The following amendments have been selected: amendment 1 in the name of Siân Gwenllian, and amendment 2 in the name of Lesley Griffiths. If amendment 1 is agreed, amendment 2 will be deselected.

Item 6 is next, and it's the Welsh Conservatives debate on free ports. I call on Paul Davies to move the motion.

Motion NDM8200 Darren Millar

To propose that the Senedd:

1. Recognises the opportunities for freeports to energise the Welsh economy, create high quality jobs, promote regeneration and investment.

2. Notes that three bids from Wales have been submitted for consideration by the UK and Welsh Governments.

3. Calls on the Welsh Government to work with the UK Government to deliver two freeports in Wales, recognising the truly exceptional proposals submitted and the transformational benefits they can deliver for the Welsh economy.

Motion moved.

Diolch, Dirprwy Lywydd, and I move the motion tabled in the name of my colleague, Darren Millar. It gives me great pleasure to lead a debate on the benefits of free ports and to again highlight the excellent bids that have been submitted from all parts of Wales. We will be voting against the two amendments tabled, and I am disappointed that they have been tabled in the first place, as they seek to delete our original motion. I was hoping to get cross-party support on this matter.

Now, Members will know that applications have closed for bidders interested in establishing a free port in Wales, and a decision is due shortly on the winning site. Indeed, I hope that more than one bid is successful and that Wales will enjoy multiple free ports across the country. Now, the UK Government's free-port programme is a key component of its levelling-up agenda and it's part of the Government's efforts to help to build back better and drive economic growth, post pandemic. I give way to the Member for Ogmore. 

Thank you for giving way so early in your contribution. I just wanted to pick up on the issue of cross-party support. As you know, there are Members like myself, David Rees and others, who have spoken very much in favour of developing the potential of these. I think the challenge here is that you can't get away from the fact that there are some real difficulties with the principle of free ports and everything that comes with them, and the impact of that on other areas. There are disadvantages to free ports as well. So, whilst we support strongly what we can now get out of this and want to work with you on this, don't mistake that for cross-party support for the idea of free ports, per se. It is something that your party is firmly behind; I would say that there's a more strategic way that we could do the same thing. 

Well, the Member needs to read our motion, because the original motion recognises that free ports are an important aspect of developing our economy. And the Member surely recognises that the original motion is not controversial in any sense and merely seeks to demonstrate support for the free-port programme from this Senedd. It certainly doesn't warrant an attempt to delete any part of it. 

From the outset, the UK Government has made it clear that the free-port model has three distinct objectives. The first of those is for free ports to be established as national hubs for global trade and investment, and we know that, from the free-ports programme annual report last year, there is evidence of new investment in free-port areas. For example, free-port status in Humber has enabled the company Pensana to secure a multimillion-pound investment to establish Europe's first rare earth processing hub at Saltend, which is expected to represent around 5 per cent of the world market by 2025. That hub will produce critical components for electric vehicles and offshore equipment. Indeed, that hub has a crucial role in helping establish an independent magnet metal supply chain for the UK and beyond.

Now, Members are aware that free ports are economic areas where tax relief is available for businesses, and there are plenty of other economic incentives for businesses in these areas. Businesses in free-port areas can enjoy enhanced capital allowances, in addition to employer national insurance contributions rates relief and business rates relief. There are also a range of customs benefits for free-port areas that includes simplified declarations and duty deferment on imported goods. And so there are a range of economic benefits for businesses in free-port areas to help them become thriving trade and investment hubs.

Now, the second objective of the free-port programme is to create hotbeds for innovation by focusing on private and public sector investment in research and development. Free ports have developed ambitious plans to innovate, and many are playing an integral role in supporting the UK Government's target to reach net zero by 2050. Indeed, in the east midlands, the free port is using part of its £25 million of seed capital funding to establish a hydrogen skills academy. The academy, which is backed by several universities, is due to open later this year and will be the UK's first practical industry-based training centre, putting the east midlands at the forefront of the UK's net-zero ambition. Free ports, by their design, are environments that help bring innovators together to collaborate in new ways and develop and trial new ideas and technologies, and it's exactly that sort of collaboration and innovation that I'm excited to see at Wales's free ports in the future. 

I've long referred to my own constituency of Preseli Pembrokeshire as being the energy capital of Wales, and should the Celtic free-port bid be successful, I have no doubt that we'll see some very exciting innovation taking place along the south Wales coast. One such area is floating offshore wind, and we know from the consortium's vision that a successful bid for a Celtic free port will accelerate inward investment in new manufacturing facilities to support the roll-out of floating offshore wind in the Celtic sea. We recently debated just how important offshore renewable energy, and particularly floating offshore wind, can be in generating low-cost, clean energy, and so I hope Members will support this important campaign. And in north Wales, let us not forget the excellent campaign for a Welsh free port in Ynys Môn, again with a vision to develop a hub for sustainable energy, which would also support the UK on its net-zero journey.

The third objective of a free-port programme is to promote regeneration through the creation of high-skilled jobs. Free ports have the potential to create widespread opportunities in terms of job creation, and according to free-port estimates, over 41,000 direct jobs would be created in Teeside, over 28,000 jobs in the East Midlands, and over 10,000 jobs in the Liverpool City Region. Some of these job estimates were made in early 2022, and of course, each area is different, but I just wanted to give Members an idea of the significant level of job creation that could be seen in Wales if any of the bids are successful. Of course, the regeneration of an area is largely dependent on ensuring that local people have the skills to access the opportunities provided by the free port, and that's why free ports have skills and workforce strategies as part of their business cases; strategies that are updated regularly to ensure that they're effective and delivering as intended.

