Free Port-imão

The Algarve depends mostly on the tourist industry; in order to achieve growth, it has developed rapidly to the point where the beauty of the coast has been destroyed and the very reason most people come here on holiday is in danger. The Algarve desperately needs to diversify its economy, to open up and widen the market for farm produce and to attract new businesses producing modern, high-tech products. The Algarve does not need heavy industries but it does need to become a centre for innovation, engineering and technological research to encourage the development of new ideas, designs and the creation and manufacture of new products. The Algarve’s version of Silicon Valley.

The people of the Algarve are decent, kind, intelligent and they deserve better. Let’s face it: the Algarve is stuck in a rut. It is somewhat isolated from mainstream markets and lends itself to becoming a free enterprise zone. Such a zone with a very low tax regime, and free and untaxed movement of goods, would provide a haven for businesses all over the world. Consider a foreign company that wishes to start producing a new product that could locate to a place where there is marginal tax on profits, and there is easy free access to world markets with no taxes on exports, only the cost of transport to manage. With persistent marketing by our leaders, there would be a good chance of that company relocating to the Algarve. But wait! What about the human skills required to produce and develop products? Part of the deal in exchange for low taxes would be for the company to train local employees; gradually a high quality bank of workers would emerge, growing greater in concentration. As more companies located to the Algarve and even though taxes were low, local government revenue would rise because of the growth in the economy. Funds for regional universities and academies would become available which would develop research and thus increase the pool of highly qualified scientists, designers and innovators, and the people of the Algarve would begin to be the creators of new innovations and products. The universities could become self- financing by the creation of their own affiliated companies similar to those attached to universities in other countries, and they would compete for and attract funds through the success of their activities. The important thing is to activate minds and expand the collective brainpower in the Algarve.An essential part of the free enterprise zone would be a free port.

Portimão can provide moorings for large cruise ships. It would not take much thought to create a bigger port with docking, offloading and container facilities. Of course, much of Portimão’s infrastructure would have to be redesigned, but once a detailed, long-term plan is formulated, it could be developed in phases as the port activity grows. The port would ideally be a private port, developed with private capital.
The Algarve would be able to plan the manufacturing areas, which would need to be strictly controlled to prevent industrial sprawl. They must not be allowed to sprawl like the tourist industry. Roads and transport must be designed with the swift and efficient movement of people and products in mind.

There would, of course, be non-enterprise zones. The Algarve is blessed with wide open spaces and rolling hills in the hinterland. Here is something that the government could do with the funds generated by a world class economy. Mixed woodlands could and should be created with easy and free access for the public. Country parks and gardens should be established to provide further amenities for local people and visitors. Country parks should offer many pursuits appropriate to the countryside. Country gardens can provide not only an international attraction but also centres for horticulture and research into nature. Some other countries have world renowned gardens; there is no reason why the Algarve cannot achieve the same. The woodland could be financed by local government and the woodland, activities and gardens managed privately, perhaps in some cases under franchises issued by local government, renewable say every five to ten years. Small landowners would become part of these zones. They would manage their own amenity land and be offered grants to introduce accommodation for walkers and cyclists. This is the only grant I would advocate because many of the people involved have insufficient wealth to kick-start a rural and amenity-based economy in the region. The income from the accommodation and perhaps camping facilities would make funds available to landowners to manage their land and have a little surplus; this might help to revitalise the dying hill villages. The woodlands and country parks would be no-car zones. Only foot, cycle or horse-drawn traffic would be permitted. Cars would need to be parked in very carefully located areas.

The Algarve deserves better. Here we can have the best of both worlds. Relaxation in the countryside and on the coast combined with the pace and wealth of a thriving economy. There is little wealth in the Algarve to kick-start a truly modern economy. A free enterprise zone, served by a free port would attract foreign business and investment. This would transform the Algarve and, with careful planning, the unique beauty of the Algarve could be protected while operating a modern high-tech economy. The ancient trading ports of Genoa and Venice and the modern ports of Singapore and Hong Kong are examples of what can be achieved. We must do it better. There would be massive political challenges and obstacles from Lisbon, and those bloated, bureaucratic burgomasters in Brussels, but we would need to inform them this was an experiment in limited regional government versus big central government, free enterprise versus protectionism, freedom versus regulation, regulation and more regulation. We would have the opportunity to show the rest of Europe how to succeed in the world of global industry and trading, competing with the big guns without destroying the beauty of our environment, and perhaps provide a blueprint for Europe’s future.

So, let us free up the Algarve and propel the people on to the sunny uplands of greater common wealth.
Robert Prichard, Silves