gateway project could secure multi-million pound support.
If successful the bid could attract 拢25m in funding
A freeport is a designated area where the normal tax and tariff rules of the country in which they are based do not apply.
They allow goods to be imported, manufactured and re-exported without being subject to checks, paperwork, or import taxes, known as tariffs.
Typically, companies operating in the zone pay lower taxes, such as reduced VAT and lower rates of employment tax.
However, critics argue they simply defer the point when import tariffs are paid, which then still need to be paid at some stage.
'Wider benefits'
The Scottish government wants to add commitments to fair work policies and net zero emissions聽to the scheme to create any green ports in the country.
Other potential sites which havew been suggested include Rosyth, Dundee, Hunterston, Orkney, Aberdeen and the Cromarty Firth.
Rob Davidson, who chairs Dumfries and Galloway council's economy and resources committee, said the green port bid was a "fantastic opportunity".
"I believe we have a strong bid, notably in terms of private sector support," he said.
"There are also many wider benefits for Dumfries and Galloway as a whole.
"Green ports aim to support innovation, boost exports and attract inward investment, all underpinned by a commitment to the vital principles of fair work and a just transition to a net zero economy."