HC Deb 07 July 1983 vol 45 cc396-7
8. Mr. Proctor

asked the Chancellor of the Exchequer if he will make a statement on progress toward the establishment of free ports in the United Kingdom.

Mr. Moore

The Government will shortly invite applications for experimental free port status setting out the criteria by which these will be judged.

Mr. Proctor

I thank my hon. Friend for that helpful response. In view of the wide support for the concept of free ports, because of the amount of wealth and real jobs that they will generate, may I press my hon. Friend to say exactly when "shortly" will be?

Mr. Moore

I shall try to be as sympathetic as I can by saying that I hope before the summer recess.

Mr. McNamara

I hope that the port of Hull is one of the leading contenders, but even if the Minister cannot name them now, will he say whether there will be a reasonable geographical spread so that they are not all concentrated in the south-east?

Mr. Moore

Prior to applications going out, people applying and applications being sifted, it would be inappropriate to make any detailed comment, but I take the hon. Gentleman's point about the need to spread the opportunities.

Mr. Alexander

On what basis will the decisions finally be made? Will they be made on the basis of advice from civil servants, or on the basis of the bids and representations received? If it is the latter, will he accept a bid from me for Newark-on-Trent, which is already the subject of detailed feasibility studies into the establishment of an inland port on the Trent?

Mr. Moore

I am tempted to respond favourably to my hon. Friend's bid but the criteria will be published and will be determined solely by demonstrated user demand and economic viability. They will be the key factors.

Mr. Foulkes

Will the Minister confirm that one of the criteria must be potential for the creation of new trade, investment and jobs, rather than more subsidies for existing businesses and operators? I shall not put in the obvious bid for Prestwick now.

Mr. Moore

We are receiving bids from all sides. I take the hon. Gentleman's point. As I said earlier, the criteria will be published—we hope before the summer recess.

Mr. Neil Hamilton

Does my hon. Friend agree that the economic benefits that will flow from the introduction of free ports are likely to be maximised only if the role of Customs and Excise is reduced to the minimum? Will he assure us that we will follow the lead of Hamburg, rather than of the Dutch free ports, so that the role of Customs and Excise is to police the perimeter and not check goods as they enter the free port?

Mr. Moore

Similar comments were made in a report which is now in the Library. Those points have been made fully and will be considered when the criteria are published.

Mr. Lambie

If the Government's timetable for the establishment of free ports is on schedule, can the hon. Gentleman tell us when the first free port will be designated? Does he agree that that is the important point? Is he aware that most hon. Members who are interested in the subject fear that the Government will never designate any free ports?

Mr. Moore

I am delighted by the passion for free enterprise among the Opposition. I am conscious of the points that the hon. Gentleman has made and which my hon. Friends the Members for Tayside, North (Mr. Walker) and for Banff and Buchan (Mr. McQuarrie) made last night. It would be wrong to give an answer before we know how many applications there are. There must also be a thorough examination of the applications. That is the only way in which to proceed so that we give all areas the opportunity to take part in this free enterprise experiment.

Mr. Gale

Is my hon. Friend aware that free ports have proven successful when they have been combined with an airport and a water port? Is he aware that we have just such a combination in Thanet? Will he consider it for a pilot scheme?

Mr. Moore

The fact that hon. Members on both sides of the House are bidding for their areas illustrates the difficulty that we shall have with a flood of applications.