Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the requirement that freeport operators meet obligations under the OECD Code of Conduct for Clean Free Trade Zones and the anti-illicit trade and security measures therein, what plans he has to ensure that (a) those operators are able to do so when the Freeport starts operating, (b) those operators continue to do so once the Freeport starts operating, (c) he is aware of any change in the effectiveness with which such responsibilities are discharged; how he plans to resource his approach to those issues; and if he will make a statement.
Answered by Luke Hall
The UK plays a key role in tackling cross-border illegal activity and this is not going to change. Freeports are commonly used across the globe, and we have learned from these examples to build upon our current expertise.
Freeports will have to adhere to the OECD Code of Conduct for clean Free Trade Zones and must maintain the current obligations on Freeports set out in the UK’s Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Freeport customs sites will be authorised by the UK Government and must meet robust security requirements to mitigate risks. These bodies will be able to withhold or withdraw authorisation if individual sites have not met the required standards. HMRC and Border Force will continue to conduct compliance checks on goods within the Freeport customs site.
Each Freeport Governance Body will need to maintain a record of all the businesses operating, or applying to operate, within the tax site. This record will need to be readily accessible by HMRC, the NCA, and Border Force operatives. It will also need to be kept up to date and contain information about the beneficial owner of the business.
It will also need to actively manage security risks across physical, personnel, and cyber domains, and work with MHCLG, HMRC, Border Force, the NCA, and Home Office to conduct an annual audit of the security measures in place and any breaches.
Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the requirement that freeport operators maintain current obligations under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, how he plans to ensure that (a) those operators are able to do so when the Freeport starts operating, (b) those operators continue to do so once the Freeport starts operating, (c) he is aware of any change in the competence and propriety with which such responsibilities are discharged; how he plans to resource his policies on those matters; and if he will make a statement.
Answered by Luke Hall
The UK plays a key role in tackling cross-border illegal activity and this is not going to change. Freeports are commonly used across the globe, and we have learned from these examples to build upon our current expertise.
Freeports will have to adhere to the OECD Code of Conduct for clean Free Trade Zones and must maintain the current obligations on Freeports set out in the UK’s Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Freeport customs sites will be authorised by the UK Government and must meet robust security requirements to mitigate risks. These bodies will be able to withhold or withdraw authorisation if individual sites have not met the required standards. HMRC and Border Force will continue to conduct compliance checks on goods within the Freeport customs site.
Each Freeport Governance Body will need to maintain a record of all the businesses operating, or applying to operate, within the tax site. This record will need to be readily accessible by HMRC, the NCA, and Border Force operatives. It will also need to be kept up to date and contain information about the beneficial owner of the business.
It will also need to actively manage security risks across physical, personnel, and cyber domains, and work with MHCLG, HMRC, Border Force, the NCA, and Home Office to conduct an annual audit of the security measures in place and any breaches.
Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made, for each of the port operators involved in the eight successful Freeport bids, in view of the responsibilities they will exercise for ensuring goods on site follow the correct customs processes, as to whether those companies are fit and proper to exercise such responsibilities in the context of (a) their corporate record and (b) their beneficial owners; and if he will make a statement.
Answered by Luke Hall
Freeport customs sites will be authorised by the UK Government. There are a number of requirements, including robust security requirements and ensuring goods remain under customs control, that both operators and businesses will have to demonstrate as part of the authorisation. Additionally, to protect the UK’s customs compliance regime, HMRC and Border Force will continue to conduct compliance checks on goods within the Freeport customs site.
Work is ongoing to develop the HMRC operational processes that are required to support the introduction of Freeports. Once completed, this work will inform the resources required for HMRC to authorise customs sites.
Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the requirement that freeport operators are fit and proper persons to allow excise goods to enter and be processed in the Freeport customs site in line with the existing excise rules and conditions, how he plans to assess that requirement; if he will publish the criteria by which that assessment is made; how he plans to ensure that approved operators continue to meet that standard after initially being found to do so; how he plans to ensure that he is aware of any change in the fitness and propriety with which such responsibilities are discharged; and what assessment he has made of the implications for the freeport designation in the event that an operator is found not to be a fit and proper person to exercise such responsibilities (a) before and (b) after the Freeport commences operation.
Answered by Luke Hall
Freeport customs sites will be authorised by the UK Government. There are a number of requirements, including robust security requirements and ensuring goods remain under customs control, that both operators and businesses will have to demonstrate as part of the authorisation. Additionally, to protect the UK’s customs compliance regime, HMRC and Border Force will continue to conduct compliance checks on goods within the Freeport customs site.
