As negotiations on the UK’s future trading arrangements with the European Union continue, the role of the Wales-Ireland border has been largely overlooked, at the UK level, in the debate on cross-border trade. This is despite Wales being home to two of the UK’s busiest ports – Milford Haven and Holyhead – through which much of the Ireland-UK freight traffic has to travel.
The creation of a possible ‘hard border’ between the UK and Ireland could result in some haulage from the Republic being shipped directly to the Continent, rather than via Welsh ports. It is estimated that 11,000 Welsh jobs are dependent on our ports and a significant number of these would be directly affected, if delays and costs associated with customs clearance drove traffic away from the route through Wales.
The Port of Milford Haven has recently asked the Welsh and UK Governments to ‘super-charge’ Wales’ enterprise zones, of which it is one.
This could enable the creation of a new ‘freeport’, which would be legally outside of UK customs territory, providing exemptions from taxes and duties.
ICAEW Wales shares the Port’s vision for a new pro-business growth and trade initiative where Milford Haven, along with other Welsh seaports and Cardiff Airport are designated as a ‘Port Development and Enterprise Zones’.
The call comes as ICAEW Wales’ Strategy Board meets at the Port of Milford Haven.
Andy Jones, Deputy Chief Executive at the Port of Milford Haven and member of ICAEW Wales’ Strategy Board said.
“The Port of Milford Haven owns and operates Pembroke Dock Ferry Terminal which is the busiest and most accessible commercial sea-trade route to Ireland on the M4 Corridor. Around 100,000 freight units pass through this corridor, with two thirds of that traffic passing through Pembroke Dock. It is imperative that the eventual EU-UK agreement ensures there is no difference between the land and sea border with Ireland to ensure that trade flows are not disrupted.
The Port of Milford Haven is also host to the UK’s largest single cluster of energy related businesses, supporting 4,000 Welsh jobs. The ability to trade with global partners is likely to become more important in post-Brexit UK and early action is required to ensure ports can be light on their feet in preparing for changes in demand. At the Port of Milford Haven, we see merit in the designation of Free Ports, seeing them as a natural extension of Enterprise Zones. In a sense they are supercharged Enterprise Zones which would facilitate trade in a post-Brexit world. In a ‘Port Zone’ trade and industrial activity could be incentivised by a favourable business, tax and planning regime. For the Port — and others — opportunities centre on maximising the value from existing economic clusters — energy, engineering and fishing — particularly in manufacturing and processing.”
Steve Burt, Chair of the ICAEW Wales Strategy Board said:
“ICAEW Wales wants to see the economic output of all of our regions growing. The ease of movement of goods and services between Wales and Ireland is of paramount importance. The Port of Milford Haven is vital not just for west Wales but for the whole of the country. That is why we are supporting the call for Milford Haven and other Welsh ports to be given favourable business, tax and planning rules in order to grow trade and industrial activity.”