Wales is to get two renewable energy focused freeports with the potential to create 20,000 new jobs over the next seven years.
In a bidding process overseen jointly by the 海角视频 and Welsh governments, which initially focused on approval for one freeport - two have been agreed for the Port of Holyhead in north Wales and a multisite bid (the Celtic Freeport) covering the ports of Milford Haven and Port Talbot in south west Wales.
The freeports, subject to approval of their final business plans, could be established later this year with each receiving £26m of seed funding from the 海角视频 Government.
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Both have the potential to secure combined private and public sector investment of £5bn by 2030. Longer-term they are confident of leveraging significantly more investment, as well as going well beyond the 2030 jobs targets.
The prospects for a freeport in Wales - over which some powers are devolved - were improved last year after the 海角视频 Government agreed to increase financial support, in line with backing earmarked for those in Scotland and England.
The freeports will benefits of simplified customs procedures, relief on customs duties, tax benefits, and development flexibility.
Eight freeports have already been approved for England and two in Scotland. The 海角视频 has had freeports previously when in the EU, but their economic impact were limited with concerns that they just displaced investment from elsewhere.
At the insistence of the Welsh Government, the Welsh freeports will also promote fair work opportunities and prioritise environmental sustainability and the climate emergency.
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First Minister Mark Drakeford said: "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 海角视频, 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."
The decision on creating two ports was jointly made by Economy Minister Vaughan Gething and 海角视频 Government Levelling Up Secretary Michael Gove.
While the Celtic Freeport, chaired by Roger Maggs, scored higher, such was the quality of the Holyhead bid that a successful representation was made to the Treasury to provide funding for two with a total of £52m.
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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 海角视频 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.”
As well as the two ports the Celtic Freeport is being backed by the local authorities of Neath Port Talbot and Pembrokeshire, alongside support the private and higher and further education sectors.
It aims to attract inward investment of £3.5bn from 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.
At its core, the Celtic Freeport will drive a local supply chain to support the creation of major floating offshore wind farm capacity the Celtic Sea under new licences from the Crown Estate.
The wind farm aims to generate 4GW by 2035 and up to 20GW by 2045.
To deliver that amount of power by 2045, the bid team estimates that a steel or concrete turbine base the size of a football pitch and a 300m high tower and turbine (around the size of the Shard in London) would need to be built, assembled and launched into the water every week of the year.
It will also look to develop new developments in clean technologies, such as the production at scale of green hydrogen. Tata Steel, which is looking to decarbonise its Port Talbot steelwork, could play a significant role in the freeport.
Business editor Sion Barry on the freeport decision for Wales
The decision that Wales is getting two freeports as opposed to the original aim of just one, is a timely economic boost.
In a spirit of governmental cooperation, and a putting aside of political differences that needs to be built on, the joint decision of the Westminster and Cardiff Bay administrations will see freeports established at the Port of Holyhead and in south-west Wales a multisite approach covering the ports of Milford Haven and Port Talbot.
Both, subject to signing off their respective business plans, will be able to draw down seed funding each of £26m with the aim of becoming operational later this year. Once set up they will provide a suite of business support and tax incentives for firms operating within them. Together the backers of both freeports promise to create ten of thousands of new jobs, particularly around green energy.
However, it was only last year that both governments were so far apart - and as is so often the case in these matters it came down to money - that there were concerns that Wales could miss out on a freeport altogether. With backing approved for eight freeports in England and two in Scotland, it would have dented the perception of Wales as a location open for business and investment. However, on a per capita basis having two in Wales is a far better outcome than the freeport investment in England and Scotland.
The assessment of the bids - with the third and discounted bid being from Newport Council with a multisite vision that included Cardiff Airport and a number of strategic development sites across the Capital Region - were scrutinised by a team of civil servants drawn from both governments. While the Celtic Freeport came out on top, such was the strength of the Holyhead bid that Economy Minister Vaughan Gething, backed by Welsh Secretary David TC Davies, got backing from minister with responsibility for freeports Michael Gove to make the case for two. That needed approval from the Treasury, which duly came.
There is of course some scepticism on the economic benefits of freeports in that they mainly displace investment from elsewhere. And if the Celtic Freeport bid had not been successful the vision of creating new supply chains to support huge investment in the Celtic Sea from floating windfarms, as well as the potential for green hydrogen production, could have proved too complying for the collaboration built up to wither on the vine. Freeport status will now only serve to turbo charge that positive intent.
The bid was also enhanced by ‘grown up’ politics on the ground with Tory MP for Preseli Pembrokeshire and former Welsh Secretary Stephen Crabb and Labour MP for Aberavon Stephen Kinnock in lock step on their support. For the Port of Holyhead, championed by Tory MP for Ynys Mon Virginia Crosbie with important cross-party support, it has a great opportunity to reset and attract new investment after the difficulties caused by Brexit and trade volumes.
Now the 海角视频 and Welsh governments - while issues remain highlighted by the huge underfunding in Wales on rail enhancement projects (a non devolved matter) - need to demonstrate the same spirit of collaboration to ensure Wales secures at least one new low tax investment zone.
The Anglesey freeport is a partnership between Isle of Anglesey County Council and Swedish company Stena Line, which owns the port of Holyhead .
As well as the existing port it will be based around the Anglesey Prosperity Zone, Rhosgoch and innovation hub M-Sparc. It 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.
It is predicting that freeport status will return the port to pre-Brexit levels of trade and cement the area as a hub for innovation in trade and clean energy.
It has also has the backing of 17 major businesses from a range of sectors including Rolls Royce, Bechtel and Last Energy along with Bangor University.