People asking me for my notes from the Inverness Public Meeting today, I probably said a few extra things, but in any case, here they are👇🏻
Inverness notes on SEZs and Freeports March 2024
Zone fever has arrived in the UK
What are Freeports and SEZs (Special Economic Zones)?
Regular ports deal mostly in freight transshipment. Freight comes into a port area, is stored then processed, before being re-exported.
UK Freeports are privately owned tax havens whereas EU ports are publicly owned.
A Special Economic Zone is a designated region that can house a Freeport, airport, towns, entire cities, and rural areas under a ‘privately governed authority’.
So, think of an SEZ as a room within a room, a state within a state, or even a party within a party.
The UK post-Brexit is now like a Russian doll.
That’s what Special Economic Zones are.
The government claims that UK Freeports and SEZs are zones of prosperity, creating 1000s and 1000s of jobs, are green and environmentally friendly, but that is just to make them sound palatable to the public. They are in fact none of those things.
Take for example the claim that Freeports are facilitating offshore energy schemes. Those schemes were never dependent on Freeport status, they already existed anyway. Similar energy schemes are going on in ports in the EU that don’t require Freeport status.
Private vs Public.
Scottish Ports were privatised in the 1990s by Thatcher but had to comply with EU laws and regulations.
Fast forward to today, where Brexit Britain has turbocharged deregulation.
UK Freeports are run by a stand-alone corporations with a future scope and incentive to expand into the surrounding SEZ territory.
What is the ideology behind Freeports and SEZs?
The current ideology embraced by Sunak, Truss, Mogg, Badenoch hails from the US and fuses libertarianism with anarcho-capitalism, their goal is to abolish the centralised state and replace it with countless small states all totally privatised. This has its roots in empire-building and British colonialism. The East India Company in 1600, Hong Kong and Singapore in the mid-1800s, the Brits installed dozens of Freeports in those regions, bringing their own laws, and courts with them, this was known as ‘China’s century of humiliation’. In the 80s Thatcher’s aim was to turn the UK into 1 big tax haven and SEZ, but she came up against the EU.
The current Tories have taken that baton of ‘exit’ from Thatcher and several prominent economists and progressive right-wing radicals like Ayn(‘Ine’) Rand, Murray Rothbard, Friedrich Hayek, Milton Friedman, James Buchanan, and Antony Fisher. Freeports, SEZs and charter cities have long been the ideal templates to isolate away or ‘exit’ from Big Govt by establishing areas of a country as zones of exception to the host country.
Rishi Sunak studied at Stanford University, his mentor was Prof. Paul Romer who lectured on a return to colonialism via SEZs and charter cities.
What differentiates UK Freeports and SEZs from those in the EU?
UK Freeports and SEZs are being optimized for the deregulated private sector whereas Freeports and SEZs in the EU are publicly owned and strictly regulated to prevent corporations making astronomical profits, extracting resources, and not contributing anything back to local communities.
In Jan 2024 a UK Govt report on REUL(Retained EU Law) was published it stated ‘EU ports are publicly owned and are therefore unsuitable for the UK economy. The report stated that +600 pieces of EU/UK law were revoked across 3 main areas, employment, food safety, and the environment, thousands more are for the chop by 2026. The report went on to say that EU ports were publicly owned and incompatible with the UK economy. Sunak’s Freeports will be tax havens, Jeremy Hunt has declared Freeports and SEZs as tax-exempt for 10 years.
What do Freeports and SEZs have to do with Brexit?
SEZs and Freeports are all about ‘exit strategies’ .
Britain + Exit = Brexit.
Sunak’s 12 Freeports and 74 SEZs are currently carving out extraterritorial spaces the length and breadth of the UK. This is to perforate holes in the fabric of the nation, to lay waste to councils and public services, the more holes you cut out the more the zones will overlap and eventually privatise the UK. Thatcher tried out SEZs in the 1980s, the reason they failed is because the UK was in the EU and had to abide by EU regulations on State Aid. By reducing Big Govt you reconfigure its powers by reallocating them to privately run smaller states, this is known as ‘accumulation through dispossession’. Libertarian exit implements decision-making such as (zoning, exit, land grabbing, taxation, and as Mogg said ‘restructuring sovereignty and the state). Mogg’s father’s book The Sovereign Individual is all about thriving from the engineered collapse of the Welfare State. The dangers that come with deregulated Freeports are money laundering, private banking, stolen art, human trafficking, drugs and arms trade, tax evasion, and onshoring wealth. Today the most lucrative line of business is between corporations and Govt’s, many r/w think tanks have successfully stripped our politicians of any semblance of public representation.
