Green Freeports Programme Board Meeting Three Summary Minutes: September 2023

Attendees and apologies

Present

Scottish Government (SG)

• Gregor Irwin, Director General (DG) Economy, Scottish Government (co-chair)
• Colin Cook, Senior Responsible Officer (SRO) for the Green Freeports Programme, Director of Economic Development (DED)
• representative deputising for Energy Transition and De-Carbonisation Policy
• Andy Hogg, Deputy Director, Investment and Financial Services,  deputising for Richard Rollison, Director for International Trade and Investment
• Alex Doig, Deputy Director, Land and Environmental Tax, deputising for Andrew Scott, Director of Tax and Revenues
• Lewis Hedge, Deputy Director, Fair Work Directorate
• representative deputising for Alison Irvine, Chief Executive Officer (CEO), Transport Scotland
• Green Freeports Programme Director, DED
• Head of Green Freeports Policy and Delivery, DED
• Governance and Communications Team Leader, Green Freeports, DED

UK Government (UKG)

• Brendan Threlfall, DG Union and Windsor Framework, Department for Levelling Up, Housing and Communities (DLUHC) (co-chair)
• Carmen Suarez, SRO for UK Freeports Programme, Director, Major Programmes, DLUHC
• representative deputising for Dave Livesey, Deputy Director, Home Office, representing Border Force for the Freeports 
• representative deputising for Customs, His Majesty’s Treasury (HMT) 
• Iseabail MacTaggart, Deputy Director, Department for Business and Trade (DBT)
• Freeports Programme Director, DLUHC
• Head of UK Freeport Delivery, Devolved Nations, Scotland, Wales, and Northern Ireland, DLUHC
• Delivery Lead – Freeports in Scotland, Wales, and Northern Ireland, DLUHC

Apologies

• David Barnes, Deputy Director, Trade Policy, deputising for Richard Rollison, Director of International Trade and Investment, SG
• Fran Pacitti, Deputy Director, Off-shore Wind, SG
• Sean Neil, Director for Local Government and Housing, SG
• Kris Krasnowski, Deputy Director for Policy and Delivery, Scotland Office, UKG
• Will Davis, HMT, UKG
• Oliver Haydon, Deputy Director, Customs Unit, Business and International Tax Group, HMT, UKG
• Chloe Evenson, Deputy Director, Strategy, Devolution and Cross-Cutting Business Tax (Business and International Tax Group) HMT, UKG

Items and actions

Welcome and introduction

The chair welcomed members to the third meeting of the Green Freeports Programme Board, noting that the membership had been reviewed and refreshed since the last formal meeting in August 2022 - including two new co-chairs. Over that time, the programme had progressed well, thanks to a great deal of work across both governments, involving several directorates and departments and the set-up phase was now ongoing.

Both co-chairs welcomed the close joint working to develop the programme over the past two years, which was a very good example of effective partnership between the two governments.

Minutes and terms of reference

The board approved the minutes of the 15 August 2022 meeting, with no changes. It was noted that summary minutes would be published in the future for transparency purposes on the SG website, ensuring that board members were sighted on drafts beforehand. The updated terms of reference, reflecting the transition to the second phase of the programme, were approved with no changes.

Progress update

The SG and DLUHC Programme Directors updated the board on progress. It was noted:

• the programme in Scotland was benefiting from DLUHC’s experience with Freeports in England
• the programme at UK level had been reviewed by the Infrastructure and Projects Authority, and relevant lessons would be considered in delivery of the programme in Scotland
• a first payment of capacity-building funding had been given to both Green Freeports (GFPs), and a second payment would be provided very soon
• a joint SG/UKG delivery group had been set up, bringing together relevant directorates and departments to ensure effective co-ordination and provide support to the joint team (and as necessary to the board)
• colleagues from SG, Scottish Enterprise (SE), Highland and Islands Enterprise (HIE), Skills Development International (SDI) and Department for Business and Trade (DBT) were working closely to ensure a consistent, combined and effective trade and investment support offer to the GFPs

It was noted that both GFPs are well matched to growing opportunities in Scotland in offshore wind and hydrogen.

In discussion, it was noted that preventing delays for outline business case approval, tax site approval, full business case approval and payment of seed capital funding was important. Noting the potential timing of a UK general election could risk long delays in programme delivery.

Green Freeport appraisal strategy 

The board was presented an appraisal strategy for the GFP’s set-up and delivery phase. There were three processes:

1. The business case appraisal (i.e. assessment) and approval process – outline business case (OBC) and then full business case (FBC).
2. Tax site assessment and approval (linked to the OBC phase).
3. Customs site assessment and approval (would take place alongside the FBC phase).

The strategy built on the approach taken for English Freeports but looked to simplify it where possible. It was understood that a joint UKG/SG appraisal would need to involve the right people from both governments.

The appraisal would follow standard ‘Green Book’ rules. It would also check how well the GFPs fit with Scottish and UK Government priorities, what economic benefits they could bring, and whether there is clear evidence to support the plans.

The appraisal would clearly set out any actions needed for the Green Freeports. This would include important issues to be addressed in the full business case, and any major issues that must be dealt with before the outline business case can be approved.  

The results would be checked by a joint senior panel and then sent to the programme board for approval. After that, they would be submitted to both the DLUHC and SG ministers for their approval. 

Future work

It was noted that, over the next few months, the programme board would focus on the business case, tax site and customs site processes. It would also deal with any actions needed across both governments to support a smooth and timely move into delivery. Any issues that could delay delivery would be raised with the board.