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It is incredibly important. A range of material has been published on the UK Government website, setting out various aspects of the criteria. Laura Duffy, do you want to go through what has already been made available and what is forthcoming?

I will make some broader points in a moment. Laura Duffy can speak about our specific engagement with the UK Government on the design of the prospectus and bids and on money laundering and security issues.

I will ask for an update to be provided to the committee as the OBCs progress and green freeports come online in order to provide additional confidence that robust processes are in place.

I know that you will recognise from your work in this Parliament and at Westminster that much of what you touch on sits in the reserved domain. That should not be a barrier to us seeking to do all that we can, but we have to recognise where the limitations lie. Seeking to apply property taxes and transaction taxes, for example, in a way that they are not inherently designed to apply can lead to unintended consequences and can work against the broader objective of ensuring parity with sites elsewhere in the UK, so that we remain competitive in the process.

On your specific request for an update, I will ask for that to be provided to the committee on the points that you and Mr Greer have raised.

I referred to local government’s statutory responsibilities under the planning system. When development will have an impact on infrastructure, the planning system has mechanisms to ensure that contributions are made, such as section 75 agreements. As the process develops and unfolds, and as we see the additional development that we want, there will be broader consideration when developments go through the planning process for approval, and the impact on infrastructure will be considered. It will be for local authorities, working in partnership, to determine as part of that process the appropriate mitigations and adaptations that are required and the additional infrastructure that needs to be in place.

Specifically on LBTT, as I referred to earlier and as one would expect, monitoring will be done by Revenue Scotland and data will be published. In addition, LBTT revenue can accrue following the end of the exemption period, given that development that takes place now can enable and facilitate future development. You could almost say that LBTT could wash its own face in that regard, before we consider the broader impact of tax.

The monitoring and engagement of each of the freeports will assist us in identifying the level and type of job creation and the type of economic activity that is taking place. Laura, do you want to add anything about the economic impact?

The rationale that I have sought to set out, specifically on LBTT, is that they are sites that would otherwise not be developed. They would remain as they are, or underdeveloped. The intention of the incentive, beyond the points that I made about parity with the UK freeport model, is to incentivise investment in sites where development would otherwise not take place.

A trickle-down approach relates to things that would otherwise take place through alternative models or vehicles. It is also predicated on the notion that people on high incomes will spend their money in ways that are economically, socially and environmentally impactful rather than hoard it in assets or offshore.

It is about getting investment on the ground and development of land in Scotland that would otherwise not be developed or not be developed to its full potential.

The tax designation sites are very specifically drawn, with clearly defined boundaries. Clearly, overall, green freeport sites are chosen for a number of reasons, against criteria, but place is an important part of that. Those sites in particular parts of Scotland will have comparative advantages, but we are seeking to remove barriers to investment that would perhaps not take place elsewhere but that can take place at those sites if those barriers are removed. Again, on the point about displacement, there is potential investment that would not necessarily take place were the reliefs not in place.

I am not going to try to outthink the SFC on this and say exactly that. The point that I am making is that, if we adduce the evidence that is available—the past revenue from leases as a proportion of overall LBTT, and the assessment in the SFC’s May 2023 “Scotland’s Economic and Fiscal Forecasts” that the relief would fall below the materiality threshold—we find that we are talking about a relatively small amount of money compared to overall LBTT revenue, never mind the whole of devolved and semi-devolved tax revenue. However, that is not to say that the relief does not translate into a meaningful impact on individual transactions that can positively influence commercial and investment decisions.

No, we do not, which is why I referred to the general avoidance principles that Laura Parker touched on when she commented on that area. Today, we are considering the LBTT order, which seeks to incentivise development that would not otherwise have taken place—

I would point to our broader programme of infrastructure investment, which has been set out. The committee will recognise the challenges that we face with regard to our capital budget and the challenges of delivering projects due to cost inflation, which is an issue that is not unique to Scotland; it is having an impact right across the UK and in many countries. Therefore, there is that broader framework. Our capital spending will be kept under review with regard to timing and the phasing of what is feasible within the capital that is at our disposal and the cost of projects. Parliament is well versed in that from engaging with specific capital project issues.

With regard to the particular sites of the green freeports, clearly there will be interaction with broader projects such as the example that you cited of the A9. I have already touched on the point about specific local impacts and we will continue to have that dialogue and engagement to understand any issues as they emerge.

I should also note that, for each of the two sites, there is the seed capital funding that I referred to earlier, which will be available once the sites are active and online.