BCP Labour Party is strongly opposed to the proposal to put in a bid to government for Freeport status to cover the Port of Poole, Bournemouth Airport and the Aviation Business Park.
This follows the Cabinet meeting that was held on December 16 to discuss the proposal.
Freeports and special economic zones, featuring as enterprise zones in Dorset, are areas which lie outside the UK’s main tax and tariff rules.
According to the Labour party, Freeports lack "oversight and regulations, based on the claim that absence of such regulations would attract investment and new businesses."
Councillor, Lewis Allison said: "This proposal will do nothing to benefit working people in BCP. The claim made by government and Councillor Mellor about the positive economic benefit of these zones are fictional. The damage caused to council income, wages and job security for local workers, and to existing small and medium businesses in BCP will be catastrophic."
Labour said: "Academics, economists, and policy research units have examined the government’s Freeport plans and concluded there will be little to no economic benefit or new job creation; not for the BCP conurbation or elsewhere in the UK."
Labour state that the likely outcome will be that those existing businesses who can afford an office in a Freeport will relocate there to take advantage of lower tax rates, especially so waivers of business rates that benefit local councils.
According to the party, this will result in the creation of low paid and unstable jobs that offer no new skill sets for local workforces and these zones will become "tax havens of various kinds."
Labour added: "Zones at airports and ports are also prone to attract criminal activity including money laundering, drug trafficking and arms trade."
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