Pembrokeshire Senedd Members Paul Davies and Samuel Kurtz have welcomed the news that Celtic Freeport in Milford Haven and Port Talbot has been chosen as one of Wales’ first freeports.
In May 2022, the Welsh Government reached an agreement with the UK Government to establish a freeport programme in Wales, helping to create tens of thousands of new jobs in the green industries of the future, the Welsh and UK Governments announced today.
Following a bidding process, the Welsh and UK Governments have jointly agreed to create two freeports in Wales, which are expected to be operational later this year.
The winning bids are:
- The Celtic Freeport in Milford Haven and Port Talbot. The freeport will be based around the port of Port Talbot in Neath Port Talbot, and the port of Milford Haven in Pembrokeshire. The plans focus on low carbon technologies, such as floating offshore wind (FLOW), hydrogen, carbon capture, utilisation, and storage (CCUS) and biofuels to support the accelerated reduction of carbon emissions. The freeport aims to attract significant inward investment, including £3.5bn in the hydrogen industry as well as the creation of 16,000 jobs, generating £900m in Gross Value Added (GVA) by 2030, and £13bn by 2050.
- The Anglesey Freeport, Ynys Mon. The freeport will be based around the port of Holyhead, Anglesey Prosperity Zone, Rhosgoch and M-Sparc. The freeport will develop the Energy Island Programme (EIP) by focusing on marine energy technology testing on the seabed (tidal and wind). The freeport aims to create between 3,500 and 13,000 jobs by 2030, with an increased GVA of approximately £500m. It also anticipates significant inward investment, including the possibility of £1.4bn in the green energy sector.
Preseli Pembrokeshire MP Stephen Crabb said:
“No question, this is a milestone moment for Milford Haven and the whole Pembrokeshire economy.
“A lot of hard work has gone into this project, and I am delighted to have been part of the team to get it over the line. The economic and industrial vision behind the Celtic Freeport is exciting and achievable. I’m thrilled that the case we made to UK and Welsh Governments has been successful.
“The announcement today shows the world that Wales is serious about floating offshore wind and puts us on a firm footing to capture as much local economic benefit as possible. Securing Freeport status will send a powerful signal to developers, unlocking new investment in high quality jobs and training opportunities.”
Preseli Pembrokeshire Senedd Member Paul Davies has welcomed the news that a Celtic Freeport will be established along the south Wales coast. A Freeport is a special economic zone, centred on a sea port (or an airport or rail hub) that has different tax and customs rules which act as incentives for investment and trade.
The Celtic Freeport bid was lodged on behalf of a public-private consortium whose partners include Associated British Ports (ABP), Neath Port Talbot Council, Pembrokeshire County Council and the Port of Milford Haven. It was one of three bids in Wales that were submitted to the UK and Welsh Governments and was successful alongside the Anglesey Freeport bid.
Mr Davies, who is the Welsh Conservative spokesperson on ports policy and the Senedd Member for Preseli Pembrokeshire, which includes the Port of Milford Haven said, “I’m delighted to hear that the Celtic Freeport bid has been accepted. The Freeport will unlock huge opportunities for the local area by accelerating innovation and encouraging significant investment. It will support thousands of new jobs, generate billions of pounds of investment, and play a key role in accelerating the roll-out of floating offshore wind.”
He added, “It will also put Pembrokeshire on the map as an area as a global leader in the field of green energy and be transformational for communities in southwest Wales. I look forward to hearing more about the Freeport’s development as it takes place and I’m excited to see it reach its potential and make a real difference in our area.”
Celtic Freeport Senedd champion and local Senedd Member for Carmarthen West & South Pembrokeshire, Samuel Kurtz MS, said:
“The Celtic Freeport will be transformative for our communities along the Haven Waterway and the wider county, and I’m delighted that the UK and Welsh governments agree.
“Having backed the bid from day one, I’m pleased it gained cross-party support and shows what can be achieved through collaboration and partnership.
“This announcement is the beginning of a new chapter for West Wales. Billions of pounds worth of investment, thousands of new green jobs, and a commitment to a thriving future for our important ports, local industries, and our communities.”
