Light Dues will still rise
Jesper Kjaedegaard says the Irish subsidy is ‘a bit like asking the users of Heathrow Airport to pay for runway maintenance in Dublin.’
Although the UK Government has softened its April Light Dues hike to 2%, according to Maritime UK this could still cause significant harm to UK trade.
The president of Maritime UK, Jesper Kjaedegaard said, ‘It is very disappointing that Government has not withdrawn this increase altogether.
All the dangers outlined by industry during consultation will remain, and today’s announcement sends out a message that our island nation is not open for business.’
Mr Kjaedegaard added that that this latest announced rise to Light Dues was ‘ill-advised’ in its timing, coming just days before the publication of an in depth report by consultancy firm Atkins. ‘As a result of its haste, government has now adopted a policy that could drive international business away from our country at a time when we need to be doing everything possible to attract it.’
Minister Paul Clark said that he is reducing by 2p the increase in light dues to be paid on and after 1 April so that the rate will stand at 41p per net registered tonne from that time – but this still means an increase for a typical container vessel of some £1,775.
However, the biggest rise took place last year when the rate went up from 35p to 39p per net registered tonne. This was accompanied by an increase in the maximum sum payable for a single port call from £12,250 to £20,500, and resulted in shipping turning away from the UK as the annual fees charged to the largest vessels more than doubled.
Mr Kjaedegaard, in his role as president of the Chamber of Shipping, said the nub of the matter is the need to put an end to the use of this tax to subsidise navigation aids around the Republic of Ireland, saying, ‘It’s a bit like asking the users of Heathrow Airport to pay for runway maintenance in Dublin.’
He pointed out that for a typical Panamax container ship, this tax amounts to £13,650 per call (increasing to £15,425 on 1 April).
The Atkins report was due out as MJ went to press and it may upset some by going too far and others by not going far enough. Government MinisterPaul Clark, however, in his statement to the Commons last week alluded to a number of measures, including the creation of a GLA joint strategic board, the use of an annual target reduction calculator for GLA running costs, and the development of a ‘roadmap’ agreed with the Irish Government on the financing of the Commissioners of Irish Lights.
The Chamber of Shipping says it remains hopeful that the ‘roadmap’ suggested by Paul Clark will give a substantial answer to the lingering Irish question.
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