Work is ongoing to develop the HMRC operational processes that are required to support the introduction of Freeports. Once completed, this work will inform the resources required for HMRC to authorise customs sites.
Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made, for each of the port operators involved in the eight successful Freeport bids, in view of the responsibilities they will be required to be authorised to exercise for ensuring goods on site follow the correct customs processes, of the resources that will be necessary for HMRC to deploy in order for it to exercise appropriate due diligence in terms of (a) evaluating and assessing their application for authorisation to exercise these responsibilities and (b) monitoring and inspecting their exercise of these responsibilities, and if he will make a statement.
Answered by Luke Hall
Freeport customs sites will be authorised by the UK Government. There are a number of requirements, including robust security requirements and ensuring goods remain under customs control, that both operators and businesses will have to demonstrate as part of the authorisation. Additionally, to protect the UK’s customs compliance regime, HMRC and Border Force will continue to conduct compliance checks on goods within the Freeport customs site.
Work is ongoing to develop the HMRC operational processes that are required to support the introduction of Freeports. Once completed, this work will inform the resources required for HMRC to authorise customs sites.
Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what estimate he has made of the number of approved bids for Freeport bids were (a) led by and (b) involved companies with overseas (i) registration and (ii) beneficial ownership.
Answered by Luke Hall
My Department led the fair, open and transparent selection process to determine successful Freeport locations in England. As part of that process, officials evaluated the memberships of bidding coalitions and proposed governance structures with respect to the requirements set out in the Bidding Prospectus
Freeports will be hubs for international trade and investment, attracting new businesses to the UK and bringing jobs and opportunity to some of our most deprived communities. They will unite ports, local authorities, businesses and other key local stakeholders in service of the common goal of boosting prosperity in their regions.
Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the English Freeports selection decision-making note, updated 17 March 2021, which aspects of the Teesside Freeport bid's alignment with Government policy, in respect of (i) the Net Zero agenda and (ii) the Prime Minister’s recently published 10 Point Plan, (a) formed part of the decision-making process, and (b) how that alignment was quantified; and whether he will make a statement.
Answered by Eddie Hughes
The Freeports Bidding Prospectus set out a fair, open and transparent assessment process to select Freeport locations in England, informed by relevant experts across Government to ensure objective and robust assessment. The English Freeport Selection Decision-Making Note clearly outlines how decisions on the successful freeport locations, announced at Budget, were made. Unsuccessful bidders were offered feedback calls with officials to discuss the assessment of bids in more depth.
Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the English Freeports selection decision note, published 17 March, whether he will publish the criteria and process used to evaluate which Freeport bids had greater alignment with Government policy.
Answered by Eddie Hughes
The Freeports Bidding Prospectus set out a fair, open and transparent assessment process to select Freeport locations in England, informed by relevant experts across Government to ensure objective and robust assessment. The English Freeport Selection Decision-Making Note clearly outlines how decisions on the successful freeport locations, announced at Budget, were made. Unsuccessful bidders were offered feedback calls with officials to discuss the assessment of bids in more depth.
Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Government's policy paper, entitled English Freeports selection decision-making note, updated on 17 March 2021, how alignment with Government policy was (a) assessed and (b) quantified.
Answered by Eddie Hughes
The Freeports Bidding Prospectus set out a fair, open and transparent assessment process to select Freeport locations in England, informed by relevant experts across Government to ensure objective and robust assessment. The English Freeport Selection Decision-Making Note clearly outlines how decisions on the successful freeport locations, announced at Budget, were made. Unsuccessful bidders were offered feedback calls with officials to discuss the assessment of bids in more depth.
Asked by: Bridget Phillipson (Labour - Houghton and Sunderland South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Government's policy paper, entitled English Freeports selection decision-making note, updated 17 March 2021, which states that Teesside bid’s stronger alignment with government policy (in particular the Net Zero agenda and the Prime Minister’s recently published 10 Point Plan) resulted in a decision to select that as the Freeport bid within the region, which aspects of that bid's alignment with Government policy formed part of the decision-making process; and how that alignment was quantified.
Answered by Eddie Hughes
The Freeports Bidding Prospectus set out a fair, open and transparent assessment process to select Freeport locations in England, informed by relevant experts across Government to ensure objective and robust assessment. The English Freeport Selection Decision-Making Note clearly outlines how decisions on the successful freeport locations, announced at Budget, were made. Unsuccessful bidders were offered feedback calls with officials to discuss the assessment of bids in more depth.