Agenda item

73/21                    

The Council considered a report which provided an update on the Plymouth and South Devon Freeport Business Case and information on the associated financial modelling.

In discussion, reference was made to:-

(a)      the following amendment was PROPOSED and SECONDED:

‘That part 3b of the recommendation be deleted and a new part 6 be added as follows:

6.    The approval of the Articles of Association and Reserved Matters for the Freeport Company, Member agreements between South Hams District Council (SHDC), Plymouth City Council (PCC); and Devon County Council (DCC) and other relevant legal agreements be determined by Council.’

In introducing his amendment, the proposer set out the significance of the Freeport initiative and felt that this was such that it warranted the Articles of Association and Reserved Matters for the Company being determined by Full Council as opposed to a senior officer under delegated authority.

Whilst this view was shared by some Members, other Members stated their lack of support for the amendment and made reference to both the operational nature of the Articles of Association and Reserved Matters and the ability for Members to influence their content (via the delegated authority) before any final decision was made.

When put to the vote, the amendment was declared LOST;

(b)      the importance of apprenticeship opportunities.  A Member echoed the comments made at the Special Executive Meeting earlier in the day (Minute E.97/21 refers) whereby the Freeport initiative would lead to a number of direct benefits in relation to the provision of skilled labour opportunities and that this should be strongly encouraged and welcomed;

(c)       the initiative representing a great opportunity for the Plymouth and South Devon area.  Members highlighted the extent of the opportunities and far reaching benefits that would be generated through this initiative.  Whilst some Members wished to record their opposition to the Freeport concept, they also advised that they recognised the potential benefits for the South Hams in this instance and were therefore supportive of the recommendation.

It was then:

RESOLVED

1.      That South Hams District Council’s full participation in the Plymouth and South Devon Freeport be approved;

2.      That approval be given to the formation of a company limited by guarantee and for South Hams District Council (SHDC) to be a founder member alongside Devon County Council (DCC) and Plymouth City Council (PCC) to operate the Freeport;

3.      That authority be delegated to the Director of Place and Enterprise, in consultation with the Leader of the Council, lead Executive Member for Economy and Section 151 Officer to:

a.      submit the Full Business Case (FBC) for the Plymouth and South Devon Freeport;

b.      approve the articles of association and reserved matters for the Freeport company and enter into member agreements between SHDC, PCC and DCC, and other relevant legal agreements;

c.      enter into the business rates retention sharing agreement with DCC, as set out in 4.22 to 4.24 of the published agenda report;

d.      enter into land owner agreements aligned to Freeport objectives; and

e.      acquire land at Langage to deliver Freeport objectives;

4.      That borrowing of up to £5 million be approved from the Public Works Loan Board (funded from the retained business rates income generated), at such time as is advised by the Section 151 Officer, to match fund the Freeport Government seed funding relating to the delivery of the Langage site; and

5.     That funding be utilised from the SHDC Business Rates Retention Earmarked Reserve in 2022/23 (£6,000) and 2023/24 (£57,000) to provide upfront funding to the Freeport, which will then be repaid in 2024/25 from the retained business rates income generated from 2024/25 onwards.