Why are there so many Freeports and SEZs being set up across England, Scotland, and Wales?
In Scotland, there are currently 2 Freeports and 18 SEZs.
So we have The Inverness and Cromarty Firth Green Freeport, and the Firth of Forth Green Freeport, both are not yet operational. These are not just ports, they are SEZs, that are both 45km in diameter, and cover vast areas of towns, cities, and land.
Creative Clyde - Glasgow – creative industries
Prestwick - South Ayrshire – aerospace
West Lothian - Broxburn – food and drink manufacturing
West Lothian - Eliburn - Livingston – food and drink manufacturing
Dundee Port - Dundee
Dundee Claverhouse - Dundee
Leith Port - Edinburgh
Nigg - Highland
Hatston - Orkney
Scrabster - Highland
Arnish - Western Isles
Lyness - Orkney
Life Sciences Enterprise Area
Irvine - North Ayrshire
Forres Enterprise Park - Highland
BioQuarter - Edinburgh
Inverness Campus - Highland
BioCampus - Midlothian
BioCity - North Lanarkshire
The Govt wants to do away with centralized powers by handing them over to private small states run under corporate governance to further super-concentrate wealth accumulation. Big Govt is being hollowed out by both Cons and Labour to facilitate the transfer of powers to those running the zones. Tax exemption is the cherry on top within these privately protected jurisdictions.
Brexit thrives on deregulating laws that used to protect people from malign corporate interests compounded by stealth incursions into the public sector. Once companies have got their tax breaks and extracted whatever resources they can, they will pack up and move to the next available zone. Know that any clean-up bills for pollution in the SEZs will be passed on to taxpayers, just like the water companies have been doing since the UK left the EU.
Do UK Freeports and SEZs sabotage rejoining the EU?
Brexit means the UK has defaulted to WTO rules, which changes how State Aid public money in the EU is distributed. Under WTO rules State Aid can now be given to companies of the Govt’s choosing, this preferential treatment is expressly forbidden in the EU because it distorts markets creating an unlevel playing field. Each Freeport gets £25m x 12 is £300m, Teesside Freeport has received +£500m so far. Each SEZ gets £80m x 74 is £5.92bn. This is not enough money for long-term sustainability, this is subsidizing corporations for boom-and-bust, it is corporate welfare. Scores of councils are going bankrupt, this is by design, corporations in league with the duopoly will absorb all public services and ultimately privatise the UK. In 2023 Michael Gove included a section in his Levelling Up Bill on Compulsory Purchase Orders that apply to:
business owners and occupiers
agricultural owners and occupiers
residential owners and occupiers
Just wait for this to kick in when Sunak's 12 Freeports and 74 SEZs are installed. The duopoly plans to break up the nation into patchworks of corporate sovereignties, subdividing the land for corporate rule.
Scotland must become independent and undo the Westminster stranglehold. A corporate coup hatched by a cross-party alliance all sit on Freeports consortia in England, Scotland and Wales, they comprise MPs, councillors, mayors, Baronesses, and Lords (eg Lord Smith of Kelvin whose company Otter Ports is the parent company of Forth Ports and is registered in the Cayman Islands) Scottish land, and Scottish sovereignty is being turned into a commodity for venture capitalists to extract your resources without contributing anything back to communities.
Going to end with a quote from George Orwell’s 1984 “You will be hollow. We shall squeeze you empty, and then we shall fill you with ourselves”
@HunterNorrie @coletteisp @grazzar09 @SalvoFreeports @SSalyers2 @TartantuesdayI @susanchubb @blowhound
If you have not heard of Freeports or SEZs (Special Economic Zones) before seeing my threads, please support my research and buy me a Ko-Fi, everything I do is volunteer work. Thank you🥰 ko-fi.com/europeanpowell
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Article 107(1) TFEU forbids State aid granted by
Member States, stating it is 'incompatible with the
internal market' if it 'distorts or threatens to distort
competition by favouring certain undertakings or
the production of certain goods … in so far as it
affects trade between Member States'.
Some Member States have made the promotion of SEZs and FZs central to their economic policy.
Several trade unions, however, have questioned the contribution of SEZs and FZs to sustainable economic development. They argue that these zones create unfair competition and lower environmental and social standards, for example, by imposing forced overtime, short-term contracts, and lower wages. In some cases, FZs have been accused of receiving illegal tax exemptions, which has forced the Commission to open in-depth investigations.👇🏻
The UK is now on WTO rules because of Brexit.
