LAW
Peter Snaith , partner and head of manufacturing at law firm Womble Bond Dickinson , reflects on the freeport opportunity for the region ’ s businesses and considers what happens next .
What happens next on Teesside Freeport ?
More than half of businesses say they will invest more in skilled roles following the announcement of a Teesside Freeport , says Peter Snaith ( pictured ).
Since the announcement of the freeport locations , our team has been supporting businesses and key stakeholders across the region to understand the next stage in the freeport bidding process and help map out how they can benefit from what is to come .
It ’ s clear from discussions with stakeholders from across the Tees Valley that the freeports initiative should be positive and that the benefits could be significant if all plans are realised . Early signs have been hugely encouraging , with businesses such as Peak Resources confirming their intention to take on a 250-year lease over a 19-hectare parcel of land at the Wilton International site , creating 130 local jobs . This news followed the earlier announcement of plans by GE to open a new offshore wind blade manufacturing plant on the Teesworks site .
How do businesses really feel about freeports ? Over the last two months , we have carried out a UK-wide business sentiment survey , which had more than 500 respondents across key sectors including maritime , manufacturing , chemical , logistics and construction .
Survey snapshot It ’ s fair to say that the picture is positive around the benefit and value that a freeport will bring for Teesside . Sentiment shown in the results of the national survey was generally much higher with businesses that are based within a freeport or free zone .
This is a common theme and we are regularly emphasising that while freeports should be a great mechanism to drive regional regeneration and encourage inward investment and innovation , they are just one tool in the economic toolkit which is designed to help level up the country .
Across all sectors , 42 per cent of respondents based in the North-East felt they were clear on how freeports will operate , but only 21 per cent of respondents felt they had a very clear idea of how their business could be impacted . Particular concern was highlighted by respondents around governance and guidance on how the freeports would be regulated .
As more information is shared around the governance and structure of freeports , we are confident that businesses will be able to see a clear path to the launch of our freeport . This will hopefully instil confidence and allow business leaders to feel more reassured that the governance models have been created with regional success and fairness at the heart .
We are still some way off seeing this in place and it is interesting to observe how the eight freeports ’ governance models are shaping up differently , but the freeport team in central government were supportive of the proposed approach for Teesside .
The government ’ s decision to establish a freeport on Teesside was excellent news and will drive regional regeneration and job creation . More than 52 per cent of businesses agreed that they ’ d be looking to invest more in skilled roles over the next 12 to 24 months . This is a great indicator that freeports will bring the benefits they promise and help to build opportunities in the surrounding areas .
However , there is also concern around whether we have the skills needed to meet this demand . There needs to be continued engagement with businesses coming into the freeport and local education providers to ensure there is a pipeline of skills coming into the local job market over the coming years .
The region has historically been a net exporter of talent , so we need highlypaid , highly-skilled jobs created to attract and retain talent that the region would have previously lost .
Freeport status will provide an enormous opportunity for Teesside and we ’ re excited to play our part in realising the potential for the whole region .
To find out how Womble Bond Dickinson ’ s legal team can assist your business , please contact Peter on 0345 415 0000 or email peter . snaith @ wbd-uk . com .
The voice of business in the Tees region | 49