Trade Minister Ivan McKee has said he is “perplexed” at the Scottish Greens’ opposition to plans for two freeports in Scotland.
The bid to create two special economic zones has led to the first major split between the Scottish National Party and the Scottish Greens since they signed a cooperation agreement last year.
Last week, the Scottish and UK governments announced a bidding process for two “green freeports” – areas which would offer tax incentives and lower tariffs.
McKee updated MSPs on the plans yesterday, admitting that freeports had a “mixed” reputation abroad with concerns about criminality and tax evasion.
However, he said the “highest standards on governance and probity” would be maintained for Scotland's version.
Scottish Green MSP Maggie Chapman said her party maintained its “very strong” opposition to freeports.
“I must make clear that what we’ve heard today does not do enough to challenge the fundamental functions of freeports, that they facilitate and legitimise tax avoidance, poor labour conditions and environmental degradation.”
“Aren’t these proposals just a UK Government Brexit project that has been greenwashed and will result in tax avoidance and the loss of public resources and commons wealth to the private sector?”
McKee denied this was the case, saying the freeports model would require businesses to set out an accelerated move to net zero and would benefit the offshore renewable sector.
“The green ports model also is very, very clear about no degradation of worker rights or environmental standards,” he responded, adding: “Frankly, I’m a bit perplexed about why the Greens don’t support the green ports model, given it ticks all those boxes in terms of their requirements for such as a model.”
Scottish Liberal Democrat MSP Willie Rennie commented: “Doesn’t the last exchange show the complete irrelevance of the Greens in government?
“They can’t have any influence over government policy.”
Scottish Conservative MSP Stephen Kerr then accused the minister of an “extraordinary re-writing of history”, stating that the Scottish Government’s plans for freeports only moved ahead when the Finance Secretary took charge of the proposals.
“It’s an open secret the minister has to be persuaded of the enormous economic value of freeports from within his own Government,” he said.
McKee responded to suggest it was Kerr who was “re-writing history”, adding that the UK Government had been “disconnected on this internally” during negotiations with Scottish ministers last year.
The Trade Minister concluded: “Six times I wrote to the UK Government and the silence was deafening.”
At an event in November, McKee responded to questions about delays in Scotland's alternative freeport plans, arguing that this was at first to do with the fact Westminster's version was sprung on the Scottish Government the previous November, but when his team looked at the detail they disagreed with living wage and environmental standards.
"We almost had a deal last year, but things happened with the UK Government that meant the deal got derailed, then in September they didn’t agree with our real living wage request," he complained.
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