Freeports: What are they and will they make the UK money?

[srb7677]

Are you ever going to qualify these one liners you post?
Just saying the area they leave will be affected tells us nothing.

It tells us that the areas they leave will lose out whilst the areas they move to will gain. It is an anti-capitalist state intervention to favour some areas over others by granting lower  business taxes to selected areas. The only way this could avoid disadvantaging the areas not included would be to extend the scheme to the entire country. Though of course that might entail affordability issues.

[Nick]

Ah. Well, you mean like the South East, Midlands and North East to which Welsh labour exported Welsh unemployment by bribing companies in those areas to close down, up sticks and move to Bridgend and Llantarnam to name but two "objective one" zones ...

And when the EU bribed Ford to relocate out of Southampton? No moaning then!

[johnofgwent]

There is nothing stopping both companies relocating to a freeport. It is the places they relocate from that will lose out.

Ah. Well, you mean like the South East, Midlands and North East to which Welsh labour exported Welsh unemployment by bribing companies in those areas to close down, up sticks and move to Bridgend and Llantarnam to name but two "objective one" zones ...

[Nick]

There is nothing stopping both companies relocating to a freeport. It is the places they relocate from that will lose out.

Are you ever going to qualify these one liners you post?
Just saying the area they leave will be affected tells us nothing.

[srb7677]

You've still not told me what stops Company B doing the same as company A.

There is nothing stopping both companies relocating to a freeport. It is the places they relocate from that will lose out.

[Streetwalker]

It is nice to see Steve supporting capitalism and opposed to sitting there with his hand out.

I am not 100% on this but did not the Irish Republic kick start their economy by establishing a free port next to an airport?

They did indeed Borky . There was a tax free business park next to Shannon Airport

[Nick]

You clearly don't know what is,

The state interfering and using taxes as an intervention strategy is not capitalism.

You've still not told me what stops Company B doing the same as company A.

[srb7677]

How is
How is it artificial advantage? An area will be created, who entered it is down to the businesses choice. If that's not capitalism I don't know what is.

You clearly don't know what is,

The state interfering and using taxes as an intervention strategy is not capitalism.

[Borchester]

When an area is artificially advantaged over another area by state intervention, that is not capitalism. And it will tend to shift business away from the less favoured areas to the more favoured ones. That is naked state intervention to advantage certain areas over others. You are wilfully blind if you think that is capitalism.

It is nice to see Steve supporting capitalism and opposed to sitting there with his hand out.

I am not 100% on this but did not the Irish Republic kick start their economy by establishing a free port next to an airport?

[Nick]

How is

When an area is artificially advantaged over another area by state intervention, that is not capitalism. And it will tend to shift business away from the less favoured areas to the more favoured ones. That is naked state intervention to advantage certain areas over others. You are wilfully blind if you think that is capitalism.

How is it artificial advantage? An area will be created, who entered it is down to the businesses choice. If that's not capitalism I don't know what is.

[srb7677]

It's just called capitalism, and like I've said there is nothing stopping anyone from having a go at it. Stop blaming failure on someone else's success.

When an area is artificially advantaged over another area by state intervention, that is not capitalism. And it will tend to shift business away from the less favoured areas to the more favoured ones. That is naked state intervention to advantage certain areas over others. You are wilfully blind if you think that is capitalism.

[Sampanviking]

Handled properly, Freeports can be catalyst's for regional growth and act as a main hub driving it. For all the business inside the zone operating Import/Value Adding - Export, there will be a plethora of other support businesses inside or outside the zone sustained by it. Plus of course there is a lot of new employment, which for Governments is often the name of the game.

How well or poorly a Freeport fares, will depend largely on the other measures taken in conjunction. Typically Availability of Capital and/or incentive schemes, the provision of essential infrastructure and of course education/training of the local labour force. In other words, Facility and Governance.  Score well on both, you will have a strong success, score badly and you have a high risk of a flop.

[Nick]

The one that relocates is adding business to his new location at the expense of the one he has left. Beggar thy neighbour capitalism. Where certain areas are favoured at the expense of others.

However, I have noted that the 8 named freeports in the budget happen to include my own home town of Plymouth. So likely some increased prosperity for my city at the expense of surrounding areas. Perhaps I should be selfish and be happy about that? Or perhaps principles matter too?

It's just called capitalism, and like I've said there is nothing stopping anyone from having a go at it. Stop blaming failure on someone else's success.

[srb7677]

And what is the difference between the business that relocates and the one that doesn't?
I'm guessing one chooses to relocate and one doesn't, free will. There's no capitalist movement keeping the neighbour down, it's all about business decisions, say in any walk of life.

The one that relocates is adding business to his new location at the expense of the one he has left. Beggar thy neighbour capitalism. Where certain areas are favoured at the expense of others.

However, I have noted that the 8 named freeports in the budget happen to include my own home town of Plymouth. So likely some increased prosperity for my city at the expense of surrounding areas. Perhaps I should be selfish and be happy about that? Or perhaps principles matter too?

[Thomas]

And what is the difference between the business that relocates and the one that doesn't?
I'm guessing one chooses to relocate and one doesn't, free will. There's no capitalist movement keeping the neighbour down, it's all about business decisions, say in any walk of life.

Workers wages in these freeports are typically 40 to 60 % higher than the local regional average as well nick.

As you know , if its good for business , labour will oppose it.

Thats why their economic credibility past present and future is and always has been in tatters.