Dirprwy Lywydd, it's my hope that the upcoming announcement from UK Government and the Welsh Government confirms that multiple Welsh free ports are successful, so that the benefits of free ports can be felt throughout the country. Free ports have the ability to transform our communities, and I know that Members will want to set out their stalls for why bids in their areas should be successful. The discussions I've had with key stakeholders involved in the Celtic free-port bid continue to be positive and enthusiastic, and I know from my conversations with Members representing other parts of Wales that they, too, have been enthused by the work that has gone on in developing these bids.

Of course, key to the success of any free port is the level of support provided by the UK Government and the Welsh Government. The UK Government has already provided a support package to raise awareness of British free ports with investors, and to highlight the opportunities that there are for investment into British free ports. My understanding is that, once a free port is established, the Department for International Trade will support it with access to its investment and export support services, and that is very welcome. Of course, if a Welsh free-port bid is successful, then it would also have access to these investment and export support services; and more than that, I hope that they'd have access to Welsh Government after-care support too. Therefore, perhaps in responding to this debate, the Minister can tell us what plans the Welsh Government has to support Welsh free ports once they are up and running, and how it intends to work with the Department for International Trade in relation to after-care support.

In the longer term, free ports should be in a position to attract investment and grow international trade independently, but in the very short term, the Welsh Government has a role here, alongside the Department for International Trade, to promote free-port opportunities to global investors.

Now, I appreciate that the Minister is not going to give much away about which site or sites are successful, and so, today's debate really is for us to hear more about the three Welsh bids that are currently being considered and learn more about the role that the Welsh Government will be taking in promoting any Welsh free ports in the future. I've already mentioned the Anglesey bid and the Celtic free-port bid, but there is also a regional bid for south-east Wales too.

And so, on that note, I welcome Members' views on the development of a Welsh free port, as well as hearing more about the bids in their constituencies and regions. We can see the success of free ports in other parts of the UK, and it's important that Wales is not left behind. Free ports can help provide opportunities for generations to come, and so, on that note, I ask Members to support our motion today and show their support for the free-port programme and the opportunities that it presents for Wales. Diolch.

I have selected the two amendments to the motion. If amendment 1 is agreed, amendment 2 will be deselected. I call on Luke Fletcher to move amendment 1, tabled in the name of Siân Gwenllian.

Amendment 1—Siân Gwenllian

Delete all and replace with:

1. Recognises that ports, harbours, seaside resorts and other coastal communities are being left behind and require investment to secure their long term viability.

2. Further recognises that coastal communities face multiple long-term structural problems, including, but not limited to, poverty and environmental changes.

3. Notes the UK Government's freeports policy and the negotiated changes to UK Government’s original offer.

4. Further notes that three bids from Wales have been submitted for consideration by the UK and Welsh Governments and that local authorities and other partners have put together bids that they believe reflect their communities’ needs.

5. Believes that the issues facing our coastal communities need a broader response including improvement in infrastructure and measures to tackle poverty.

6. Calls on both the UK and Welsh Governments to significantly increase funding for infrastructure and poverty reduction in our coastal communities to address the problems they face.

Amendment 1 moved.

Diolch, Dirprwy Lywydd, and I'm afraid my natural cynical and sceptical way of viewing the world might bring down the jovial contribution by the economy spokesperson for the Conservative Party, but I don't think it will surprise Members to learn that I'm not a supporter of the free-port concept. There are a number of ways that we can achieve what my colleague set out, and I am taking a lot of what we're being told about the bids with handfuls of salt. When people are bidding for support, they often fall into the trap of telling people what they want to hear, and I think we all need to be aware of that, and we all need to scrutinise what we hear.

The whole free-port concept is yet another policy that we've tried before, and which has had little success. Let's be clear: the free-port concept is trickle-down economics; something that many Members in this Chamber lambasted Liz Truss for just a few months ago; something that every group, bar one, in the Senedd attributes as a failure of Thatcherism. 

Now, turning to some of the arguments in favour, one of the key arguments is the creation of jobs and, on the face it, great, but I do think the numbers touted are incredibly optimistic at best and I would ask how many of those would be new jobs and not jobs displaced from elsewhere. To be fair, the bids have recognised this risk and have said that they will focus on new job creation, but I've yet to receive anything other than a verbal reassurance that guarantees that displacement won't happen. The reality will be that it will happen, and it will be to the economic detriment of areas outside of any designated free-port zone. We only need to look at enterprise zones. Forty-one per cent of jobs in enterprise zones, established in the 1980s, were jobs relocated from elsewhere in the UK. And, by the way, I was told to think of free ports as enterprise zones rather than traditional free ports, which only emphasises the risks of displacement in my view.

Now, I note that the terms of any bid here in Wales will be different to England. There are requirements for bids to recognise trade unions and the principles of social partnership, collective bargaining and the rights of the worker. Again, it looks good on paper, but it's easy to say that all this will be respected in a bid. The proof will be once a bid is successful. Every time I've asked this question related to this element, be it to the Government or the bids themselves, all I get back is a verbal guarantee. When asked about mechanisms to deal with employers who breach these requirements and the mechanisms for monitoring them, the answers are far too vague to provide any comfort. The best I've had was that the benefits of being a part of that free-port area will be taken away from companies in breach. But let's think of the practicalities of this. The reason these companies are coming in the first place is so that they can benefit from the tax breaks. Remove these benefits and they'll no doubt threaten to leave—a story almost as old as time—taking all those jobs that we've been told they'll create with them. I'm not confident that any Government would be willing to lose that, especially if the company in question has a large workforce. So, in essence, the true power, yet again, will be with companies. When your support is based on job creation, of course you don't want to lose those jobs. That would be the reality and the Government, local authorities and free-port authority would be placed in an impossible situation.

