The issue with the Northern
Ireland Protocol is, and has been from the outset, that two areas with
different regulatory and customs regimes need to have a border between them to
control smuggling and tax and customs evasion. It’s a simple enough concept,
although one which the Brexiteers are still struggling to understand, largely
because many of them actually favour tax evasion and smuggling. Buccaneering,
aka piracy, is what they’ve openly admitted that they want.
But the issue doesn’t just
apply to the question of Northern Ireland – it also applies to so-called freeports.
Logically, there has to be a customs border between any freeport and its
immediate hinterland because two different customs regimes apply; without
controls over what passes across that border, goods imported tariff-free into a
freeport can simply end up in the rest of the UK, potentially undercutting
legitimately imported goods. The proposal
from a group of Tories that the whole coastline of the UK should become a
freeport thus effectively amounts to a demand that the rest of the UK should
become an entirely landlocked customs area. The fact that they are proposing,
effectively, not to police the border doesn’t mean it isn’t there, just that
crimes such as tax evasion, money laundering, and smuggling become easier to
commit. If one of the problems with the border between the Republic and the
North is its length and the number of crossing points, just imagine the consequences of a border which maps the
entire UK coastline, but a few miles inland.
There is certainly evidence
that establishing a freeport promotes the development of industry and jobs
within its area, but there is no hard evidence to suggest that that economic
activity is extra, rather than merely relocated. From the perspective of a
capitalist, who wouldn’t prefer to operate in an area where they pay less tax
and are subject to fewer regulatory restraints? Whether it actually benefits
the economy as a whole, as opposed to only those who can easily relocate their
businesses, is another question entirely. The evidence and experience is not
good, which is why the government of the day – a Tory government – closed down
the UK’s freeports in 2012. There is no obvious evidence that the current crop
of Tories have learned anything from the problems of the past, and every reason
to believe that it’s a get-rich-quick scheme for those prepared to play fast
and loose with the rules.
There is another parallel with
the Northern Ireland Protocol here, though. Those who believe that it is
possible to set up separate customs regimes within a territory without policing
the borders can’t understand why the EU doesn’t see things in the same light. The
EU believes that borders between customs areas should be controlled; the UK
government considers such controls unnecessary. That’s how they want to
implement their promise that the UK outside the EU would pursue a policy of
global piracy, although they preferred the rather vaguer term ‘buccaneering’.
Same thing, though. One man’s criminal is another man’s ‘entrepreneur’; it’s
hard to see how that gap between perspectives can ever be bridged.