The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 1250 contributions
Education, Children and Young People Committee
Meeting date: 13 September 2023
Ross Greer
Sorry—I am conscious that I am taking up other members’ time. Did the young people on the learner panel support that?
Education, Children and Young People Committee
Meeting date: 13 September 2023
Ross Greer
Right. Can I just finally—
Finance and Public Administration Committee
Meeting date: 12 September 2023
Ross Greer
As I said in questions to the minister, the economic fundamentals that underpin freeports are those of trickle-down economics, which is not something that the Scottish Government can subscribe to. There is no evidence base for saying that wider economic benefits are going to be felt as a result of developing freeports. In fact, the evidence base from freeports across the world shows that the companies that are involved in freeports certainly benefit but the wider communities around them do not. I recognise that most of what is involved in setting up the freeports is reserved, but there are levers within the Scottish Government’s powers that have not been used, including to exclude any entity that is based in an offshore tax haven from accessing LBTT relief.
There is a lot of language around fair work, and I recognise the Scottish Government’s commitment to fair work, but in this case it is just language. There are no binding commitments to ensure that the companies adhere to fair work principles. I am concerned about the long association that freeports have internationally, but particularly in Europe, with crime, particularly money laundering, smuggling and the exploitation of workers. The European Commission has highlighted that, and the European Parliament called for an end to the freeport experiment in Europe as a result of that. I do not see evidence that sufficient consideration has been given to the impact of that in the UK and, as Michelle Thomson said, the impact that that could have on Scotland’s international brand.
I am also concerned about the potential for job displacement. We saw the evidence from the UK’s last experiment with freeports in the 1980s that there was up to 40 per cent displacement, rather than new jobs being created. Given the position of the freeports in our economy, as a West Scotland MSP, I am concerned that the economy in the west of Scotland is already not in the same state as the economy in the east. We face significant depopulation issues and growth in wages is nothing like what it is on the east coast, and these developments will only exacerbate that.
I recognise that the Scottish Government is in a difficult position, because this policy is being driven by the UK Government, but devolution exists for the purpose of creating divergence where we believe that it is necessary. I do not think that the opportunity to do that has been taken. Tax breaks and deregulation are not a path to prosperity. Investment is a path to prosperity; working with rather than against trade unions is a path to prosperity. The Greens want to see profits reinvested in local communities, not squirrelled away in offshore tax havens, but I think that that will be the consequence of this so I am afraid that I cannot support the order.
10:45Finance and Public Administration Committee
Meeting date: 12 September 2023
Ross Greer
You mentioned the traditional issue with trickle-down economics, which is that the wealth that is generated is then hoarded offshore. Can any offshore entity benefit from this LBTT break? A company that is based in an offshore tax haven will be able to benefit from this tax break, will it not?
Finance and Public Administration Committee
Meeting date: 12 September 2023
Ross Greer
I am sorry to jump in, minister, but this is not about UK tax law: it is about a devolved tax. It is—potentially, if it so wished—within the power of the Scottish Government to, for example, exclude any company that is based and incorporated in a tax haven from benefiting from an LBTT relief. However, you have chosen not to do so in this case. Why is that?
Finance and Public Administration Committee
Meeting date: 12 September 2023
Ross Greer
First, I would like some clarification. Regarding your income tax proposals, am I right in understanding that, beyond threshold freezes, you are not proposing any changes to the starter, basic and intermediate rates, and that you are only proposing the new £40,000 threshold for whatever the new higher rate would be called, without any change to the lower thresholds?
Finance and Public Administration Committee
Meeting date: 12 September 2023
Ross Greer
The rationale that you have outlined this morning is that companies will be given tax breaks in exchange for being encouraged to pass on the benefits thereof to their workers and to the wider economy. Is that not trickle-down economics?
Finance and Public Administration Committee
Meeting date: 12 September 2023
Ross Greer
If the fair work criteria are legally required of companies that operate in a freeport or that, in this case, benefit from LBTT relief, could such a company pay its workers the minimum wage—not the living wage—and refuse to recognise trade unions, but still access such relief, which is a tax break?
Finance and Public Administration Committee
Meeting date: 12 September 2023
Ross Greer
Finally, minister, is not it the case that this is a UK Government policy that, in terms of fundamental economic principles, the Scottish Government does not agree with? The UK Government was going to do it anyway, so is the Scottish Government just trying to make the best of the situation? It would perhaps be better to be honest and say that this would probably not be happening if the UK Government was not doing it anyway, and that you do not want it to happen, but are just trying to make the best of it.
Finance and Public Administration Committee
Meeting date: 12 September 2023
Ross Greer
Why have we not done so in this case? As far as I understand it—I am not a lawyer, but I have tested this particular area through policy a few times—the Scottish Government could require businesses to commit to paying at least the real living wage in order to qualify for the benefits that it will provide to businesses in the freeport areas, but it is not doing that.