I'll close, Llywydd, by referring to something that all of us here in this Senedd, cross-party in this Chamber, support, or at least say we support, and that is retaining wealth within Wales. Wealth won't be retained in Wales through free ports; quite the opposite: it will flow out via its usual means and there will be no means of taxing the profits of those businesses operating within them—profits that Welsh workers will have made for those companies. We talk about building the Welsh economy through supporting Welsh enterprise, supporting local businesses, co-operatives—that's where investment and focus should be. Our way may take a while, but it's the more sustainable way and the way that will bring the most benefit to Welsh workers.

I think the question we should all ask ourselves is whether or not we believe businesses should pay taxes and contribute to public services like everyone else, especially during a cost-of-living crisis. If your answer is 'yes', then, in my view, you have no business supporting free ports.

I call on the Minister for Economy to move formally amendment 2, tabled in the name of Lesley Griffiths.

Amendment 2—Lesley Griffiths

Delete point 3 and replace with:

Notes that the three bids which were submitted are now being assessed by both the Welsh and UK governments, against the criteria published in the Freeport Programme in Wales Prospectus and the outcome of this process will be jointly decided between Welsh and UK Government Ministers as part of an open and transparent process.

Amendment 2 moved.

Formally.

Thank you so much to my colleague, Darren Millar, for bringing this important debate forward. Having spoken on the subject on quite a few occasions, I sincerely don't hold the same view as you, Luke Fletcher. In fact, I think free ports present a fantastic opportunity for Wales, energising the economy, creating high-quality jobs, and will drive investment forward, something I would have thought that everyone in this Chamber would have wanted to see in Wales, going forward. 

Now, whatever your view is on Brexit, there's no denying that this new trade opportunity simply wouldn't have been an option if we were still part of the European Union. Now, free ports have a reputation of ultimately regenerating communities, providing economic growth and creating much-needed high-skilled jobs for many people—

Will the Member give way?

No. [Laughter.] And since being a Member, I've had an immeasurable number of meetings and attended incalculable events with individuals, groups and organisations across Wales on their plight to get their bid approved and I must say that they've all been very impressive.

I was delighted to hear that three exceptional Welsh free-port bids have been submitted and it's fantastic news for the country, with each presenting major benefits. It might sound a bit biased, but, as a regional Member for South Wales East, I'm sure no-one here will be surprised to know that I do have a soft spot for Newport's bid. Intricate details have been kept under wraps, but, from what I know, Newport's bid encompasses a string of underdeveloped employment sites across the region, including the Welsh Government-owned Cardiff Airport. Well, let's be honest, it needs all the help it can get. The bid, being led by Newport City Council, would, if successful, help entice more national and international business to the area, which will, in turn, mean thousands more jobs and training opportunities, not just for Newport residents, but people all across south-east Wales.

I know my colleagues Samuel Kurtz and Paul Davies have the same level of enthusiasm and dedication for the Celtic free-port bid in their patch, which would create some 16,000 high-quality jobs—green jobs, in fact—and see some £5.5 billion-worth of new investment. Having met with the group behind the Celtic free-port bid, and having seen their presentation, it was clear to me within minutes that they have some truly wonderful plans in place that will greatly benefit local residents and enterprise.

I've also had countless conversations and worked with my colleague Virginia Crosbie, MP for Ynys Môn, who has been singing from the rooftops for the Anglesey free-port bid from day one—now, more than anyone else I've seen, particularly on this subject. I would say that the Anglesey free-port bid would attract £1 billion in investment and create up to 13,000 new highly paid jobs on the island, so, believe me when I say I know only too well just how passionate all of my colleagues are when it comes to creating free ports in their areas.

In this post-Brexit era, free ports can play a pivotal role for the UK, as our Prime Minister Rishi Sunak outlined recently. He actually said, and I quote:

'Foreign Trade Zones are flourishing all around the world—except in the EU. Post-Brexit they could play an important role in signalling Britain’s openness to the world, as well as reconnecting the nation with its proud maritime history.'

The Prime Minister has gone on to say also what my colleague Paul Davies had said in his opening, that free ports would come with numerous benefits such as 'simpler planning',

'cheaper customs—with favourable tariffs, VAT or duties', and lower taxes as well, and, I quote,

'tax breaks to encourage construction, private investment and job creation', something that we all want in Wales. There's no denying that all three bids are impressive and would deliver truly remarkable benefits to Wales.

The UK Government has committed £26 million to create a free port in Wales, and I am pleased to see that Ministers here in Wales and in London are not just talking the talk, but they're also walking the walk, by working together to actually make this a reality. I am particularly pleased to hear that a second free port could be on the cards if a truly exceptional proposal is put forward, something emphasised to me when I met with the then levelling-up Secretary Michael Gove, and it's a message I've shared with all bidders that I've met to date.

Personally, I'll continue to beat the drum for two free ports to be created in Wales, because they will no doubt be a real shot in the arm for the Welsh economy and bring countless benefits to us all. I sincerely hope the Welsh Government will continue to work closely with the UK Government and collaborate effectively to deliver these exciting proposals, which will undoubtedly bring outstanding economic benefits to Wales. Deputy Presiding Officer, I am genuinely keeping both of my fingers crossed for two free ports here in Wales, and, just like all of my colleagues from all corners of Wales, look forward to hearing the free-port announcement being made soon.

Yes, well, there we are. That was that version; this is going to be this version. The point here is quite clearly that I am extremely sceptical of free ports. I don't uphold this idea of free trade in the way that you're describing, and I would ask people to think about who is wholesale behind this. I'm sure that some of us can remember Liz Truss, I'm sure some can remember Kwasi Kwarteng, and I'm sure they can remember the crash to the economy, because those are the types of people who are behind this libertarian right-wing think tank and this disastrous mini budget that we're still now footing the bill for. I'm sure you can remember the sterling crisis, the turmoil on the bond market, the pension funds, the central bank intervention, the mortgage rate hikes. Those are the sorts of people that support this type of bid.