While there are freeports in the EU (and were freeports in the UK until 2012), advocates of freeports argue that their effectiveness was limited by EU state
aid rules. For example, in 2016, Rishi Sunak argued that EU rules on state aid and the single market “have ensured that modern EU Free Zones amount to little more than storage and warehouse facilities with simpler customs formalities”.👇🏻 europarl.europa.eu/RegData/etudes… researchbriefings.files.parliament.uk/documents/CBP-…
There are a number of free zones in the EU (PDF). It has been argued, however, that the operation of these zones is limited by EU state aid rules. @CSBarnard24 Professor Catherine Barnard and Emilija Leinarte of Cambridge University have written:
Approvals for FZ [free zones] are also subject to EU state aid rules. Under EU law, it is illegal for member states to give financial help to some companies and not others in a way which would distort fair competition. State aid must be approved by the European Commission, which effectively holds a monopoly on the decision for the creation of FZ. The difficulty of obtaining an FZ status can be illustrated by the Shannon FZ in the Republic of Ireland. The Shannon FZ was successfully launched in 1958 but, upon Ireland’s accession to the EU in 1973, the incentives in the Shannon FZ were limited in order to comply with EU state aid rules (e.g. the 0% corporate
income tax was increased to 10%). Having left the EU, the UK has set up its own subsidy regime and EU state aid rules no longer apply. The UK is also bound by the World Trade Organization’s rules on subsidies and its commitments under free trade agreements, including the UK-EU Trade and Cooperation Agreement (TCA).
1. Does the aid favour certain undertakings (such as companies) or the
production of certain goods? 2. Is aid provided through state resources? 3. Does the aid distort or threaten to distort competition? 4. Could the aid affect trade between Member States?
Assistance to individuals is not considered state aid. Assistance such as tax measures which apply to all businesses equally, are not considered state aid.
However, if the assistance applies to a specifically defined type of businesses (for example, businesses in a certain area, or businesses of a certain size) then it will count as state aid. Indirect financial assistance (such as
exemption from a certain charge or fee) will also count as state aid. researchbriefings.files.parliament.uk/documents/SN06…
"Mr Drakeford, with all due respect, Sunak’s freeports are a threat to democracy"
Here's why Wales must become independent and undo the Westminster stranglehold over its indigenous people and their land. A corporate coup hatched by a cross-party alliance all sit on Freeports consortia across🏴🏴🏴 There are 2 Freeports and 8 Special Economic Zones being set up in Wales. These are small state libertarian experiments in corporate governance and you the public are paying for their installation, public money in the form of State Aid is being given to companies chosen by the UK Govt, WTO rules allow this, however, the EU forbids it, why? State Aid (public money) under EU regulations prevents preferential treatment that distorts markets creating an unlevel playing field, this threatens the integrity and harmony of the Single Market, there are 82 SEZs/Freeports in the EU, the difference is that they are strictly regulated to stop companies absconding with their profits and not contributing to local communities and social infrastructure. 12 Freeports and 74 SEZs are being set up in the uk fully endorsed by Cons and Labour, this is why Labour say no to rejoining the EU, it s nothing to do with keeping their powder dry, they back this Tory initiative of corporatizing sovereignty by carving out extraterritorial spaces all over Wales. Were you informed about this? Do you know what deregulated Freeports and SEZs outside of the protections of the EU entail for public services that are already collapsing because of rampant defunding? Do you know that Gove updated his Levelling Up Bill last year to include a section on Compulsory Purchase Orders that apply to business, agricultural, and residential properties? What do you think happens to towns and cities when companies do not pay their taxes to contribute to local infrastructure? They get privatised. The asset classes have thrown money at the govt to install private laws in these zones of exception to the host country, the 1% will do extremely well, while those on low to middle incomes will perish.
Labour's FM Mark Drakeford has signed off on 2 Welsh Freeports Milford Haven & Port Talbot, and Anglesey Freeport with Sunak and Gove, this 'deal' was overseen by none other than Shanker Singham, the brains behind Brexit. Drakeford has absolutely betrayed Welsh citizens for generations to come, Drakeford resigns this month. What a legacy...