The freeports will form special zones with the benefits of simplified customs procedures, relief on customs duties, tax benefits, and development flexibility. Welsh freeports will promote fair work opportunities and prioritise environmental sustainability and the climate emergency.
They are designed to promote regeneration and high-quality job creation, become a national hub for global trade and investment across the economy, and foster an innovative environment. The successful bids are focused on boosting the distinct strengths the sites boast, exploiting opportunities from offshore wind and marine energy to advanced manufacturing and innovation.
The two freeports aim to collectively create around 20,000 jobs by 2030 and attract up to £4.9bn in public and private investments.
Announcing the winning bids, First Minister of Wales, Mark Drakeford said:
“I am pleased to confirm the Celtic Freeport in Milford Haven and Port Talbot and Anglesey Freeport have been selected as Wales’ new freeports.
“The Welsh Government has a clear economic mission to transform the Welsh economy, creating a stronger, fairer and greener future. The designation of these sites as Wales’ first freeports will reinforce that mission, building on the significant investments and partnerships we have made in these regions over many years.
“The joint working between governments on the freeport programme should serve as a blueprint for future intergovernmental work on a whole range of issues.”
Prime Minister Rishi Sunak said:
“Wales is a thriving part of the UK, and today’s new Freeports will see businesses and opportunities for people in and around Anglesey, Port Talbot and Milford Haven go from strength to strength.
“Everyone deserves equality of opportunity and working closely with the Welsh Government has helped to deliver these fantastic new sites.
“Today’s Freeports show the hard work being done day in, day out to bring new, high-skilled jobs to communities across Wales and deliver on my promise to grow the economy."
Economy Minister, Vaughan Gething, said:
“I would like to congratulate the Celtic and Anglesey teams for their exceptional bids to be awarded freeport status. Due to the compelling set of proposals presented to us, I have agreed with the UK Government that a second freeport in Wales can be supported.
“Our ports are an intrinsic part of our rich industrial history. They will be an engine room of our future economy and these bids are designed to accelerate that journey. From off-shore energy to advanced manufacturing, they will help create tens of thousands of new jobs – which will support our highly ambitious plans to reach net zero by 2050.
“This will help harness our abundant economic potential domestically and internationally, whilst promoting fair work and sustainability here in Wales.
“I look forward to seeing our freeports delivering meaningful economic and social benefits for Wales.”
Levelling Up Secretary Michael Gove said:
"Wales has huge untapped potential, and that’s why we have worked in partnership with the Welsh Government to agree not one but two Freeports for Wales.
“This is the result of both governments working together to deliver for Wales, providing yet another example of Wales benefiting from its place in a strong United Kingdom.
“I am absolutely confident these new Freeports will be transformational for Wales, helping to grow the economy, level up and spread opportunity.”
The Welsh freeport programme has been designed to help deliver the Welsh Government’s policies on fair work. This includes workers being fairly rewarded, heard and represented, and can progress in a secure, healthy, and inclusive working environment, where their rights are respected.
The programme also includes a number of other made-in-Wales policies such as:
The Welsh Government’s Economic Contract
Trade union involvement in freeport governance structures
An emphasis on the real living wage and lifting the wage floor
Setting expectations about employers’ treatment of employer national insurance contributions
The UK Government will provide up to £26m of non-repayable starter funding for each of the freeports being established in Wales – this represents parity with the deals offered to each of the English and Scottish freeports.
Welsh Ministers agreed to support freeport policies in Wales following the UK Government’s agreement it would meet the Welsh Government’s demands that both governments would act as a ‘partnership of equals’ to establish freeports in Wales.
As part of a fair and open competitive process to determine where the policy should be implemented in Wales, the Welsh Government and UK Government jointly published a prospectus, which set out the policy objectives both governments seek to achieve through the establishment of the freeport programme.
The bidding process opened on September 1 2022 and closed on November 24, 2022. Three bids were received by the deadline.
The successful bids will be taken forward to the next stage of the process – the development of an outline business case.