So, it doesn't matter how you package it up, and I'm sure that we've heard some and we'll hear more, free ports represent low tax, low regulation, limited Government ideology and a race to the bottom stuff. So, it's wrong, the wrong answer, of course—and we did hear Brexit, amazingly—it's the wrong answer to the Brexit problem that was created by this right-wing Government. 

Will you take an intervention?

The latest estimate suggests that the UK economy is already around 4 per cent smaller as a result of leaving the EU. It's been explained to me how the UK model for free ports offer robust protections—we've heard those before—against the criminality and the corruption that they have facilitated elsewhere in the world.

Joyce, will you take an intervention?

In a minute. But at a time when the national debt is £2.5 trillion—digest that one—thanks to years of Tory mismanagement, free ports still deprive central Government of vital income via a wide range of customs privileges and tax breaks.

Thanks, Joyce, for giving way, and it's an interesting speech. Can you just clarify that you are saying that you don't want to invest or create jobs in your own region of Mid and West Wales?

I knew you'd sink to the lowest denominator. So, the answer, clearly, to that question is 'no'. You're trying to mix things up here, quite deliberately, and that's why you've tabled this debate. Because you, ideologically, think it's a good idea to give free tax breaks to the very wealthy to take money out of our country and hand it to wherever.

There's another debate that's going on, and that is: do we want the investment in our areas that actually helps people to have really good jobs with very good wages that are protected by that income generation, which could also help, actually—if you weren't allowing all that leeching of taxpayers' money—to invest in all the things that you ask here, week by week? Where's the money? Well, there it is.

So, let's be clear about this. We need to also remember that people are actually striking for more pay at the moment. You've asked us to settle—quite rightly, and we are going in that direction—good terms and conditions for workers. So, you know, let's keep the taxpayers here. These aren't all my thoughts, either. Two thirds of respondents to the free-port policy also agreed with everything that I've just said. So, my question is: how is the Welsh Government going to deliver its promise, via the workers' consultative forum, of fair work and social partnerships that are part of our ideology on this side?

That said, our ports are a gateway to growth and levelling up, but as centres of cleaner energy, not as a free-market free for all. That is the ambition for the Milford Haven future energy cluster that I want to see. Our ports can drive change. They will drive change. They will enable the decarbonisation of green energy. They will bring in industry and transport and logistics, and they are, indeed, ideally located to serve as generation, storage and distribution sites for emerging technologies like green hydrogen and floating offshore wind in the Celtic sea. That's the future I want to see for our ports, and that should be the political focus going on.

I heard a whole list of, 'This is what they'll do for people.' So, if you look at 2.1.13 in the document about free ports, it says that they

'could include commitments in relation to the real living wage and trade union engagement.'

The word 'could' is actually vital here, and it's not in the Tories' ideology to enable workers' rights, as they have clearly demonstrated in their very recent drive against trade unions and fair play. 

After listening to Luke Fletcher and Joyce Watson, all I can say is that the anti-growth coalition is alive and well in the Senedd Chamber here today. I welcome today's debate because not only does it give me a chance— [Interruption.] You can intervene later on, Huw; don't worry. It gives me a chance to say how beneficial free ports will be to the Welsh economy, but I can also tell you how brilliant Port Talbot will be in supporting a Celtic free port, as the Dirprwy Lywydd knows only too well.

I hoped—I wrote 'hope' here but that hope is lost now—I hoped that everyone here could see the benefits of an area with tax and customs incentives, not only for the jobs they create, but also the huge investment opportunities they'll bring to the areas that really need it. A free port for Wales will no doubt be a big factor in our economic recovery after COVID-19, and will be a real driver in creating future markets for UK products across the globe.

The Welsh economy, under this Welsh Labour Government, has been centred too much around the city of Cardiff, so it's a fantastic chance for us to spread the wealth away from just one corner of our country. It's evident too that a free port can promote regeneration in a surrounding area, and that will deliver for communities that need it the most in Wales, and those disproportionately tend to be our coastal communities.

Free ports work. I was really struck by the fact that just a small public investment into free ports is likely to deliver huge economic returns. For example, the two free ports in Scotland were given £52 million in UK Government investment and are set to bring forward £10.8 billion in public and private investment to these areas. That’s a two-hundredfold return.

Will you take an intervention?

Of course.

Could I just point him back towards the pre-2020 Government, which invested £16 million in the north-east area coast? It didn’t require a free port—it was just investment, which then enabled Siemens to develop its capacity for offshore wind. It doesn’t need to be free ports to do this. What it needs to be is strategic Government investment. Now I, of course, will always welcome investment in my area and the potential for jobs. In fact, that’s why I will back this going forward. But don’t pretend that it’s free ports that do it. It’s actually the opportunities in renewables, and the ports and the skills within south Wales. Free ports is just an ideology.

Free ports are not an ideology, and they’ve changed, as I’ve just said, the economy there in Scotland, where they’ve been invested. He talked about the north-east—look at the impact it’s had in Teesside. It’s had a huge impact on a community that’s previously been deprived.

In the south-west of Wales the Celtic free port is projected to create 16,000 jobs and £5.5 billion of inward investment for green energy projects. That’s 16,000 high-quality, well-paid green energy jobs with a real opportunity to unlock part of the £54 billion floating offshore wind industry. Linking two of our deep-sea ports in Milford Haven and Port Talbot is a great use of the resources that we already have, and should make us more attractive to the offshore wind sector, given that it would cover a large part of the Welsh coast.

I have no doubt that it will also help support the proposed Gwynt Glas offshore windfarm near the coast of Pembrokeshire. We already have the infrastructure in Port Talbot to support this cutting edge industry’s innovation in the Celtic sea and make Wales a world leader in green energy. Not only do we have a deep-sea port, but we already have ready-made steelworks to support the manufacturing side of an offshore floating wind industry. It’s also clear we have great transport links, so we can easily reach other parts of the UK and beyond.

