Establishment of tax sites welcomed as a ‘critical milestone’ for Inverness and Cromarty Firth Green Freeport
The Highlands are set become the focus of international attention from the renewable energy industry as the region’s freeport today reached a critical milestone.
That is the prediction of Calum MacPherson, chief executive of Inverness and Cromarty Firth Green Freeport (ICFGF), following today’s confirmation of the establishment of special tax sites for the freeport.
Other business leaders and politicians also hailed the news, forecasting it will pave the way for massive new investment and thousands of new jobs.
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ICFGF has forecast activity attributable to green freeport status at the tax sites will lead to the creation of more than 10,000 jobs in the Highlands and Islands and attract over £3 billion of fresh investment.
The legislation passed at Westminster, and the corresponding legislation in Holyrood, means operators and business at locations totalling around 520 hectares will be able to benefit from a package of tax benefits and other incentives.
The sites include areas on the shores of the Cromarty Firth, in Inverness and at Ardersier.
Mr MacPherson said: “Today’s announcement is a critical milestone in the journey towards the establishment of the Inverness and Cromarty Firth Green Freeport.
“Coupled with the confirmation in last month’s Budget that tax site status has been extended from five to 10 years, it is fantastic news for the Highlands and Islands, Scotland and the wider UK.
“Together, our tax sites, totalling around 520 hectares, amount to the largest green engineering development site in the UK.
“The incentives available will attract world-wide interest and help realise the region’s potential to become the largest European hub for the development of the offshore wind industry and associated renewable energy technologies.”
He said although the green freeport had only just gained tax site status, it had already been helping make the area the focus of attention for the international renewables industry and was a key factor in Japanese company Sumitomo’s recently announced plans to develop a cable manufacturing facility at Nigg, in Easter Ross.”
Mr MacPherson continued: “There are currently 20 offshore wind farm developments, representing a combined investment of almost £30 billion, being planned, with many of them close to the east coast of the Highlands.
“Green freeport status for the area, which has been supported from the outset by the green energy industry, gives us the opportunity to maximise the lasting benefit to the region from that unprecedented opportunity.
“The Highlands and Islands are a focal point for the UK’s transition to renewable energy and the drive towards net-zero.
“ICFGF’s overarching aspiration is realising the job creation potential of the green freeport initiative, not only to halt the decline of the working-age population in our region, but to reverse the trend, while also creating fair pay employment opportunities in other parts of Scotland and the UK.”
Joanne Allday, strategy and business development manager at the Port of Cromarty Firth (PoCF), welcomed it as a major milestone.
“It is the result of more than four years of hard work and collaborations across the private and public sector and is a vital step towards the establishment of the Cromarty Firth as a green energy superhub, bringing thousands of quality jobs and billions of pounds of inward investment to the area,” she said.
“We look forward to working with developers and other strategic partners to turn this vision into a reality.”
The chief executive of the Port of Inverness, Sinclair Browne, said it was a “fantastic” opportunity to build on the already strong position in onshore wind to become the European centre for offshore wind and other green technologies,” he said.
“In the case of Inverness, we are working on some really exciting developments in new sectors.
“The Freeport opens up investment which will help to support our plans and, across the region, will bring thousands of high quality, well paid jobs.
“This is a real chance to regenerate the Highlands, retain our young people and encourage others to move here.”
Scottish Government Trade Minister Richard Lochhead said: “We will continue to work closely with the Inverness and Cromarty Firth Green Freeport as it develops its detailed business case to deliver maximum positive impact for our regional and national economy - including thousands of high quality, well-paid jobs, billions of pounds of investment and a fairer, greener, growing economy for everyone,” he said.
The Green Freeport’s outline business case was approved by the Scottish and UK governments in February.
While today means the tax benefits within the tax sites become live, a final business case submission is still required and is currently being completed.
This is expected to be presented to Highland Council as the accountable body in the coming weeks. It will then be submitted to the Scottish and UK Governments.