Sunak 'studied' at US Stanford, his mentor was Prof. Paul Romer who lectured on a return to colonialism adopting the deregulatory framework of Freeports, SEZS, and charter cities. This has its roots in 1600 with the British forming the East India Company, cycling through to the mid-1800s with the colonization of Singapore and Hong Kong. The economic growth both duopolies in the UK are currently banging on about is based on the success of British occupation of foreign territories by carving out spaces imposing British laws, courts, schools, hospitals, housing within host countries. These are the small states that Truss and her cohorts dream of, it is a libertarian exit strategy from democracy based on former colonial histories and the imposition of a White Supremacist mindset. What's happening in Brexit UK is a 2nd Empire has formed that is comprised of what Truss refers to as a 'network of liberty' a transatlantic Anglosphere resurrecting exclusive 'zones of exception' in England, Scotland, and Wales. Residents could opt in the SEZ by giving up their citizenship, becoming 'sovereign individuals' free from the constraints of rules of any kind, no meddling Big Govt intervention.
Just a reminder that Thatcher's SEZs were rejected by the EU Commission, as potential disruptors of the integrity of the EU's Single Market, well Brexit changes all of that, the UK is under WTO rules now, the UK is a 3rd country, and is 'capital hungry' after leaving its largest protected and regulated market. All hell can break loose and turbocharge legalized lawlessness, the ring-fenced free market competitive zone is where this will take place.
Well done @CarolineLucas who quit her role on the Environmental Social Governance (ESG) All Party Parliamentary Group (APPG) after learning about funding from arms makers and ‘law-breaking accountancy firms’.
The APPG supposedly supports 'sustainable and ethical business practices' but is funded by companies that have paid out billions in fines and compensation for fraud, tax and environmental failings.
Transparency campaigners say the system of regulation remains too reliant on goodwill.
APPGs can issue their own official-looking reports, generate media coverage, and, crucially, can receive outside funding — including from foreign entities — to aid their work. They can also provide a route for “secretariats” funded by private companies to gain passes allowing them access to the parliamentary estate, as well as the ability to shape the work of MPs sympathetic to their causes.
I have found another APPG dedicated to Freeports, see 🧵👇🏻
Revealed: Parliament’s ESG group bankrolled by firms who paid out billions for fraud, tax and environmental breaches open.substack.com/pub/democracyf…
See the members who were on the 'maybe-defunct' Freeports APPG
Douglas Chapman (SNP)
Priti Patel (Cons)
Diana Johnson (Labour)
Kim Johnson (Labour)
Lord Berkely (Labour)
Anna Turley (Labour)
Simon Clarke (Cons)
Mick Whitley (Labour) parallelparliament.co.uk/APPG/freeports
Big questions remain about the so-called APPG's vulnerability to foreign and corporate influence.
There are 750 APPGs active in the U.K. parliament, covering everything from the bus and coach industry to golf, immigration policy and beer. politico.eu/article/uk-par…
Both Cons and Labour are experimenting with alienating the state via Brexit, think of SEZs and Freeports as ‘accumulation by dispossession’, the transfer of public wealth to private hands. An exit strategy from managed capitalism necessitates a dismantling of the social contract.
The asset classes craving for more power and money doubles down on austerity policies when their capital accumulation is threatened. The most lucrative line of business is between the private sector and Govt.
To fully establish individual freedom, a framework that removes the obstacle of democracy is required, the SEZ or small state is the perfect setup, an extraterritorial carve out of a region beyond the host country's reach, a zone where private laws entrench a libertarian theology
Jeremy Hunt's 2p tax cut to NI will further impact public services, but no one's talking about how Hunt has given tax-exempt status for 10 years to Sunak's 86 SEZs, this will be catastrophic and lead to the privatisation of the entire UK! #BrexitDisaster
.theguardian.com/uk-news/2024/m…
Why are our MSM not mentioning this? Labour are backing Sunak's 'tax-haven-SEZs', all 86 of them, the MSM are writing articles that Labour are backing 'ports', when we know those very same ports are Tory Freeports under WTO rules, illegal in EU, sabotaging rejoin for 10 years.
We have also discovered that councils are being effectively blackmailed to back Freeports/SEZs or see their funding slashed, not joking, corporate power + neoliberal 'exit' strategies from democracy = Game Over UK
A UK cross-party alliance sits on Freeports/SEZs consortium.
What do they want?
The consumer-citizen in an SEZ is a sovereign individual who desires maximum capital gains at the cost of public services and Big Govt interventionism, SEZs install private legal laws to realize this
Mogg's restructuring of state sovereignty changes it to corporate sovereignty, which means state sovereignty becomes a commercial asset for the investor classes. By selling 'regulatory packages' to consumers entails who can opt in or out of the SEZ. This is Libertarian mana.
David Friedman (son of Milton) argued in 1973 that govts would compete for citizens, to do this a link between the political jurisdiction and geographical jurisdiction would be broken, enabling competition between SEZs, the state could no longer interfere in the 'exit' community.