Finally, the area of Neath Port Talbot is also part of the NPTC Group of Colleges, which already has an excellent reputation in furthering education and works with industry leaders and universities, so we also have the potential to provide the right skills mix, which will help underpin and deliver this project far into the future.

I cannot say enough that investment of this type is sorely needed to be spread beyond the usual places. It should be uncomfortable to learn—particularly for Luke Fletcher, who represents Neath Port Talbot in the same way that I do—that the average GVA per head in Neath Port Talbot, less than an hour down the road, is less than half of the GVA per head in Cardiff. Sadly, a 2022 prosperity score for Neath Port Talbot puts it nineteenth out of the 22 local authorities in Wales, and at 337 out of 374 authorities in the UK in terms of economic and social well-being. So, free ports are an opportunity to change the narrative, and that, I think, is the point that Luke Fletcher and Plaid Cymru and the anti-growth coalition seem to miss.

So, despite this real potential in the area, we’re not creating the economic output, we’re not getting the right incomes, and we’re not harnessing the potential and the skills that we have. A free port can change that situation, and I think the Celtic free port has limitless potential in Pembrokeshire and Neath Port Talbot. A green energy innovation corridor, underpinned by this investment, can really make a difference and showcase the talent we have in Wales to the world.

Let’s also hope this will have a knock-on effect in town centres in places like Port Talbot, as well as on small businesses in and around the area, which depend on customer footfall. I’m hearing a lot that this project will be transformational for the region. Working with a huge array of partners across south Wales, I think we can make this part of Wales a brilliant example of what free ports can offer, and I wholeheartedly say that I back the bid for a Celtic free port in south-west Wales. Thank you.

Before I call the next person, I’d better put on record and remind Members that I do represent Port Talbot, even though it’s been mentioned I do not know how many times in the last contribution.  [Laughter.] Rhun ap Iorwerth.

Thank you very much. It’s good to have the opportunity to talk again about the bid that has been prepared and put forward by Isle of Anglesey County Council and Stena Line to designate Holyhead and Anglesey a free port on behalf of the whole of north Wales. I’ll say as a supporter of that bid, and one that’s collaborated with the authors, that we need some honesty in terms of this debate, and we need a dose of reality rather than political ideology on the benches opposite, too.

It isn’t clear to everyone what a free port is. It’s fair to say that many have doubts about them, and we’ve heard some of those doubts today. And it is important to take those doubts seriously, and to challenge constantly—and I have done plenty of that myself—because we know from history that free ports that don't follow clear and rigorous guidelines can bring negative side effects. And we have to remember that there are other ways of making investments that can avoid those kinds of negative effects. So, that's the honesty that I am seeking here.

But, for me, what's important is that this bid, within the framework that we have, is a bid that has been put together on the island, led by partners who are used to working together—Stena and the county council; a bid that reflects our ambitions and our interests as a community, whilst at the same time bringing wider economic benefits. But it's also a bid that reflects our values as communities, with its authors, and me as a supporter, having insisted on operating within a set of clear principles. [Interruption.]

If I may continue for a moment. So, yes, we did have to demand and secure a number of concessions and assurance on a number of issues before starting the initiative. There was a financial battle to be won in the first place. Originally, the United Kingdom Government proposed £26 million for every free port in England and £8 million for every one in Wales. I drew attention to how unfair that was; everyone could see that that was entirely unacceptable, and those discussions took place. I was pleased to see that the Welsh Government saw eye to eye with me on this. There was a victory on that call for a level playing field and financial fair play, with £26 million now on the table for Wales too.

But there was more than that. There was also a need to know that workers' rights would be safeguarded more, as well as the environment. And through discussion, we had more assurance in that regard in a new Welsh prospectus. But, again, ongoing monitoring will be needed—it will be vital in order to be aware of the potential negative effects—and I'm pleased to hear the Welsh Government also making comments in that regard too.

So, on those new foundations, Anglesey council was free to team up with Stena to put a bid together. They had my full support. The bid itself is about bringing investment, job opportunities, encouraging entrepreneurship on the island and across the north, and it's important that councils across the north are all supporting it. So, across the region, across party lines too, this new made-in-Wales prospectus has been able to bring people together.

Skills are vital: Bangor University, Coleg Llandrillo Menai are very much a part of it. It's also mitigation on the Brexit front. It won't undo the damage of Brexit, but by creating new economic activity in the port of Holyhead, it can be a means to address the post-Brexit downturn in trade through the ports. And there are wider benefits to investing in encouraging traffic to return to the land bridge, including in environmental terms.

And the environment of course is at the heart of the bid. I want the port of Holyhead to be the hub for the next generation of Irish sea wind generation. This could be a boost for that, done well. And I look beyond the north too. There is a chance here to elevate Wales's ambitions in renewables as a whole, in a more joined-up way. I've reflected on a number of occasions in this Senedd on the potential benefits of having two free ports, looking along the same green energy lines. But I do think the Holyhead, Ynys Môn, north Wales bid does stand out.

There is no single silver bullet when it comes to economic regeneration. Anybody suggesting that free ports are the answer to all our ills are wrong, and I'm hearing far too much of that, frankly, this afternoon. Of course the Conservatives are branding this as a key part of the levelling-up agenda. I know they're desperate to hide the fact that Conservative economic policy does nothing other than to level down for everybody. And we have to put the £26 million too in the context of the hundreds of millions that have been lost to communities like mine, and the rest of the UK, because of the Conservatives' misguided policies and their Brexit lies.

But I believe that by working carefully, we can benefit from using all the variety of economic tools at our disposal. The recent announcement of the 2 Sisters Food Group closure consultation is yet another stark reminder of the challenges we face, and that's why I'm wishing Anglesey council and Stena all the best with their bid on our behalf.

