Ports simmering over ‘unresolved’ rates controversy
By Alex Stevenson
A government decision which the shipping industry has warned could force many businesses based around British ports into bankruptcy has been criticised by an influential MP.
Louise Ellman, chairperson of the Commons’ transport committee, told politics.co.uk the government needed to “do more” to help port-based businesses after a dispute over port rates.
These were previously paid by the port operator to the government but, it was announced last year, they would force the various businesses operating as tenants of the operator to pay rates separately.
These rates would be backdated to 2005. The bills, in some cases, were not issued until the end of 2008, leaving some with over three-and-a-half years of liabilities to pay.
Uproar from the shipping industry followed. Representatives warned many businesses, faced with the higher operating costs, would simply shift location to ports on the continent.
The government responded by agreeing businesses to stagger the backpayments over an eight-year period.
While the VOA now views the matter as being closed, many in the shipping industry disagree.
Labour MP Austin Mitchell wrote in a letter to communities and local government minister John Healey last December that many companies would be operating under a competitive disadvantage, trade paper Lloyd’s List reported.
Ms Ellman agrees. “The VOA is a government agency, so I don’t think the government can wash their hands of it. It doesn’t seem to be enough because of the issues of liabilities,” she told politics.co.uk.
“The government has responded but they need to do more. And the current economic climate makes this a particularly worrying situation.”
Last December Mr Mitchell described the retrospective demand as “iniquitous and completely unacceptable”.
