HC Deb 27 October 1983 vol 47 c412
4. Mr. Foulkes

asked the Chancellor of the Exchequer if he will make a statement on the current position, in relation to his Department's responsibility, on the proposed establishment of free ports.

The Minister of State, Treasury (Mr. Barney Hayhoe)

Potential operators have been invited to submit applications for free port status by 31 October. Final decision on the locations will then be taken by my right hon. Friend the Chancellor in consultation with other ministerial colleagues.

Mr. Foulkes

Is this not yet another example of the Government being left at the starting post because of indecision? Is the Minister aware that even the Isle of Man is about to announce the establishment of a free port, the duration of which is not affected by legislation? In the light of that, will the Government review the five-year experimental period which they are imposing on free ports as it is causing great uncertainty and indecision among many potential operators?

Mr. Hayhoe

I welcome the hon. Gentleman's support for free port policy.

Mr. Foulkes

I did not say that.

Mr. Hayhoe

There is an agreement between the Isle of Man authorities and the United Kingdom which requires a common approach to Customs procedures. The Isle of Man's free port development will be operated under existing Customs duty relief arrangements, which are freely available elsewhere in the United Kingdom.

Mr. Hill

Is my hon. Friend aware that there are about 400 free ports in the world and that the number of experimental free ports here—between four and six—will be utterly inadequate? Does he agree that the Government could well decide to have at least 12 in the experiment?

Mr. Hayhoe

We have made no announcement about the precise number of free ports. So far we have received only three applications. The closing date is Monday. I confidently expect many more applications to be handed in by then.

Rev. Martin Smyth

May I assume that when the Chancellor discusses these matters with his colleagues he will include the Secretary of State for Northern Ireland and that his views will also be considered?

Mr. Hayhoe

Without any doubt, I can give that assurance.