I'm always very grateful to bang the drum for something that I'm passionate about in this Chamber, and I've rewritten this speech about four or five times in my head, having listened to contributions this afternoon, and knowing the glare that the Deputy Presiding Officer gave me only a few weeks ago, I will be conscious to keep my contribution positive and upbeat this afternoon.

But it will be no surprise to Members of this Chamber that I will be advocating for one free port in particular, for the Celtic free port in my constituency of Carmarthen West and South Pembrokeshire. We've heard the statistics from Tom Giffard, who represents the region that this free port represents, as it's over two geographical locations, and it brings together a whole region of organisations, be they Associated British Ports, Pembrokeshire County Council, Neath Port Talbot County Borough Council, the Port of Milford Haven, Tata Steel, RWE, the University of South Wales or Pembrokeshire College. These are trust ports, private ports, local authorities and higher education colleges, coming together, seeing the benefits that this free-port bid can bring, and that's something that I think is incredibly positive.

But the point I'm trying to make, Dirprwy Lywydd, is that the Celtic free-port bid is not just confined to one community. It gives an entire region an opportunity to release the shackles a little, breathe new life into these communities right across south and west Wales. And we've heard from Tom Giffard regarding the £5.5 billion-worth of new investment and 16,000 new high-quality jobs. And the point that Luke Fletcher was making in terms of jobs being reallocated or redistributed from one area to another, I understand those concerns, but that's what's so important with this Celtic free-port bid: these are new jobs because of the renewable opportunities that are afforded to us with floating offshore wind. These are new jobs in industries that have survived by working in the hydrocarbon industries that have been in the area. I'll most happily take an intervention from my Mid and West Wales colleague.

I thank you for taking the intervention. You're just doing this mixing up again. We could have all that investment, the Tory Government could be very generous and give us all this money that they're promising, but we wouldn't have to lose the tax take from the advantages that you've described, that I want to see as well as you—I've represented this area since 1995, so I want to see that investment. What I don't want to see is the leeching of the taxes that belong in this country, and the advantage is only, as it was described, to the very top tier of those people who will probably move that money on again.

I thank the Member for her intervention, and it's in a similar vein to the Member in front of me for Ogmore's interventions—'Why do we need these? These things can be done anyway.' But I think that's missing the point in terms of what this does. It's a catalyst. Yes, it's potentially possible that these industries can thrive and survive without a free-port bid and without the benefits that a free port brings. But what it does is it catalysts it at one precise moment, so that these opportunities aren't lost. We are able to see local businesses and industries at the forefront of technology and industries, and I think that's what's really important is that if we don't take these opportunities, it's quite likely that companies outside of Wales, outside of the United Kingdom, can be at the forefront exploiting the opportunities that are afforded to local companies and local businesses. And that's why I think there isn't going to be that dispersal of jobs in Wales through a free-port bid, especially the Celtic free-port bid. I think that's really apparent and needs to be really clear, because there is real opportunity. 

But the Celtic free port isn't just about bringing economic investment. It's critical to the component in securing the UK's energy security, with the added benefit of decarbonising existing industries, keeping employment whilst granting us the ability to meet our net-zero ambitions. I too take optimism from the fact that the UK and Welsh Governments have worked together on this, making sure that the free-port policy in Wales is right for Wales. And as Paul Davies, my constituency neighbour in Preseli Pembrokeshire, has rightly highlighted in his opening remarks, Wales's potential is second to none. And while I may disagree with him on Preseli Pembrokeshire being the energy capital, with RWE power station and Valero oil refinery in my constituency, that's an argument he and I can have on another day.

But it's really important that we can see the ability that's here, so while I take that optimism—and I see the Minister in front of me smiling—from this collaboration, I look up the M4 and urge all key decision makers to ensure that Wales's potential can be unleashed through two successful free-port bids. This can ensure that the opportunities unlocked via free-port status can be applied right across Wales from one corner to the other. We can work cross-party on this, with the UK Government and Welsh Government working hand in hand, supercharging Wales's green economy, ensuring that Wales can become the beating heart of the United Kingdom's energy security, with all corners of Wales playing their part. It's with that that I urge Members to support not only our motion here today, but also the Celtic free-port bid. Diolch yn fawr.

I'm pleased to be taking part in this debate today as a firm backer of the Celtic free-port bid. The opportunities offered by the Celtic free port to my region and the wider south-west Wales area are immense. That is why the bid has support from across the political spectrum and across the region. Should the UK and Welsh Governments back the bid, the establishment of a free port covering Port Talbot and Milford Haven docks could see upward of £5.5 billion of inward investment into the region. But this is just the tip of the iceberg, which is why Neath Port Talbot Council and Pembrokeshire County Council are key players in the bid consortium.

The establishment of the Celtic free port will lead to an explosion of green jobs as the region moves to harness the potential of the Celtic sea and exploit green hydrogen. Floating offshore wind will be transformative, not only in helping to decarbonise and secure our future energy supply, but the £54 billion industry will be a key driver in transforming the ports at Port Talbot and Milford Haven into modern green energy hubs, ports that will build upon our past industrial expertise whilst delivering a brighter, greener future for Wales. Building on the extensive regional specialist skill base, transmission and pipelines, natural capital and distribution facilities, the Celtic free port will provide the skills, services and spaces for industry to thrive—industries such as Tata steel in Port Talbot, one of my region's largest employers and one of our nation's strategic industries.

The opportunities the Celtic free port present to the Port Talbot steelworks are many, but first and foremost is the opportunity to play a key role in the manufacture of floating offshore wind components for the Celtic sea, and then to build upon those opportunities to export to the wider UK and across the globe. Tata, working alongside the Celtic free port, has the potential to become one of the world's first green steel producers and to develop the expertise in manufacturing the next generation of renewables. We are in a race to decarbonise our industries, our energy sectors and our infrastructure. If we can get these there first, we can not only lead the way, but cash in on the wider economic opportunities.

