Agenda item

To submit a report by the Head of Regulation and Economic Development.

Submitted – a report by the Head of Regulation and Economic Development on the Anglesey Freeport. 

The Leader of the Council and Portfolio Member for Economic Development said that on the 23^rd March, 2023, the County Council was made aware it had been successful in its Freeport application.  This has resulted in significant work undertaken by the Officers of the Council and Stena Line and the commitment to submit the bid for the Freeport. 

The Chief Executive reported that the bid for the Freeport status has been successful subject to the completion of a detailed business case.  Meetings will be undertaken with both UK and Welsh Governments together with Stena Line to clarify the responsibilities, accountabilities and provide further guidance.  He further said that work will need to be undertaken over the next 6 months to enable to release the £25m capital funding.  The Chief Executive referred to the other development projects in Holyhead i.e. Breakwater restoration, Morlais, Hydrogen Hub and Stena Line have plans to clear the previous Anglesey Aluminium site.  He noted that there will be a need for strategic planning within the town of Holyhead, including other service area, such as education and health provision and to ensure that the developments do not have a negative effect on the residents.

In considering the report, the Committee discussed the following:-

·      Reference was made that the project plan estimates that 3,500 to 13,000 new job opportunities will be created over a period of 15 years.  Questions were raised as to what arrangements will be in place to ensure that they are high quality jobs and that Anglesey residents have the skills to take advantage of the opportunities?  The Committee was advised that there are still uncertainties as to the benefits from the Freeport status and it was stressed that the figure of up to 13,000 job opportunities is relevant to the whole of North Wales and not specifically to Anglesey.  It was stressed that work will need to be undertaken with Stena Line and the regional stakeholders, regional skills partnership and Llandrillo Menai to enable local people to be able to take advantage of the job opportunities that will result from the Freeport. 

·      Questions were raised as to the status of the third bridge across the Menai Straits and the improvements need to the highway network due to the Freeport status?  The Leader of the Council responded that there is a need to strengthen the resilience and network links across the Island and pressure is continuing on Welsh Government for the third bridge across the Menai Straits. 

·      Questions were raised as to how many companies have expressed an interest in relocating on the Island due to the Freeport status?  The Committee was advised that there are a number of expressions of interest by companies and organisations including GE-Hitachi, Rolls Royce SMR, Bechel, BP Lightsource and Menter Môn Morlais project when the originally bid submitted.  It was further said that once the governance structures are in place, discussions with the interested businesses will continue.  It was stressed that it is important to attract businesses that can generate long term and high value employment.  The Committee expressed that it was important that young people are given the opportunity for apprenticeships with the companies that have shown an interest to locate on the Island and young people in the North Wales secondary schools should be made aware of the opportunities that will be available.  It was also said that discussion need to be undertaken to reinstate the airline from Cardiff to Anglesey.  The Chief Executive responded that every opportunity to raise the airline from Cardiff to Anglesey will be raised with Welsh Government.  He further said that a skills and employment plan will need to be included within the Business Case of the Freeport.  He noted that the partnership working with Llandrillo Menai, Msparc and the secondary schools is important to realise the potential job opportunities the Freeport status can generate. The Committee further questioned as to the training capacity within Llandrillio Menai to address the skills that will be required to fill the post generated by the Freeport to local people.  The Chief Executive responded that there is a Skills Strategy for North Wales which drives the investment to create the training capacity within the colleges across North Wales.  He noted that during the progression of the project a Skills Plan will need to be put in place.  The young people within the secondary schools need to be made aware of the employment opportunities and that they are able to upskill to be able to compete for the posts that will be available and thereafter be able progress in their career path in the future.

·      Reference was made to the recent closure of the 2 Sisters Factory at Llangefni with the loss of over 700 jobs and the impact on the community and the Island.  Questions were raised as to the kind of job opportunities that will entail from the Freeport status and the effects it could have on local residents been able to afford to buy houses and the effect on the Welsh language?  The Committee was assured that the local needs of the Island is being considered and that residents and local businesses are able to take advantage of the opportunities resulting from the Freeport status.  Historically, job opportunities in Freeport’s across the UK has seen manufacturing, distribution and warehouse employment.  However, on Anglesey there is the energy element which will attract employment.  The Chief Executive said that the Welsh language is important and raised when relevant in every discussion that has taken place as regards to the Freeport.

·      Questions were raised as to how it will be ensured that the project aligns with and contributes to the Energy Island programme and the Council Plan 2023-2028?  The Committee was advised that there is a wide range of businesses, particularly those with supply chains related to the wider Energy Programme Vision which supported the Freeport bid together with the re-establishment of the land bridge between Dublin and Europe.  It was noted that the aspirations within the Council Plan is included within the Freeport bid.

·      Questions were raised as to whether there are concerns that businesses from other areas will relocate into Holyhead and will result in the effect on the economy of these area?  The Committee was advised that the displacement of companies has been a matter of concerns that has been discussed during the development of the bid. However, it is important to note that the Freeport status is wider than the Holyhead area.  It was noted that Officers are confident that the local businesses will be able to take advantage of the opportunities that will result from the Freeport status but other businesses needs to be attracted to align with the production skills to ensure growth for the Island.

·      Reference was made that some of the main strategic risks of the bid have been identified within the report.  Questions were raised as to how the Authority will manage and mitigate these risks and what will be the scrutiny process?  The Committee was advised that it is recognised that further clarity and assurance will be required by both Governments as the bid is progressing through the Business Case process.  Clarity on roles and responsibilities will need to be agreed with Stena Line.  There will be a need for robust governance, a long term role of the Council and resources required to deliver it in a compliant and effective manner. Additional external expertise is essential to the success of the bid.    It was further said that once the Freeport is established, regular feedback will be undertaken with Executive and the Scrutiny Committee to ensure that robust monitoring arrangements are in place. 

It was RESOLVED:-

·      That the Scrutiny Committee recognises the role of the Council in developing and submitting the successful Freeport bid;

·      To note the next steps in the development of a Freeport Business Case, prior to submission to both the UK and Welsh Governments.

ACTION : As noted above