Private Eye Attacks the Tories’ Stupid and Damaging ‘Free Ports’ Policy

Eight days ago on 12th February 2020, Mike put up a piece criticising the Tories’ great new wheeze for invigorating Britain’s economy. They want to set up ten ‘free ports’ after Brexit, in which there will be no import/ export tariffs on goods if they aren’t moved offsite. No duty is paid, if these goods are re-exported, so long as they don’t come into the UK. Similarly, no duty will be paid on imported raw materials if they are processed into a finished product, provided that these aren’t then move to the rest of Britain.

Mike comments

No doubt the businesses involved in taking raw materials, processing them and re-exporting them would have their head office based in a tax haven.

So, who benefits? The UK economy won’t!

See: https://voxpoliticalonline.com/2020/02/12/who-will-profit-from-post-brexit-freeports/

This is exactly the same point made by Private Eye in its latest issue for 21st February to 5th March 2020. In its article, ‘Unsafe Havens’, the Eye says

Given Rishi Sunak’s background in offshore finance, it’s no surprise he will soon be turning parts of the UK into tax havens. Just three days before last week’s promotion, the eager-to-please Sunak launched hi spet policy for freeports around the UK.

He first pushed the plan as a relatively new MP in a 2016 paper for the right-wing Centre of Policy Studies. Now he has his hands on the tax controls and can do whatever it takes to entice major investment in the zones (ie big tax breaks and few questions asked).

At this point, warnings from the EU begin to sound ominous. Although Sunak claimed that freeports, which exempt imports from various taxes and tariffs in great secrecy, weren’t possible within the EU, there are in fact 82 of them. But the EU has found they do far more harm than good. And on the very day Sunak launched his consultation promising to “unleash the potential in our proud historic ports, boosting and regenerating communities across the UK as we level up”, the European Commission was clamping down on freeports yet further, pointing to a “high incidence of corruption, tax evasion, criminal activity”.

Even Sunak innocently asks in his consultation: “In your view, are there any particular tax policies that you think could increase the risk of tax avoidance or tax evasion activity being routed through a freeport?” To which the correct answer is: yes, the freeport policy itself.

I was immediately suspicious of this policy, because it looks like an attempt to copy the Chinese ‘Special Economic Zones’. These are islands of unrestricted capitalism in certain provinces, where there are very low taxes and, I believe, employment rights for workers. They have helped to turn the country into an economic superpower, but the cost is immense. There is massive worker exploitation, and there have been well-publicised cases of employees at various companies, who have committed suicide because of their ill-treatment. So much so that one company responsible for extremely poor working conditions put up suicide nets around one of its factories in order to catch staff trying to end their lives but jumping off. China’s an extremely authoritarian state, but there are rumblings of discontent from its impoverished and exploited workers and human rights activists.

Way back in the late 19th and very early 20th century a nasty term, ‘Chinese slavery’, was applied to conditions like this. Part of the impetus in the formation of the early Labour Party was the fear among British workers that the government was going to force them into similar conditions.

The Chinese shouldn’t have to work in such exploitative environments, and neither should Brits – who include people of Chinese descent, who have been here for generations. This is yet another nasty, exploitative idea from a nasty exploitative party, which feels that the workers, whether White, Black or Asian, should be forced into conditions of near slavery.

While they enjoy the profits funneled through tax havens.

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One Response to “Private Eye Attacks the Tories’ Stupid and Damaging ‘Free Ports’ Policy”

  1. A6er Says:

    Reblogged this on Tory Britain!.

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