South Wales led the first industrial revolution, and if we play our cards right, we can lead the next. My region is home to the most people working in manufacturing compared to anywhere else in Wales, and whilst we have seen the decline of manufacturing and heavy industry in recent decades, the potential to build upon those skills is immeasurable. With the right plan in place, we can transform the region and create new highly skilled, highly sought after jobs, green jobs in everything, from welding to data science. I believe the Celtic free-port bid is the right plan, and I urge the Welsh Government, together with the UK Government, to support the Celtic free-port bid. I would also ask colleagues to support our motion today in order to deliver a clear message to both Governments that this Senedd supports the Welsh free-port bid. Diolch yn fawr.

I call on the Minister for Economy, Vaughan Gething. 

Diolch, Dirprwy Lywydd. I'm grateful for this opportunity to update the Senedd on the free-ports programme in Wales. The Government is content to support the motion, subject to amendment 2. We want to be clear that we're not tied into a particular number of free ports, and I'll talk later on about that as well. I acknowledge Plaid Cymru's focus on the challenges faced by coastal communities in their amendment. The Government won't support amendment 1. Apart from anything else, it wouldn't get to our amendment, but it's a debate more broadly that I think is raised in their amendment that I'm happy to have and one that we will undoubtedly revisit at another time.

The focus of the motion tabled today is free ports, and the free-ports model has been designed to apply to every type of port—sea ports, airports and rail ports. I recognise there are different views in the room—some of nuance, some of others—on the pragmatic approach to free ports and some of the broader ideological positions about where people start from and may well end up.

Welsh ports, of course, have a long history and have helped to shape the economic, social and cultural fabric of Wales. Today, they remain a central feature in establishing new trading links across the globe and in growing the UK as well as Wales’s international trade and investment potential. The free-port programme is a compromise between the UK and Welsh Governments. It has the potential to support our economic priorities across Wales to stimulate a net growth in jobs, create high-quality employment opportunities, and support decarbonisation as part of our journey to net zero. I have been very clear that we are looking to grow not displace economic activity, and I have been very clear that fair work is an essential part of what any free-port bid must deliver.

Will the Minister give way on that point?

I will.

Minister, thank you for giving way, because there's a danger that this debate can get polarised into you're either pro free ports entirely or against them entirely. But, actually, the pragmatic approach of working with the deck of cards that we are dealt and dealing with that in a pragmatic way, Government to Government and so on, is right, it's the right way to go, but we really have to guard against an idea that everybody becomes a beneficiary here. Because the worst thing for me in that big Bridgend manufacturing belt that you've talked about is that we actually see some of that sucked away into a free-port area and actually losing jobs from walk-to-work areas, part of the foundational economy, jobs in the Valleys and so on. So, if this is going to work, the Welsh Government need to be right in there, actually, and saying to the UK Government, 'The way this will work, to keep jobs in areas, will be this way and not just a free-for-all.'  

I think it's fair to say that if you look at the free-ports programme in England, it's different to the one we have in Wales. The parameters for the bids are different—that's because we did eventually have a sensible conversation between the two Governments. I welcome what Samuel Kurtz said earlier about the fact that the Welsh and the UK Government have worked together. That wasn't without some difficulty. We eventually secured the same UK Treasury offer. You'll recall at one point we were being told that Wales would have half the money of other free ports. We also secured agreement on our priorities—a commitment to a bid needing to meet the requirements of the goals of the Well-being of Future Generations (Wales) Act 2015, and needing to meet our requirements on fair work as well. Those things would not have been in there if the Welsh Government had not been part of reaching a pragmatic agreement on a compromise we can live with.

We are now looking to make sure that the competition reaches an end. The closing date for the bids was 24 November last year. Three bids, as has been noted, have been received. My officials are in the process of assessing those bids jointly with UK Government officials. So, as I anticipated in moving this debate, I'm therefore unable to comment on the specific details of any one proposal, to the surprise of no-one. We hope to announce the outcome this spring. So, it should not take much longer.

I should say, though, and this goes to part of the reason why there is a Government amendment seeking to change point 3, that if there is to be more than one free port, then the UK Treasury will need to make financial resources available. It should still be the case that there should not be a Welsh free port delivered with devolved powers and us needing to forgo devolved taxes with a lesser settlement from the UK Treasury than any other free port anywhere else. And so there's a challenge there about the bids themselves. And if there is more than one outstanding bid, then the UK Treasury will need to act to make that a reality.

I should also make this point clear: free ports are not the sum total of investment opportunities for good, sustainable jobs based around our ports in Wales. Members will recall that only a few weeks ago I updated the Senedd, providing an oral statement on our economic priorities and some of our joint projects with UK Government. There are real benefits where the Welsh Government and UK Government work together, with a partnership founded on mutual respect, where the UK Government discharges its responsibilities in accordance with, not over, the devolution settlement. It's regrettable that this approach has not been extended to other programmes and policies, such as the shared prosperity fund and the levelling-up fund.

In my previous oral statement, I set out our long-term plan for stable, future-focused economic growth against a worsening overall economic outlook, the key causes of which are a toxic combination of Brexit, underinvestment and the damage caused by last autumn's mini budget. I was grateful to Tom Giffard for his comedy interlude. I don't share Liz Truss's view on the anti-growth coalition, nor indeed that she fell foul of a left-wing plot, rather than a disastrous market reaction, and the men in grey suits from the 1922 committee visiting her to tell her that her time was up.

Her brief time, though, has caused real and lasting harm to mortgage holders, potential house buyers, and business investment. We're still living with the consequences of her choices. The IMF has recently reforecast that the UK will be the only major economy to shrink in 2023—a very similar UK forecast to the Bank of England's. As concerning is the bank's bleak assessment that the UK economy cannot grow at more than 1 per cent a year without generating inflation. 

