Agenda item

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

The report of the Head of Regulation and Economic Development was presented for consideration by the Committee.

The Leader and Portfolio Member for Economic Development said that both UK and Welsh Governments invited bidders to submit proposals for Freeports in Wales in 2022.  Freeports are designated areas where a range of economic incentives are available to boost the local economy and encourage growth and investment. The Anglesey Freeport has been developed fully aligned to the vision, objectives and values of the Council Plan 2023-2028, with particular focus on collaboration, the Welsh language, championing the Island and promoting opportunities that will deliver jobs and growth to the economy.  The Freeport presents an opportunity to attract new private sector investments which is especially important given the context in that a number of major job losses have impacted the Island over the last 10 years.  He stated that there are other designated sites on the Island that can benefit from the Freeport status .

The following were points of discussion by the Committee :-

·      Questions were raised as to the potential employment and training opportunities that will arise from the Freeport and whether the Island’s infrastructure can support the influx of workers.  The Leader and Portfolio Member for Economic Development responded that the Authority has been realistic and not to raised expectations from the start as to the potential employment opportunities that will result from the Freeport; it is envisaged that around 3,000/4,000 employment opportunities will materialise from the Freeport project over the years.   He noted that the employment and training opportunities will be dependent on the companies that choose to locate their businesses in the designated areas on the Island.  Grwp Llandrillo Menai, Msparc and Bangor University, the Regional Skills Partnership and the Ambition Board are involved in discussions of the potential of the Freeport and will be ready to afford training opportunities when information is available as to what businesses will be locating into the designated area. 

·      Questions were raised as to whether the proposed £600k annual budget will be sufficient to meeting Anglesey Freeport’s operational needs.  The Leader and Portfolio Member for Economic Development responded that it is considered that the £600k annual budget will be sufficient as the Freeport is relatively small compared to other Freeports and funding will materialise from the companies that will establish within the designated areas. 

·      Reference was made that attracting an influx of workers into a rural Welsh speaking area could have an effect on the Welsh language.  The Leader and Portfolio Member for Economic Development said that securing employment opportunities will secure the Island’s future with affording young people work that will protect the Welsh language.  Future generations of families relocating to the Island will afford their children to be educated in Welsh in the local schools and will secure the Welsh language within the local communities. The Head of Regulation and Economic Development said that the one of the three strategic objectives within the Freeport project is the commitment to the Welsh language and culture and recognition has been given to the language by both Governments as well as the partner organisations and will be reflected within the legal agreements with the businesses that will locate in the designated areas. 

·      Questions were raised as to whether the three posts identified for the delivery company will be sufficient to carry out the extensive work required as to the delivery of the Freeport.  The Chef Executive responded that the three posts within the Company will take away pressure on the staff of the Economic Development Department and they will take over the compliance work and reporting to both Governments. 

·      Reference was made that the project estimates 3,500 new employment opportunities that could be created across North Wales.  Questions were raised whether arrangement will be in place to maximise local/regional employment opportunities.  The Leader and Portfolio Member for Economic Development reiterated that the figure of 3,500 employment opportunities is an estimated figure and is dependent on the companies that will locate on the Island as part of the Freeport status.  He said that every effort will be made that employment opportunities will be for the people of Anglesey. 

·      Questions were raised as to where there will be a boundary across the Island as regards to the Freeport.  Further comments were made that the workers’ rights need to be protected.   The Leader and Portfolio Member for Economic Development responded that confirmation for the relaxation of the rules in the North of the Island is awaited from the Governments.  He referred to the workers’ rights and noted that the Freeports in Wales are different to Freeports in England due to Welsh Government intervention.  The Head of Regulation and Economic Development said that the whole of the Island is included in the Freeport status in line with national guidance. 

·      Questions were raised as to whether the Police and other enforcement agencies are involved in discussions regarding the Freeport status as problems can arise due to illegal activities.  The Head of Regulation and Economic Development responded that the Authority is the accountable body and when clarity as to the nature of the businesses that will locate in the designated areas the required support and enforcement requirements will be put in place. 

·      Questions were raised whether the planning applications for development on the designated site will be through the Authority’s planning process.  The Head of Regulation and Economic Development responded that the planning process will be undertaken through the Authority’s planning processes.  Reference was made that Candidate Sites will be invited through the Planning Policy process in preparation for the new Local Development Plan for Anglesey.  Questions raised whether the developments with the designated sites will also need to be put forward as Candidate Sites.  The Head of Regulation and Economic Development responded that all the designated sites are designated as employment sites.  The Chief Executive said that work has progressed on three sites, namely the 2Sisters site in Llangefni, former Anglesey Aluminium site and outline planning for the second Msparc building.

·      Reference was made that there will be a requirement of skilled workers to take advantage of the employment opportunities that will materialize from the Freeport.  Questions were raised as to whether there are adequate training opportunities available for young people of the Island and also to make them aware of the opportunities that will come from the Freeport in the future.  The Leader and Portfolio Member for Economic Development said that Grwp Llandrillo Menai and Bangor University through Msparc and the Regional Skills Partnership are crucial in promoting the skills required when it is clear which employment opportunities that will be available. 

·      Questions were raised as to whether the Authority will have an influence as to the businesses that will be locating in the designated sites.  The Head of Regulation and Economic Development responded that the objectives and aims of the Freeport will be reflected in the agreement with the Freeport membership and the landowners.

·      Questions were raised as to what extent does the recent tariff increases from the USA impact on the Freeport’s objective to boost international trade.  The Chief Economic Development Manager responded that work is currently been undertaken to address the possible impact of the tariff increases and he said that he would report back to this Committee in due course.

It was RESOLVED to :-

·         Recognise the role of the Council in the development of the Anglesey Freeport, including the submission of the Outline and Full Business Cases;

·         Recognise the robust governance arrangements and transition from Shadow Board to Full Board;

·         Note the next steps in the confirmation of the Freeport, including the need to approve a Memorandum of Understanding with both UK and Welsh Governments prior to the Freeport becoming operational (MoU).