At the Treasury Committee hearing on Wednesday 15 October, under strong questioning from the sub-committee chairman Michael Fallon MP, John McFall MP and Nick Ainger MP, the chief executive of the Valuation Office Agency (VOA) Andrew Hudson, admitted that the VOA had failed to carry out the revaluation of ports needed to implement the new system of rating ports by 1 April 2005 when the new system was introduced.Nick Ainger MP put it to Mr. Hudson that the VOA, ‘were aware that this revaluation had to take place on 1 April 2005 and you have just told us ten minutes ago that you are still four short of the 55 ports that you are supposed to have revalued by 1 April 2005.’ In reply Mr. Hudson admitted, ‘Of course, we knew about the changes of legislation in good time.’
Despite knowing of the change to the system five years before it was to come into effect the VOA have not yet completed the process of revaluation needed to implement the new system, three and half years after the due date. Some port businesses do not yet know whether they will receive rates demands that will make them insolvent.
Mr. Hudson also admitted that by relying on the statutory port operators to inform port businesses of the revaluation needed to implement the new rating system, the VAO had failed to make sure that businesses were fully aware of the revaluation. He said, ‘I appreciate that this has come as a surprise to occupiers’ and ‘with the benefit of hindsight, there’s a lesson to be learned, please God this doesn’t come up again, we would seek to improve our communication with the occupiers as well as operators.’
The VOA Director of Rating, David Tretton, also admitted, ‘We should have done more investigative work’ to implement the new system. Michael Fallon MP agreed, saying, ‘You’ve failed to investigate it properly.’
John McFall MP told Andrew Hudson, ‘If you’re going to put demands on individual entities, then you really have a responsibility to be aware that these entities know about that.’ In concluding the meeting, he addd, ‘I want you to go back to the relevant Ministers and tell them that the Committee wants to get a letter from them on this so that we can plot a way forward. It will remain as a pending item on the agenda until we get a satisfactory outcome.’
Andrew Finfer, partner with Schofield Sweeney Solicitors and legal adviser to the businesses campaigning for fair port rates, outlined the next stage of action for port businesses.
‘This issue must now be dealt with by Ministers. John Healey, the Minister in the Department for Communities and Local Government and Stephen Timms, Financial Secretary to the Treasury must remove the threat to the livelihood of port businesses and their employees, to the local communities dependent on the ports and prevent damage to an industry vital to the national economy at a time of economic recession. A fair and consistent system of rating should be introduced at the time of the next rating revaluation in 2010.’
He added, ‘It was clear that the VOA had no understanding of the economic damage caused by their actions. We are urging all affected businesses to write to John Healey MP, Stephen Timms MP, Michael Fallon MP, John McFall MP and Nick Ainger MP to inform them of the damage that has been caused to their businesses by the current rating revaluation and that will be caused if the VOA continues its actions.’
For further information visit www.fairportrates.co.uk
