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 the Committee’s consideration.

The Leader of the Council and Portfolio Member for Economic Development said that the vision of the Ynys Môn Freeport is to become a global hub for innovation, low carbon energy, and international trade.

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

·         Reference was made as to the funding grant of £1m revenue and £25m capital seed funding noted in the report.  Questions were raised as to whether this funding is to be shared between all the sites on Island or whether it is specifically for the previous Anglesey Aluminium site in Holyhead.  Further questions were raised whether the funding is adequate to address all the sites and whether additional funding will be available.  The Leader of the Council and Portfolio Member for Economic Development responded that the funding outlined in the report will be for all the identified sites on Anglesey.  He noted that once the Memorandum of Understanding (MOU) is signed the first phase of funding will be released and funding will be for the Peboc Site in Llangefni and the additional building at Msparc Gaerwen.  The Head of Regulation and Economic Development said that the Freeport status allows for securing tax-free site designation which means the sites are recognised in law as geographical areas where businesses can benefit from tax relief.  It will also give opportunity to earmark funding towards projects which will maintain and develop the economy. 

·         Reference was made that there are three aims as part of the Freeport status as is noted in the report and one of the aims is to increase employment opportunities for local people. Questions were raised as to whether young people within the Secondary Schools are being informed on the skills required for potential businesses locating on the Island as teaching subjects that are not part of the curriculum will take time to undertake.  The Leader responded that once the MOU is signed it will release the flow of funding. He further said that there is an element of caution before raising expectations for the types of employment opportunities as it is wholly depended on which businesses that intend in locating within the Freeport status before guidance can be given as to the employment opportunities that will be available.  He expressed that there has been frustration as to the time taken for the Freeport status to be confirmed as the process of applying for the status has started since September 2022.   The Chief Executive said that a Skills Plan has been prepared which has been presented with the Business Case which will need to be updated.  He noted that there will be a requirement for the experience of Coleg Menai to visit schools to inform young people of the potential employment opportunities available.  He said that as regards to the Skills Plan there are five sectors where the Business Case highlights employment within the energy environment, construction, advanced manufacturing, digital, finance and professional skills. He further said that there is private investment already undertaken with the site clearance at the 2Sisters site in Llangefni and the Anglesey Aluminium site in Holyhead.   The Chief Executive suggested that an invitation be given, in around six months, to representatives from Coleg Menai and Head Teachers following the development of the second Skills Plan.

·         Questions were raised as to whether there will be problems associated with Land and Lakes being co-owners of the Parc Cybi land.  The Chief Executive responded that Land and Lakes purchased two parcels of land from Rio Tinto PLC which included the Penrhos Nature Reserve which is now in private ownership.  The parcel of land at the Parc Cybi site is part of the Freeport designation.  Discussions are currently undertaken with the private sector as to the potential development of the Parc Cybi land.  Further questions were raised as regards to the Octel Site which has a total of 61 acres.  The Head of Regulation and Economic Development responded that the former Octel Site is owned by Carbon3.ai and initial discussions are taking place for the development of a Data Centre on the site.

·         Questions were raised as to whether the sites included in the Freeport can be privately sold.  The Chief Executive said that as the sites are in private ownership they can be put on the open market. The Freeport constraints does not dictate what the landowner is able to do with the land.  The designation adds value to the land and is more likely to attract inward investment. He further said that Anglesey is the only 12 inward investments areas in the UK due to work undertaken with the private sector.  The Chief Economic Development Officer said that the Authority has not directly approach businesses as the sites are in private ownership.  He noted that the Authority only owns a small parcel of land in Tregarnedd within the Bryn Cefni Sites.  The land will be put on the open market for businesses to move into once the Freeport status has been agreed. 

·         Clarification was sought as to whether there is limitation on the designated 3 Freeport tax free sites on the Island.  The Head of Regulation and Economic Development responded that any Freeport may have one custom site and up to 3 tax free sites.  He noted the custom site in Holyhead is a tax-free site which has a double designation.  600 hectares can be included within the tax-free sites. 

·         Clarification was sought as to the main risks associated with the Freeport.  The Leader responded that most of the risks identified within the report will be addressed when the MOU is signed.  The management of expectations as the amount of employment opportunities and the benefit for Anglesey is a risk.  The Chief Executive said that he considered that the main risk is that businesses will not locate on the Island and when significant investment is undertaken but it does not address the core principles of the Freeport status.  He further said that the risks with the war in the Middle East can also affect the potential investments of companies that have decided to invest within the Freeport on Anglesey.

It was RESOLVED:-

·         To recognise the role of the Council in the development of the Anglesey Freeport, including the submission of the Business Case;

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

·         To note the next steps in the establishment and confirmation of the Freeport.