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Nicola Sturgeon told to intervene over north-east ‘freeport’ jobs fears

The SNP's trade union warned freeports could 'undermine devolution'.

The first minister is facing calls to review a decision to drop out of UK-wide talks to secure ports with special tax status.

Conservatives in Aberdeen want Nicola Sturgeon to hear their concerns the region will miss out on a major jobs boost.

It follows months of strained talks between the Scottish and UK governments over potential “freeport” status, which gives sites the ability to defer tax until products are moved on.

Interest has been shown from Aberdeen, Peterhead, Cromarty Firth, Dundee and Grangemouth.

Talks collapsed in September, six months after we revealed the UK Government was prepared to step in and take charge itself.

‘Stubborn constitutional politics’

The SNP-Green administration at Holyrood now wants to pursue its own “green ports” plan.

Holyrood does not control the same level of business, customs and tax laws as Westminster, leading to concerns any separate scheme will fall short of expectation.

Douglas Lumsden, a Conservative MSP in the North East region, said UK minister Michael Gove met Aberdeen city council leader Jenny Laing for talks, and now wants the First Minister to do the same.

MSP Douglas Lumsden
MSP Douglas Lumsden

In a letter to Ms Sturgeon, he said freeport status could be “game changing”.

He added: “Will the Scottish Government commit to undertaking a review on its decision to not progress with the UK freeport model to ensure that Aberdeen, and the greater north-east, do not miss out on the creation of thousands of jobs through sheer stubborn constitutional politics that threatens to reduce Scotland’s standing in the world?

“As always, I would be more than happy to meet with you to discuss freeports and the importance of job creation for Aberdeen and the north-east.”

Why did talks collapse?

SNP Government trade minister Ivan McKee had been moving to an agreement in summer, but could not get UK Government Scottish Secretary Alister Jack to adopt red-line requests.

In a move seen by Tories as a warning sign, the SNP’s new Green coalition partners previously described the policy as “state sponsored tax dodging with no place in a progressive Scotland”.

In a statement confirming talks had ended, Mr McKee announced Scotland will go it alone with a different focus on “fair work” and carbon emissions.

“These are central tenets of Scotland’s future economy and principles we cannot compromise on,” he said.

“The UK Government’s offer does not reflect this, provide fair set-up funding or, indeed, recognise the vital role the real living wage plays in secure pay and employment contracts.”