In responding to the motion today, I want to reiterate that what is really needed to energise the UK economy as a whole is a coherent economic direction for recovery and growth, one that is founded on the strengths and strategic choices of each constituent nation, and one that respects devolution and the direct mandate of this Parliament and the Welsh Government. In Wales, we have a plan, and our economic mission remains our focus for a greener, more prosperous and more equal nation. I ask Members to support the Welsh Government amendment in today's debate.

I call on Sam Rowlands to reply to the debate.

Diolch, Dirprwy Lywydd. Can I say what a pleasure it is to be able to close today's Welsh Conservatives debate on free ports, submitted in the name of my colleague Darren Millar? As outlined by Paul Davies in opening today's debate and outlined in point 1 of our motion, free ports have a role in really energising the Welsh economy. As the Minister just mentioned there, they're certainly not the be-all and end-all, but have a significant role in helping our economy move forward. We've been clear from our benches here today as Conservatives that we recognise the significant opportunities that come from free ports, and this includes the investment, high-quality jobs, and regeneration. I was disappointed to hear not a similar level of recognition from other benches in the Chamber here today, because as outlined by Paul Davies in opening, a free-port policy brings investment, trade and more jobs right across Wales, to make sure those industries of yesterday are being replaced by green and innovative, fast-growing, new businesses.

In the debate today, we heard from Luke Fletcher a certain amount of cynicism and suspicion of free ports, which did seem at odds to the bid from Anglesey county council, a Plaid Cymru council there, and of course from Plaid Cymru colleagues in north Wales, who are enthusiastically supporting some of the bids. We also heard from Natasha Asghar about the real status that free ports have to attract new trade and manufacturing activity, which Sam Kurtz was keen to outline as new trade, new businesses and new jobs that can be created through these. A number of Members highlighted where there are already agreed free ports taking place in the UK. We're seeing thousands of those new, high-skilled jobs being set up, both with public and private sector investment. 

What's been highlighted today, of course, is Members certainly seeking to highlight the free ports in their patch. Of course, I'll be very keen to highlight and remind Members of the free-port bid in Anglesey, but we'll talk about that a little bit more in a moment, because colleagues—Samuel Kurtz, Paul Davies, Tom Giffard and Altaf Hussain—highlighted the Celtic free-port bid, proposing to create a green innovation and investment corridor with sites at Port Talbot and Milford Haven, with Pembrokeshire council believing that the proposed clean energy developments, fuel terminals, power station and hydrogen fuel innovation will all thrive. There are some tongue-twister words there. But sadly, Joyce Watson didn't seem to be able to have the same level of enthusiasm for that bid, which was disappointing to hear from that contribution. Natasha Asghar pointed out, also, the Newport City Council bid, launching the free-port bid for Cardiff Airport, which would result in multisite free ports in south-east Wales covering a number of underdeveloped employment sites across the Cardiff capital region.

And the third free-port bid that was highlighted, Rhun ap Iorwerth said he was in full support of the Port of Holyhead free-port bid, which has also seen great support from Isle of Anglesey County Council, Stena Line, other businesses and, of course, consistent and clear support from the MP for Ynys Môn, Virginia Crosbie. As we know, Ynys Môn has unique characteristics and opportunities that make it an extremely attractive place for the establishment of a new free port. The area's proud trading history is underpinned by world-leading port infrastructure and the potential to become a green energy superpower. [Interruption.] Is that an intervention there, Mike?

No, I'm not allowed—[Inaudible.] I only asked if the MP for Ynys Môn—

Is that an intervention, Deputy Presiding Officer? [Laughter.]

I think we will continue. Sam, continue. 

Thank you very much. In addition to this, analysis conducted by the Centre for Economics and Business Research indicates that Anglesey free port could bring up to 13,000 jobs to north Wales over a 15-year period. It could also increase GDP across the UK by a significant amount by 2030. Along with this, Stena Line, as already mentioned, states that free-port status would simplify the passing of lorries through the port there as well. 

The final point of my contribution today, with which I'd like to finish, Dirprwy Lywydd, is a reminder that the benefits of a free port cannot be underestimated, bringing much-needed jobs and investment into some of the areas of Wales that need to see that growth the most. That's something that Tom Giffard was keen to point out. For the areas of Wales that need that growth the most, free ports will be able to bring it forward [Interruption.] Sorry?

Would you give way?

Yes, certainly.

It's only a brief point, because the differences I've been expressing today are not to do with one of the single bids, it's the disadvantages that case studies have shown over free ports and enterprise zones—that's actually in your amendment. So, you've not acknowledged at all that there are disadvantages or addressed how we avoid them. 

I think with every proposal, there are difficult things to deal with, but the opportunities here aren't being acknowledged by the benches on the other side of the Chamber either—the opportunities for jobs being created are not being acknowledged, the new jobs, new business and new innovation are not being acknowledged at the same level or enthusiastically grasped a hold of. The risk, I suppose, is that if we don't do that here in Wales, those jobs will go elsewhere across the United Kingdom or elsewhere outside of the United Kingdom altogether.

As expressed eloquently and passionately by Members across the Chamber, and indeed everywhere across Wales, these bids will help to transform our local communities, and I appreciate the Minister's response outlining his role in providing pragmatic support where possible through this. And it's essential, of course, that that support continues, with both UK and Welsh Government working together as well as possible to deliver those free ports for us here in Wales, maximising the opportunities that these bids have to offer. So, I thank all Members and the Minister for responding to today's debate, and I call on all Members to support the Welsh Conservatives' motion unamended. Diolch yn fawr iawn.  

The proposal is to agree the motion without amendment. Does any Member object? [Objection.] I hear an objection, so I'll defer voting under this item until voting time. 

Voting deferred until voting time.